Low-income car insurance in California: What you need to know

California government car insurance for low-income drivers

Low-income drivers can apply for California's Low-Cost Auto Insurance Program to get affordable car insurance and meet legal requirements.

The requirements for the California low-income program are:

Have a valid California driver’s license.
Meet income eligibility guidelines based on the number of people in your household. For a family of four the maximum income is $78,000.
Own a vehicle worth $25,000 or less.
Be at least 16 years old, and, if under 18, legally emancipated
Have a clean driving record or be a new driver

The program's rates vary based on factors such as your county and age. You can purchase coverage through any participating insurance agent or apply online.

The minimum car insurance requirements in California are as follows:

Minimum liability coverage limits	15/30/5
Average annual premium	$551
Other types of insurance required (if any)	-

Data updated in 2024

Read our methodology

Remember that if you have a loan on your car, you’re required to carry full coverage, which includes collision and comprehensive.

Best low-income car insurance in California

Geico came out on top as the best pick for low-income car insurance.

People on a tight budget still deserve great service from their car insurance company. We gathered the data on the top car insurance companies in California and compared them on rates for state-minimum coverage, financial stability and customer satisfaction based on J.D. Power and National Association of Insurance Commissioners (NAIC) scores.

These are the best low-income car insurance companies in California.

Company	Average annual premium	J.D. Power	AM Best	NAIC	Insurance.com score
Geico	$367	830	A++	0.91	4.02
Progressive	$433	809	A+	0.65	3.75
State Farm	$569	826	A++	0.7	3.65
CSAA Insurance (AAA)	$457	822	A	0.75	3.62
Travelers	$629	810	A++	0.49	3.51
Mercury Insurance	$458	794	A	0.84	3.36
Nationwide	$712	794	A+	0.64	3.15
Allstate	$717	816	A+	0.65	3.15
Farmers	$774	810	A	0.8	2.91
Auto Club Enterprises (AAA)	$623	832	A+	2.21	2.77
Kemper Insurance	$492	736	A-	2.16	2.18

Data updated in 2024

Read our methodology

Cheapest low-income car insurance in California

Based on state-minimum coverage, we found that the cheapest car insurance company in California is Geico at an average rate of $367 a year.

Price is the number one consideration when working with a tight budget. We gathered rates from car insurance companies in California to find the cheapest options on average.

Company name	Average annual premium	Average monthly premium
Geico	$367	$31
Progressive	$433	$36
CSAA Insurance (AAA)	$457	$38
Mercury Insurance	$458	$38
Kemper	$492	$41
State Farm	$569	$47
Auto Club Enterprises (AAA)	$623	$52
Travelers	$629	$52
Nationwide	$712	$59
Allstate	$717	$60
Farmers	$774	$64
USAA	$410	$34

Data updated in 2024

Read our methodology

People ask

What can I do if I can't afford car insurance in California?

If you can't find affordable car insurance in California, try working with a local agent who knows the market and some of the smaller insurance companies available. Consider a usage-based program to reduce costs, reduce coverage, drive less and ask about additional discounts.

Car insurance discounts for low-income drivers in California

Discounts are the best way to bring down your car insurance rates. There are a number of discounts low-income drivers in California can take advantage of for cheaper insurance. Take a look at some common discounts and how much you can save below.

Discount type	% Discount
Years Licensed	41%
Lower Annual Mileage	12%
Loyalty - Years Renewal With Company	11%
Years Insured	9%
Primary Use	9%
Multi Policy	9%
Marital Status	9%
Telematics	5%
Safety Devices	3%

Data updated in 2024

Read our methodology

Methodology

Insurance.com commissioned car insurance rates from Quadrant Data Services in late 2023 for state minimum car insurance policies across all states. Rates are based on a 40-year-old driver with a clean driving record and good credit, driving a Honda Accord LX. We compared rates from 170 companies across 35,488 ZIP codes.

Source:

California’s Low Cost Auto Insurance. "Who Qualifies?” Accessed August 2024.

Low-income car insurance in California: Frequently asked questions

What is the cheapest car insurance company for low-income people?

In California, Geico is the cheapest car insurance company with the average rate of $367. However, that’s based on average rates and may differ for you, so it’s important to shop around.

Does California have car insurance for low-income individuals?

Yes, California has a car insurance program for low-income individuals. It’s called California's Low-Cost Auto Insurance Program.

What happens if I can't pay my car insurance?

If you don't pay your car insurance bill, your car insurance will be canceled and you won't have coverage. If you can't pay your car insurance bill, contact your insurance company before the bill is past due to see if you can make arrangements for payment.