When people go through the list of auto insurance companies we’ve written about in the past and their average cost of car insurance, they can’t help but wonder why auto insurance in California is so expensive.
While we can’t say there’s an exhaustive answer to that but one thing we know is that there are more Blue-chip companies in California than other parts of the U.S. Low-cost auto insurance companies you can find in California are few.
Currently, we have more than 50 top auto insurance companies based in California. This has made it extremely cumbersome for people to know which insurance company to buy coverage from. The best auto insurance companies in California will be covered in this article.
But you know, what? In this article, we are not only going to list out the various auto insurance companies in California, we will go a step further to give you a comprehensive list of the cheapest auto insurance companies and their rundown in terms of market share.
Amongst many factors that made these auto insurance companies distinct is that each company offer very unique benefits and services.
While most people are familiar with Allstate, Geico, Progressive and State Farm Insurance, there are many other top auto insurance companies in California many drivers probably may not have heard nor worked with. Of course, they are still considered to be among the best auto insurance companies in California.
This is probably going to be the best automobile insurance reviews you’ve ever come across.
Comprehensive List of Top Auto Insurance Companies in California
1. Interinsurance Exchange of the Automobile Club and AAA Northern
Interinsurance Exchange of the Automobile Club and AAA Northern are two companies that combine to service AAA members in California.
Interinsurance Exchange of the Automobile Club serves AAA members in Southern California, while the AAA Northern services AAA members in Northern California, hence the name.
These two auto insurance companies are considered to be the second- and third-largest auto insurers in California. Coming together, they combined to form the largest California auto insurer, with a market share of 15.73%.
Interinsurance Exchange of the Automobile Club and AAA Northern which is considered to be one of the best auto insurance companies in California offer residents cheaper insurance than the larger insurance companies. However, to purchase insurance through AAA, a person’s license can’t be less than three years old, and you cannot have a speeding ticket or an at-fault accident in the past three years. That makes it stricter to get in, right?
2. State Farm Insurance
State Farm Insurance is considered to be the second-largest auto insurance company in California. State Farm Insurance takes a market share of 14.4% in California.
Beyond the basic insurance coverage, State Farm also offers classic car insurance and antique coverage quotes through their agents. State Farm is one of the top-rated car insurance companies in the United States.
According to popular record, State Farm is known to be one of the California-based insurance company with a very low complaint ratio, making it one of the best auto insurance companies in California and is large enough to provide insurance options to fit almost any driver’s needs.
3. Allstate Insurance
Allstate Insurance is the third-largest auto insurance company in California, with a market share of 6.7%. Allstate insurance affiliate program has made a lot of insurance agents and bloggers rich.
While the company offers a range of policies, Your Choice Auto is the most popular policy that Allstate issues. In addition, the company offers special insurance for expensive and luxury cars, such as Ferraris.
4. Mercury Insurance Group
As a leading auto insurance provider in the United States, Mercury Insurance Group is the fourth-largest California auto insurance company, with a market share of 6.5%.
Mercury Insurance Group is known for selling reasonably priced auto insurance. One more thing that sets them apart from other insurance companies based in California is their great customer service. This is evident in their track record of very few justified complaints.
Mercury’s justified complaint ratio is the lowest among California auto insurance companies, making it the best California auto insurance company in terms of customer service. Using this strategy, their agents have continued to legally steal clients from their competitors.
5. Mid-Century Insurance Company
Mid-Century Insurance Company is a subsidiary of the Farmers Insurance Exchange. With a market share of 5.7%, Mid-Century is the fifth-largest auto insurance company in California. However, the company operates as a non-standard high-risk insurance company. Mid-Century specializes in insuring people who have more than one at-fault accident or too many speeding tickets.
While Mid-Century Insurance might be a good option for people who qualify for high-risk insurance, its premiums are fairly high. However, with a safe driving discount of up to 9% and a good driver discount of as much as 20%, even drivers who are looking for standard insurance should consider Mid-Century.
6. 21st Century Insurance Company
21st Century Insurance Company is a wholly owned subsidiary of Farmers 21st Century Insurance Company. The company specializes in insuring luxury cars, such as Ferraris and Jaguars, and it has a 3% market share within California.
The company offers a superior driver discount of as much as 10% if a driver is accident-free for four years. If a driver is accident-free for more than five years, that superior driver discount increases to 20%. However, the average insurance premium is slightly high when compared to other companies in California.
7. Access Insurance Company
Access Insurance Company is a popularly known specialty auto insurance company with a market share of about 2% in the state of California. Access Insurance Group are known for offering cheap auto insurance for basic cars as well as comparatively cheap auto insurance for more expensive cars, such as BMWs.
Who Are the Cheapest Auto Insurance Companies?
Let’s look at an exhaustive list of the cheapest, low-cost car insurance companies you can find in the United States.
Starting from the demographic profiles of an 18-year-old teenager to a 60-year old woman, USAA offer auto insurance coverage for everyone. It is considered to be the cheapest car insurance company with the lowest average national rates of $2,537.
- Geico Insurance
GEICO Insurance is considered to be the second cheapest auto insurance company you can find in the USA. Geico has an average annual rate of $3,215. If you have just one accident record, purchasing Geico insurance coverage will be a lifesaver for you. It is a unique way to save on your auto insurance coverage.
- State Farm
This Illinois-based insurance company is believed to be the third-cheapest car insurance company, with national average rates of $3,260. If you are an insurance agent looking for a reliable company you can recommend to your clients, we encourage you think about State Farm. With a 18.3% market share (the largest so far) they have proven to be a reliable firm over the years.
- American Family Insurance
This briefly nicknamed, AmFam is a Wisconsin based auto insurance company that started in 1927. Statistics had it that there were about 11,307 employees working with AmFam in 2017. American Family Insurance has the fourth cheapest national average car insurance rates of $3,443 per year.
- Allstate Auto Insurance
In the past, we wrote about how to use Allstate calculate auto loan calculator to know which vehicle is within your means. Based on our finding, we discovered that Allstate Insurance with a market share of 10% has an average car insurance rate as high as $4,887 per year. They pay their agents and insurance bloggers a whopping sum of $8 per lead if you work with then an affiliate.
Full List of the Largest Auto Insurance Companies in the U.S. Based on Market Share
- State Farm, 18.3%
- Berkshire Hathaway, Inc. (Geico), 11.4%
- Allstate, 10%
- Progressive, 8.8%
- Farmers Insurance, 5.3%
- USAA Insurance, 5%
- Liberty Mutual, 5%
- Nationwide, 3.7%
- American Family, 1.9%
- Travelers, 1.7%