Drivers who buy or lease a vehicle in California often have to pay full coverage under the terms of their car leases or loans. Full coverage includes comprehensive, collision and liability insurance. You will be covered for car accidents, as well as for losses caused by vandalism, extreme weather conditions, fire, or theft. Car insurance isn't required in California, but it's the most common and simplified way to meet the financial responsibility requirement to drive legally.
While car insurance is the easiest way to meet the financial responsibility requirement, you can choose an alternative form of coverage. ValuePenguin reports that GEICO is the most affordable car insurance option for most California drivers. According to Consumer Watchdog, California has banned insurance companies from using credit history to calculate auto insurance quotes. If you qualify for a policy through the California Low-Cost Auto Insurance Program (CLCA), you can purchase car insurance with lower limits and still comply with state auto insurance laws.
This information is not an insurance policy, does not refer to any specific insurance policy, and does not modify any provision, limitation, or exclusion that is expressly stated in any insurance policy. Collision coverage helps cover damage if your car has an accident with another car or stationary object, such as a tree. This type of policy covers the difference between what you owe for your auto loan and the value of your vehicle if the total of your car is less than the insurance company's remaining balance. Whether you're driving through the majestic Redwoods or navigating the mountainous terrain of San Francisco, Progressive has you covered if you're looking for great car insurance in California.
California doesn't allow insurance companies to use your credit score to calculate auto insurance rates. The CLCA program aims to provide affordable car insurance for safe drivers whose family incomes are within federal poverty guidelines. Learn more about California car insurance minimums, available coverages, and discounts to keep your insurance costs low. Bankrate has compiled a list of the largest insurance companies in California, including Allstate, American Family, Farmers Insurance, GEICO, Nationwide, Progressive, State Farm, Liberty Mutual, USAA and Travelers Insurance.
Drivers in California have many car insurance options and should compare the rates of local and national companies to get the best car insurance rates with full coverage.