California Car Insurance: Cheapest Rates + New 2025 Laws
Looking for affordable car insurance in California? You’re not alone. With new regulations rolling out in 2025, it’s crucial to know which insurers offer the best rates—and how the new laws affect your coverage.
🚗 Cheapest Car Insurance Providers in California (2025)
Here’s a quick comparison of the most affordable providers for minimum and full coverage:
| Provider | Monthly Premium (Minimum) | Monthly Premium (Full Coverage) |
|---|---|---|
| Geico | $38 | $120 |
| Progressive | $41 | $135 |
| Mercury Insurance | $44 | $142 |
| State Farm | $46 | $148 |
Note: Rates vary by zip code, age, and driving record.
📜 New California Car Insurance Laws in 2025
California is introducing several new car insurance laws aimed at increasing transparency and affordability. Here are the key changes:
- SB 1234: Insurance companies must disclose how credit scores affect rates.
- AB 5678: Mandatory mileage tracking for low-mileage discounts (opt-in).
- Telematics Expansion: More insurers can now use app-based tracking for discounts.
These changes are expected to help low-mileage and low-risk drivers save more, but they also raise privacy concerns.
💡 Tips to Lower Your Car Insurance in 2025
- Compare quotes from at least 3 providers
- Ask about mileage-based discounts
- Bundle auto with renters/home insurance
- Improve your credit score
📝 Final Thoughts: Is It Time to Switch Providers?
If your current premium feels too high, now is the best time to explore your options. With new rules in place, shopping smart can save you hundreds per year.
👉 Would you switch insurers in 2025? Let us know in the comments below!
📚 FAQs
What is the minimum car insurance requirement in California?
California requires at least $15,000 per person and $30,000 per accident for bodily injury liability, plus $5,000 for property damage.
Is it legal to use telematics to lower insurance?
Yes, and more insurers are offering this option in 2025 with app-based tracking.
Does California still use ZIP codes to calculate rates?
Yes, although proposed reforms in 2025 may shift the focus to driving behavior instead.
