Car Insurance Discounts for California Drivers

The average annual cost of car insurance in California is $146, higher than the national average of $138. Fortunately, drivers can lower their rates by seeking out discounts. When you take risk-mitigating efforts or save your insurer money, those savings pass onto you.

Many of the same discounts are available to drivers nationwide, but some apply specifically to California drivers. For example, companies may partner with California-based affiliation groups to offer drivers discount opportunities.

Here’s what you need to know about car insurance discounts in California.

Car insurance discounts for California drivers

Golden State drivers usually see higher rates on their car insurance policies. Discounts can help manage your costs. Some ways to access these savings include being in a professional association, being a university alum, or working a specific job.

Membership discounts

California members of certain professional organizations may qualify for exclusive savings. Some of these organizations include:^[?]

• California Association for the Education of Young Children: Enrolled professionals in early childhood education can get a discount through GEICO.

• American Bar Association (ABA): ABA members can access special savings through Travelers.

• California Medical Association: Medical professionals in this organization can save up to 8.2% with Mercury.

• AARP: AARP members 50 years or older qualify for a discount through The Hartford, saving an average of $577 per year on their car insurance policies.

Alumni discounts

Car insurance companies also pass bargains to California university students and alums. Some participating institutions include:^[?]

• University of California, Berkeley: Berkley alums can save on car insurance through Farmers.

• Stanford University: Stanford graduates can enjoy discounted rates through Farmers.

• University of Southern California (USC): USC offers savings to alums through the Association Member Benefits Advisors (AMBA).

• AAA-affiliated alums: If you attend a four-year college or are a university alum in California, AAA may reward you with a 7.4% discount.

Occupational discounts

Insurance companies may see some occupations as “low-risk” based on typical driving behaviors or lifestyle habits. Examples include scientists, teachers, artists, and engineers. If you work in one of these jobs, you may get a discount on your car insurance policy. Insurers also offer savings as a token of appreciation to civic servants.

Here are a few examples of companies that do:

• GEICO: Federal employees ranked GS-7 or above qualify for the Eagle discount, and military-affiliated members can also earn reduced rates through GEICO.

• AAA: Professionals in specific industries, such as engineering, healthcare, and education, can save up to 7.4% on their car insurance policies.

• California Casualty: This California-based car insurance company provides special benefits and discounted rates to firefighters, educators, law enforcement, and medical professionals

Car insurance discounts available to all drivers

Car insurance companies offer a wide variety of discounts to drivers nationwide. For example, most drivers need multiple insurance products, so you’ll commonly see a multi-policy discount. While you’re in the insurance-buying process, it’s important to ask an agent about what you qualify for because some discounts may not be advertised.

Driver-specific discounts

Your insurance company may grant discounts for low-risk behaviors. For example, if you have a clean driving record, your insurer may apply a safe driver discount to your insurance policy. These can even apply to “off-road behaviors.” For instance, students can get a discount for getting good grades in school.

The table below shows common discounts, who’s eligible, and the potential savings.

Discount	Who Is Eligible	Savings
Military	Active-duty military members, veterans, and those on emergency deployment	15%–25%
Safe driver	Policyholders who remain accident- and violation-free (terms vary by insurer)	Up to 22%
Good student	Student drivers who maintain good grades (typically a B average)	10%–15%
Defensive driving course	Policyholders who complete an approved defensive driving course (terms vary by insurer)	About 5%
Student-away-from-home	College students who live at least 100 miles away from home with no access to their vehicle	Varies
Homeowners	Policyholders who own a home	Varies
Low-mileage	Policyholders who drive less than a certain amount of miles per policy period	Varies

Vehicle-specific discounts

Insurers offer discounts based on your car’s features. For example, if your car has a security or safety feature (think airbags or car alarms), you probably qualify for a discount.

The table below shows common vehicle-specific discounts, who qualifies, and how much you’ll save.

Discount	Who Is Eligible	Savings
Passive restraint	Drivers with a factory-installed safety feature, like airbags	30%–40%
Anti-theft	Drivers with security systems or features on their car, like car alarms	Up to 23%
New vehicle	Policyholders with a car newer than a certain model year	15%
Anti-lock brakes	Car owners with anti-lock braking systems	5%
Electric or fuel-efficient vehicles	Owners of electric or hybrid vehicles	Varies

Policy and insurer-specific discounts

Insurance companies offer miscellaneous discounts that don’t consider your car or driving behavior. Some of these have to do with the way you buy, manage, or pay your policy. Participating and enrolling in a company’s telematics program can also earn significant savings.

The table below lists policy and insurer-specific discounts, who qualifies, and how much you’ll save.

Discount	Who Is Eligible	Savings
Telematics	Policyholders who enroll, track their driving, and practice safe driving habits	10%–30%
Multi-car	Policyholders who insure two or more cars with the same car insurance company	7%–25%
Bundling	Policyholders who purchase multiple insurance products, like auto and home insurance, with the same insurance company	7%–25%
Loyalty	Policyholders who renew their coverage with the same insurer for a certain number of years	Varies
Pay-in-full	Policyholders who pay their entire insurance premium at the start of their policy term	Varies
Paperless	Policyholders who opt in to digital instead of mailed communication	Varies
Early shopper	Policyholders who get a quote before their current policy ends	Varies

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Cheapest insurers for California drivers

California car insurance costs $146 per month, higher than the national average. It’s also more expensive than in neighboring states, like Arizona and Oregon, but less expensive than Nevada.

Rising costs will continue in 2025 due to the raised minimum limits effective Jan. 1, 2025. But the good news is you can still find cheap car insurance by shopping around. The table below shows affordable rates from popular car insurers in California.

The below rates are estimated rates current as of: Friday, October 31 at 5:00 PM PDT. 

Insurance Company	Average Quote: Liability Only	Average Quote: Full Coverage
USAA	$81	$186
National General	$89	$260
Sun Coast	$93	$233
Dairyland	$94	$336
Mercury	$101	$194
Root	$102	$187
Allstate	$112	$257
GEICO	$114	$206
Farmers	$116	$264
Direct Auto	$117	$311
Anchor	$118	$194
Bristol West	$121	$285
State Farm	$125	$286
Travelers	$131	$301
21st Century	$143	$327
Nationwide	$176	$403
Chubb	$223	$510

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

How to find cheap car insurance in California

You don’t always have to sacrifice coverage to get affordable rates. Here are some ways you can save on your policy:

How much car insurance do you need in California?

California drivers must carry at least the state-mandated minimum coverage. This includes coverage for the other driver’s property damage and medical expenses in an accident you cause. The minimum required car insurance is as follows:^[?]

• Bodily injury liability: $30,000 per person, $60,000 per accident

• Property damage liability: $15,000 per accident

Minimum coverage protects the other driver if you cause an accident. But if you can afford to, getting a more robust policy is a good idea to protect yourself. Common additions include collision and comprehensive insurance, medical payments coverage, and uninsured/underinsured motorist coverage.

Car insurance discounts in California FAQs