Auto Insurance Companies Pulling Out of California
Auto insurance companies, including Allstate and Farmers, are pulling out of California. California auto insurance annual rates have risen an average of $150 each year due to increased claims and weather-related risks. Fortunately, Geico still sells cheap California car insurance for $33/mo.
Read more
Secured with SHA-256 Encryption
Table of Contents
Table of Contents
Feature Writer
Rachel Bodine graduated from college with a BA in English. She has since worked as a Feature Writer in the insurance industry and gained a deep knowledge of state and countrywide insurance laws and rates. Her research and writing focus on helping readers understand their insurance coverage and how to find savings. Her expert advice on insurance has been featured on sites like PhotoEnforced, All...
Rachel Bodine
Licensed Auto Insurance Agent
Daniel Walker graduated with a BS in Administrative Management in 2005 and has run his family’s insurance agency, FCI Agency, for over 15 years (BBB A+). He is licensed as an insurance agent to write property and casualty insurance, including home, life, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. To ensure our content is accura...
Daniel Walker
Updated January 2025
- Major companies like Allstate and Farmers are leaving CA
- Increased claims and weather have made business less profitable
- CA auto insurance rates have risen to offset claims
With claims increasing and severe weather risks, there are numerous auto insurance companies pulling out of California. The companies that do stay to sell California auto insurance have higher rates, making it harder to find cheap insurance.
Read on to learn more about which companies are leaving California and which companies are staying. If you want to find rates with a more affordable California company today, enter your ZIP code into our free quote tool.
List of Auto Insurance Companies Leaving California
Several well-known auto insurance companies are departing CA, as well as several smaller companies. Below, you can see a complete list of auto insurance companies leaving California.
Insurance Providers That Stopped Offering Coverage in California
| Insurance Company | Policy Type | Headquarters | Coverage End |
|---|---|---|---|
 | Commercial, Life, Personal Insurance, Retirement Services | New York City, New York | January 2022 |
 | Auto, Home, Life, Renters, Personal Umbrella | Northfield Township, Illinois | May 2023 |
 | Workers' Compensation, Businessowner's Policies, Liability Coverages | Fairfield, New Jersey | August 2023 |
 | Monoline Workers' Compensation, General Liability, Commercial Auto, Specialty Products | Raleigh, North Carolina | September 2023 |
 | Auto, Home, Life, Business Insurance | Los Angeles, California | July 2023 |
 | Auto, Home, Health | Chicago, Illinois | August 2023 |
These companies also offer several coverages besides auto insurance, so it is not just auto insurance policyholders that have had to find a new company.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Why Auto Insurance Companies are Pulling Out of California
Auto insurance companies pulling out of California every year is due to the financial risks of insuring customers in California. A high number of claims for accidents and damages from weather is making insuring customers less profitable than in other states.
For the companies that do stay, they often increase the rates of comprehensive auto insurance to ensure they are still making a profit from California drivers.
Impact of California Car Insurance Claims
So how does car insurance companies leaving California affect your claims? While companies can’t deny you a legitimate car insurance claim, they may choose to drop you after an accident that was your fault (learn more: Can your auto insurance company drop you after a claim?). If your company doesn’t drop you, it can still raise your auto insurance rates.
Below, you can see the average rates in California.
Average rates have increased substantially since 2021, and they were already expensive to begin with. If you make an auto insurance comprehensive claim or collision claim, you may see even higher rates than the ones listed above.
Learn more: How to File an Auto Insurance Claim
Comparing California Car Insurance Rates
Your rates will also fluctuate depending on where you live in California. Some areas have a lower track record of claims, resulting in lower rates, while areas like San Francisco will have higher rates. Below, you can see how expensive San Francisco auto insurance rates compare to other cities’ rates, which is one of the reasons there are auto insurance companies pulling out of San Francisco.
Auto Insurance Monthly Rates by City
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Anaheim | $80 | $160 |
| Fresno | $75 | $150 |
| Glendale | $85 | $170 |
| Irvine | $78 | $156 |
| Los Angeles | $90 | $180 |
| Oakland | $80 | $160 |
| Sacramento | $82 | $164 |
| San Diego | $82 | $164 |
| San Francisco | $95 | $190 |
| San Jose | $88 | $176 |
While you only need minimum coverage to meet California auto insurance requirements, full coverage will protect you from collision and storm damage (learn more: Does car insurance cover storm damage? or Does car insurance cover leaks?). You can also get California windshield replacement auto insurance for even more protection.
Free Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
California Auto Insurance Companies Staying in the State
With auto insurance companies pulling out of Los Angeles and other cities, you may need to find a new provider. If you need to switch California car insurance providers, take a look at the California auto insurance companies list below to see what average rates you can expect to pay for minimum and full coverage at each company.
California Auto Insurance Monthly Rates by Provider & Coverage Level
| Insurance Company | Minimum Coverage | Full coverage |
|---|---|---|
 | $71 | $216 |
 | $51 | $157 |
 | $110 | $338 |
 | $73 | $223 |
 | $68 | $207 |
 | $55 | $169 |
 | $63 | $192 |
 | $38 | $116 |
USAA has the cheapest car insurance in California, followed by Geico and Travelers.
How to Switch Auto Insurance Companies in California
If your current insurance company is one of the car insurance companies getting out of California or you want to find a cheaper rate, you must know how to cancel auto insurance and sign up for a new policy. Luckily, finding California auto insurance online and signing up for a policy is easy. We recommend starting by getting quotes before committing to an insurer.
When switching auto insurance companies in California, you must ensure your policy start date begins before your old policy's cancellation date. Otherwise, you face a lapse in insurance that could potentially raise your auto insurance rates.Dani Best Licensed Insurance Producer
If you are a high-risk driver and can’t find an insurance company willing to insure you, you must contact the California Department of Insurance to apply for high-risk insurance through the California Automobile Assigned Risk Plan.
Bottom Line on Auto Insurance Companies Pulling Out of California
While the list of auto insurance companies pulling out of California may seem discouraging, there are still plenty of companies to choose from. Shopping for quotes will ensure you get the best deal on California auto insurance. Use our free quote tool to find the cheapest rates from California auto insurance providers.
Frequently Asked Questions
What is the #1 auto insurance in California?
Geico is one of the top auto insurance providers in California. You can read more about the company in our Geico review.
Which insurance companies are leaving California?
The auto insurance companies leaving California are AIG, Allstate, AmGUARD, Falls Lake, Farmers, and Kemper.
Why are car insurance companies leaving California?
Car insurance companies are leaving California due to the high number of claims due to collisions and weather damages.
Who insures the most cars in California?
State Farm insures the most cars in CA currently.
What is the cheapest car insurance in California?
Minimum coverage is the cheapest auto insurance coverage in California.
Is Allstate auto insurance pulling out of California?
Yes, Allstate auto insurance has pulled out of California.
Is Geico auto insurance pulling out of California?
Geico is not pulling out of California, but it has shut down its physical offices in California and is limiting home insurance policy writing.
Is USAA auto insurance pulling out of California?
USAA is not leaving California, but it is limiting home insurance policy writing in the state.
Is Progressive auto insurance pulling out of California?
No, Progressive auto insurance is not leaving California.
Is Liberty Mutual auto insurance pulling out of California?
Liberty Mutual is not leaving California but is limiting its sale of insurance policies.
Why is it so hard to get car insurance in California?
Why are California auto insurance companies not taking new customers?
Get a FREE Quote in Minutes
Insurance rates change constantly — we help you stay ahead by making it easy to compare top options and save.
Secured with SHA-256 Encryption
