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.
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Daniel Walker
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...
Licensed Auto Insurance Agent
UPDATED: Mar 15, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Mar 15, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- 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 |
|---|---|---|---|
| AIG | Commercial, Life, Personal Insurance, Retirement Services | New York City, New York | January 2022 |
| Allstate | Auto, Home, Life, Renters, Personal Umbrella | Northfield Township, Illinois | May 2023 |
| AmGUARD | Workers' Compensation, Businessowner's Policies, Liability Coverages | Fairfield, New Jersey | August 2023 |
| Falls Lake | Monoline Workers' Compensation, General Liability, Commercial Auto, Specialty Products | Raleigh, North Carolina | September 2023 |
| Farmers | Auto, Home, Life, Business Insurance | Los Angeles, California | July 2023 |
| Kemper | 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.
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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.
California Monthly Auto Insurance Rates by City
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Anaheim | $80 | $160 |
| Fresno | $75 | $150 |
| Glendale | $85 | $170 |
| Irvine | $78 | $156 |
| Los Angeles | $90 | $180 |
| Sacramento | $82 | $164 |
| San Diego | $82 | $164 |
| San Francisco | $95 | $190 |
| San Jose | $88 | $176 |
| Oakland | $80 | $160 |
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.
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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 Monthly Auto Insurance Rates by Provider
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| American Family | $45 | $138 |
| Geico | $33 | $101 |
| Liberty Mutual | $70 | $216 |
| Nationwide | $47 | $142 |
| Progressive | $43 | $132 |
| State Farm | $35 | $108 |
| Travelers | $40 | $122 |
| USAA | $24 | $74 |
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.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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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?
It is hard to find car insurance in California because companies are reluctant to take on more customers due to the high risk of insuring California drivers.
Why are California auto insurance companies not taking new customers?
A number of insurance companies aren’t taking on new customers because they are limiting their policy sales and slowly pulling out of California.
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Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Daniel Walker
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...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
