For most Californians, the strongest shortlist in 2026 is USAA (if you are eligible), GEICO and Progressive for auto, and CSAA (AAA) and Mercury for home and auto together. Home coverage is the hard part: wildfire risk has pushed some carriers to stop writing new policies, so shop early, compare at least three quotes, and know that the California FAIR Plan exists as a last resort.
This guide is for California homeowners, renters and drivers who want a short, honest list of insurers worth quoting, not a ranking built on ad spend. California is unlike most states: wildfire has reshaped the home insurance market, earthquake damage is excluded from standard policies, and auto minimums changed in 2025. If you want the national picture first, start with our guide to the best insurance companies in America.
How we picked. We looked at four things: financial strength (AM Best Financial Strength Ratings, checked against AM Best announcements), complaint history reported through the California Department of Insurance and the NAIC, reputation for handling claims, and whether the company is actually selling the product to new customers in California today. A big brand that is not accepting new home applications is not much help if you need a policy this month.
Best Insurance Companies in California at a Glance
| Company | Best for | AM Best rating | Notes |
|---|---|---|---|
| USAA | Military families | A++ (Superior) | Auto, home and renters for eligible members, veterans and their families. |
| GEICO | Low-cost auto | A++ (Superior) | Strong online tools; home policies are usually placed with partner insurers. |
| Progressive | High-risk and comparison shoppers | A+ (Superior) | Wide auto appetite, including drivers with tickets or past claims. |
| CSAA Insurance Group (AAA) | Home and auto bundles | A (Excellent) | Sold to AAA members; home and auto under one roof. |
| Mercury Insurance | California-based carrier | A (Excellent) | Headquartered in Los Angeles; sells through independent agents. |
| Amica Mutual | Customer service | A+ (Superior) | Mutual company with a strong service reputation; underwriting can be selective. |
A note on State Farm: its California property company, State Farm General, carries an AM Best rating of B (Fair), and in May 2023 it announced it would stop accepting new applications for property and casualty lines in the state (personal auto was not affected). Existing customers kept their agents, but if you are shopping for new home coverage, confirm current availability before you count on a quote.
Best home insurance in California
Wildfire is the defining risk. Insurers price and underwrite by fire exposure at the address level, which is why two homes a few miles apart can get very different answers. If you live near brush, forest or the wildland-urban interface, expect inspections, questions about roof material and defensible space, and sometimes a flat decline.
Earthquake is a separate decision. According to the California Department of Insurance, a standard homeowners policy does not cover earthquake damage, though fire that follows an earthquake must be covered. Your insurer must offer earthquake coverage in writing every other year, and most of it is written through the California Earthquake Authority, which you buy from the same company that holds your home policy. You cannot buy it directly from the CEA.
The California FAIR Plan. When the regular market will not cover a property, the FAIR Plan is the insurer of last resort. It is an association of licensed insurers overseen by the Department of Insurance. A FAIR Plan policy is narrower than a homeowners policy: it focuses on fire and does not include liability, theft or additional living expenses. Most owners pair it with a separate difference-in-conditions (DIC) policy to fill those gaps.
Practical tips for California homeowners:
- Check that your dwelling limit reflects current rebuilding costs, not market value. Construction costs after a wildfire can spike.
- Look at extended replacement cost and building code upgrade coverage; both matter after a total loss.
- Ask each insurer what mitigation credits it offers (fire-resistant roofing, ember-resistant vents, cleared defensible space).
- If you are non-renewed, do not let coverage lapse. Contact an independent agent right away and ask about both the voluntary market and the FAIR Plan plus a DIC policy.
- Read the policy for smoke damage, debris removal and additional living expense limits, the three coverages that most often fall short after a fire.
Best car insurance in California
California is an at-fault state: the driver who causes a crash is responsible for the damage, usually through liability insurance. Since January 1, 2025, under Senate Bill 1107, the minimum liability limits are $30,000 for injury to one person, $60,000 for all injuries in one accident, and $15,000 for property damage (often written 30/60/15). These are higher than the old 15/30/5 limits but still low compared with the cost of a modern vehicle or a hospital stay, so most drivers with assets to protect should carry much more.
California also regulates how auto premiums are set. Under Proposition 103, the three factors that must carry the most weight are, in order, your driving safety record, the miles you drive, and your years of driving experience. That makes a clean record and honest low mileage unusually valuable here, and it is one reason quotes for the same driver can vary widely between companies.
Who tends to stand out:
- USAA for eligible military families, with top-tier financial strength.
- GEICO and Progressive for price shopping and fast online quotes.
- CSAA (AAA) and Mercury for drivers who want a local agent and a home-and-auto bundle.
If money is tight, the state runs the California Low Cost Auto Insurance Program for income-eligible drivers with a good driving record and a vehicle valued at $25,000 or less. It provides liability coverage to meet the legal requirement; check current income limits with the program before applying.
Not sure how high to set your limits? Our guide on how much car insurance you need walks through it.
Best life insurance options
Life insurance is far less state-specific than home or auto. Rates depend mainly on your age, health and the type of policy, and most large carriers sell in every state, including California. State Farm Life Insurance Company holds an AM Best rating of A+ (Superior), and many national insurers compete for term business here. For most families, a level term policy that covers the mortgage and the years until the kids are independent is the place to start. Compare carriers in our list of the best life insurance companies in the USA.
How to choose an insurer in California
- Confirm the company is writing new business. In today’s California property market, availability comes first. Ask directly whether the carrier is accepting new home applications in your ZIP code.
- Check financial strength. Look for an AM Best rating of A- (Excellent) or better, and check the specific company that will issue your policy, not just the brand.
- Review complaint data. The NAIC Consumer Insurance Search lets you look up confirmed complaints by state, company and line of insurance over the past three years. The California Department of Insurance also takes and tracks complaints.
- Verify the agent or broker. The Department of Insurance has an online license status lookup. Use it before you sign anything.
- Compare equal coverage. Match dwelling limits, deductibles, liability limits and endorsements before comparing prices.
- Know where to get help. The Department’s consumer hotline is 800-927-4357, and you can file a complaint online if a claim stalls.
Frequently asked questions
What is the minimum car insurance in California?
Since January 1, 2025, California requires liability coverage of at least $30,000 per person and $60,000 per accident for injuries, plus $15,000 for property damage (30/60/15), under Senate Bill 1107.
Does homeowners insurance cover earthquakes in California?
No. Standard homeowners policies exclude earthquake damage, although fire following an earthquake is covered. Insurers must offer earthquake coverage, much of it through the California Earthquake Authority, sold by the company that holds your home policy.
What is the California FAIR Plan?
It is the state’s insurer of last resort for property that cannot get coverage in the regular market. It mainly covers fire and does not include liability or theft, so many owners add a separate difference-in-conditions policy.
How do I file a complaint against an insurer in California?
Contact the California Department of Insurance consumer hotline at 800-927-4357 or file a complaint online through the Department’s consumer services page. Keep copies of your policy, claim number and all correspondence.
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This article is for general information only and is not insurance or legal advice. Ratings and availability change; confirm with the insurer and your state insurance department.
