Auto Insurance Companies Denying Coverage in California (2025 Update)
Auto insurance companies denying coverage in California include Allstate and Farmers. 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 $51/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: Feb 18, 2025
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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: Feb 18, 2025
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
With claims increasing and severe weather risks, there are numerous auto insurance companies denying coverage in California.
The companies that do sell California auto insurance have higher rates, making it harder to find affordable California insurance rates on coverage.
Read on to learn more about which companies are leaving California and which companies are staying to sell insurance that meets the minimum auto insurance requirements by state. If you want to find rates with a more affordable California company today, enter your ZIP code into our free quote tool.
- 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
List of Auto Insurance Companies Leaving California
Which insurance companies are 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 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 |
Insurance companies that left California also offer several coverages besides auto insurance, so it is not just auto insurance policyholders that have had to find a new company. Insurance companies leaving California in 2024 and beyond also offered home and property insurance.
Customers who had home and insurance with a company will lose out on their bundling discount if their home insurance policy is canceled.
Now that you know which auto insurance companies are leaving California, why are auto insurance companies leaving California?
Essentially, auto insurance companies pull out of California every year due to the financial risks of insuring customers in California.
A high number of claims for accidents and damages from weather is making insuring California 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.
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Impact of California Auto Insurance Claims on Rates
So, how do 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 annual rate increases in California.
Average rates have increased substantially since 2021, and they were already expensive to begin with. If you make a comprehensive auto insurance claim or collision claim, you may see even higher rates than the ones listed above.
Comparing California Car Insurance Rates by Area
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 the best auto insurance in San Francisco is compared 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 auto insurance cover leaks?). You can also get the best windshield replacement coverage in California for even more protection.
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. Now that you know what insurance companies have left California, we want to go through the companies that are staying.
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 |
When looking at the list of auto insurance companies in California, USAA has the cheapest car insurance, followed by Geico and Travelers. However, while USAA has some of the best auto insurance in California, it is only for military and veterans (Read More: USAA Auto Insurance Review). If you don’t qualify for USAA, find the best auto insurance for California drivers by shopping around at the top 10 insurance companies in California.
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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 if your insurance company is leaving California.
After checking that your favorite companies aren’t among the insurance companies that have left California, we recommend starting by getting quotes before committing to an insurer.
You also need to ensure you don’t have a lapse in insurance that could potentially raise your auto insurance rates.
When switching auto insurance companies in California, you must ensure your policy start date begins before your old policy's cancellation date.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.
The Department of Insurance will help you apply for high-risk SR-22 insurance through the California Automobile Assigned Risk Plan.
Insurance through the high-risk auto insurance plan will be expensive. If you have to get insurance through the high-risk program, make sure to shop around at the best auto insurance companies in California to see if you can get a lower rate.
Buying Auto Insurance While Companies Are Pulling Out of California
While the list of auto insurance companies denying coverage in California may seem discouraging once you know what insurance companies pulled out of California, there are still plenty of companies to choose from. If you need California SR-22 auto insurance, you may have to apply through the California Automobile Assigned Risk Plan to get coverage.
Shopping for quotes will ensure you get the best deal on California auto insurance, even with car insurance companies leaving California. Use our free quote tool to find the cheapest rates from California auto insurance providers.
Frequently Asked Questions
Which insurance companies are leaving California?
Wondering how many insurance companies have left California? The auto insurance companies leaving California are AIG, Allstate, AmGUARD, Falls Lake, Farmers, and Kemper.
What insurance company pulled out of California?
There has been more than one company that left California. Take a look at the list above to see what insurance companies left California. Knowing which insurance companies have left California will help you eliminate providers in your search for CA auto insurance.
Why are car insurance companies leaving California?
You know what car insurance companies are leaving California, but why are they leaving? Car insurance companies leaving California are doing so because of the high number of claims for collisions and weather damages. Weather risks are one of the non-driving factors that affect auto insurance rates, as well.
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. However, it doesn’t provide much financial protection (Read More: When to Buy More Than Minimum Auto Insurance).
Is Allstate auto insurance pulling out of California?
Yes, Allstate auto insurance has pulled out of California. If you need to find a new California automobile insurance company, use our free tool to shop around.
Is Esurance leaving California?
Esurance is now a part of Allstate, which is pulling out of California. Esurance leaving California is under Allstate’s direction.
What is the #1 auto insurance in California?
Geico is one of the top auto insurance providers in California and is not one of the insurance companies leaving California. You can read more about the company in our Geico auto insurance review.
Why is Geico pulling out of California?
Wondering why is Geico leaving California? If you are worried about the answer to is Geico leaving California, the good news is that Geico is not pulling out of California yet. However, it shut down its physical offices in California and is limiting home insurance policy writing.
Why did Geico leave California for home insurance? Geico has sustained heavy losses from home insurance policies due to wildfires. You won’t be able to get a new home insurance policy from Geico in California.
Is Geico in California?
If you are wondering is Geico still in California, Geico does still sell auto insurance. However, Geico left California offices and is limiting home insurance sales. Geico leaving California for home insurance means that most customers won’t be able to bundle home and auto insurance for a discount.
Is Progressive Insurance leaving California?
If you have Progressive coverage, you probably want to know the answer to “Is Progressive leaving California?” No, Progressive is not leaving California. You can still get Progressive California car insurance.
If you want a Progressive Insurance CA quote, you can visit their website. Learn more about the company in our Progressive auto insurance review.
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 State Farm leaving California auto insurance?
State Farm is still in California, but it is limiting the policies it writes in high-risk areas.
Is Mercury insurance leaving California?
No, Mercury is not one of the insurance companies leaving California. Discover if the company is the right fit for you by checking out our Mercury auto insurance review.
Is Liberty Mutual leaving California?
If you are a customer and are worried about the answer to is Liberty Mutual pulling out of California, Liberty Mutual is not leaving California. However, while Liberty Mutual leaving California isn’t happening in the near future, it 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. There are also auto insurance companies leaving California, which means there are fewer options.
If your car insurance company is one of the insurance companies pulling out of California, use our free quote tool to find a new company today.
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. Which insurance companies left California? So far, AIG, Allstate, AmGUARD, Falls Lake, Farmers, and Kemper.
Free Auto Insurance Comparison
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.
