Is Cost-U-Less Auto Insurance Good?

Last Updated on May 4, 2023

Cost-U-Less is an insurance company offering a range of insurance products to customers in California – including auto insurance and more.

Cost-U-Less is not well-known outside of California. It’s not among the largest insurers in California, so finding Cost-U-Less car insurance reviews online can be challenging. However, Cost-U-Less insures tens of thousands of drivers across California – including high-risk drivers who struggle to find affordable rates with other companies.

Is Cost-U-Less a good car insurance company? Should you buy Cost-U-Less car insurance? Today, we’re explaining everything you need to know about Cost-U-Less auto insurance and how it works.

Key Takeaways:

  1. Cost-U-Less is a California-based insurance company that offers a range of insurance products to customers in California – including auto insurance and more.
  2. Cost-U-Less targets the budget car insurance market and aims to attract high-risk drivers, including drivers needing SR-22 insurance.
  3. Cost-U-Less offers affordable basic liability car insurance and high-risk car insurance in California.
  4. Cost-U-Less offers a standard selection of discounts, including good driver discounts, student discounts, military discounts, multi-policy discounts, and multi-vehicle discounts.
  5. Insurance Panda rates Cost-U-Less 3.5/5

What Is Cost-U-Less?

Cost-U-Less is a California-based insurance company. The company offers insurance for cars, motorcycles, businesses, renters, homeowners, motorhomes, RVs, travel trailers, boats, and more.

Cost-U-Less also offers workers’ compensation insurance, health insurance, life insurance, identity theft insurance, accidental death and dismemberment (AD&D) coverage, and other insurance products.

As you may guess from the name, Cost-U-Less targets the budget car insurance market. The company claims drivers in California can save up to $762 per year on car insurance by making the switch.

Like other budget insurance companies, Cost-U-Less also aims to attract high-risk drivers, including drivers needing SR-22 insurance. If you have multiple DUIs, at-fault accidents, or lapses in insurance coverage, then you may need SR-22 insurance. Cost-U-Less is one of many car insurance companies in the United States offering SR-22 insurance.

Overall, many Cost-U-Less policyholders are drivers who have struggled to find good rates with mainstream insurers and do not qualify for California’s Low-Cost Auto Insurance Program, so they turn to lesser-known insurers for help.

California’s insurance laws are particularly harsh towards drivers with accidents on their driving record. For example, if you have one or more accidents on your driving record, you could pay 70% higher car insurance rates than someone with a clean record. State law forbids insurers from charging higher rates for things like credit scores, so California insurers heavily emphasize driving records.

How Does Cost-U-Less Car Insurance Work?

Cost-U-Less car insurance works similarly to other car insurance policies – particularly high-risk or budget car insurance options.

The company emphasizes two types of car insurance for drivers in California:

  • Affordable car insurance in California
  • High-risk car insurance in California

If you are a high-risk driver, you might struggle to find affordable car insurance premiums from mainstream providers. Mainstream insurers may even deny your policy request. That’s why many drivers turn to insurers like Cost-U-Less. They need high-risk car insurance they can afford. They have a high-risk driving profile, but they still need to drive legally, so they turn to Cost-U-Less to get basic car insurance at an affordable rate.

Cost-U-Less also offers affordable basic liability car insurance. Other drivers don’t want fancy car insurance: they just want basic car insurance coverage. Cost-U-Less offers car insurance that lets you legally drive on the road. Cost-U-Less’s car insurance lets you meet California’s minimum insurance requirements. You can legally drive on the road with basic liability coverage – but not much else.

Cost-U-Less Car Insurance Discounts

Cost-U-Less offers a standard selection of discounts, including similar discounts to all other major insurance providers:

Good Driver Discounts: Drivers with a safe driving record over the past 3 to 5 years may qualify for a Cost-U-Less good driver discount. The longer you go without filing a claim, the longer this discount will last.

Student Discount: If you are a full-time student attending high school or college, you may qualify for Cost-U-Less’s student discount.

Military Discount: Cost-U-Less offers a discount to members of the military. If you are an active duty member of the military, then you could qualify for this discount.

Multi-Policy Discount: Cost-U-Less offers dozens of insurance policies, including everything from homeowners insurance to RV or boat insurance. By combining multiple policies together, you can save money on all insurance policies.

Multi-Vehicle Discount: Cost-U-Less has a multi-vehicle discount for drivers who insure multiple cars under a single policy. If you have multiple cars registered at the same address, you could qualify for a multi-vehicle discount by insuring all cars under your Cost-U-Less policy.

Cost-U-Less does not claim to offer any other discounts. Like other no-frills insurance providers, the company emphasizes low rates and basic car insurance coverage.

Cost-U-Less Features & Benefits

Cost-U-Less advertises all of the following features and benefits:

  • Helped drivers in California save money on car insurance for 30+ years
  • A wide range of auto insurance options, ranging from basic insurance to premium insurance
  • Affordable car insurance policies for high-risk drivers, including those with DUIs, tickets, accidents, or SR-22 requirements on their record
  • 80 convenient office locations across California where you can pay your bill or discuss your policy
  • English and Spanish-speaking customer service agents

Cost-U-Less Reviews: What Do Customers Say?

Cost-U-Less is not one of California’s largest or best-known insurance companies, so finding unbiased reviews online can be difficult. Most people don’t take time to review their insurance company until something goes wrong – like a claim gets denied.

However, here are some pros and cons of Cost-U-Less from online customer reviews:

Cost-U-Less ProsCost-U-Less Cons
High-risk drivers can obtain reasonably-priced basic liability insurance even after multiple accidents, tickets, DUIs, and other incidentsNot always the cheapest option, despite the company’s focus on the budget market 
Cost-U-Less is available in both English and Spanish, including bilingual websites and customer service staffAs an insurance broker, Cost-U-Less charges high agent fees 
Easy, free quotes online or over the phone Billing practices and agent charges may be unclear
Free California roadside assistance coverageSome policyholders struggle to contact the company 
Wide range of insurance options, allowing you to bundle multiple policies together if needed 
Friendly customer service agents

About Cost-U-Less

Cost-U-Less was launched in Sacramento, California, in 1989. Over the past 30+ years, Cost-U-Less has expanded across northern, southern, and central California. Its sister company, Freeway Insurance, also offers affordable insurance policies throughout California. Its other sister company, Baja Auto Insurance, sells insurance in Texas, Arizona, Nevada, and Oklahoma. Another affiliated company, InsureOne, sells insurance in California, Washington, Oregon, Nevada, Illinois, Texas, Florida, New Jersey, and New York.

The company is particularly popular in central and northern California, with major hubs in Redding, Sacramento, Stockton, Modesto, Fresno, Bakersfield, and surrounding cities. In recent years, Cost-U-Less has expanded into southern California with offices in and around Anaheim, Palmdale, Long Beach, Whittier, Pomona, Torrance, Santa Ana, San Bernardino, Victorville, Tarzana, Fontana, and Lancaster.

Cost-U-Less does not directly provide insurance. Instead, Cost-U-Less is an insurance broker. The company has partnerships with insurance companies across California. You pay agent fees to buy car insurance through Cost-U-Less.

According to the official website, the company’s mission is to “supply our clients with the highest quality, lower-cost auto insurance from top-rated insurance companies while providing an exceptional level of customer service.”

You can request a car insurance quote from Cost-U-Less online or over the phone.

Cost-U-Less Contact Information
Mailing AddressPO Box 669
Cypress, CA 90630
Phone Number800-538-3213
Website URL

The company was founded in Sacramento, although it’s now headquartered in Huntington Beach, California, with a mailing address in Cypress, CA.

Other Frequently Asked Questions

Our Rating of Cost-U-Less

Cost-U-Less offers competitive rates and thorough coverage, including free roadside assistance, SR-22 filing, and comprehensive policies. The company provides a variety of standard and premium plans that cover a wide array of vehicles, such as cars, motorcycles, boats, and more. Cost-U-Less can help you save money on comprehensive coverage; however, it’s only available to drivers in California.

Coverage Offerings
Customer Satisfaction
Claims Processing


Cost-U-Less is an insurance company that provides reasonably priced insurance to high-risk drivers in California. The company offers SR-22 filings for those with a DUI and has some discounts. If you live in California and don’t have a clean driving record, Cost-U-Less may help you save money on car insurance compared with other companies.


Final Word – Cost-U-Less Review

Cost-U-Less is a California car insurance company that insures thousands of drivers across the state. Cost-U-Less specializes in providing high-risk drivers with affordable car insurance coverage. Drivers with multiple DUIs, SR-22 requirements, accidents, tickets, and other incidents on their driving record may find cheap rates through Cost-U-Less.

To learn more about Cost-U-Less or request a quote today, visit

James Shaffer
James Shaffer James Shaffer is a writer for and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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