Best Car Insurance In Los Angeles

So, how much is car insurance in Los Angeles? The answer depends on many factors, including your age, gender, marital status, driving experience, vehicle type, annual mileage, and perceived risk to the insurance company.

Similarly, the area where you live also affects your rate.

Los Angeles has a higher traffic density than other cities in the United States, and California has a high risk of auto thefts compared to other states.

Thus, living in Los Angeles, California, may result in higher insurance premiums than you would get in other locales.

To get the best car insurance in Los Angeles, shop around, compare coverage and discounts, and come prepared with competing offers to negotiate the best rate for the best coverage.

You can use the following information to learn more about the cost of car insurance in Los Angeles and how to score a rate that won’t break the bank.

Average Cost Of Car Insurance In Los Angeles

The average annual insurance premium in California, according to the most recent data collected by the National Association of Insurance Commissioners, is $986.75.

This estimate is about $22 lower than the national average, putting California about mid-range on the pricing scale. This average has slowly risen annually from $881.07 in 2011 to the current amount.

And how much is car insurance in Los Angeles compared to other areas? Well, New York, California’s East Coast counterpart, ranks much higher on the pricing scale with an average annual insurance premium of $1,360.66.

Closer to home, the cost of insurance in Los Angeles and other areas of California is comparable to nearby states, except Nevada, which is over $100 higher.

Countrywide Average Cost of Car Insurance $1,009.38
Average Cost of Car Insurance in California $986.75
Average Cost of Car Insurance in Arizona $972.85
Average Cost of Car Insurance in Nevada $1,103.05
Average Cost of Car Insurance in Oregon $904.83

What Affects The Rates Of Car Insurance In LA?

Several factors attribute to California’s moderate, but slowly increasing car insurance rates. Some of these factors include traffic conditions, vehicle theft rates, population density, and disposable income.

Traffic Conditions

los angeles car insuranceLos Angeles is known for its dense traffic in its 21,825 miles of maintained roadways in L.A. County, according to the California Department of Transportation.

The NAIC report of traffic density indicates California has a traffic density of 1,475,882 (total miles of vehicle travel by all registered vehicles in contrast to miles of maintained roadway in the state).

This is more than twice the national average of 724,348. Due to the high number of registered vehicles in the state, California’s average vehicle miles driven per registered vehicle is 11,942, which is slightly lower than the national average of 12,010.

Despite its high traffic density, California has a surprisingly low vehicular fatality rate with 0.92 fatalities per 100 million vehicle miles driven and 0.11 fatalities per 1,000 registered vehicles.

Both of which are lower than neighboring states and the national average of 1.08 and 0.13 respectively. Fewer fatalities translate to less money paid out by insurance companies, which in turn means lower premiums for consumers.

Vehicle Theft Rates

Vehicle theft rates play a discernible role in determining the cost of comprehensive auto insurance coverage in your area.

There were 765,484 vehicles stolen in the U.S. in 2016. California was number one in vehicle thefts with 176,756 stolen automobiles.

While Los Angeles wasn’t among the top five metropolitan statistical areas for motor vehicle theft, there were 18,591 motor vehicle thefts in the L.A. area.

To counter potential auto theft-related insurance premium hikes, consider buying a vehicle with a low theft rate. According to the NCIB’s Hot Wheels Report, the most common new vehicles stolen in California include the Toyota Corolla and Nissan Altima.

However, late 1990s models of Honda Accords and Civics top the list of vehicle thefts with more than 25,000 of each model stolen in the U.S. in 2016. Choosing a vehicle less desirable to car thieves can decrease your insurance rate, as does installing anti-theft devices.

Population Density In Los Angeles

Having a higher population density doesn’t directly influence automobile insurance premiums.

However, areas with more people have more vehicles, which naturally increases the possibility of accidents or theft. That means a higher risk of traffic accidents or car theft can increase your insurance costs.

The City of Los Angeles has a population of 4 million with 162,874 motorcycles and 7,599,579 cars and trucks registered in L.A. County. In 2014, there were 248 people per square mile in California, which was well above the national average of 90 people per square mile.

Moving to a smaller community outside city limits could decrease your insurance rates, but a potentially longer commute could be counterproductive.

Disposable Income

Like population density, having a higher disposable income doesn’t directly influence insurance rates, nevertheless, it gives residents the opportunity to buy higher-priced vehicles.

Sticker price can increase your insurance premium rates, because insurance companies may require higher coverage limits to protect your assets. Plus, your vehicle’s net worth factors into your comprehensive and collision rates.

The per capita disposable personal income in 2014 was $43,978 in California, which was higher than the national average of $40,859. Reduce your premium by choosing a less expensive vehicle that’s cheaper to repair.

Companies With The Best Car Insurance In Los Angeles

When you’re shopping for car insurance, get at least three quotes from different companies and read ratings and reviews to compare their consumer track records.

Don’t just match prices, perform a side-by-side comparison to make sure the coverage is the same. It always pays to shop around, so look at a few top companies to find the best car insurance in Los Angeles.

Here are some top-rated companies offering personal car insurance in L.A.:

Progressive

progressive auto insurance la

Progressive, founded in 1937, has grown to become one of the largest insurers in the country.

It offers comprehensive coverage for private and commercial vehicles, including automobiles, motorcycles, RVs, and boats.

Progressive also offers gap insurance and additional coverage options for rental reimbursement, towing and labor costs, sound systems, and pet injury/vet bills.

Liberty Mutual

liberty mutual auto insurance LA

Liberty Mutual, founded in 1912, is the fourth largest property and casualty insurer in the country with worldwide operations throughout Europe, Asia, and South America.

Additional benefits include accident forgiveness, new and better car replacement options, and guaranteed repair.

Esurance

esurance auto insurance LA

A subsidiary of Allstate, Esurance has over 80 years of experience in the insurance industry.

Esurance also has a comprehensive list of discounts, including those for safe drivers, homeowners, students attending Pac-12 schools, and bundling policies, among others.

Allstate

allstate car insurance LA

Founded in 1931, Allstate is the second largest insurer of personal lines in the country covering automobiles, motorcycles, and boats.

It offers a standard array of discounts and a comprehensive list of policies for bodily injury and property damage liability, comprehensive and collision, personal injury, and uninsured/underinsured motorist coverage.

MetLife

metlife auto insurance in LA

Founded in 1868, MetLife is one of the largest insurance providers in the world with operations in over 50 countries.

Optional coverage is available for rental reimbursement, towing and labor costs, and glass repair.

Travelers

travelers car insurance LA

Founded in 1853, Travelers merged with Citicorp in 1998 and offers a good variety of discount options.

Their offering includes rental reimbursement, new car replacement, roadside assistance, and hybrid/electric vehicle discounts, plus gap insurance and accident forgiveness.

USAA

usaa car insurance in LA

Founded in 1922 as the United Services Automobile Association, USAA offers many types of personal automobile insurance for current and previous service members and their immediate family.

What Is Mandatory For Car Insurance In Los Angeles

Driving without car insurance in California is illegal, and you must have liability insurance coverage to register your car with the DMV.

Your insurance company will report you to the DMV if you stop paying your premium, and the state might revoke your vehicle registration.  varies from state to state, but the mandatory minimums in California for a standard automobile policy are:

  • $15,000 personal injury (or death) liability for any one person
  • $30,000 personal injury (or death) liability for more than one person in any one accident
  • $5,000 property damage liability for another person’s property

You may opt for higher liability limits than the law requires to curb your financial responsibility.

If you’re financing your vehicle, the lien holder will require that you add comprehensive and collision coverages to your policy.

You can waive uninsured/underinsured motorist coverage, but if you purchase it, California requires a minimum of $15,000 per person / $30,000 per accident for bodily injury and $3,500 for property damage.

California requires you to carry proof of insurance in your vehicle at all times either through the paper card supplied by your insurance company or a digital copy accessible on your smartphone.

Instead of a motor vehicle liability insurance policy, you can also meet California’s mandatory financial responsibility with a self-insurance certificate issued by the DMV, a $35,000 cash deposit tendered to the DMV, or a $35,000 surety bond issued by a company licensed to practice in California.

Reduce The Cost Of Your Car Insurance With These Tips

There are many reasons why your car insurance may be high.

While you can’t change some things that affect pricing, there are several ways you can save money on car insurance, including:

  • Raising your deductible to decrease your premium
  • Dropping comprehensive and collision coverage on older vehicles
  • Bundling automobile insurance with homeowner’s or other insurance policies
  • Combining insurance for multiple vehicles on the same policy
  • Exploring all possible discounts for safe driving, low mileage, good student, etc.
  • Asking about discounts for safety and anti-theft devices
  • Trading in a vehicle with a high-theft rate for one with a low-theft rate
  • Opting for a less expensive vehicle with lower repair costs

Discounts vary from company to company and even from state to state.

California-specific discounts include discounts for mature drivers and low-income drivers.

  • According to the California Department of Insurance, under state law, older residents who take a mature driver course can receive a discount on auto insurance for three years.
  • California’s Low-Cost Automobile Insurance Program provides income-eligible drivers with liability insurance protection at affordable rates that still meet California’s financial responsibility laws. This program lowers liability limits to $10,000 for personal injury/death per person, $20,000 for personal injury/death per accident and $3,000 for property damage. In 2018, the base annual premium in Los Angeles County for qualifying low-income drivers was $490 with surcharges added based on age and verifiable driving history.

Before you start gathering quotes, make sure you have all the required information on hand, including items that may help you score a discount.

  • Vehicle model, make, trim style, year, VIN, and safety features
  • Personal information about all drivers including age, gender, marital status, student status, and report cards if the student’s grades are above a B average
  • Driving habits such as where you normally drive, your annual mileage, where you park, and any traffic or driving violations on your part

What Can Increase The Cost Of Your Car Insurance

You wouldn’t intentionally overpay an insurance bill. Likewise, there is no reason to deliberately act in a such a way as to increase your rates. While some factors, such as your age and marital status are non-negotiable, you can control other elements that affect your insurance rates.

Driver Record

Traffic citations and accidents are a sure-fire way to raise your rates.

Avoid speeding and dangerous driving habits such as tailgating, texting while driving, and impatient driving. If you do receive a ticket, make sure it is correct and take the time to contest any unfair citations in court.

Vehicle Choice

Weigh the pleasure of owning an expensive vehicle against higher insurance rates and lease or loan payments.

If you do go with a higher priced car, make sure it is equipped with the latest safety features along with anti-theft devices in the hopes of scoring a discount.

Driver Age

Although you can’t change your age, you can take advantage of driver training classes. Senior and teen drivers can benefit from defensive driving courses, and some providers have apps that track your good driving habits and offer discounts in return.

Streamline your insurance shopping endeavors by collecting detailed information about your household and the vehicle(s) and driver(s) insured under your policy.

Finally, compare all aspects of each quote by carefully examining coverage and discounts to find the best insurance in Los Angeles to fit your needs and budget.

*While we make every effort to keep our site updated, please be aware that “timely” information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.