Get the cheapest car insurance in Los Angeles by shopping around and comparing coverage, rates, and discounts from several insurance companies.
Insurance rates are only comparable with identical policy coverage, so be sure you understand exactly what each policy covers before deciding on a provider.
Also, make sure you’ve asked for every discount for which you are eligible, to get the best monthly rate possible.
Insurance companies calculate their premiums using different parameters and formulas to assess the likelihood you’ll file a claim.
Common factors used by most insurers include age, gender, driving history, and prior claims.
However, where you live, where you park, and what type of vehicle you drive can also have a significant impact on the cost of your car insurance.
Arm yourself with the information below to negotiate the cheapest monthly insurance rate in Los Angeles.
How Much is Car Insurance in Los Angeles?
Since 2011, average car insurance premiums in California have slowly risen from $881.07 to $986.75.
However, according to the most recent data collected by the National Association of Insurance Commissioners (NAIC), California’s combined average premium is still lower than the national average.
California lands about midway on the national pricing scale; it doesn’t appear on either the most expensive or least expensive lists.
Compared to nearby states, California’s average price is slightly higher than Arizona and more than $80 higher than Oregon, but has Nevada beat by more than $100.
|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|
|Average Cost of Car Insurance Countrywide||$1009.38|
Many factors affect the state-to-state differences in premiums for automobile insurance.
California’s moderate car insurance rate can be partially attributed to traffic conditions, population density, vehicle theft rates, and driver’s credit history.
The has 21,825 miles of maintained roadways in L.A. County and nearly 7.6 million registered automobiles with the Department of Motor Vehicles in 2017 countywide.
This adds up to a lot of traffic on a lot of roads, which greatly increases the likelihood of accidents.
Despite California’s dense traffic, the NAIC reports a surprisingly low vehicular fatality rate of 0.92 fatalities per 100 million vehicle miles driven, which is lower than the national average of 1.08.
Less severe wrecks translate to fewer payouts required by insurance providers, and those savings are typically passed on to policyholders.
More than 39.5 million Americans call California home with a little over a quarter of the state’s population residing in L.A. County, including 4 million in the City of Los Angeles alone.
The NAIC calculated California’s population density at 248 people per square mile in 2014, which was well above the national average.
Although having a larger population doesn’t directly influence insurance premiums, more people living in a given area can affect the odds of accidents.
Help reduce traffic by taking public transportation, or if you live near enough, bike or walk to work.
Both options decrease your annual miles driven, which could result in a low-mileage discount.
Vehicle Theft Rates
California ranks first in the nation in auto thefts, which affects your auto insurance.
According to the NCIB’s Hot Wheels Report, the most common vehicles stolen in California were Honda Accords and Civics manufactured in the late 1990s.
Newer cars that made the list were the Toyota Corolla and Nissan Altima.
Drivers can counter potential insurance rate hikes due to auto theft by installing an alarm system, or anti-theft device, or by purchasing a vehicle with a low theft rate.
Most insurance companies use credit-based insurance scores as a factor in your insurance premium.
Typically, the lower your credit score, the higher your premium. California is one of only three states that bans this practice, which helps keep rates low.
Removing credit history from the mix was part of Proposition 103, which helped the state make sure that insurance rates were set fairly.
It also required a rate rollback of 20 percent and prior approval of California’s Department of Insurance before insurers could implement property and casualty insurance rates.
Companies with the Cheapest Car Insurance in Los Angeles
It pays to shop around, so compare at least three companies before settling on a provider.
To find the best car insurance in Los Angeles, thoroughly evaluate each policy and read company reviews to gauge consumer satisfaction.
Here are some of the most well-known companies:
Progressive offers an array of coverages and discounts, including a unique offering for pet injury coverage.
Progressive’s Name Your Price option allows customers to choose car insurance based on their individual needs and budgets.
Its Snapshot® program uses a mobile app or plug-in device to personalize your rate based on how you drive.
Policyholders can earn a Safe Driving Bonus Check for every six months of accident-free driving, and Allstate’s Drivewise® program allows customers to earn rewards for safe driving every day.
Allstate also offers Milewise℠ insurance, a program which benefits drivers who don’t drive much with a daily base rate plus a per-mile rate when they do drive.
Liberty Mutual offers a 12-month rate guarantee and a variety of discounts, including savings opportunities for teen drivers, new graduates, teachers, and retirees.
Policyholders can earn discounts for standard safety features and innovative features such as adaptive headlights, rearview cameras, and electronic stability control.
Clients who are insuring hybrid cars can also earn an alternative energy discount.
Policyholders can earn discounts by completing a qualifying driver training course.
MetLife customers also receive substantial discounts for being claim-free and violation-free for five years and when all drivers in their household have outstanding driving records.
Many of MetLife’s policies offer rental car damage coverage, new car replacement, and identity theft protection at no extra cost.
What is Mandatory for Car Insurance in Los Angeles
While automobile owners/drivers can fulfill California’s mandatory financial responsibility with a DMV-issued self-insurance certificate, a $35,000 cash deposit made to the DMV, or a $35,000 surety bond, most motorists choose liability insurance to cover their financial responsibility for the bodily injury or property damage of others.
To cover your expenses in a collision, you need collision and comprehensive insurance added to your policy.
Although comp and collision aren’t required by law, most financial institutions require it on financed vehicles.
How much automobile insurance you need varies from state to state, but the mandatory minimums in California for a standard automobile policy are:
- $15,000 personal injury liability per person
- $30,000 personal injury liability per accident
- $5,000 property damage liability
Income-eligible drivers can take advantage of California’s Low-Cost Automobile Insurance Program, which provides reduced premiums by lowering liability requirements to $10,000 for personal injury per person, $20,000 for personal injury per accident, and $3,000 for property damage.
You must carry proof of your liability insurance or another form of financial responsibility at all times in any vehicle you operate or park on California roadways.
This verification must be presented to law enforcement upon request, when renewing vehicle registration, or when you’re involved in a collision.
California insurance companies are required by law to electronically report vehicle insurance information to the DMV which monitors coverages and takes appropriate action for lapses in insurance lasting more than 45 days.
How to Reduce the Cost of Your Car Insurance in Los Angeles
While you’re always going to have an auto insurance bill, you can whittle it down to get the best monthly rate in Los Angeles.
Many reasons contribute to why your insurance is high, but raising your deductible, reducing insurance coverage for older vehicles, and requesting discounts can help you get the cheapest car insurance in Los Angeles.
Two other ways to save on car insurance is by bundling policies and by incorporating cost-reducing safety and security features into your vehicle.
Bundling Different Types of Insurance
Insuring multiple automobiles with the same insurance provider typically earns a multi-vehicle discount, but you can earn even more significant savings by combining multiple types of policies.
Join together your motorcycle, boat, motorhome, or other recreational vehicles with the same provider to qualify for multi-policy discounts.
Add on your homeowner’s, renter’s, health, life, or other insurance policies for even more savings.
The more you bundle, the more you save.
Safety/Security Equipment Savings
Security equipment–such as alarm systems, anti-theft devices, and programs that track your car if it’s stolen–can potentially provide insurance cost savings.
The safety features most likely to help you qualify for a discount on your insurance are anti-lock brakes, air bags, automatic seat belts, daytime running lights, and electronic stability control.
Many insurance companies have yet to provide discounts for newer, unproven safety features such as collision-avoidance systems and lane-departure warnings.
However, these features do increase your car’s safety, which could lower your insurance premiums in the long run.
Streamline your insurance shopping endeavors by providing detailed information about the insured vehicle(s) and driver(s); your household, including where you live and where you park your car; and the amount of liability and deductible desired.
Advanced preparation on your part lets insurance providers compile a quicker, more accurate quote.
What Can Increase the Cost of Your Car Insurance in Los Angeles
Just as there are factors that can reduce your car insurance rate, there are also elements that increase it.
Insurance companies in most states look at a multitude of criteria that can raise your rates, but California has mandated that only three rating factors will influence policy rates in the state.
Although insurance providers can consider other factors, nothing is allowed to affect your price more than your driving record, miles driven, and years of driving experience.
Your driving record has the greatest impact on your California insurance premium.
A clean driving record results in better rates and makes you eligible for safe/good driver discounts.
If you have a history of multiple accidents or citations, you’re considered high risk and can get hit with noticeably higher rates.
Some providers may even list you as being uninsurable until your driving record improves.
The number of annual miles driven carries a lot of weight in California, so if you drive a lot, it’ll cost you on your premium.
The logic behind this precedent is that the less you drive, the less likely you’ll be in an accident.
Besides rate increases, going over your insurance provider’s mileage cap also means you won’t qualify for low-mileage discounts that may be available.
Always inform your insurance company if your annual miles decrease significantly to put an end to higher rates.
Years of Driving Experience:
Younger, inexperienced drivers, traditionally see higher rates than drivers in any other age group.
Due to their lack of driving experience and reputation for being easily distracted behind the wheel, insurance companies typically consider teen drivers to be high risk.
Parents who add teen drivers to their California policy will see a rate increase, but it’s a cheaper alternative than the teen getting insurance on their own.
Young drivers lacking driving experience can lower their parents’ premiums by being a good student and taking a driver’s education course.
Car insurance premiums vary widely between insurance companies based on many rating factors, including the provider’s own claims experience and cost of doing business.
Comparing insurance companies is the smartest way to find the cheapest car insurance in Los Angeles and get the best monthly rates on the coverage you need.
*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.