Which Company Has the Lowest Cost of Car Insurance in Los Angeles?

Los Angeles, in southern California, is one of the largest cities in the United States. As of July 1, 2019, the city’s population was 3,990,456. The majority of LA’s population is under 18 years of age. The mean travel time from home to work for citizens of this massive city who are 16 and older lasts 31.4 minutes, which doesn’t sound bad considering.

In 2018, 53,928 vehicles were stolen in LA and the city ranked 38th in auto thefts throughout the country. Because of this, insurance shouldn’t be too high in most areas, though some zip codes will have a higher insurance rate than others based on various factors. Because auto insurance is required to be bought by anyone who owns or is buying a vehicle, the rate of vehicle theft has a pronounced impact on its cost.

An individual’s driving history also affects how much their annual premium is. If combining both of these factors together increases the premium too far, it may require them to look hard to find less expensive auto insurance so that they can afford the monthly premiums along with their rent/mortgage, utilities, food, and other budget requirements.

Vehicle insurance providers also take into account how many miles someone puts on their vehicle in a calendar year. This affects the premium, with higher rates for those who put more miles per year on their vehicle. Again, this has to do with risk assessment and the increasing possibility of an accident the more you drive. Call today to get a free personal service quote and compare both local and national auto insurance product offers.

What are the State Requirements for Los Angeles Drivers?

All drivers in California must hold the minimum for car insurance in the state. In CA, that means carrying liability insurance up to $15,000 in liability coverage per person and at least $30,000 in liability coverage per accident. On top of that, the minimum in property liability coverage per accident is another $5,000.

Los Angeles, being a large city, has relatively high car insurance costs, even for the minimum coverage. In fact, Los Angeles is in the happy position of having the zip codes with the highest rates for car insurance in the whole state. Depending on where you live in Los Angeles, you may end up paying up to $2,552 annually for your vehicle insurance. In the least expensive zip code in LA, you will be paying closer to $1,750 for your car insurance each year.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Los Angeles by Insurer

Car insurance protects you financially in case of an accident. It also protects other drivers who may be involved in an accident, regardless of who may be at fault. This is why it costs what may seem like a lot to buy a policy to protect your car, because you’re also protecting other drivers and the property of those drivers.

Whether you’re looking for the least expensive company offering the state minimum in LA, or if you’d prefer full coverage, you might want to check out Geico, who holds the spot for least expensive across the board. This might change depending on your zip code or annual miles driven though, so be sure to do your research and check multiple options.

Learn how to find cheap car insurance near you.

Low Cost Auto Insurance for Bad Credit in Los Angeles

If you live in California and your credit isn’t good, you may be worrying about finding a car insurance policy you’ll be able to maintain. However, there is good news for you if you’re in this position. The State of California is one of only a few states that does not allow insurance companies to change an individual’s insurance premium based on their credit score. This means that, no matter your credit, you should be able to find car insurance that fits within your budget.

As you explore the different Los Angeles auto insurance companies, make sure you ask them about lower-cost policies you may be able to afford.

Our bad credit guide can help you find low cost auto insurance rates close by.

Differences Between the Two Main Coverages

What is Liability-Only?

Liability insurance will pay for the injuries and/or damages that you cause to others in the case of a collision where you were at fault. In most cases, liability insurance will cost less than full-coverage insurance, but then again, they are both very different in what they cover. Liability is mandatory in all U.S. states, although how much liability you are required to have differs between states. Even if it wasn’t mandatory to have liability insurance, accidents can happen anytime and, if they do, you will need to be able to pay for the damages that you cause if you were the one to blame.

What does Full Coverage Insurance Cover?

Full coverage auto insurance in Arizona pays for your injuries and the damages made to your car as well as for others and isn’t just a specific type of a policy but it is instead liability, comprehensive insurance, and collision all combined. Full coverage insurance is not mandatory, but is good to have since it will help pay for your car to be fixed in the event of an accident that causes you injury or damage to your car, even if you were at fault. If the other person that collided with you was at fault, then their insurance will cover the damages to your car and your injuries. This is why there are laws requiring everyone to have insurance to cover the damages they cause.

Difference Between the Two Types of Coverage

The chief distinction between full and liability coverage is that full coverage ensures that any damage done to your car can be covered by insurance. Liability insurance only protects you from claims when you are at-fault in an accident. You will still need to pay for any damage to your own car, you just won’t have to pay for damage you caused to another person’s car. Full coverage can cover damage to your car even if the other driver is not insured and cannot compensate you for damages.

Finally, all states require that you carry at least a liability insurance policy so that collision victims receive compensation in the event of an accident. At-fault drivers are likewise protected from claims resulting from an automobile accident.

Average Annual Car Insurance Rates in California by City

Additional cities in California you can check out.

Helpful Advice to Get Lower Car Insurance Rates

The following auto insurance discounts can be used to help lower your premiums in Los Angeles:

  • Shop around –

    As you can see from these few examples, the rates insurers charge for the very same driver demographics can vary incredibly. The television commercials by the insurers tell us we can save hundreds of dollars on automobile insurance. Actually, you could save a thousand or more dollars on your insurance each year.

  • Drive defensively –

    If you can stay out of accidents and don’t accrue moving violations, you can save a lot of money on your automobile insurance. People with too many accidents and moving violations have trouble getting insured at any rate.

  • Drive an older car –

    If you have a car that is too old and not worth enough to carry collision insurance, you can save quite a bit of money. This especially applies to younger drivers whose insurance costs are much higher. If they can drive an older vehicle that would just require liability insurance and maybe some inexpensive comprehensive insurance, they can save at least a thousand dollars or more on insurance.

  • Buy collision insurance with a high deductible rate –

    The higher deductible rate you can tolerate in the event of a collision and the need to repair your vehicle, the lower your collision insurance cost will be. Your collision insurance rate will be really high if your deductible is only around $500. If you can tolerate $1,500 or so, you can save quite a bit of money on this portion of your annual insurance rate.

  • Bundle your home and automobile insurance policies –

    If you can buy your automobile and home insurance from the same company, you will likely save money. Most insurers offer a substantial discount for having your home and auto policy with them.

To take advantage of all discounts on premiums, check out this guide.

These are the Common Reasons for Insurance Rates in Los Angeles

Los Angeles drivers are likely to see their insurance rates change over time. There can be many factors, both positive and negative, that impact your regular premiums. One key thing that all drivers face is aging. As you mature as a person and as a driver, your insurance rates are likely to fall. Typically, older drivers are safer drivers. They are less likely to drink and drive, speed, or take unnecessary risks on the road.

Your rates are also dependent, in part, on the type of car you drive. Drivers who love high-powered sports cars will likely spend more for automobile insurance than those who drive less-exciting SUVs and sedans.

Rates are also tied to the deductible on the policy. If you carry collision or comprehensive (full) coverage and opt for a higher deductible, your premiums could be lower. That is, if a tree hits your car, you will pay more up front for the damage to offset the lower premiums you’ve been paying over time. Contact us today by phone or using our online form to get an affordable price quote from multiple companies at one time.

Do you have a bad driving record and need cheap insurance? Check out this guide.

Helpful Los Angeles, California Vehicle Resources:

Live Traffic Accidents by City

DMV in California (Find Locations, Vehicle Registration, Titles and Insurance Info)


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