Who Has the Cheapest Car Insurance in Los Angeles?
Who Has the Cheapest Car Insurance in Los Angeles?
Find Cheap Auto Insurance Quotes in Los Angeles
A Los Angeles minimum liability policy costs $836 per year on average, or $70 per month, compared to the state average of $574. The average annual premium of a full coverage policy is $4,288, or $357 per month. The best way to ensure that you obtain the best or cheapest insurance is by researching and comparing rates.
We compared rates for a sample driver at multiple insurance companies and found that the most expensive minimum liability insurance quote cost an average of $1,235 per year, while the cheapest cost the same driver $500. This variance illustrates why it’s so essential for drivers to shop around.
Cheapest minimum coverage in Los Angeles
The most affordable minimum liability insurance is offered by CSAA, at an average cost of $500. Two affordable alternatives include Geico, which is an average of $90 more expensive than CSAA, and Progressive, which costs $166 on average more than CSAA.
A minimum coverage policy is the cheapest insurance available, as it's the lowest amount of coverage required to legally drive.
Find Cheap Auto Insurance Quotes in Los Angeles
Minimum coverage requirements are regulated on a state-by-state basis. California’s minimum coverage requirements include bodily injury (BI) and property damage (PD) liability.
- Bodily injury liability: Pays for injuries that other drivers sustain in an accident where you are at fault.
- Property damage liability: Covers the financial costs of damages you cause to another person’s property.
Minimum liability insurance covers damages you’ve caused other drivers or property owners. However, it won’t protect your own car, and you may be at risk of insufficient protection in the event you’re involved in an accident. Drivers with new or expensive vehicles should opt to sign up for additional protection or a higher coverage limit.
Rank | Company | Average annual premium |
|---|---|---|
| 1 | CSAA | $500 |
| 2 | Geico | $590 |
| 3 | Progressive | $666 |
| 4 | Mercury | $775 |
| 5 | Auto Club | $813 |
| 6 | Allstate | $1,035 |
| 7 | State Farm | $1,075 |
| 8 | Farmers | $1,235 |
Los Angeles cheapest full coverage policy
The companies with the cheapest full coverage policies in Los Angeles are CSAA, Mercury and Geico. Their annual premium rates are, on average, less than $2,200 per year.
Rank | Company | Average annual rate |
|---|---|---|
| 1 | CSAA | $2,108 |
| 2 | Mercury | $2,123 |
| 3 | Geico | $2,148 |
| 4 | Progressive | $2,281 |
| 5 | Auto Club | $2,486 |
| 6 | Allstate | $2,884 |
| 7 | State Farm | $2,899 |
| 8 | Farmers | $3,349 |
Full coverage offers more protection and is more expensive than minimum liability insurance as a result.
In fact, CSAA, which has the cheapest minimum coverage and full coverage policy, has a full coverage policy that is four times more expensive than its minimum policy.
A full coverage policy includes the minimum coverage requirements as well as comprehensive and collision coverage.
To summarize what comprehensive and collision coverage are:
Comprehensive coverage | Collision coverage |
|---|---|
|
|
We recommend investing in more coverage if your car is less than 10 years old or costs more than $3,000. If you decide to buy a full coverage policy, you should know that you can save up to an average of $1,241 by comparing quotes from multiple insurers.
Cheapest coverage for young drivers in LA
The most affordable full coverage policies for young drivers are offered by Mercury and State Farm, which have average insurance premiums of $5,227 and $5,382, respectively.
Rank | Company | Average annual premium |
|---|---|---|
| 1 | Mercury | $5,227 |
| 2 | State Farm | $5,382 |
| 3 | Auto Club | $7,000 |
| 4 | CSAA | $7,288 |
| 5 | Progressive | $7,893 |
| 6 | Geico | $9,449 |
| 7 | Allstate | $10,792 |
| 8 | Farmers | $17,736 |
Drivers who are young and inexperienced are more likely to be involved in an accident. As a result, insurance companies will quote you at a higher rate than your 30-year-old counterpart. The rates listed above may still be too expensive for young drivers, especially if they are students or new professionals.
Outside of comparing quotes from multiple insurers, you can also save money by doing the following:
- Ask insurers about discounts. Insurance companies typically have discounts for being a safe driver, being a good student or installing safety features in your car. You may already be eligible for some of these discounts and could save hundreds or even thousands of dollars.
- Consider a combined or multi-car insurance plan. If your family members or roommate already have an auto insurer, ask if you can sign onto their policy. Pairing with someone considered low-risk, like your parents, will result in their policy price increasing, but it will be cheaper than having two separate policies. Some insurance companies even offer discounts for adding cars to your policy.
Cheapest coverage for drivers with an accident history
Being in an accident damages both your car and your insurance rates. Having an accident history can increase your quotes by staggering amounts, as it indicates you are a high-risk driver.
The two insurers that increased prices the least following an accident were CSAA and Geico. CSAA increased its annual premium by an average of $555, while Geico increased its premium by $707 on average.
Allstate, the insurer that raised the average price of their drivers’ premiums the most following an accident, more than doubled the premium costs. Your premium increase after an accident is dependent on what company you are insured under.
Rank | Company | Rates before accident | Rates after accident | Difference |
|---|---|---|---|---|
| 1 | CSAA | $2,108 | $2,663 | $555 |
| 2 | Mercury | $2,123 | $3,690 | $1,567 |
| 3 | Geico | $2,148 | $2,855 | $707 |
| 4 | Progressive | $2,281 | $4,751 | $2,471 |
| 5 | Auto Club | $2,486 | $3,748 | $1,263 |
| 6 | Allstate | $2,884 | $6,291 | $3,407 |
| 7 | State Farm | $2,899 | $4,614 | $1,715 |
| 8 | Farmers | $3,349 | $5,691 | $2,342 |
There are a few actions you can take to mitigate the impact of an accident. One route is to look for discounts. Taking defensive driving or safe driving courses could qualify you for a discount with your insurer.
A proactive measure to explore is asking about your insurer’s accident forgiveness policy. Qualifications vary by company, but it will prevent your insurer from raising rates after an accident.
Car insurance company with the best customer service
The cheapest policy isn’t always the best. When contacting insurance agents and comparing rates, drivers need to consider not only price but also customer service. Insurance companies with the best customer service typically have low wait times, quick responses, convenient call times and empathetic agents.
The companies with the best customer service, measured by the frequency of customer complaints, are:
- Auto Club
- Dairyland
- Mercury
Although Auto Club’s prices are closer to the city average, the company has a reputation for strong service. Many customers frequently cite a stress-free claims process and fast roadside assistance as some of the biggest selling points.
Before deciding on an insurer, it’s imperative to research company reviews and strike a balance between service quality and financial costs. You should also check whether an insurer has all the service features you value. For example, if you want 24/7 claims service, you should confirm an insurer has it by checking its website or asking an agent.
Rank | Insurer | Complaint index |
|---|---|---|
| 1 | Wawanesa | 1.1 |
| 2 | CSAA | 1.5 |
| 5 | Mercury | 1.5 |
| 4 | Geico | 1.8 |
| 7 | State Farm | 2.1 |
| 3 | Auto Club | 2.3 |
| 8 | Farmers | 2.6 |
| 9 | Auto-Owners | 2.9 |
| 10 | Allstate | 3.0 |
| 6 | Dairyland | 3.1 |
| 11 | Progressive | 3.7 |
| 12 | USAA | 3.8 |
Insurers were selected based on market share and quote availability. Complaint index information is drawn from the National Association of Insurance Commissioners. The national median for the complaint index is 1.0, meaning companies with a lower index provide better customer service compared to the median company.
Average cost of car insurance, by Los Angeles neighborhood
Los Angeles residents and insurance companies know that not every area of the city is the same. Population density, crime rates and accident frequency vary by neighborhood, resulting in certain areas of Los Angeles having higher average premium costs than others.
For instance, if you live in Southeast Los Angeles, one of the cheapest areas of the city, you’ll be paying an average of $858 annually for minimum liability car insurance. However, if you live closer to the city’s Fashion District, one of the most expensive and bustling areas of Los Angeles, auto insurance will cost $1,151 on average — a nearly $300 difference.
Zip Code | Neighborhood | Average annual car insurance rate |
|---|---|---|
| 90003 | Southeast Los Angeles | $858 |
| 90004 | Koreatown / Wilshire / Mid-Wilshire | $1,213 |
| 90005 | Koreatown / Wilshire / Mid-Wilshire | $1,213 |
| 90006 | Pico-Union / Koreatown / Mid-Wilshire | $1,151 |
| 90007 | Los Angeles | $1,015 |
| 90010 | Koreatown / Wilshire / Mid-Wilshire | $1,256 |
| 90011 | Southeast Los Angeles | $864 |
| 90012 | Chinatown | $1,063 |
| 90013 | Wholesale District / Downtown Los Angeles | $869 |
| 90014 | Gallery Row / Fashion District / Downtown Los Angeles | $1,151 |
| 90015 | South Park / Downtown Los Angeles | $1,073 |
| 90016 | West Adams | $1,073 |
Fatal Accidents in Los Angeles
There were 1,115 fatal car accidents in Los Angeles between 2011 and 2015, the most of any one city in the country. Below we list the most dangerous roads and highways in Los Angeles.
Most Dangerous Roads in Los Angeles
Rank | Road | Number of Fatal Accidents | Percent that Involve a Drunk Driver |
|---|---|---|---|
| 1 | I-405 | 37 | 24.3% |
| 2 | I-110 | 29 | 37.9% |
| 3 | US-101 | 29 | 37.9% |
| 4 | I-5 | 28 | 10.7% |
| 5 | I-10 | 24 | 29.2% |
About 23% of fatal accidents in Los Angeles involved a drunk driver between 2011 and 2015. That figure is less than some other California cities, and significantly less than Texas cities where it is usually around 30%.
Minimum required auto insurance in California
Auto insurance requirements are regulated on a state level. In California, drivers are required to obtain bodily injury liability and property damage liability in order to legally drive.
Insurance coverage | Minimum requirements |
|---|---|
| Bodily injury (BI) | $15,000 per person / $30,000 per accident |
| Property damage (PD) | $5,000 per accident |
The minimum liability coverage is the cheapest and lowest amount of coverage you can purchase, but it may not be the best for your needs. In the event that you get into an expensive accident where you don’t have sufficient insurance coverage, you can find yourself paying thousands of dollars in out-of-pocket expenses.
We recommend that drivers who meet at least one of these two criteria obtain more coverage than the minimum:
- Your car is new or less than 10 years old
- Your car is worth more than $3,000
Methodology
Auto insurance quote data was pulled from eight auto insurance companies. Our default driver was a 30-year-old man who owns a 2015 Honda Civic EX and has a below-average credit score. Unless explicitly stated, he was comparing rates for minimum coverage auto insurance. When looking for a full coverage policy, the following limits were in place:
Coverage type | Study limits |
|---|---|
| Bodily liability | $50,000 per person / $100,000 per accident |
| Property damage | $25,000 per accident |
| Uninsured/underinsured motorist BI | $50,000 per person / $100,000 per accident |
| Comprehensive and collision | $500 deductible |
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.