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
The average cost of car insurance in Los Angeles is $919 per year, or $77 per month, for a minimum-coverage policy.
The average annual cost of a full coverage policy is $2,563 in L.A. , or $214 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 policy cost an average of $1,251 per year, while the cheapest cost the same driver $637. This variance illustrates why it’s so essential for drivers to shop around for quotes.
Cheapest minimum coverage in Los Angeles
The most affordable minimum liability insurance is offered by Progressive, at an average cost of $637. Two affordable alternatives include Geico, which is an average of $28 more expensive than Progressive, and Mercury, which costs $136 more on average than Progressive.
A minimum coverage policy is the cheapest insurance available, as it has 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 damage you cause to another person’s property.
Minimum liability insurance covers damage 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 | Progressive | $637 |
| 2 | Geico | $665 |
| 3 | Mercury | $773 |
| 4 | AAA SoCal | $810 |
| 5 | State Farm | $1,072 |
| 6 | Allstate | $1,222 |
| 7 | Farmers | $1,251 |
Los Angeles cheapest full coverage policy
The companies with the cheapest full coverage policies in Los Angeles are Mercury, Geico and Progressive. Their annual premium rates are, on average, less than $2,300 per year.
Rank | Company | Average annual rate |
|---|---|---|
| 1 | Mercury | $2,077 |
| 2 | Geico | $2,088 |
| 3 | Progressive | $2,255 |
| 4 | AAA SoCal | $2,387 |
| 5 | State Farm | $2,863 |
| 6 | Allstate | $3,078 |
| 7 | Farmers | $3,195 |
In fact, Geico, which has the second-cheapest minimum coverage and full coverage, has a full coverage policy that is more than three times more expensive than its minimum policy.
Full coverage offers more protection and is more expensive than minimum liability insurance as a result.
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: Covers damage caused by "acts of God," or events out of your control, including natural disasters, theft, vandalism, shattered windows, an impact with animals, falling objects and fires.
- Collision coverage: Covers damage caused by driving into another vehicle or object, which includes crashing into another car (or another car crashing into your car while it's parked), driving into a ditch and your car flipping over.
We recommend investing in more coverage if your car is less than 10 years old or worth 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 $1,118 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 Farmers and AAA of Southern California, which have average insurance premiums of $5,056 and $5,105, respectively.
AAA of Southern California, also called AAA SoCal or The Auto Club of Southern California, is only available to residents of Southern California.
Rank | Company | Average annual premium |
|---|---|---|
| 1 | Farmers | $5,056 |
| 2 | AAA SoCal | $5,105 |
| 3 | Geico | $5,348 |
| 4 | State Farm | $6,170 |
| 5 | Allstate | $6,956 |
| 6 | Mercury | $7,164 |
| 7 | Progressive | $7,401 |
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 multicar insurance plan. If your family members or roommates already have an auto insurer, ask if you can sign onto their policy. Pairing with someone who is considered low-risk, like a parent, 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 at-fault 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 increase prices for full coverage the least following an accident are Mercury and AAA of Southern California. Mercury increases its annual premium by an average of $1,059, while AAA increases its premium by $1,448 on average.
Allstate, the insurer that raises the average price of its drivers’ premiums the most following an accident, more than doubles 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 | Mercury | $2,077 | $3,136 | $1,059 |
| 3 | AAA SoCal | $2,387 | $3,835 | $1,448 |
| 2 | Geico | $2,088 | $3,827 | $1,739 |
| 5 | Farmers | $3,195 | $5,619 | $2,424 |
| 4 | Progressive | $2,255 | $4,700 | $2,445 |
| 6 | State Farm | $2,863 | $5,700 | $2,837 |
| 7 | Allstate | $3,078 | $8,362 | $5,284 |
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 companies 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 a ValuePenguin customer survey, are:
Although State Farm’s prices are higher than the city average, the company has a reputation for strong service.
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 claim service, you should confirm an insurer has it by checking its website or asking an agent.
Rank | Insurer | Respondents overall extremely satisfied with most recent claim | Respondents who rated customer service as "excellent" | |
|---|---|---|---|---|
| 1 | State Farm | 73% | 46% | |
| 2 | Allstate | 72% | 47% | |
| 3 | Farmers Insurance | 71% | 38% | |
| 4 | Progressive | 74% | 34% | |
| 5 | Geico | 64% | 42% |
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 San Pedro, one of the cheapest areas of the city, you’ll be paying an average of $688 annually for minimum liability car insurance. However, if you live in the Hollywood Hills neighborhood, one of the most expensive areas of Los Angeles, auto insurance will cost $1,101 on average — a more than $400 difference.
ZIP code | Neighborhood | Average annual car insurance rate |
|---|---|---|
| 90003 | Southeast Los Angeles | $849 |
| 90004 | Koreatown/Wilshire/Mid-Wilshire | $1,076 |
| 90005 | Koreatown/Wilshire/Mid-Wilshire | $1,045 |
| 90006 | Pico-Union/Koreatown/Mid-Wilshire | $999 |
| 90007 | Los Angeles | $968 |
Auto theft statistics in Los Angeles
Los Angeles ranks sixth among California's 15 largest cities in terms of fewest car thefts per 10,000 residents. That rate was 39 cars stolen per 10,000 in 2019.
Irvine, a city of 292,673 in Orange County, had the fewest car thefts, with only 5.6 cars stolen per 10,000 residents. Los Angeles overall had 15,642 auto thefts.
Rank | City | Population | Car thefts | Thefts per 10,000 |
|---|---|---|---|---|
| 1 | Irvine | 292,673 | 163 | 5.6 |
| 2 | Fremont | 240,887 | 568 | 23.6 |
| 3 | Chula Vista | 275,230 | 827 | 30.0 |
| 4 | Anaheim | 353,915 | 1,231 | 34.8 |
| 5 | San Diego | 1,441,737 | 5,172 | 35.9 |
Motor vehicle theft data was pulled from the FBI 2019 California crime report.
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 |
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 seven 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 full coverage auto insurance. When he obtained rates for a full coverage policy, the following limits were in place:
Coverage type | Study limits |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Property damage liability | $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.