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

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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.


Cheapest for minimum liability

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Best for customer service

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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.

This graph identifies and ranks the three companies in Los Angeles with the best rates for insuring our sample drivers' cars
This graph identifies and ranks the three companies in Los Angeles with the best rates for insuring our sample drivers' cars

Find Cheap Auto Insurance Quotes in Los Angeles

Currently insured?
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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.

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.

RankCompanyAverage annual premium
1CSAA$500
2GEICO$590
3Progressive$666
4Mercury$775
5Auto Club$813
6Allstate$1,035
7State Farm$1,075
8Farmers$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.

RankCompanyAverage annual rate
1CSAA$2,108
2Mercury$2,123
3GEICO$2,148
4Progressive$2,281
5Auto Club$2,486
6Allstate$2,884
7State Farm$2,899
8Farmers$3,349

Full coverage offers more protection and is more expensive than minimum liablity 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 coverageCollision coverage
  • Covers damages caused by “acts of God,” or events out of your control
  • Includes natural disasters, theft, vandalism, shattered windows, damage from an impact with animals, falling objects, and fires
  • Covers damages caused by driving into another vehicle or object
  • Includes crashing into another car (or another car crashing into you while 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 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.

RankCompanyAverage annual premium
1Mercury$5,227
2State Farm$5,382
3Auto Club$7,000
4CSAA$7,288
5Progressive$7,893
6GEICO$9,449
7Allstate$10,792
8Farmers$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.

RankCompanyRates before accidentRates after accidentDifference
1CSAA$2,108$2,663$555
2Mercury$2,123$3,690$1,567
3GEICO$2,148$2,855$707
4Progressive$2,281$4,751$2,471
5Auto Club$2,486$3,748$1,263
6Allstate$2,884$6,291$3,407
7State Farm$2,899$4,614$1,715
8Farmers$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.

RankInsurerComplaint index
1Wawanesa1.1
2CSAA1.5
5Mercury1.5
4GEICO1.8
7State Farm2.1
3Auto Club2.3
8Farmers2.6
9Auto-Owners2.9
10Allstate3.0
6Dairyland3.1
11Progressive3.7
12USAA3.8
13American Family3.9
14California Casualty3.9
15Loya5.4
16Liberty Mutual5.7
17Nationwide6.2
18Amica6.3
19National General6.9
20Aspire General7.7
21The Hartford8.2
22Travelers8.6
23MetLife8.8
24Anchor General10.6
25MAPFRE14.9
26Kemper17.9
27Metromile21.5
28Western General35.6
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 CodeNeighborhoodAverage annual car insurance rate
90003Southeast Los Angeles$858
90004Koreatown / Wilshire / Mid-Wilshire$1,213
90005Koreatown / Wilshire / Mid-Wilshire$1,213
90006Pico-Union / Koreatown / Mid-Wilshire$1,151
90007Los Angeles$1,015
90010Koreatown / Wilshire / Mid-Wilshire$1,256
90011Southeast Los Angeles$864
90012Chinatown$1,063
90013Wholesale District / Downtown Los Angeles$869
90014Gallery Row / Fashion District / Downtown Los Angeles$1,151
90015South Park / Downtown Los Angeles$1,073
90016West Adams$1,073
90017City West$1,151
90018Jefferson Park$1,015
90019Mid-Wilshire$1,151
90020Koreatown / Wilshire / Mid-Wilshire$1,256
90021Wholesale District / Downtown Los Angeles$1,001
90024Westwood$1,256
90025West Los Angeles$1,213
90026Echo Park$1,063
90027Griffith Park$1,213
90028Fairfax$1,256
90029East Hollywood$1,213
90031Lincoln Heights / Northeast Los Angeles$1,063
90032El Sereno / Northeast Los Angeles$909
90033Arroyo Seco / Boyle Heights$875
90034Palms$1,151
90035West Los Angeles$1,213
90036Mid-Wilshire$1,256
90037Wildasin$871
90038Fairfax$1,256
90039Atwater Village / Northeast Los Angeles$1,063
90041Eagle Rock / Northeast Los Angeles$876
90042Highland Park / Northeast Los Angeles$876
90043Los Angeles$923
90044Los Angeles$875
90045Playa Del Rey$1,013
90046Hollywood Hills$1,256
90047Manchester Square$871
90048Mi-Wilshire$1,273
90049Brentwood$1,213
90057Westlake$1,151
90058Nevin$871
90061Los Angeles$771
90062Vermont Square$921
90064Century City / West Los Angeles$1,151
90065Mount Washington / Glassell Park / Northeast Los Angeles$1,063
90067Century City / West Los Angeles$1,256
90068Hollywood Hills$1,175
90069Beverly Crest$1,273
90071Financial District / Downtown Los Angeles$1,091
90077Bel Air$1,273
90079Civic Center / Downtown Los Angeles$745
90089University Park$1,012
90292Marina del Rey$1,008
90402North of Montana$1,213
90501East Torrance$779
90731Wilmington$773
90732San Pedro$769
91330Northridge$1,072
91340San Fernando$854
91342Sylmar$847
91345Mission Hills$1,027

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

RoadNumber of Fatal AccidentsPercent that Involve a Drunk Driver
1I-4053724.3%
2I-1102937.9%
3US-1012937.9%
4I-52810.7%
5I-102429.2%

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 coverageMinimum 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 typeStudy 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.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

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.