Is It Possible to Find Cheap Car Insurance in Los Angeles?
Last Updated on September 28, 2021
Los Angeles is one of the largest cities in the United States. It’s also in one of the most expensive states for car insurance.
California has a high cost of living, and that means higher car insurance premiums for drivers in Los Angeles. In 2020 rankings, California had the fifth most expensive car insurance premiums in the United States, with the average Californian paying $2,000 per year. In Los Angeles, many drivers pay significantly more than that.
Is it possible to find cheap car insurance in Los Angeles? Or is all car insurance expensive in Los Angeles? Let’s take a closer look at the price of car insurance in LA.
California Car Insurance Prices Are 30% Above the National Average
It’s not just rent that’s expensive in California: it’s also car insurance. California’s car insurance prices are 30% above the national average.
An average driver in California pays just under $2,000 per year for car insurance. In comparison, average car insurance premiums in the United States are around $1,500 per year or less.
Why Car Insurance is Expensive in Los Angeles
There are several factors that make car insurance expensive in Los Angeles – including state and city factors.
First, population factors make car insurance expensive in Los Angeles. California is home to 39.5 million people. It also has three of the top 10 largest cities in the country. There are nearly 30 million drivers in the state. That means crowded roadways and high accident rates.
California is a big state, but much of its population is concentrated in a few small areas – including Los Angeles. The LA metro area is home to over 13.1 million people. This high density leads to more accidents and claims, pushing up everyone’s premiums.
It’s not just the number of people: it’s the density of people. You don’t have to drive on the 405 at rush hour to realize there are too many drivers in Los Angeles. Complicating things further is that there aren’t enough roadways or public transit options. All this congestion increases the likelihood of an accident. That’s why you’re more likely to get into an accident in densely-populated Los Angeles than in a smaller, less densely populated city like Palm Springs.
Crime also makes car insurance more expensive in Los Angeles than most other US cities. Certain neighborhoods are worse than others, but crime is worse in Los Angeles – and California overall – than many other cities or states. High rates of vehicle theft and vandalism increase the cost of comprehensive coverage, which pays out if your car is vandalized or stolen.
California also has unique insurance laws, and these unique laws drive up prices for many drivers. Insurers in California cannot legally charge higher rates based on credit score or gender, for example, which is common practice in almost every other state. As a result, insurers in California put a heavy emphasis on driving records instead of demographic factors. That means your car insurance rates may double in California after a single at-fault accident or DUI. They will also jump significantly after a relatively minor violation – like a speeding ticket.
All of these factors combine to make car insurance expensive in Los Angeles.
Fortunately, you have options: California is the largest and wealthiest state in the United States, which means there are thousands of insurers competing for your business. This competition drives costs as low as possible. If you know where to look, you can find cheap car insurance in Los Angeles.
Top 5 Cheapest Insurers in LA (Full Coverage Auto Insurance)
Compare car insurance quotes online today to find cheap insurance premiums in your area. Major insurance companies like GEICO are known for offering the cheapest rates in LA. You may also find smaller, local providers that undercut their larger competitors.
Based on our analysis, here are the top 5 cheapest car insurance companies in LA for full coverage:
- GEICO: $1,350 per year
- Wawanesa: $1,450 per year
- Liberty Mutual: $1,500 per year
- Kemper: $1,600 per year
- 21st Century: $1,650 per year
The premiums above assume you’re a good, experienced, middle-aged driver with full coverage car insurance (liability, collision, and comprehensive coverage). If you are a safe driver with a clean driving record, then you can expect to pay similar rates to the above.
Alternatively, if you have a recent accident on your record, then insurance premiums will rise significantly. The best insurers for drivers with a recent accident include CSAA, GEICO, Liberty Mutual, Mercury, and Farmers (in that order).
Similarly, if you have a DUI on your record, then you’ll pay significantly higher rates than above. California treats DUIs more seriously than most other states, with a DUI remaining on your record up to 13 years. The cheapest insurers for drivers with a recent DUI include Infinity, Mercury, Kemper, GEICO, and Progressive.
Top 5 Cheapest Insurers in LA (Minimum Liability Auto Insurance Coverage)
By law, California does not require drivers to have collision or comprehensive coverage. However, you are required to have liability coverage. Collision and comprehensive coverage protect your own vehicle, while liability coverage protects other drivers. You can save over $1,000 per year by dropping collision and comprehensive coverage.
The cheapest insurers in Los Angeles for minimum liability coverage include:
- GEICO: $450 per year
- CSAA: $500 per year
- Kemper: $550 per year
- Liberty Mutual: $600 per year
- Progressive: $620 per year
Why Am I Paying More for Car Insurance in LA?
LA is a big city. Car insurance premiums vary widely. Someone in East Los Angeles will pay different rates than someone in Burbank. A driver in Venice will pay different rates than a driver in Hollywood. At the same time, drivers in Los Angeles County will pay more than drivers in Orange County.
Here’s how LA County and Orange County rates compare:
| Driver | Los Angeles County (annual rates) | Orange County (annual rates) |
|---|---|---|
| With good driving history | $2,060 | $1,660 |
| After a speeding ticket | $2,950 | $2,370 |
| After an at-fault crash | $3,740 | $3,000 |
| After a DUI/DWI | $5,070 | $4,070 |
Factors that impact car insurance in LA include:
- Accident History: Insurers in California weigh accident history more heavily than insurers in most other states. If you have a recent at-fault accident, then you may pay twice as much for car insurance.
- ZIP Code: Some ZIP codes in Los Angeles have high rates of vehicle theft and vandalism. Other ZIP codes have high accident rates.
- Infraction History: If you have DUIs, speeding tickets, and other infractions on your record, then you’ll pay higher rates for car insurance.
- Discounts: Taking advantage of discounts can save you 30% per year on car insurance. Your insurer may offer discounts for safe driving, good grades, and bundling multiple policies together.
Final Word on Cheap Car Insurance in Los Angeles
Los Angeles is one of the most expensive cities in the United States – and car insurance is no exception. Car insurance in Los Angeles is more expensive than most other cities. California drivers pay the fifth-highest insurance premiums in the country, and many drivers in Los Angeles pay even more than that amount.
Fortunately, there are ways to get cheap car insurance in LA. Request a quote from any of the providers listed above. Compare quotes online today. With a few minutes of searching, you can find cheap car insurance providers in Los Angeles.
