Los Angeles is home to over 10 million residents, with an average of two vehicles per household. That’s a lot of cars — and why the city is known for its gridlock. Car insurance in Los Angeles is mandatory. The issue is, car insurance rates in Los Angeles are higher than average at $2,836 for full coverage and $861 for the required minimum annually. The higher rates are due to a combination of vehicle density on the roads and accidents.
You can’t skip out on car insurance, but you can save by finding the cheapest car insurance in Los Angeles. We reviewed over a dozen auto insurance carriers in the area to find the best car insurance in Los Angeles based on rates, customer reviews, financial standing and more.
Best car insurance companies in Los Angeles
When determining the best Los Angeles car insurance providers, there’s more to consider than just price. We review thousands of real customer reviews and look to industry experts for ratings. This includes AM Best for financial stability and J.D. Power for customer satisfaction. We also used 2021 rate data from Quadrant Information Services to compare real average rates.
|Insurance company||J.D. Power customer satisfaction core||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Auto Club of Southern California Insurance Group||848 / 1,000||$744||$2,636|
|Geico||828 / 1,000||$625||$2,357|
|Progressive||823 / 1,000||$704||$2,527|
|State Farm||836 / 1,000||$785||$2,679|
|Wawanesa||853 / 1,000||$829||$2,177|
Auto Club of Southern California Insurance Group
The Auto Club of Southern California Insurance Group offers car insurance policies to drivers in Southern California only. Top customer benefits include being a financially-secure company that maintains AAA network connections. Drivers insured with this company may receive travel benefits through AAA and be eligible for roadside assistance when needed. J.D. Power reports that the company is better than most, with a customer satisfaction score of 848 out of 1,000. Rates average $744 for basic coverage and $2,636 for full coverage per year.
Although Geico doesn’t offer discounts for hybrid or electric vehicles, which some Californians may be disappointed by, the auto insurance giant scores higher when it comes to their competitive rates, quick claims process and easy-to-use online system. Geico’s average rate in Los Angeles for minimum insurance is $625, with full coverage costing $2,357 annually. Among the best car insurance companies in California, J.D. Power rates Geico as being better than most with a score of 828 out of 1,000.
State Farm’s minimum coverage is $785 on average per year and $2,679 when you include comprehensive and collision insurance. State Farm’s Payoff Protector may reimburse you for the full value of your vehicle if it’s totaled or stolen. State Farm ranks high in the J.D. Power study, proving the nation’s largest insurance carrier is capable of handling claims quickly and ensuring policyholders feel taken care of.
Progressive is typically known as a low-cost carrier, but it was edged out by Geico in cost. Our finding of Progressive’s average premiums are $704 for minimum liability and $2,527 for full coverage annually. You may be able to get cheaper coverage by using the Name Your Price online tool. When you enter the target amount you’d like to pay, Progressive’s tool will provide the amount of car insurance within your budget. Progressive doesn’t score as high in the J.D. Power study as some of the other finalists in this roundup, but it still comes in as above average in customer satisfaction.
Wawanesa provides car insurance for those who have been driving at least three years and have a relatively safe driving record. Coverage includes options for rental car insurance, roadside assistance, and vehicle manufacturer parts coverage. Plus, there are discounts available when you bundle your insurance with either renters insurance or condo insurance. If you are a senior driver or safe driver, you may be eligible for other discounts.
Cheapest car insurance in Los Angeles
We’ve provided the cheapest car insurance in Los Angeles for you to review. They may not have made our list of the best car insurance Los Angeles carriers, but they’re still worth comparing if price is the most important factor for you. Los Angeles car insurance rates are typically higher than the rest of the state. California’s average auto insurance premiums come in at $580 for basic coverage and $2,012 for full coverage annually.
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|CSAA Insurance Group||$477||$2,342|
CSAA Insurance Group is AAA’s Northern California division and included as a comparison point to how car insurance prices change between AAA Northern and Southern California. You’ll pay an average of $744 for minimum coverage and $2,636 for full coverage car insurance in Los Angeles through Auto Club, which is higher than the same average cost of coverage in Northern California.
Geico, Progressive and Mercury Insurance are all considered the cheapest car insurance companies that also insure high-risk drivers by providing SR-22s. Geico beats Progressive and Mercury because of the number of discounts. Geico has 16 available discounts, compared to Progressive’s 13 and Mercury Insurance’s eight.
How to find the best car insurance in Los Angeles
Los Angeles is known for having a high number of drivers on the road, and as a busy metropolis, there are many risks for the common driver that causes insurance premiums to be pricier than other areas. When shopping for the best car insurance in Los Angeles, it’s important to consider what you need most in a car insurance company. Not all companies will offer the same type of coverage, and while some providers may be a great choice for drivers with good credit, other car insurance providers may specialize in car insurance for drivers with bad credit. Be sure to explore your options carefully to see which is the best fit for you.
Los Angeles insurance requirements
Los Angeles requires all drivers to carry a minimum amount of liability insurance as follows:
- Bodily injury: $15,000 per person and $30,000 per accident
- Property damage liability: $5,000
The issue is, the minimum coverage may not be enough to cover the costs of an accident, leaving you to pay for the remainder out of pocket. In addition, liability coverage does not provide reimbursement if your car is damaged in an accident you caused or if it’s lost in a fire, theft or through a natural disaster. Having full coverage that includes collision and comprehensive coverage protects your property as well.
Car insurance discounts in Los Angeles
Los Angeles drivers should take advantage of the following discounts:
- Multi-car: Many Angelenos own more than one vehicle and could take advantage of special savings when insuring them together.
- Student discounts: Los Angeles is home to several major universities and colleges such as UCLA, USC, Santa Monica College and more. Students should ask their insurance company for a discount.
- Low mileage discount: Although LA roads are busy and commute times are long, Los Angeles county is surprisingly small, spanning 44 miles at its greatest distance. You could save money if you drive less than 15,000 miles per year.
- Bundling discount: Whether you rent or own your home, bundling homeowners, renters or condo insurance with your auto coverage can save you some cash.
Frequently asked questions
What is the best car insurance company?
There are many quality car insurance companies operating in Los Angeles worth considering. To find the best car insurance company for your needs, get a few car insurance quotes to compare pricing and offerings before you decide.
How much car insurance do I need in Los Angeles?
The minimum required by the State of California is:
- Bodily injury: $15,000 per person and $30,000 per accident
- Property damage liability: $5,000
However, you may want more coverage than the minimum requirement to protect yourself financially.
Must I still keep proof of auto insurance in my vehicle if my insurance provider is electronically reporting my information to the DMV?
Yes, you must always have evidence of current vehicle insurance coverage in your automobile at all times. This is essential in the event you are pulled over by a police officer or involved in a car accident.
What if I cannot afford liability insurance coverage in California?
Operating or even parking any vehicle requires auto insurance coverage in the state of California. Drivers of certain income levels can apply for the California Low-cost Automobile Insurance Program if they cannot afford traditional car insurance.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.