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If you’re looking for the best car insurance, Los Angeles, California, has many insurance companies that can meet your specific needs and preferences. However, you should know that premiums may vary significantly from one insurer to another, so it’s best that you shop around before you buy. Check out this comprehensive guide to auto insurance in Los Angeles:
How Much Auto Insurance Is Required in Los Angeles?
In Los Angeles, it’s mandatory for drivers to meet California’s minimum auto insurance requirements, which are as follow:
- Bodily injury liability coverage: $15,000 for each person and $30,000 for an entire accident
- Property damage liability coverage: $5000
Minimum auto liability coverage is the most affordable car insurance coverage you can buy, but it may not be the best option. If you get involved in a major collision where you don’t have enough coverage, you may find yourself paying a large amount of money out of your own pocket, says ValuePenguin.
Additionally, auto liability coverage doesn’t allow you to claim compensation if your vehicle is damaged in an accident or lost due to theft, a fire, or a natural disaster. You can better protect your assets by purchasing collision and comprehensive coverage.
How Much Does Auto Insurance Cost in Los Angeles?
Drivers in Los Angeles pay an average of $2632 a year to insure their vehicles. This amount is much higher than the state average of $1868 and the national average of $1548.
How Are Car Premiums Determined in Los Angeles?
Many factors go into the calculation of auto insurance premiums, including:
The drivers in Los Angeles who face the most expensive auto insurance rates are teenagers. If you’re a teen driver, one of the easiest and most effective ways to get a lower premium is to enter adulthood.
Below are the average car insurance rates for Los Angeles drivers of different age groups:
- Teen drivers: $9767 per year
- 20-something drivers: $3905 per year
- 30-something drivers: $2559 per year
- 40-something drivers: $2476 per year
- 50-something drivers: $2364 per year
- 60-something drivers: $2358 per year
- 70-something drivers: $2747 per year
If you want to keep your auto insurance cost low, you should try your best to avoid accidents and traffic violations. At-fault accidents, reckless driving citations, speeding tickets, and DUI charges can all lead to premium hikes.
Take a look at the average car insurance premiums for Los Angeles drivers with previous traffic offenses and accidents:
- At-fault accident resulting in less than $1000 of damages: $2642 per year
- At-fault accident resulting in more than $2000 of damages: $4686 per year
- Going 16 to 20 mph over the speed limit: $3722 per year
- DUI: $6938 per year
- Reckless driving: $7077 per year
Your exact location in Los Angeles is one of the main rating factors auto insurance providers use to determine how much you’ll pay for car insurance. The price of your policy depends on the perceived risk level in your ZIP code. If your home is located in an area with a high number of accidents, uninsured motorists, or vehicle thefts, you’ll likely be deemed riskier to insure. As a result, you may have to pay considerably more for car insurance than someone who resides in a safer part of Los Angeles.
According to California law, using credit scores to set auto insurance rates is regarded as discriminatory. Therefore, your credit score won’t have an effect on your premium.
Which Are the Cheapest Auto Insurance Companies in Los Angeles?
In a survey, The Zebra found that GEICO is the most affordable auto insurance provider in Los Angeles. Consider buying from these insurers if you’re looking for the cheapest car insurance:
- GEICO: $1899 per year
- Mercury: $2026 per year
- CSAA: $2229 per year
- AAA: $2464 per year
- Infinity: $2625 per year
What Are Some Recommended Auto Insurance Companies in Los Angeles?
According to Bankrate, the following are the best auto insurance providers in Los Angeles:
- Auto Club of Southern California Group: This insurance company only offers auto insurance policies to motorists in Southern California. It’s a financially stable company that maintains strong connections with the AAA network. Therefore, if you buy a policy from this insurer, you may qualify for AAA travel benefits and roadside assistance. J. D. Power gave the company a customer satisfaction rating of 848 out of 1000, which is one of the highest in Los Angeles.
- GEICO: GEICO doesn’t offer lower rates to owners of hybrid or electric vehicles, which may disappoint some Californians. However, it’s one of the top-rated car insurance providers because of its competitive rates, efficient claims process, and user-friendly online system. This company received a score of 828 from J. D. Power.
- State Farm: As the largest insurance carrier in the United States, State Farm is known for its quick claims handling and exceptional customer service, which enables it to rank high in J. D. Power’s survey. With its Payoff Protector program, this insurer may fully reimburse you for the cost of replacing your vehicle in the event of a total loss or theft.
- Progressive: Although it’s widely known as a low-cost car insurance provider, Progressive failed to offer better rates than GEICO. However, you may be able to save money with this company by using its Name Your Price online tool. This tool will give you an auto insurance quote within your budget after you enter the amount you wish to pay. Progressive delivers above-average customer service, even though it doesn’t rank as high as some of the aforementioned companies.
With so many options available, finding the right auto insurance company in Los Angeles can be daunting. However, you can make the task easier by using an online car insurance comparison tool.
Check this out if you need additional information, resources, or guidance on car insurance.
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