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If you live in Los Angeles, you probably rely on an automobile to get around, but the high cost of auto insurance might be more than you can afford. Based on Bankrate’s research, Los Angeles drivers pay an average annual premium of $2,545 for full coverage, or $212 per month, and an average of $725 annually for minimum coverage.
Bankrate studied the Los Angeles market and found several insurance companies that offer full coverage and minimum coverage policies that cost less, on average, than the city’s average rates. Our research found that Wawanesa, Mercury Insurance and Geico offer some of the cheapest average car insurance rates for Los Angeles motorists.
Best cheap car insurance companies in Los Angeles
If you’re looking for cheap car insurance in California, Los Angeles offers several top-rated options. Based on data provided by Quadrant Information Services, the best cheap car insurance companies in Los Angeles include Wawanesa, Mercury Insurance and Geico.
To find the cheapest car insurance companies in Los Angeles, Bankrate looked for insurers with good AM Best financial strength scores and high marks in J.D. Power’s 2022 U.S. Auto Insurance Study. To produce our Bankrate Scores, we use a 5-point scale which evaluates each carrier’s affordability, availability, customer service record and financial strength. We also look for companies that offer online resources and mobile apps that may make it easier for policyholders to file claims and manage their auto insurance policies.
|Insurance company||Bankrate Score||J.D. Power score (California)||Average annual premium for full coverage||Average annual premium for minimum coverage|
Among the five Los Angeles car insurance companies on our list, Wawanesa offers the cheapest average full coverage rates. The provider also earned the number one spot in J.D. Power’s study, with an overall customer satisfaction score of 879 out of 1,000 in California. Besides standard coverages, Wawanesa also offers optional rental expense coverage and special vehicle equipment coverage. Policyholders may benefit from many common discounts as well, like good driver, loyalty and multi-policy. Additionally, Wawanesa offers a potential discount to drivers aged 55 or older who complete a California-approved defensive driving course. Wawanesa only offers auto insurance coverage in California and Oregon, so it may not be the best option for drivers planning to move in the near future.
Learn more: Wawanesa Insurance review
Mercury ranked fourth in the J.D. Power study, with a customer satisfaction score of 827, seven points above the regional average. The insurer offers all basic auto insurance coverages, but unfortunately only offers three optional protections: rental car reimbursement, ridesharing and roadside assistance coverages. Mercury extends multi-car and multi-policy discounts, and offers additional savings for automobiles equipped with anti-theft devices. Policyholders may also earn a discount by paying their premium in full or opting for automatic payments. Following a loss, Mercury policyholders can file claims online or by calling a 24/7 toll free number. Mercury sells auto insurance policies through more than a dozen Los Angeles independent agencies.
Learn more: Mercury Insurance review
Geico earned an above-average customer satisfaction score from J.D. Power and offers the cheapest car insurance on our list for minimum coverage. The company could be a great option for drivers looking for basic, but dependable coverage from a top national insurer. The insurer offers many potential ways to save with discounts for military members, participating organizations and policyholders who enroll in its DriveEasy telematics program. However, keep in mind that the provider does not offer gap insurance, and unlike some of our other top picks, Geico does not operate local offices.
Learn more: Geico Insurance review
Although Progressive has one of the lowest J.D. Power scores on our list and the second-highest average rates for full coverage, this company has a lot to offer drivers. Progressive offers strong digital policy management tools and robust policy customization options. The company sells policies in all 50 states and Washington, D.C. When it comes to policy customization, Progressive has several optional coverage types and add-ons to consider. Helping to balance out Progressive’s relatively high average rates, the insurer has numerous discounts available to eligible drivers. Customers who prioritize digital management convenience and policy customization may find these benefits outweigh the higher premiums.
Learn more: Progressive Insurance review
Among our best cheap car insurance companies in Los Angeles, Travelers charges the highest average rates for full coverage and the third highest for minimum coverage, but it may be a good choice for drivers looking to customize their policy. In addition to all basic coverages, the carrier offers optional accident forgiveness, gap insurance, new car replacement coverage, rental car reimbursement coverage, rideshare insurance and roadside assistance. Travelers also give policyholders numerous ways to reduce their rates. Multi-policy discounts offer savings up to 13 percent, and you may save even more if you own an electric car or purchase a newer vehicle. Travelers’ affinity group discount programs provide additional savings for employees or members of participating associations, companies and credit unions.
Learn more: Travelers Insurance review
How to get and keep the cheapest car insurance in Los Angeles
The tips below may be able to help you get the cheapest rates in Los Angeles for your individual circumstances:
- To find cheap car insurance, look for applicable discounts. Some providers offer discounts for cars equipped with safety and security equipment such as anti-lock brakes and anti-theft systems. Many insurers also offer good driver discounts for maintaining a clean driving record and some extend a discount to young drivers who complete a driver’s education course or get good grades.
- To keep cheap car insurance, maintain a clean driving record. Maintaining a clean driving record could offer substantial savings on your premium. Staying accident-free indicates to car insurance providers that you may be at lower risk of filing a claim. If you do get a mark on your driving record, you may want to enroll in a telematics program or a defensive driving course, which could help prove that you have safe driving habits. Some insurers will offer you more affordable rates for doing so.
Frequently asked questions
The best car insurance in Los Angeles will likely vary among drivers. To find the best car insurance company in Los Angeles for your needs, insurance experts recommend getting a few car insurance quotes from different companies to compare pricing and coverage options. In addition to price, it may help to consider how other people in the area rate their experience with an insurer. Because each state and city is unique, knowing how well a provider operates in your ZIP code could help determine if it is the right one for you.
Several factors may play a role in the high price of Los Angeles auto insurance, including the rates of unsafe driving, traffic fatalities and auto theft. According to Federal Bureau of Investigation data, car thieves stole more than 15,600 automobiles in Los Angeles in 2019. Based on National Highway Traffic Safety Administration statistics, in 2021, more than 4,250 people died on California roadways, an increase of more than 10 percent from 2020.
California law requires all automobile owners to carry at least $15,000 in bodily injury liability coverage per person, $30,000 in bodily injury liability coverage per accident and $5,000 in personal property liability coverage per accident. While many drivers need a car for work and personal activities, some cannot afford to pay the high cost of auto insurance. For low-income drivers, the state established the California Low-Cost Automobile Insurance Program. To qualify for the program, automobile owners must meet income guidelines, own a car worth $25,000 or less and be a new driver or an experienced driver with a good driving record.
The average cost of car insurance in Los Angeles is $2,545 per year for full coverage car insurance and $725 for minimum coverage. You may be able to find better rates, though. To find the cheapest car insurance in Los Angeles, insurance professionals suggest requesting quotes from multiple providers to see which ones give you the lowest rates.
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.