Why LA Insurance Is So Expensive
Californians have had a long love affair with the automobile going back almost a hundred years but motorists in recent years have pushed back on the rising cost of LA Insurance. With so many beautiful roads to drive on and amazing things to see, it’s easy to understand why drivers love cruising around California.
From the beaches of Malibu to the mountains of Big Bear, California has about 386,000 miles of public roads, second only to Texas. California is also home to the second largest metro area in the United States, Los Angeles.
LA drivers made traffic congestion famous and boast some of the busiest local highways in the country. With so many cars on the road, getting the best and cheapest LA insurance is a must for residents of the Golden State.
LA Auto Insurance Laws
California has tough auto insurance laws that are meant to protect the public. The LA auto insurance limits are generally lower than in most other states. Make sure you are aware of California’s state-mandated, minimum auto insurance coverage requirements when you shop for coverage.
The minimum auto insurance coverage requirements in California are:
Bodily Injury Liability:
- $15,000 per person for injury or death.
- $30,000 per accident if multiple people are injured or killed.
Property Damage Liability:
- $5,000 for damage to property of others.
There Are Several Reasons Why LA Insurance Is So Expensive
California is such a large state that the insurance rates vary quite a bit in different areas. One of the most expensive areas to insure a vehicle in the United States is Los Angeles. There are several reasons why LA Insurance is so expensive. Some of these include:
- High rates of auto accidents.
- High rates of auto theft. Each year, approximately 24,000 vehicles are stolen in the Los Angeles area, costing insurance companies hundreds of millions.
- High levels of automobile insurance fraud. Organized criminal gangs set up staged automobile accidents, often targeting commercial vehicles, with the intent of suing the insurers for bodily damages. Insurance companies have to pass these high litigation costs onto the consumer.
- Long commutes. LA drivers have commutes that average about 30 minutes.
- High rate of DUI-related accidents and fatalities.
These main factors and many others make LA car insurance very costly. The average annual automobile premium of LA auto insurance is about $2,472, which makes it the second most expensive city in the USA to insure a car. Keep in mind these are just the average LA insurance rates. Rates vary a lot because each driver has their own personal risk profile.
If you have a high-end sports car like a Porsche and need complete comprehensive auto insurance coverage, your LA Insurance rates could be $5,000 per year or higher. Let’s take a closer look at what zip codes have the highest and lowest rates in the LA metro area.
The Most Expensive LA Car Insurance Zip Codes
- 90029 > This area has average automobile insurance rates of about $2,634
- 90020 > This zip code is close to Hollywood and major movie studios and has average annual car insurance costs of about $2,550
The Cheapest LA Insurance Areas By Zip Code
- 90045 > Drivers pay about $1,872 for auto insurance annually in this zip code.
- 90732 > Drivers pay about $1,890 for coverage in this zip code.
How To Get Cheaper LA Auto Insurance
Despite the high insurance rates in the LA area, some insurance companies are a lot cheaper than others, which makes shopping around for the lowest rates so important. If you are an active military service member or vet, USAA auto insurance has amazingly low prices for Los Angeles drivers.
Another cheap insurer is Amica Mutual Insurance Company. This East Coast-based company has great rates for West Coast drivers and award-winning customer service. The last company that delivered cheap insurance quotes was Mercury Insurance. This company specializes in providing low-cost auto insurance, primarily in the southwest market.
Even though LA insurance is the second highest area to insure your car, these companies can save you about 25%, which equates to roughly $500 per year.
LA Insurance Quotes
To get the best LA Insurance quotes online, always take advantage of every available discount you qualify for. Most of the major auto insurers in LA offer teachers, military, good drivers, and many other discounts. Taking a safe driver course only takes a few hours of your time but could easily save you 10% off your yearly insurance bill completing the course.
Also, a great way to get lower Los Angeles car insurance quotes is to bundle all of your cars together into one policy. Insurers want all of your business and will give you discounts of up to 20% just for bundling.
The best LA auto insurance quotes
The best LA auto insurance quotes are almost always found online. You can get a quick quote in just five minutes, get matched with the cheapest insurer, and customize your insurance policy with the coverage you want. Start comparing rates now and save more money on LA Insurance.
