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Last updated: December 18, 2023The Best Car Insurance in Los Angeles
Choosing the best coverage in the City of Angels
Best Overall
With below-average premiums and an above-average customer satisfaction score in California, State Farm offers a great value for coverage.
Best for Discounts
If clipping coupons and snagging the best deal is your happy place, Farmers might be the better choice in auto insurance for you. We clocked 15 individual discounts you can receive to bring down your bill.
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Living in Los Angeles means two things: driving and traffic.
True to the lyrics of “Walking in L.A.” by Missing Persons, the city is not very walkable. Additionally, California ranks second for fatal car accidents by state, which makes it even more important to have a reliable vehicle and solid insurance coverage.1
We’ve rounded up the best options for car insurance in Los Angeles, whether you’re a new resident or a lifetime Angeleno.
Summary of the Best Car Insurance in Los Angeles
- 1.
Best Overall: State Farm
- 2.
Best Discounts: Farmers
- 3.
Best for College Students: Allstate
- 4.
Best for Reliability: Liberty Mutual
- 5.
Best for Military Members: USAA
Comparison of the Best Auto Insurance in Los Angeles
| Provider | Average annual cost | J.D. Power Customer Satisfaction score in California (state average is 813 out of 1,000)2 | Discounts available |
|---|---|---|---|
| State Farm | $1,419 | 826 | Good driver, good student, young driver education, loyalty, mature defensive driver, multi-vehicle, multi-policy, student away at school, vehicle safety |
| Farmers | $1,878 | 810 | Multi-vehicle, multi-policy, safe driving, alternative fuel, affinity group, telematics, student away at school, young driver, good student, legacy, defensive driver, preferred payment, vehicle safety |
| Allstate | $1,673 | 816 | Multi-policy, multi-car, new car, good student, vehicle features, preferred payment, early signing, paperless, responsible payer, safe driving, telematics |
| Liberty Mutual | $1,637 | Not rated | Homeowner, military, early shopper, good student, student away at school, claims-free, violation free, telematics, multi-policy, multi-car, preferred payment, online purchase, paperless |
| USAA | $1,151 | 871 | Good driver, garage on military base, vehicle in storage, low mileage, multi-car, multi-policy, good grades, vehicle safety, legacy |
Detailed List of the Best Car Insurance in Los Angeles
1. Best Overall - State Farm
What We Like Most:
- Multiple discounts for safe driving, including one specifically for young drivers
- Local agents
- Discounts for multiple cars
State Farm provides a range of insurance options, including auto, home, and life coverage, as well as banking services. It’s a good option for people looking for affordable insurance in California without compromising on service.
Who It's Best For- Anyone looking for full coverage at an affordable price (average annual cost: $1,419)
- Ride-share drivers (additional coverage available)
- Safe drivers without an accident on their record (offers discounts for both)
- Families with young drivers who are students (numerous discounts)
Who It's Not Best For
Those looking for a homeownership discount (not available- Military members (lower rates and discounts available elsewhere)
- Hybrid/electric vehicle owners (no discounts available)
- Federal employees (discounts available elsewhere)
Full Coverage That Doesn’t Break the Bank
Most drivers want all the coverage when it comes to auto insurance, including liability, medical/personal injury, collision, comprehensive, and uninsured/underinsured motorist coverage. State Farm offers additional coverage options without forcing you to sacrifice your Starbucks addiction. It has an average annual cost of $1,419, which comes in over $200 cheaper than other options on this list outside of USAA, which is available only to military members, veterans, and their families.
Additional coverage includes:
- Roadside assistance
- Towing/labor
- Gap insurance
- Glass
- Rental reimbursement
- Personal umbrella
- Transportation/travel expense coverage
- Classic car
- Rideshare coverage
If Rideshare Is Your Side Hustle
A number of Americans have a hustle, and Uber and Lyft have made it easier than ever to adopt one. If you have a car and spare time, you too can be a rideshare driver. But does Transportation Network Company (TNC) insurance provide the full coverage you need?
The answer is slightly complex, but generally speaking, no. You’ll want to add on additional personal coverage to ensure you’re protected the entire time you’re driving under every circumstance. For instance, if there is an accident while you’re driving, TNC coverage won’t protect you. State Farm offers the same protection levels and coverage as your personal auto policy when you add on rideshare protection.
DID YOU KNOW?
The coverage provided by TNC covers you only when you’ve connected with or are currently driving a passenger.
2. Best Discounts - Farmers
What We Like Most:
- Keeps rates low after one accident
- Rental coverage available if your car is out of commission
- More coverage options for damaged parts
Farmers started in 1928 with the simple goal of insuring the vehicles of rural farmers but has grown to offer home and small business insurance among other coverage. Today, it serves more than 10 million households across all 50 states, including California.
Who It's Best For- Drivers looking to save through discounts
- Hybrid/electric vehicle owners (discounts available)
- Safe drivers with no accidents on their record (discounts for both)
- Classic car owners looking for top-notch coverage
Who It's Not Best For- Those looking for gap insurance (not available)
- Military members (lower rates available elsewhere)
- Federal employees (discounts available elsewhere)
Discounts for Days
If saving money is your thing, Farmers just might be the best car insurance option for you. Out of the five companies on this list, we found Farmers to have the most options when it comes to saving through discounts.
Discounts include:
- Accident-free
- Defensive driver course
- Good student
- Homeownership
- Hybrid/electric vehicle
- Membership/employee discounts
- Military
- Multi-car/family
- Multi-policy
- New car
- Paperless/automatic billing
- Safe driving
- Student away from home
- Vehicle equipment
- Young driver
HOT TIP:
Double-check with your agent that they have applied all available discounts to your policy.
Care for Your Classic Car
Classic car insurance is different from standard car insurance. From replacing rare parts to keeping it in top-notch condition, you want your prized possession to be taken care of.
Farmers offers classic car insurance to give you peace of mind in all situations you may find yourself in. Whether you want to take your classic car abroad or you experience a total loss, Farmers has the coverage you need. If you have multiple classics, you can get a multi-vehicle discount when you insure more than one. And two is always better than one.
Alternative Fuel Vehicle
This discount is special because it applies to California residents only. If you’ve already gone green with your vehicle, you’ll want to make sure you reap these benefits. It applies to vehicles powered by anything other than strictly gasoline. Vehicles that qualify include:
- Hybrid
- Electric
- Natural gas
- Propane
3. Best for College Students - Allstate
What We Like Most:
- Three ways to earn a student discount
- Pay-per-mile option for drivers with low mileage
- No waiting period to purchase accident forgiveness
Los Angeles is home to several major universities, such as USC, UCLA, and Loyola Marymount. With several paths to earning its student discount, Allstate is a great choice for young drivers and their families.
Who It's Best For- College students (multiple discounts offered)
- Those considering multiple policies (discounts available for bundling
- New-car owners (savings if you’re the first owner)
- Safe drivers (Drivewise safe driving tool)
Who It's Not Best For- Those looking for towing coverage
- Military members (lower rates and discounts available elsewhere)
- Federal employees (discounts available elsewhere)
- Someone looking for an annual mileage discount
College Students Rejoice
If you have college students in your home, Allstate could be a great car insurance option for you. If they’re under 25 and unmarried, you could score the smart student discount. Here’s what they need to qualify:
- B- average or above, or a GPA of 2.7 or higher
- Successfully complete the teenSMART driver education program
- Attend a school at least 100 miles away from where your car is garaged
This might be a great motivator in looking at schools for your child that are a bit farther away from home than you originally planned.
FYI:
Allstate has the lowest GPA requirement of all companies listed here to qualify for a good student discount. Don’t worry, we double-checked.
Bundle and Save
Bundling multiple policies with Allstate is a great way to save both time and money. Those who bundle home and auto insurance save up to 25 percent. You can also bundle with condo or renters insurance. (We know most Angelenos are renters.)
If you’re looking into more than one type of insurance policy, bundling is a great option. Doing so with Allstate online also allows you to manage your policies in one place, where you can review and adjust coverages and even make payments.
You Like New Things
New cars can cost a lot of money, but with Allstate, you may qualify for a discount on your car insurance. Your vehicle must be a current model year or the prior year, and you must be the first owner. For more details, contact an Allstate agent.
4. Best for Reliability - Liberty Mutual
What We Like Most:
- Save up to 30 percent with driver monitoring program
- Cheap average rates
- Over 2,000 local agents throughout the U.S.
In business since 1912, Liberty Mutual is the longest running company on this list. It offers a range of options you won’t find everywhere, such as gap coverage, a diminishing deductible, and special perks for teachers.
Who It's Best For- People looking for a company that’s stood the test of time (founded in 1912)
- Someone looking for an early sign-on discount
- Drivers who need gap coverage
- Drivers who want to bundle and save
Who It's Not Best For- Drivers wanting driving courses or training discounts
- Military members (lower rates available elsewhere)
- Federal employees (discounts available elsewhere)
- Someone with a new car (discounts with other providers)
Over 100 Years of Service
Liberty Mutual has been helping people protect what’s important to them for an average of 10 years longer than any other company on this list. If you’re someone who values how long a business has remained in operation, this may be the company for you.
It serves 29 countries and is the fifth-largest global property and casualty insurer. You can customize your plan so you pay only for what you need, and you could save up to $950 on auto and home insurance when you bundle.
Great Gap Coverage
What is gap coverage? If your car is totaled or stolen and its value is lower than the amount remaining on your loan, gap coverage will cover the remaining amount you owe. In other words, you’re not on the hook for the extra $5,000 if it’s valued at only $15,000 and you still owe $20,000.
Cars depreciate over time, so having to pay off a loan that is worth more than your totaled car can be frustrating. Gap coverage protects you from this, but it’s important to note that it must be purchased at the same time you purchase your car, and you must be the car’s first owner. If you’re considering purchasing a new car, getting gap coverage through your auto insurer is a good idea.
Multi-Policy Savings for the Win
Liberty Mutual customers have the option to bundle home and auto insurance and save up to $950. Your total savings will be based on factors such as where you live, how often you drive, and your driving record, but it’s worth looking into if you want or need multiple policies.
Not only does it save you money, but it’s also more convenient since you can manage all your policies in one place. Who wants to have three web browser tabs open at the same time when you could have just one? You’ll also have more flexibility since you can manage your policies without having to make a call or go into an office. Download the app to access your policies on the go. When you register for an account, you can:
- View and download policy documents, like ID cards
- Pay and manage bills securely
- File, manage, and track your claims
- Review coverages and make changes 24/7
- Reduce the clutter in your life by eliminating the need to store policy paperwork
FYI:
Insurance types you can bundle include auto and home, auto and renters, and auto and condo. Yes, renters qualify too!
5. Best for Military Members - USAA
What We Like Most:
- Cheapest rates for teens on a family policy or on their own
- Special discount for teens transitioning off their parents’ policy
- Strong customer service and claims process
USAA, or United Services Automobile Association, was founded in 1922 when 25 Army officers decided to insure each other’s vehicles. Since then, it’s grown to serve millions in the military community.
Today, it’s among the leading providers of insurance, banking, investment, and retirement solutions to members of the U.S. military, veterans who have served, and their families. It aims to be the No. 1 choice for the military community and their families, and its offerings are exclusive to this community.
Who It's Best For- Military members/veterans and their families (best price)
- Those who live on a base (save up to 15 percent if your garage your car on a base)
- Vehicles that are stored or not driven much (hefty discounts available)
- New vehicles and those with anti-theft devices
Who It's Not Best For- People not affiliated with the U.S. military
Storage or Low Annual Mileage
Whether you’re stationed overseas or storing your car for another reason, USAA could save you up to 60 percent if you’re not driving your car. If it’s garaged on a military installation, you could save up to 15 percent on comprehensive coverage. Let’s say you simply don’t drive your car that much; you could also get a discount for that based on the low annual mileage.
New and Protected
Newer cars have improved safety and security features, which is attractive in a world where car theft runs rampant. There might be a discount through USAA on your car insurance if your vehicle is no more than three years old, so don’t say no to that newer car just yet. If it has an anti-theft device installed, there’s also a discount for that.
Stack and Save
With most insurance companies, having multiple policies is a good way to save. USAA offers several ways to increase your savings:
- Extend your coverage to two or more vehicles.
- Bundle with renters insurance.
- Bundle with homeowners insurance (this also applies to condos).*
- Have a student driver who earns good grades.
- Maintaining a clean driving record.
- Garage your car on a military installation.
- Be a loyal member.
* Save up to 10 percent when you bundle your property policy with auto coverage.
SAVE BIG:
USAA members saved an average of $725 on their annual premium when they made the switch.
Methodology
Why trust us? We have a dedicated process that we’ve refined, complete with checks and balances, so you can rest assured our recommendations aren’t biased.
- Company information: We consider data from each company, including the specific insurance it provides, coverage information, and what discounts it offers. We also consider third-party ratings from companies like AM Best, the Better Business Bureau, J.D. Powder, Moody’s, and the National Association of Insurance Commissioners.
- Proprietary data: We’ve been collecting data for more than 20 years, so we have millions of data points to analyze. Utilizing this proprietary data has allowed us to discover which customers had success with which companies. This helps our customers save time. We do the heavy lifting so you don’t have to.
- Institutional knowledge: Outside of our research and analysis process, we consult experts to ensure we’re giving the most up-to-date and in-depth industry advice. Centerfield’s president of insurance, Paul Ford, has almost three decades of experience in the insurance industry. Leveraging his expertise, we help customers find the perfect auto insurance policy.
FAQ
How much does it cost to insure a car in Los Angeles?
According to MarketWatch research, a minimum-coverage policy for auto insurance in Los Angeles costs $68 per month, or $816 per year, on average. For a full-coverage policy, you’ll pay an average of $258 per month, or $3,100 per year.
Is car insurance more expensive in Los Angeles?
Drivers in Los Angeles tend to pay more for car insurance compared to state and national averages. According to NerdWallet, drivers in L.A. pay an average of $2,276 annually, which is $365 higher than the California average and $681 higher than the national average.
Which city has the cheapest car insurance in California?
The cheapest city for car insurance in California is Mount Shasta, with an average of $106 per month. The average full-coverage car insurance quote in California is $145 per month, or $1,744 per year. The most expensive city for car insurance in California is Beverly Hills at $238 per month on average.
What is the minimum car insurance required for Los Angeles?
The minimum liability insurance requirements are $15,000 for injury/death to one person, $30,000 for injury/death to more than one person, and $5,000 for damage to property. This is in accordance with California Insurance Code §11580.1b.
Citations
Fatal Car Accidents by State. Wisevoter. (2023).
https://wisevoter.com/state-rankings/fatal-car-accidents-by-state/Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds. J.D. Power. (2023, Jun 13).
https://www.jdpower.com/business/press-releases/2023-us-auto-insurance-study
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