Los Angeles is home to gorgeous beaches, A-list celebrities, and … traffic. Lots of it. The city’s extensive highway network and limited public transportation options mean traffic jams are all too common in LA. Unfortunately, traffic jams lead to accidents — and accidents lead to higher auto insurance rates.
Los Angeles drivers pay an overall average of $145 per month for car insurance. While that figure may be in line with the national average rate for auto insurance, it’s significantly higher than the rest of California.
In this guide, we’ll discuss which insurers are offering the cheapest rates in the city and outline strategies for finding lower rates in Los Angeles.
Key Takeaways:
- Clearcover’s average premium of $100 per month is the lowest in Los Angeles.
- Car insurance rates are higher in Los Angeles than in San Francisco and San Diego.
- LA’s teen drivers pay an average of $245 per month for car insurance.
Los Angeles’ Cheapest Car Insurance Companies
While Los Angeles drivers pay an average of $145 per month for car insurance, several local insurers offer rates well below that average. The table below highlights the cheapest car insurance companies in Los Angeles and their average monthly premiums.
| Company | Monthly Premium |
|---|---|
| Clearcover | $100 |
| Infinity | $118 |
| Mercury | $127 |
| Direct Auto | $130 |
| 21st Century | $133 |
Clearcover offers the lowest average rate, at just $100 per month, though not every driver will be able to find rates that low. As we’ll discuss in the following sections, car insurance rates vary based on a number of factors, such as age, driving history, and coverage limits.
How we chose the cheapest companies in Los Angeles
Our team analyzed thousands of rates from dozens of the top insurance companies in Los Angeles. Using that data, we listed the five cheapest options for Los Angeles drivers based on several key factors, such as age, coverage level, driving history, and more. All the rates listed are based on someone who drives a 2016 Honda Accord and has the minimum limits for coverage in Los Angeles. The listed “full-coverage” rates include $500 deductibles for collision and comprehensive coverages in addition to state-minimum liability coverage.
The Best Car Insurance Companies in Los Angeles in 2023
The best car insurance for you will depend on your driving habits, the type of car you drive, and your financial situation. We’ve separated the best car insurance companies in Los Angeles across different demographic profiles to help you find the best car insurance for your personal needs.
Travelers: Best car insurance company for maximum coverage
Travelers is the eighth-largest auto insurance company in the country by market share, offering policies in all 50 states. The company offers a wide range of insurance products, including extensive liability coverage, roadside assistance, and gap insurance.
Drivers looking for maximum coverage have plenty of options with Travelers. It offers collision and comprehensive insurance, as well as umbrella insurance for drivers who want extra protection. Full-coverage policies from Travelers are the cheapest in Los Angeles, at just $149 per month, on average.
Pros:
- Offers the best full-coverage rates in the area
- Awarded an A++ financial strength grade by AM Best
- Offers plenty of discounts for good drivers and those who bundle
Cons:
- Below-average J.D. Power customer satisfaction rankings
- Doesn’t offer rideshare coverage in California
- Receives slightly more NAIC complaints than average
Mercury: Best car insurance company for drivers with spotty records
Mercury knows the world of car insurance can be complicated, so it set out to make finding a policy simple. The company offers a wide range of coverage options at affordable rates and pairs these products with 24/7 claims, guaranteed repairs, and dedicated service.
Having an at-fault accident on your record will raise your rates, but fortunately, Mercury customers with an at-fault accident pay only $156 per month. This is above the citywide average but still the lowest in the area for drivers with spotty records.
Pros:
- Offers rideshare coverage to drivers in California
- Awarded an A financial strength grade from AM Best
- Offers some of the lowest rates in the area to seniors
Cons:
- Below-average J.D. Power customer satisfaction scores
- Slightly more NAIC complaints than average
- Only available in 11 states
Mile Auto: Best car insurance company for drivers who work from home
Recent census data shows that more than 20% of Los Angeles residents now work from home. Drivers who avoid the challenging LA morning commute are deemed low-risk in the eyes of car insurers and can save big on car insurance — with the right company.
Mile Auto offers a unique pay-per-mile program that helps policyholders who drive less save up to 40% on their monthly premiums.
Plus, Mile Auto tracks your driving in a simple, privacy-safe way. All you need to do is take a picture of your odometer each month and send it to your agent at Mile Auto.
Pros:
- Collects data without invading your privacy
- Its underwriter, Spinnaker Insurance, has an A- financial strength grade
- Offers key optional coverages like rental car insurance and roadside assistance
Cons:
- Some drivers may prefer a more traditional car insurance program
- Mixed customer reviews from the Better Business Bureau
- Only available in 11 states
Find the Cheapest Rates in All of LA
Cheapest Car Insurance Rates for State-Minimum Insurance: Infinity
How much car insurance you buy will affect your car insurance rates substantially. Liability insurance covers the other driver’s medical bills and repair costs if you cause an accident, but not your own. That’s why it’s typically the cheapest car insurance policy you can get.
“Liability-only coverage may be suitable for older vehicles with lower market value, where the cost of full-coverage premiums might outweigh the potential benefits,” says Steve Rivera, partner at Woodland Hills-based The Liberty Company Insurance Brokers. “Additionally, drivers who have sufficient savings to handle minor repairs or vehicle replacement may opt for liability-only coverage.”
Here are the cheapest car insurance companies in Los Angeles for state-minimum insurance.
| Company | Monthly Premium |
|---|---|
| Infinity | $68 |
| Mercury | $72 |
| 21st Century | $74 |
| Fiesta | $83 |
| Kemper | $93 |
Infinity offers the lowest average rate, at just $68 per month. Mercury and 21st Century are just a few dollars behind, at $72 and $74 per month, respectively.
Cheapest Car Insurance Rates for Full-Coverage Insurance: Travelers
Full-coverage policies are more robust because they include collision and comprehensive insurance on top of standard liability coverage. Collision coverage pays for the cost of repairing your car after an accident, regardless of who’s at fault, while comprehensive coverage protects against damage from non-collision events, such as fire, severe weather, or theft.
Let’s take a look at which companies have the cheapest full-coverage rates in LA.
| Company | Monthly Premium |
|---|---|
| Travelers | $149 |
| 21st Century | $159 |
| Direct Auto | $166 |
| Mercury | $175 |
| Infinity | $177 |
Travelers offers the lowest average rates on full-coverage policies in Los Angeles, at just $149 per month — only a few dollars more than Los Angeles’ citywide average car insurance rate.
“If a driver has a relatively new or valuable car — or if they have a car loan or lease — full coverage is usually recommended and required by any lessor or lienholder,” says Rivera. “While full coverage comes with a higher premium, it offers greater peace of mind and financial protection.”
Compare Los Angeles Auto Insurance Rates by Age
Your age is one of the first things car insurance companies look at to determine your rate. In general, young drivers pay higher car insurance premiums due to their higher accident rates. However, premiums tend to come down gradually as you age.
The table below outlines the average rates in LA by age bracket, as well as the cheapest company for each age group.
| Age Group | Monthly Rate | Cheapest Company |
|---|---|---|
| 16–19 | $245 | Esurance |
| 20–29 | $171 | Direct Auto |
| 30–39 | $135 | Mercury |
| 40–49 | $120 | 21st Century |
| 50–59 | $112 | Mercury |
| 60+ | $112 | Aspire |
Rates start falling once you reach your 20s — dropping significantly after you turn 25. They keep going down as you get older, with drivers 50 and older having the cheapest rates around (all else being equal).
However, different companies have cheaper rates for different age groups. For example, Esurance might be the most affordable option for teens, but Mercury is often the cheapest company for LA drivers older than 30.
The only way to know which company is cheapest for you is to compare quotes from as many insurers as possible.
See the Cheapest Rates LA Has to Offer
Cheapest car insurance for Los Angeles teens: Esurance
Teenagers pay the highest average auto insurance premiums by far, due to their higher rates of serious accidents. But luckily, those rates begin to drop once you reach 25 years old.
The table below shows the cheapest liability-only car insurance rates for LA drivers aged 16 to 19.
| Company | Monthly Premium |
|---|---|
| Esurance | $135 |
| Mile Auto | $164 |
| Mercury | $198 |
Esurance — now owned by Allstate — offers the cheapest rates for teens, at $135 per month for liability-only insurance. That’s $10 below the average car insurance rate in Los Angeles and significantly lower than even the second-cheapest option for teens.
Cheapest car insurance for Los Angeles seniors: Mercury
Drivers approaching retirement age pay some of the cheapest rates around. And people who scale back their driving after retirement will see their rates go down even more.
The table below shows the cheapest car insurance companies in Los Angeles for drivers 65 and older.
| Company | Monthly Premium |
|---|---|
| Mercury | $95 |
| Esurance | $129 |
| Dashers | $139 |
Senior drivers who choose Mercury Insurance pay the lowest rates on average, at just $95 per month. While Mercury doesn’t offer any discounts aimed specifically at seniors, it does offer a good driver discount, which rewards drivers who go a long period of time without an accident.
Compare Los Angeles Auto Insurance Rates by Driving Record
Your driving record is perhaps the top factor that determines your car insurance rates. Drivers with traffic violations and at-fault accidents on their record pay higher rates on average. The sections below highlight the cheapest car insurance companies in Los Angeles based on different driving records.
Cheapest car insurance for good drivers in Los Angeles: Clearcover
Good drivers typically pay the lowest car insurance rates of any group. Car insurance companies see drivers who avoid accidents and speeding tickets as less likely to file claims in the future, so they’re comfortable charging lower monthly premiums. But still, some companies are cheaper than others.
Here are the cheapest car insurance companies for Los Angeles drivers without accidents or speeding tickets.
| Company | Monthly Premium |
|---|---|
| Clearcover | $99 |
| Infinity | $118 |
| Mercury | $124 |
Clearcover offers the lowest average rates, at $99 per month, while Infinity and Mercury are close behind, at $118 and $124 per month, respectively. Clearcover is unique in that it applies your discounts automatically — you don’t have to ask your agent if you qualify.
Cheapest car insurance in Los Angeles after a ticket: Aspire
California drivers who get caught speeding will see their rates will go up — but by how much depends on your insurer. For instance, Progressive claims that drivers will see a rate increase of about 15% after a speeding ticket. But again, that increase can vary significantly from company to company.
Let’s take a look at the cheapest car insurance companies in Los Angeles for drivers with one speeding ticket.
| Company | Monthly Premium |
|---|---|
| Aspire | $141 |
| Mercury | $150 |
| Dashers | $195 |
Drivers insured by Aspire pay the lowest average rates, at $141 per month — a few dollars below the overall city average. Aspire also offers a good driver discount for drivers who might be looking to clean up their record after receiving a ticket.
Cheapest car insurance in Los Angeles after an accident: Mercury
Getting into an at-fault accident will often lead to higher insurance costs. Rate increases vary from company to company, and an accident typically stays on your record for up to three years.
The table below highlights the cheapest car insurance in Los Angeles for drivers with one at-fault accident.
| Company | Monthly Premium |
|---|---|
| Mercury | $156 |
| Mile Auto | $193 |
| Dashers | $224 |
Mercury offers the cheapest average rates for drivers with an at-fault accident, at $156 per month. The company’s e-signature and paid-in-full discounts help proactive drivers save even more, regardless of their driving history.
The Average Cost for Los Angeles Car Insurance
Los Angeles drivers pay an average of $145 per month for car insurance — but this average is simply a jumping-off point. Your rates will vary based on your age, gender, marital status, driving record, and more. Your ZIP code also plays a role in how much you pay — and Los Angeles residents often end up paying more than drivers in other cities.
Is car insurance more expensive in Los Angeles?
The table below shows how Los Angeles car insurance costs stack up against the rest of California, as well as the overall national average.
| Area | Monthly Premium |
|---|---|
| Los Angeles | $145 |
| San Francisco | $123 |
| San Diego | $91 |
| CA statewide average | $100 |
| National average | $145 |
“One reason Los Angelenos tend to pay more for car insurance compared to drivers in the rest of California is population density,” explains Rivera. “Los Angeles is a densely populated city, which leads to increased traffic congestion and a higher likelihood of accidents. This results in more claims in the area.” Rivera notes that local crime rates are also a factor.
5 Ways to Get Cheap Car Insurance in Los Angeles
Angelenos pay more for car insurance than other Californians. Luckily, the strategies below can help you lower your monthly premiums.
- Raise your deductible: Your deductible is how much you pay out of pocket before insurance after a claim. Generally, higher deductibles mean lower monthly rates. But they also mean higher out-of-pocket costs if you cause a collision.
- Seek out discounts: Nearly all car insurance companies offer discounts. Reach out to your agent to see which discounts you might qualify for. Bundling car insurance with homeowners insurance or renters insurance is one of the most popular discounts.
- Choose a safer car: That flashy sports car might be tempting, but it’ll also cost more to insure. Choose a car with a strong safety record in order to save.
- Drive safely: Drivers with clean driving records pay less for car insurance on average. Practice defensive driving, and don’t be afraid to enroll in a driver’s education course if you want to brush up on your skills.
- Research and compare quotes: Car insurance rates can vary greatly by company. Receive quotes from at least three companies and compare them side by side to find the best value.
Compare Quotes from LA’s Top Companies
California Auto Insurance Requirements
Car insurance is required in nearly every state, and California is no different. California drivers must carry a minimum of $15,000 in bodily injury liability per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident.
Penalties for driving without auto insurance in California
All California drivers must carry proof of insurance to legally drive. Evidence of insurance must be in your vehicle at all times and must be presented if requested by law enforcement, during the registration-renewal process, and in the event of an accident.
Average Auto Insurance Rates for Other Cities in California
The table below shows how the average car insurance rates in Los Angeles compare to rates in nearby cities.
| City | Average Monthly Quote | Compared to Los Angeles |
|---|---|---|
| Anaheim | $107 | -26% |
| Bakersfield | $83 | -43% |
| Irvine | $106 | -27% |
| Long Beach | $104 | -28% |
| Santa Monica | $125 | -14% |
| Santa Barbara | $65 | -55% |
Several nearby areas have substantially lower average rates than Los Angeles. Santa Barbara leads the way with affordable $65 monthly rates, but every city on this list is at least 14% cheaper than LA.
Los Angeles Auto Insurance FAQs
Here are answers to some of the most commonly asked questions by LA drivers like you.
Who is the cheapest auto insurance company in Los Angeles?
The cheapest car insurance company in Los Angeles is Clearcover, which offers LA drivers an average rate of $100 per month.
How much is car insurance in Los Angeles?
On average, Los Angeles drivers pay $145 per month for car insurance, which is $45 higher than the state average but right in line with the national average for car insurance.
How can you find cheaper car insurance in Los Angeles?
Los Angeles drivers can save on car insurance by taking advantage of discounts, practicing safe driving habits, and comparing car insurance quotes side by side from multiple insurers.
How much car insurance is required in California?
California drivers are required to carry a minimum of $15,000 in bodily injury liability per person, $30,000 in bodily injury liability per accident, and $5,000 in property damage liability per accident.
What happens if you get caught driving without insurance in Los Angeles?
The California DMV will suspend your vehicle’s registration, and you’ll be prohibited from operating or parking your vehicle on public roadways.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.
Sources
- National Association of Insurance Commissioners, “Market Share Report,” Accessed July 27, 2023.
- J.D. Power, “Auto Insurance Shopping and Switch Rates Reach New Highs as Premiums Surge, J.D. Power Finds”, Accessed July 27, 2023.
- J.D. Power, “Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds”, Accessed July 27, 2023.
- U.S. Census, “Home-Based Workers and the COVID-19 Pandemic”, Accessed July 27, 2023.
- Insurance Information Institute, “Do auto insurance premiums go up after a claim?”, Accessed July 27, 2023.
