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Car insurance in Los Angeles costs $3,149 per year for full coverage – $262 per month. In 2024, USAA offers the cheapest car insurance policy at $187 per month.

Drivers in Los Angeles pay more for car insurance than any other California city. In general, car insurance is more expensive in large cities with their congestion, crime rates and long commutes, and LA is a prime example. Los Angeles drivers pay more for car insurance than San Diego or San Jose drivers.

Learn about the cheapest car insurance companies in Los Angeles, how much car insurance you need and how L.A. insurance rates compare to other large U.S. cities.

Key Takeaways

  • Full coverage car insurance in Los Angeles costs $3,149 annually – significantly higher than the nationwide average of $1,895.
  • The cheapest car insurance company for a full coverage policy in Los Angeles – at an annual rate of $2,238 – is USAA.
  • Car insurance in Los Angeles is more than $700 higher than the California statewide average of $2,416 for an annual full-coverage policy.

How to find the best car insurance in Los Angeles

Getting multiple quotes is the best way to save money on car insurance and find the best car insurance in Los Angeles. Get quotes from at least three companies comparing similar coverage limits and coverage options, and ask about any discounts you qualify for. It’s always best to buy as much coverage as you can afford.

The cheapest car insurance company in Los Angeles

USAA offers the cheapest car insurance in Los Angeles, California, with an annual rate of  $2,238. Remember, USAA is only available to members of the military community and their families. After USAA, Geico and Mercury are LA’s cheapest auto insurance companies.

See other cheap car insurance rates in Los Angeles in the table below.

CompanyAverage annual rates for state minimum Average annual rates for full coverage
Allstate$975$3,516
Auto Club Enterprises (AAA)$957$3,558
CSAA Insurance (AAA)$506$2,845
Farmers$992$3,748
Geico$588$2,805
Kemper Insurance$737$3,411
Mercury Insurance$717$2,941
Nationwide$976$3,544
Progressive$596$3,062
State Farm$861$3,688
Travelers$956$3,471
USAA$561$2,238

How much is car insurance in Los Angeles per month?

Car insurance in Los Angeles costs $62 per month for a state minimum policy and $262 per month for a full coverage car insurance policy, on average, according to 2024 data. See monthly rates in Los Angeles from California insurers in the table below.

Company Average monthly rates for state minimum Average monthly rates for full coverage
Allstate$81$293
Auto Club Enterprises (AAA)$80$296
CSAA Insurance (AAA)$42$237
Farmers$83$312
Geico$49$234
Kemper Insurance$61$284
Mercury Insurance$60$245
Nationwide$81$295
Progressive$50$255
State Farm$72$307
Travelers$80$289
USAA$47$187

How do rates in Los Angeles compare to other large cities in the U.S.?

Car insurance is significantly more expensive in Los Angeles than in counterparts like San Jose and San Diego. Compare San Jose’s rate of $2,406 to Los Angeles’ $3,149 or a rate of $2,324 in San Diego.

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities below.

CityFull coverage cost
Chicago$1,930
Dallas$2,278
Houston$2,317
Los Angeles$3,149
New York$2,600
Philadelphia$2,782
Phoenix$2,251
San Antonio$2,181
San Diego$2,324
San Jose$2,406

Here’s what you need to know when driving in Los Angeles

The City of Los Angeles is the largest city in California and the second most populous city in the U.S. Drivers in the Los Angeles metro area – which includes Long Beach and Anaheim – lose 123.5 hours per year due to commute time – the second-largest commute in the nation behind New York City.

There are more than 6.5 million vehicles and more than 1.1 million trucks registered in Los Angeles County, according to 2019 California DMV data. And, given the city’s sprawling 472 square miles, that makes for congestion along the city’s roadways. And, when it comes to car insurance, more accidents mean higher insurance rates.

According to Banafshe Law Firm, the following stretches of L.A. freeways should be avoided due to heavy congestion:

  • Interstate 405 North, Exit 43 to Exit 21
  • Interstate 405 South, Exit 22 to Exit 45
  • Interstate 405 North, Exit 53 to Exit 38B
  • Interstate 5 at Hollywood Freeway by Dodger Stadium

Here are some tips for driving in Los Angeles:

  • Avoid rush hour during the week – from 7-10 a.m. and 3-7 p.m. – if at all possible.
  • Plan plenty of time to arrive at your destination, and use a map app or GPS.
  • Check your blind spots and watch for drivers not using their blinkers.
  • Watch out for aggressive drivers.
  • Avoid user-paid expressway lanes – especially the Route 91 Expressway – they are not carpool lanes and you’ll face hefty fines if you drive in those lanes.
  • Be mindful of parking restrictions – especially at parking meters. If a curb is red, don’t park.

Motorcycle riders in California can legally split lanes, so keep that in mind when driving along the freeways in Los Angeles. During busy traffic times, motorcycles will whoosh past you along the lane lines, so don’t ride the line. There are many cars, so be patient and polite but assertive when needed.

Check for information about current Los Angeles Department of Transportation road projects here. State law requires drivers to use hands-free devices to talk on a cell phone while driving; texting while driving is against the law. Seat belts are required, and pedestrians always have the right of way at intersections. Locals refer to freeways by their names with the word “the” preceding it. For example, someone will tell you to “take the 405 south” rather than “take 405 south.” 

How much car insurance do I need in Los Angeles?

In Los Angeles, the car insurance requirements follow the state of California’s guidelines. Here are the types of acceptable insurance:

  • Motor vehicle liability insurance policy with 15/30/5 limits
  • Cash deposit of $35,000 with DMV
  • DMV-issued self-insurance certificate
  • Surety bond for $35,000 from a company licensed to do business in California

For cash deposits or self-insurance information, contact the DMV Financial Responsibility Unit at 916-657-6677 and select Option 3. To locate a company that issues surety bonds, contact the Department of Insurance at insurance.ca.gov or 1-800-927-4357.

Average cost of car insurance in Los Angeles

The average annual cost of full coverage car insurance in Los Angeles is $3,149 – $733 more than the California statewide average of $2,416. That’s nearly double the nationwide average of $1,895.

State minimum coverage in Los Angeles Annual full coverage rates in Los Angeles 
$748$3,149

How much does car insurance in Los Angeles cost with violations?

If you have a history of moving violations, you will likely pay more for car insurance. More serious types of violations — such as being convicted of a DUI — are especially likely to cause your costs to jump significantly.  

See rate increases in Los Angeles, California, in the table below by violation.

Violation typeRate increase percentage
Speeding ticket61%
DUI conviction264%
Bad creditNA
At-fault accident100%

Cheapest car insurance in Los Angeles by age

Car insurance for teens in Los Angeles is exorbitant – the annual rate for an 18-year-old is $8,408 per year for a full coverage policy in 2024. Rates start to head down at age 25 and back up in your late 60s.

AgeState minimum coverageFull coverage
18$2,192$8,408
25$912$3,780
40$748$3,149
65$748$2,948

Compare auto insurance rates in Los Angeles by ZIP code 

Where you live also affects car insurance costs. In Los Angeles, the cheapest ZIP codes for car insurance are 90732, 90248 and 90045. The most expensive are 90010, 90028 and 90004.

See the tables below for the cheapest and most expensive ZIP codes for car insurance in Los Angeles, California. 

ZIP codeAverage annual rate for full coverage
90732$2,534
90248$2,653
90045$2,752
90731$2,812
90041$2,814
90073$2,855
90025$2,869
90066$2,875
90023$2,904
91330$2,917

ZIP codeAverage annual rate for full coverage
90010$3,471
90028$3,433
90004$3,417
90038$3,415
90021$3,390
90062$3,383
90020$3,372
90046$3,369
90008$3,367
90018$3,362

Our recommendations: Car insurance for drivers in Los Angeles

On average, drivers get the cheapest coverage by purchasing a policy with USAA or Geico.

However, purchasing coverage based on pricing alone can be a mistake. A cheap policy isn’t worth much if it does not include the coverage you want and need. 

So, shop around and gather quotes from several insurance companies. This is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Los Angeles.

expert

What our expert says

Q: Why do insurance rates vary from city to city?

expert-image
Dr. James BrauDr. Brau teaches finance principles, entrepreneurial finance, financial planning, and corporate finance at Brigham Young University’s School of Business. His research includes issues related to initial public offerings, financial education, real estate, and entrepreneurial finance.
“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Sources:

  • City of Los Angeles Department of Transportation. “Residents.” Accessed January 2024.

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

author image
Laura Longero
Executive Editor

 
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Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media.