For drivers age 25 and younger, one of the more important criteria that help determine the amount you pay each year for auto insurance is where you live in Los Angeles. Areas with more people or even just a higher incidence of claims are more likely to pay higher prices, whereas less populated areas profit from lower rates.
The information below rates the most expensive cities in California for drivers under 25 in which to buy car insurance. Los Angeles is ranked #1 costing $2,168 on average, which is about $181 per month.
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Information shown are comparative as the vehicle garaging location can affect rates greatly.
Locating low-cost car insurance is confusing at best, and finding out which companies have the lowest-priced car insurance rates for drivers under 25 may require even more rate comparisons. Each insurance company uses a little different formula to determine rates, so first we will examine the car insurance companies that tend to be cheaper in Los Angeles, CA.
Keep in mind that California car insurance rates are calculated based on many things that will increase or decrease the price you pay. This price variability is why California drivers need to take the time to shop around when trying to find cheap insurance rates for drivers under 25. Auto insurance prices can be altered by many things and change substantially, so the best price a year ago may now be an over-priced policy.
Cheap Insurance Rates for Young Drivers
|Rank||Company||Cost Per Year|
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USAA normally has some of the best car insurance rates in Los Angeles at around $1,143 per year. CSAA, Wawanesa, Century National, and Nationwide would also be considered some of the best Los Angeles, CA insurance companies.
As shown in the rates above, if you are currently insured with Century National and switched to USAA, you might achieve an annual premium reduction of in the vicinity of $83. Drivers with Nationwide could save as much as $107 a year, and 21st Century insureds might lower prices by up to $223 a year.
Be aware that those estimates are averaged for all drivers and vehicles in California and and are not calculated with an exact zip code location for drivers under 25. So the insurer that can offer you the lowest price may not even be in the top 24 companies in the list above. That point stresses why you need to get quotes using your own specific driver information and vehicle.
The vehicle model you are trying to insure is probably the biggest factor when consumers are trying to find affordable insurance for drivers under 25. Vehicles with average performance, a great safety record, or a track record of few liability claims will cost substantially less to insure than higher performance models. The next table ranks insurance premiums for the more affordable vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$4,230|
|Ford Escape Limited 2WD||$4,293|
|Ford Explorer XLT 2WD||$4,743|
|Ford F-150 FX2 Super Cab 2WD||$4,753|
|Jeep Wrangler Sahara 4WD 2-Dr||$4,743|
|Dodge Grand Caravan CV||$4,752|
|Volkswagen Jetta SE 2.5 Station Wagon||$4,900|
|Chevrolet Impala LS||$4,954|
|Ford Focus S 4-Dr Sedan||$4,962|
|Ford Edge SEL 2WD||$4,954|
|Chevrolet Equinox LT AWD||$5,017|
|Jeep Grand Cherokee Laredo 2WD||$5,022|
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Price data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in the specific area where the vehicle is garaged which can raise or lower prices significantly.
Based upon these rates, cars like the Honda CR-V, Ford Escape, Toyota Prius, and Ford Explorer are going to be the most economical vehicles to insure for drivers age 25 and younger. The price for car insurance will tend to be higher just due to the fact that there is more claim risk for drivers under 25, but overall those vehicles will tend to have the least expensive rates compared to all other vehicles.
The chart below illustrates how choosing a deductible can affect insurance costs when searching for cheap insurance for drivers under 25. The data assumes a single male driver, comprehensive and collision coverage, and no discounts are taken into consideration.
The chart above illustrates that a 50-year-old driver could lower their car insurance rates by $436 a year by switching from a $100 deductible to a $500 deductible, or save $656 by choosing a $1,000 deductible. Youthful drivers, like the 20-year-old, could roll back prices up to $1,432 or even more by using a higher deductible.
If you make the decision to raise deductibles, it is a good idea to have emergency funds available to pay the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Difference between liability only and full coverage rates
Finding cheaper car insurance is the goal of most people, and one great way to find cheaper insurance for drivers under 25 is to only buy liability insurance. The example below visualizes the comparison of insurance prices with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data is based on no violations or accidents, $250 deductibles, drivers are not married, and no other discounts are factored in.
Averaged out for all age groups, comp and collision coverage costs $3,147 per year over liability only. Many people question if buying full coverage is worth the expense. There is no specific rule to exclude full coverage on your policy, but there is a guideline you can use. If the annual cost of your full coverage insurance is about 10% or more of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
Tickets and at-fault accidents raise rates
One of the best ways to obtain good car insurance premiums in Los Angeles for drivers age 25 and younger is to drive safe and maintain a clean driving record. The chart below shows how violations and accident claims can raise car insurance costs for different insured age categories. The premiums are based on a married male driver, comp and collision included, $1,000 deductibles, and no discounts are taken into consideration.
The data in the chart shows the average cost of car insurance per year with no violations or accidents is $1,570. Receive one speeding ticket and the average cost swells to $1,810, an increase of $239 each year. Now add one accident along with the one speeding ticket and the 12-month cost of car insurance for drivers under 25 goes up to an average of $2,466. That’s an increase of $896, or $75 per month, just for not driving safely!
Why you are probably overpaying for car insurance
Los Angeles car insurance rates are calculated based on many things that may substantially change your annual premium. Simply having a birthday, moving across town, or getting a reckless driving citation can trigger rate changes that may make certain companies more affordable than competitors.
Also, insurance companies modify pricing as needed in order to offset underwriting gains or losses. Heavy losses can result in more expensive prices, while less frequent claims may cause cheaper Los Angeles car insurance rates.
The data below demonstrates which company has the cheapest car insurance in Los Angeles, CA for a 35-year-old male driver with no accidents, a clean driving record, and a high credit rating. When quoting prices based on his current risk profile, USAA may have the best car insurance rates in Los Angeles at $1,764 a year. This is $113 more than the average premium paid by California drivers of $1,651. Wawanesa, Nationwide, CSAA, and Century National round out the rest of the most affordable Los Angeles, CA auto insurance companies.
Let’s now give the driver from the first example a chargeable accident, a lower credit rating, and a speeding ticket. Because every insurance company has a proprietary formula to determine rates, comparing quotes could now result in a different list of affordable companies as shown below.
Grange now has the cheapest insurance rate in Los Angeles with Progressive, GEICO, Mercury, and Allstate now rounding out the top five. This demonstrates why consumers need to take the time to do a thorough rate comparison when trying to find the most economical insurance rates for drivers under 25.
Insurance prices are determined by many risk factors and can increase or decrease at any time, so the cheapest rate when you bought your policy may now be quite expensive.