You have probably watched the captivating ads from auto insurance companies like Liberty Mutual and Farmers that say if you switch you’ll get dirt cheap rates. So you just need to choose the one with the flashiest ad, right?
Regrettably, it’s not quite that easy, as there are a whole bunch of unknown factors such as the crime level of your neighborhood, when you were born, your financial stability, and the annual mileage you drive. In this article, we will cover the things that cause high insurance rates and will hopefully give the reader a jump start in finding the best auto insurance.
Establishing which companies quote the lowest-priced car insurance rates for active military takes more work than just quoting one company’s rates. Each company has a proprietary method to determine rates, so let’s rank the most budget-friendly car insurance companies in Los Angeles.
Keep in mind that Los Angeles, CA car insurance rates are influenced by many factors which can substantially change the price you have to pay. Turning one year older, increasing deductibles, or getting a couple of tickets can trigger changes in premium that may make certain companies cheaper than competitors.
Find the Cheapest Car Insurance for Military
|Rank||Company||Cost Per Year|
|View More Rates Go|
USAA offers some of the most affordable car insurance rates in Los Angeles at around $1,109 annually. This is $542 less than the average policy premium paid by California drivers of $1,651. Century National, Wawanesa, CSAA, and Nationwide are also some of the lowest-priced Los Angeles, CA insurance companies.
In the rate table above, if you buy coverage from Century National and switched to USAA, you could earn an annual premium reduction of around $69. Policyholders with Wawanesa may save as much as $72 a year, and CSAA insureds might lower prices by $125 a year.
To find out how your current rates compare, click here to begin a quote or click through to the companies below.
Bear in mind that those premiums are averaged for all types of drivers and the different vehicles they drive and do not take into consideration a specific zip code for active military. So the insurer that can offer you the best rate may not even be in the top 24 companies shown above. That is why you need to get auto insurance quotes using your own personal information and vehicle type.
The vehicle requiring insurance is one of the largest considerations in finding the cheapest auto insurance for active military. Vehicles with more horsepower, poor safety features, or high incidents of liability claims will cost more to insure than more modest models.
The next table estimates auto insurance costs for a number of the more affordable vehicles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$2,358|
|Dodge Grand Caravan CV||$2,407|
|Ford Escape XLT 2WD||$2,430|
|Honda Accord LX 4-Dr Sedan||$2,435|
|Volkswagen Jetta LE 4-Dr Sedan||$2,543|
|Toyota RAV4 Limited 2WD||$2,548|
|Ford F-150 STX Regular Cab 2WD||$2,582|
|Ford Explorer Limited AWD||$2,592|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$2,601|
|Kia Optima LX||$2,731|
|Chevrolet Impala LS||$2,735|
|Ford Focus S 4-Dr Sedan||$2,744|
|Compare Rates Now Go|
Data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, multi-vehicle, and claim-free. Price information does not factor in specific garaging location which can decrease or increase rates considerably.
By looking at the data, you can see that cars like the Honda CR-V, Dodge Grand Caravan, Ford Escape, Honda Accord, and Volkswagen Jetta will definitely be a few of the most affordable vehicles to insure for military personnel.
One of the more important things that are used to help calculate the amount you pay each year for auto insurance is where your residence is in Los Angeles. Areas with high crime rates or more dense population will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims benefit from lower coverage costs.
The illustration below ranks the priciest cities in California for active military to buy auto insurance in. Los Angeles is ranked #1 with an annual cost of $2,104 for the average insurance policy, which is around $175 monthly.
|Compare Prices Now Go|
Rate information is estimated as the specific garaging location can alter rates greatly.
Liability-only versus full coverage
Lowering the price of car insurance is probably important to most drivers, and an effective way to pay less for insurance for active military is to not buy comprehensive and collision coverage. The information below compares auto insurance costs with full coverage and liability only. The rates are based on no claims or driving violations, $500 deductibles, drivers are single, and no discounts are applied to the premium.
As an average for all age groups, physical damage insurance costs an extra $2,075 per year over and above liability only. That proposes the question if physical damage coverage is worth the money. There isn’t a written rule that works best for making the decision to drop physical damage coverage, but there is a general convention. If the annual cost of coverage is about 10% or more of the replacement cost minus the deductible, the it may be a good time to stop paying for full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $7,500 and you have $1,000 policy deductibles. If your vehicle is totaled, the most you would get paid by your company is $6,500 after paying the physical damage deductible. If you are paying over $650 a year for comprehensive and collision coverage, then it’s probably a good time to buy liability coverage only.
Ending up with a good quality car insurance company is hard considering how many choices drivers have in California. The company information in the next section could help you analyze which companies you want to consider shopping your coverage with. The ratings below are for companies with a nationwide focus, so companies that only write business in California or surrounding areas are not factored into this list.
Top 10 Large Car Insurance Companies in Los Angeles Ranked by Claims Service
- AAA of Southern California
- State Farm
- AAA Insurance
- Liberty Mutual
- Titan Insurance
- The Hartford
Top 10 Large Car Insurance Companies in Los Angeles Ranked by Customer Satisfaction
- Titan Insurance – 95%
- USAA – 94%
- AAA of Southern California – 92%
- AAA Insurance – 91%
- Nationwide – 90%
- State Farm – 90%
- The Hartford – 89%
- GEICO – 89%
- The General – 88%
- 21st Century – 88%
Get discounts on Los Angeles auto insurance rates
Auto insurance companies that provide coverage for active military may have special discounts that could lower prices by 35% or more if you are eligible to receive them. A few of the larger companies and some of the premium reductions they offer can be read below.
- American Family has savings for defensive driver, Steer into Savings, multi-vehicle, early bird, accident-free, and good student.
- Farm Bureau offers discounts including driver training, multi-policy, youthful driver, 55 and retired, and safe driver.
- State Farm may have discounts that include anti-theft, multiple autos, good driver, driver’s education, good student, and passive restraint.
- Travelers discounts include early quote, new car, driver training, hybrid/electric vehicle, IntelliDrive, and student away at school.
- The Hartford policyholders can earn discounts including anti-theft, air bag, defensive driver, good student, and bundle.
- GEICO offers discounts for five-year accident-free, driver training, seat belt use, emergency military deployment, military active duty, and daytime running lights.
- Progressive may offer discounts for homeowner, multi-policy, multi-vehicle, continuous coverage, and good student.
The illustration below compares yearly insurance costs with and without discounts applied to the policy rates. Data assumes a male driver, a clean driving record, no at-fault accidents, California state minimum liability limits, full physical damage coverage, and $1,000 deductibles.
The first bar for each age group shows the price with no discounts. The lower bar shows the rates with safe-driver, multiple vehicle, accident-free, defensive driving course, marriage, and multiple policy discounts applied. When discounts are factored in, the average amount saved each year on car insurance for active military is 28% or $695.
Comparing rates can save you money
Los Angeles, CA car insurance rates are determined by lots of factors that will increase or decrease the price of your policy. Simply getting older, buying higher coverage limits, or getting a DUI can produce rate changes that can cause some rates to be more affordable than others.
And not only may your rating factors change, but insurance companies modify pricing as often as every quarter in order to maintain liquidity for claims. A period of higher than normal claims may cause increased rates, while a profitable period may produce more affordable Los Angeles car insurance rates.
For example, the bar chart below shows rates for the cheapest car insurance in Los Angeles, CA for a 35-year-old male driver with no accidents, a clean driving record, and a good credit rating. Based on his current risk profile, USAA may offer the lowest car insurance rates in Los Angeles at $1,890 per year. This is $239 more than the average premium paid by California drivers of $1,651. Wawanesa, Century National, Nationwide, and CSAA also make the list of the top five cheapest Los Angeles, CA auto insurance companies.
In this example, we will give the driver from the first rate comparison an accident claim, a lower credit rating, and a speeding ticket. Since each company has a different process for setting prices, comparing insurance quotes may now show a substantially altered list of companies as shown below.
Grange now has the cheapest rate in Los Angeles with Allstate, GEICO, Mercury, and Progressive now being in the top five. This example shows why Los Angeles drivers need to spend some time comparing rates when trying to get the most affordable insurance quotes for active military. Rates are determined by many risk factors and can decrease or increase without notice, so the best company the last time you shopped your coverage around may now be one of the higher cost companies.