You have probably watched the catchy advertisements from auto insurance companies like State Farm and Allstate that make claims of big savings, so drivers just need to choose the one with the most memorable commercial, right?
It’s just not that simple, as there are a whole bunch of unknowns such as your age, if you have a lapse in coverage, and how far you drive each year, that help determine the price you have to pay. We are going to cover the best ways to avoid overpriced car insurance and will hopefully give you a good beginning to your quest for cheaper car insurance.
The car, truck, or SUV you are trying to insure is probably the largest consideration that determines whether or not you can buy the cheapest insurance for homeowners. Vehicles with average performance, advanced safety features, or low incidents of liability claims will cost substantially less to insure than high performance models.
The list below estimates auto insurance costs for some of the more affordable vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord EX 4-Dr Sedan||$2,090|
|Hyundai Elantra SE Touring Station Wagon||$2,272|
|Ford Escape XLT 2WD||$2,292|
|Honda CR-V LX 2WD||$2,301|
|Nissan Altima 2.5 4-Dr Sedan||$2,478|
|Jeep Grand Cherokee Laredo 4WD||$2,483|
|Toyota RAV4 Limited 2WD||$2,478|
|Chevrolet Malibu LS||$2,487|
|GMC Sierra SL Extended Cab 2WD||$2,478|
|Volkswagen Jetta S 2.5 Station Wagon||$2,553|
|Chevrolet Impala LTZ||$2,611|
|Ford Fusion SEL 4-Dr Sedan||$2,657|
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Price data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-vehicle, and multi-policy. Premium costs do not factor in specific zip code location which can change coverage prices noticeably.
Based upon the rates shown, you can expect makes and models like the Honda Accord, Hyundai Elantra, Ford Escape, and Honda CR-V are most likely going to be some of the most affordable vehicles to insure for people who own their homes.
One of the more important components that are looked at to determine the price you pay for insurance is where your car is garaged in Los Angeles. Areas with high crime rates or more dense population are more likely to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of cheap car insurance rates.
The illustration below rates the priciest cities in California for homeowners in which to purchase auto insurance. Los Angeles makes the list at #2 with a yearly cost of $2,083 for car insurance, which is about $174 per month.
|Rank||City||Average Per Year|
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Rate quotes are estimated as specific location information can influence auto insurance rates substantially.
Establishing which company quotes the lowest-priced auto insurance rates for homeowners will take more work in order to find the most economical policy.
Each insurance company uses their own formula for establishing rates, so we’ll go over the overall cheapest auto insurance companies in California. It’s a good idea to know that Los Angeles auto insurance rates are influenced by many factors which can substantially decrease or increase the price you have to pay. Simply having another birthday, getting divorced, or getting a few speeding tickets can cause premium changes resulting in some rates now being cheaper than before.
Best Cheap Insurance Rates for Homeowners
|Rank||Company||Cost Per Year|
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USAA offers some of the cheapest car insurance rates in Los Angeles at around $1,155 each year. Wawanesa, Century National, CSAA, and Nationwide would also be considered some of the most economical Los Angeles, CA car insurance companies.
As the rates illustrate above, if you are insured with Century National and switched to USAA, you may realize savings of in the neighborhood of $59. Drivers with CSAA may save as much as $67 a year, and Nationwide policyholders might realize rate reductions of up to $71 a year.
Bear in mind that those estimates are averaged across all types of drivers and the different vehicles they drive and do not factor in an exact location for homeowners. So the car insurance company that can offer you the best rate may not even be in the list above. That point stresses why you need to get rate quotes using your own personalized driver profile and vehicle information.
The diagram below shows how different deductible levels can raise or lower insurance costs when quoting cheap insurance for homeowners. The premiums are based on a single female driver, comp and collision included, and no discounts are applied to the premium.
As shown above, a 40-year-old driver could cut expenses by $420 a year by changing from a $100 deductible up to a $500 deductible, or save $632 by choosing a $1,000 deductible. Youthful drivers, like the Age 20 category, could potentially save as much as $1,068 every year by using a higher deductible. When raising deductibles, it is a good idea to have enough savings to enable you to pay the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Accidents and violations increase rates
One of the best ways to find good auto insurance rates for people who own their homes is to drive attentively and maintain a clean driving record. The example below shows how violations and at-fault fender-benders can influence annual premium costs for different age groups. The premium estimates are based on a single female driver, full coverage, $500 deductibles, and no discounts are taken into consideration.
The data in the chart shows the average cost of an auto insurance policy in California per year with a clean driving record and no accidents is $2,679. Get one speeding ticket and the average cost hikes up to $3,040, an increase of $361 each year. Then add one accident along with the one speeding ticket and the 12-month cost of auto insurance for homeowners goes up to an average of $4,047. That’s an increase of $1,368, or $114 per month, just for not driving responsibly!
Rate difference between full and liability-only coverage
Buying cheaper auto insurance is important to most vehicle owners, and one good way to buy cheaper insurance for homeowners is to only buy liability coverage. The information below visualizes the comparison of insurance rates with liability coverage only compared to full coverage. The data assumes no violations or claims, $250 deductibles, single status, and no discounts are applied.
If the expense is averaged for all age categories, comprehensive and collision coverage on your policy costs an additional $2,314 per year more than just insuring for liability. A very common question is if it’s a good idea to buy full coverage. There is no set guideline of when to drop comp and collision coverage, but there is a broad guideline. If the annual cost of comprehensive and collision coverage is more than about 10% of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.
Los Angeles car insurance rates
Los Angeles, CA auto insurance rates are calculated based on many things that will increase or decrease the cost of having a policy. Improving your credit score, getting married, or having an accident can produce rate changes that can now make some companies much cheaper than others. Not only that, but auto insurance companies amend premium rates at least once a year as an adjustment for underwriting gains or losses. Heavy losses may cause higher rates, while lower claims may cause cheaper Los Angeles car insurance rates.
The bar chart below shows the company with the cheapest car insurance in Los Angeles, CA for a 40-year-old male driver with no accidents, a clean driving record, and solid credit. If we look at prices based on his current risk profile, Wawanesa offers the most affordable car insurance rates in Los Angeles at $1,867 per year. This is $216 more than the average premium paid by California drivers of $1,651. USAA, Century National, CSAA, and Nationwide round out the rest of the top five cheapest Los Angeles, CA auto insurance companies.
The chart below compares rates after we give the driver from the above example a claim or two, a little lower credit rating, and a few traffic violations. Because every insurance company has a proprietary formula for establishing rates, getting updated rate quotes could result in a completely different list of the cheapest car insurance companies in Los Angeles as shown below.
Mercury now has the best price in Los Angeles, CA with Grange, Progressive, Allstate, and GEICO also being competitive. This illustrates why consumers need to take the time to shop around to get the most economical car insurance rates for homeowners. Insurance rates can be determined by many things and can decrease or increase without notice, so the cheapest rate two years ago may now be quite expensive.
The agents below can most likely help you determine which insurance coverage will be best for you, since some drivers wish to get some guidance when buying car insurance for homeowners. It can be challenging to find the best policy yourself, so using a licensed agent can bring satisfaction knowing you have sufficient coverage at claim time. To locate a Los Angeles car insurance agency nearest to you, click the button after the list.
Sean M Brown – State Farm Insurance Agent
3130 S Sepulveda Blvd f – Los Angeles, CA 90034 – (310) 479-0080
Sean Cheng State Farm Insurance Agency
767 N Hill St,109 – Los Angeles, CA 90012 – (213) 621-2526
Young Pyo – State Farm Insurance Agent
3700 Wilshire Blvd #567 – Los Angeles, CA 90010 – (213) 365-1600