You have most likely watched the catchy advertisements from car insurance companies like Liberty Mutual, Nationwide, and Farmers that claim the cheapest price, so drivers just need to choose the one with the most memorable commercial, right?
Unfortunately, it’s just not that easy, as there are a whole bunch of unknown elements like if you currently have coverage, the vehicle you drive, if you want full coverage, and your age, that all have an effect on the price. Car insurance is kind of a dry topic, but this article will explain the best ways to pay less and hopefully give you enough understanding to have a good beginning to your search for cheaper coverage.
Finding good, cost effective auto insurance is not most people’s favorite thing to do, and determining which insurers offer the cheapest insurance rates for low income drivers may require even more diligence. Each company uses their own calculation for establishing rates, so let’s begin by examining the most budget-friendly insurance companies in California.
Keep in mind that Los Angeles insurance rates are calculated based on many things which can significantly increase or decrease the price of coverage. This price variability is why consumers need to take the time to do a thorough rate comparison when trying to find affordable insurance rates for low income drivers. Insurance rates can be altered by many things and can increase or decrease at any time, so the most affordable company when you last compared rates may now cost much more than other companies.
Lowest Insurance Price Quotes in California
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,155 |
| 2 | Century National | $1,178 |
| 3 | Wawanesa | $1,181 |
| 4 | CSAA | $1,198 |
| 5 | Nationwide | $1,213 |
| 6 | 21st Century | $1,325 |
| 7 | Grange | $1,477 |
| 8 | Allstate | $1,497 |
| 9 | Mercury | $1,503 |
| 10 | Progressive | $1,542 |
| 11 | Allied | $1,556 |
| 12 | GEICO | $1,575 |
| 13 | The Hartford | $1,591 |
| 14 | MetLife | $1,606 |
| 15 | Esurance | $1,688 |
| 16 | State Farm | $1,699 |
| 17 | Unitrin | $1,733 |
| 18 | Bristol West | $1,795 |
| 19 | Travelers | $1,860 |
| 20 | Farmers | $1,946 |
| Compare Rates Now Go | ||
USAA quotes some of the best car insurance rates in Los Angeles at around $1,155 per year. This is $496 less than the average premium paid by California drivers of $1,651. Century National, Wawanesa, CSAA, and Nationwide also qualify as some of the most economical Los Angeles, CA auto insurance companies.
As depicted above, if you buy coverage from CSAA and switched to Century National, you could see savings of about $20. California drivers with Nationwide might save as much as $35 a year, and 21st Century customers might cut rates by $147 a year.
Be aware that those prices are averages for all types of drivers and the different vehicles they drive and and are not figured with an exact location for low income drivers. So the car insurance company that fits your age and vehicle best may not even be in the top 24 companies in the list above. That point stresses why you need to get car insurance quotes using your own individual information.
One of the many components that help determine the amount you pay for auto insurance is your address. Larger areas are more likely to pay higher prices, whereas more rural areas receive better rates.
The table below shows the highest-priced places in California for low income drivers to purchase a policy in. Los Angeles shows up at #1 costing $2,146 for the average policy, which is about $179 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Los Angeles | $2,146 |
| 2 | Glendale | $2,142 |
| 3 | San Francisco | $1,745 |
| 4 | Oakland | $1,704 |
| 5 | Sacramento | $1,669 |
| 6 | Fontana | $1,581 |
| 7 | San Bernardino | $1,580 |
| 8 | Long Beach | $1,578 |
| 9 | Modesto | $1,547 |
| 10 | Stockton | $1,541 |
| 11 | Moreno Valley | $1,536 |
| 12 | Santa Clarita | $1,533 |
| 13 | Riverside | $1,527 |
| 14 | Garden Grove | $1,524 |
| 15 | Fresno | $1,472 |
| 16 | Santa Ana | $1,439 |
| 17 | Anaheim | $1,430 |
| 18 | Fremont | $1,403 |
| 19 | Huntington Beach | $1,402 |
| 20 | Bakersfield | $1,394 |
| 21 | San Jose | $1,381 |
| 22 | Irvine | $1,330 |
| 23 | San Diego | $1,327 |
| 24 | Chula Vista | $1,311 |
| 25 | Oxnard | $1,304 |
| Compare Prices Now Go | ||
Premium costs are approximated as the specific zip code location can impact insurance rates noticeably.
Ratings for California insurance companies
Ending up with a high-quality auto insurance company is hard considering how many companies there are to choose from in Los Angeles. The ranking information listed below could help you select which insurers to look at purchasing a policy from. These rankings are for companies with a national presence, so companies that only write business in California or surrounding areas will not be included in these rankings.
Top 10 Major Auto Insurance Companies in Los Angeles Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Nationwide – A+
- Allstate – A+
- Mercury Insurance – A+
- Progressive – A+
- Titan Insurance – A+
Top 10 Major Auto Insurance Companies Overall in Los Angeles
- USAA
- American Family
- AAA of Southern California
- State Farm
- The Hartford
- AAA Insurance
- GEICO
- The General
- Titan Insurance
- Progressive
The example below illustrates how choosing a deductible can increase or decrease insurance prices when getting quotes for cheap insurance for low income drivers. The rate quotes are based on a single male driver, comp and collision included, and no discounts are taken into consideration.
In the chart above, a 50-year-old driver could lower their car insurance rates by $436 a year by increasing from a $100 deductible up to a $500 deductible, or save $656 by choosing a $1,000 deductible. Even younger drivers, such as the Age 20 example, could shave up to $1,432 or even more by selecting a higher deductible.
When choosing a higher deductible, it will be important to have enough in a savings account to enable you to pay the extra out-of-pocket expense associated with higher deductibles.
How to get discounts on Los Angeles car insurance
Insurance companies that provide policies for low income drivers may also provide special discounts that could lower prices by 40% or more if you are eligible for them. A few of the larger companies and their possible discounts are included below.
- American Family has savings for TimeAway discount, accident-free, multi-vehicle, defensive driver, early bird, and mySafetyValet.
- State Farm offers discounts including driver’s education, passive restraint, accident-free, good driver, anti-theft, good student, and defensive driving training.
- 21st Century discounts include teen driver, homeowners, anti-lock brakes, student driver, theft prevention, air bags, and defensive driver.
- Travelers may have discounts that include multi-car, save driver, student away at school, good student, and new car.
- GEICO includes discounts for anti-theft, defensive driver, multi-vehicle, membership and employees, and military active duty.
The chart below illustrates the comparison of auto insurance rates with and without discounts. The rate quotes are based on a male driver, no violations or claims, California state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with multiple vehicle, claim-free, safe-driver, marriage, accident-free, and passive restraint discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on insurance for low income drivers is 28% or $777.
Low rates today, overpriced tomorrow
Los Angeles insurance rates are determined by lots of factors which can substantially change the price of coverage. Getting older, having a teen driver, or having an at-fault accident can produce rate changes resulting in some companies being more affordable than the competition. Not only that, but companies amend pricing as often as every quarter to adjust for gains or losses. A period of increased losses can cause rate hikes, while lower claim levels can produce lower-priced Los Angeles car insurance rates.
To illustrate this example, the chart below shows a variety of companies that have the cheapest car insurance in Los Angeles, CA for a 40-year-old female driver with a clear driving record, no claims, and a decent credit rating. When comparing rates based on her personal profile, USAA quotes the most affordable car insurance rates in Los Angeles at $1,808 annually. This is $157 more than the average policy premium paid by California drivers of $1,651. Wawanesa, CSAA, Century National, and Nationwide are also on the list of the cheapest Los Angeles, CA auto insurance companies.
The next chart shows rates after we give the driver in the first chart a claim or two, slightly worse credit, and a speeding ticket. Because each insurer has their own guidelines to establish rates, getting updated rate quotes may result in a different list of affordable companies as shown below.
Grange now has the best price on car insurance in Los Angeles, CA with Progressive, Mercury, Allstate, and GEICO now being in the top five. This example proves why it is critical to compare as many rates as possible to find the most budget-friendly car insurance rates for low income drivers. Prices consist of many factors and can decrease or increase without notice, so the cheapest company three years ago may now cost much more than other companies.
If you prefer to get some professional advice when shopping for cheaper insurance for poor drivers, the agencies below can probably answer your questions and help you decide which auto insurance policy fits you best.
To locate a Los Angeles insurance agent close to you, click the button below the list.
Anthony Elliot Insurance Agency, Inc.
3349 Cahuenga Blvd W #2 – Los Angeles, CA 90068 – (323) 876-1980
Terza West-Dantzler – State Farm Insurance Agent
875 N Gower St – Los Angeles, CA 90038 – (323) 462-1096
Paul Major – State Farm Insurance Agent
12030 Washington Blvd Ste A – Los Angeles, CA 90066 – (310) 482-3990
Carmel Stevens – State Farm Insurance Agent
4918 W Slauson Ave – Los Angeles, CA 90056 – (323) 292-7930