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Why Are L.A. Insurance Rates the Highest in the State?

    2 minute read
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    Auto Insurance: Higher in L.A.

    According to the LA Times, a recent study has proven what Californians already knew to be true: that auto insurance costs more in both the city and county of Los Angeles. Exactly how much more costly is it?

    The study revealed that people who live in Los Angeles county pay premiums that are 18% higher than the state average. For people who reside within the city limits of Los Angeles, that rate jumps to 32% higher than the California average.

    Does Your LA ZIP Code Matter for Auto Insurance?

    Actually, it does. The amount of money you pay for auto coverage can differ widely even within the city or county of Los Angeles. Here’s an example: drivers who live in West Hollywood (with a ZIP code of 90038) tend to pay a whopping 51% more than the state average for auto insurance. And premiums are 47% higher for residents of downtown LA (90015) and Pico Heights (90006). Conversely, drivers with a ZIP code of 90045 in the Westchester area pay just seven percent more than the state’s average.

    Some consumers might wonder why this is the case given that voters passed Proposition 103 back in the 1990s. This legislation minimized the impact of ZIP codes when setting auto insurance rates. But here’s the rub: people in certain parts of the LA area tend to drive vehicles that are more expensive than their neighbors in the county or city, and vehicle type is among the permitted determinants of auto insurance rates, largely based on estimated cost to repair said vehicles.

    In other words, your ZIP code is still related to how much you pay for auto insurance. And because Los Angeles is so densely populated, there are more drivers on the roads there than anywhere else in the Golden State — which tends to mean more collisions and auto insurance claims.

    How to Cut Auto Insurance Costs in LA

    So if you don’t want to move away from LA, how can you keep those auto insurance premiums from devouring your household budget? Here are a few suggestions:

    • Invest in an anti-theft device. In addition to the added security against auto theft, these devices will likely get you a break on your auto insurance premiums.

    • Drive less. Fewer miles driven per year will typically translate into a lower auto insurance premium. So look into carpooling to work or school, or use your bike or public transportation when possible.

    • Drive safely. It’s one of the major factors in how companies determine your rates. An absence of collisions or tickets on your record will help keep your auto insurance premiums low.

    • Look for discounts. From multi-line policies to driver’s education courses to trade group membership, insurers will often offer discounts on auto insurance for a long list of reasons. Find out which ones you qualify for.

    map of los angelesAuto Insurance Specialists can help Californians like you in your battle against high auto insurance rates. By providing you with quotes from multiple insurers, AIS makes the insurance companies compete for your business and helps keep costs low for you.

    This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverage’s in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.