The Best Car Insurance in Los Angeles of 2024

State Farm provides a range of insurance options, including auto, home, and life coverage, as well as banking services. It’s a good option for people looking for affordable insurance in California without compromising on service.

Full Coverage That Doesn’t Break the Bank

Full coverage goes beyond the California minimum requirements, and usually includes higher liability limits, medical payments, collision, comprehensive, and uninsured/underinsured motorist coverage. While it costs more in monthly premiums, full coverage protects your assets in the event of an accident.

State Farm offers full coverage at an annual average rate of $2,376, below the Los Angeles average, and additional coverage options that won’t break the bank. After USAA, which is limited to military members, State Farm has the lowest rates among our top picks.

Additional coverage includes:

• Roadside assistance
• Rental reimbursement
• Personal umbrella
• Transportation/travel expense coverage
• Classic car insurance
• Rideshare coverage

If Rideshare Is Your Side Hustle

A number of Americans have a hustle, and Uber and Lyft have made it easier than ever to adopt one. If you have a car and spare time, you too can be a rideshare driver. But does Transportation Network Company (TNC) insurance provide the full coverage you need?

Not quite. Between your personal coverage and your TNC insurance (provided by your rideshare employer), you’re covered for most of your drive. However, in the time that you’re watching with another driver—what’s known as “Period 1” in the rideshare insurance—neither your TNC nor your personal plan will cover you if you get into an accident.

That’s where rideshare coverage comes in. It will provide you with much-needed protection in the event that you get into an accident during Period 1. Not all providers offer rideshare insurance, so State Farm is a great place to start if you’re thinking about or already are a rideshare driver.

Founded in 1928 to serve rural farmers’ vehicle insurance needs, Farmers Insurance has expanded to offer a broad range of products including home and small business insurance. Today, Farmers serves over 10 million households across all 50 states, including a strong presence in California.

Best for Food Truck Businesses

LA is known for its food truck scene, as it’s home to dozens of award-winning taco trucks and Korean-Mexican fusion trucks.⁴ If you’re a business owner, especially a fleet or food truck owner, Farmers offers specialized commercial auto insurance for your business.

Here’s how you can benefit with a commercial auto plan for Farmers:

• Specialized coverage for contractors, including expensive equipment needed to run your business
• Mobile business interruption, which ensures that you’ll be reimbursed if your truck is out of commission due to a covered loss.
• Mobile food vendor insurance, to cover any business property on your trucks, equipment breakdowns, and security costs

Rideshare Coverage

In California, there are an estimated 300,000 rideshare drivers, approximately 60,000 of whom drive for work full-time. Many of these drivers work in Los Angeles, where a car is often a necessary form of transportation.

Like State Farm, Farmers offers rideshare coverage to fill in the gaps between your personal policy and TNC insurance. Farmers’ rideshare coverage extends the protections of your personal policy to the periods when the app is on and you’re waiting to match with a passenger.

Alternative Fuel Vehicle

Farmers’ Alternative Fuel discount is special because it applies to California residents only. California offers incentives for driving electric vehicles, and if you’ve gone green, you’ll want to make sure you reap these benefits. This discount applies to vehicles powered by anything other than strictly gasoline. Vehicles that qualify include:

• Hybrid
• Electric
• Natural gas
• Propane

Los Angeles is home to several major universities, such as USC, UCLA, and Loyola Marymount. With several paths to earning its student discount, Allstate is a great choice for young drivers and their families.

Great Discounts for Students

If you have high school or college students in your home, Allstate could be a great car insurance option for you. If they’re under 25 and unmarried, you could score the smart student discount. Here’s what they need to qualify:

• B- average or above, or a GPA of 2.7 or higher
• Successfully complete the teenSMART driver education program
• Attend a school at least 100 miles away from where your car is garaged

This might be a great motivator in looking at schools for your child that are a bit farther away from home than you originally planned.

Bundle and Save

Bundling multiple policies with Allstate is a great way to save both time and money. Those who bundle home and auto insurance save up to 25 percent, which is among the highest in the industry compared to other top providers like State Farm or GEICO. You can also bundle with condo or renters insurance, which is good news as Los Angeles has one of the highest renter rates in the country.⁶

If you’re looking into more than one type of insurance policy, bundling is a great option. Doing so with Allstate online also allows you to manage your policies in one place, where you can review and adjust coverages and even make payments.

New Car Discount

New cars can cost a lot of money, but with Allstate, you may qualify for a discount on your car insurance. Your vehicle must be a current model year or the prior year, and you must be the first owner. For more details, contact an Allstate agent.

Founded in 1912, Liberty Mutual is the longest-running company on this list. It offers a range of options you won’t find everywhere, such as gap coverage, a diminishing deductible, and special perks for teachers.

Multi-Policy Savings for the Win

Liberty Mutual customers have the option to bundle home and auto insurance and save up to $950. Your total savings will depend on factors such as where you live, how often you drive, and your driving record, but it’s worth considering if you want or need multiple policies.

Not only does it save you money, but it’s also more convenient since you can manage all your policies in one place. Who wants to have three web browser tabs open at the same time when you could have just one? You’ll also have more flexibility since you can manage your policies without having to make a call or go into an office. Download the app to access your policies on the go.

When you register for an account, you can:

• View and download policy documents, like ID cards
• Pay and manage bills securely
• File, manage, and track your claims
• Review coverages and make changes 24/7
• Reduce the clutter in your life by eliminating the need to store policy paperwork

Benefits for Teachers

During the 2023-2024 school year, the Los Angeles Unified School District employed nearly 26,000 teachers and over 48,000 other school employees.⁷ If you’re a teacher in L.A., you can benefit from the following Liberty Mutual teacher perks:

• A $0 deductible if you file a vandalism claim on school grounds or during a school-related event.
• $0 deductible if you file a covered claim for an accident while driving on school business.
• Up to $2,500 in property coverage if your teaching materials or school property are damaged/stolen from your vehicle.

Great Gap Coverage

What is gap coverage? If your car is totaled or stolen and its value is lower than the amount remaining on your loan, gap coverage will cover the remaining amount you owe. In other words, you’re not on the hook for the extra $5,000 if it’s valued at only $15,000 and you still owe $20,000.

Cars depreciate over time, so having to pay off a loan that is worth more than your totaled car can be frustrating. Gap coverage protects you from this, but it’s important to note that it must be purchased at the same time you purchase your car, and you must be the car’s first owner. If you’re considering purchasing a new car, getting gap coverage through your auto insurer is a good idea.

USAA is among the leading providers of insurance, banking, investment, and retirement solutions to members of the U.S. military, veterans who have served, and their families. It offers the lowest rates in Los Angeles among our top picks. If you qualify, we recommend getting a quote.

Storage or Low Annual Mileage

Whether you’re stationed overseas or storing your car for another reason, USAA could save you up to 60 percent if you’re not driving your car. If it’s garaged on a military installation, like the Los Angeles Air Force Base (LAAFB), you could save up to 15 percent on comprehensive coverage. Let’s say you simply don’t drive your car that much; you could also get a discount for that based on the low annual mileage.

Discounts for New Cars and Security Equipment

Newer cars have improved safety and security features, which is attractive in a world where car theft runs rampant (especially in L.A., where car theft has increased 64 percent since the pandemic⁸). There might be a discount through USAA on your car insurance if your vehicle is no more than three years old, so don’t say no to that newer car just yet. If it has an anti-theft device installed, there’s also a discount for that.

Stack and Save

With most insurance companies, having multiple policies is a good way to save. USAA offers several ways to increase your savings:

• Extend your coverage to two or more vehicles.
• Bundle with renters insurance.
• Bundle with homeowners insurance (this also applies to condos).*
• Have a student driver who earns good grades.
• Maintaining a clean driving record.
• Garage your car on a military installation.
• Be a loyal member.

* Save up to 10 percent when you bundle your property policy with auto coverage.