Is Your Los Angeles Car Insurance Leaving a Hole in Your Pocket?

Are you a victim of high-priced car insurance? Trust us, many Los Angeles consumers feel financially strained by their car insurance policy. There is such a variety of car insurance companies to choose from, and even though it’s nice to have multiple companies, having more auto insurance companies makes it harder to find the best rates.

It’s a great practice to price shop coverage at least once a year since insurance rates go up and down regularly. Just because you had the lowest rates on your last policy the chances are good that you can find a lower rate today. Starting right now, ignore everything you know about car insurance because you’re going to learn one of the quickest ways to find lower rates on car insurance.

Compare the Market for Car Insurance in Los Angeles, California

All the larger car insurance companies give insurance quotes online. Getting online rates is fairly straightforward as you just type in your required coverages as detailed in the form. After the form is submitted, their rating system orders your credit score and driving record and generates a price. Online quotes streamlines rate comparisons, but the time required to go to a lot of sites and complete many quote forms is monotonous and tiresome. But it is imperative to perform this step if you are searching for the lowest price.

A quicker way to find lower prices uses one simple form that gets price quotes from more than one company. This type of form saves time, requires much less work on your part, and makes online shopping much more efficient. As soon as the form is sent, your coverage is rated and you can choose your choice of the quotes that you receive.

If the quotes result in lower rates, it’s easy to complete the application and purchase coverage. The whole process takes less than 15 minutes and you’ll know if lower rates are available.

To save time and fill out one form to compare multiple rates now, click here to open in a new tab and submit the form. If you have your current policy handy, we recommend you input deductibles and limits identical to your current policy. Doing this assures you will receive rate quotes based on similar coverages.

Can you really save that much by switching?

Consumers can’t get away from ads that promise big savings by Progressive, GEICO, Allstate and State Farm. All the companies make the same claim of big savings after switching to their company.

But how can every company make the same claim? This is how they do it.

All the different companies have a preferred profile for the type of driver they prefer to insure. For instance, a profitable customer might be between 30 and 50, has no driving citations, and has a high credit rating. A driver who meets those qualifications will get the preferred rates and therefore will save when they switch companies.

Consumers who don’t meet the “perfect” profile will have to pay a higher premium which usually ends up with business not being written. The ads state “drivers who switch” not “everybody who quotes” save that much. That is how insurance companies can confidently state the savings.

Because of the profiling, drivers should get as many quotes as possible. It’s impossible to know which insurance companies will provide you with the cheapest rates.

What determines how much you pay?

An important part of buying insurance is that you know some of the elements that play a part in calculating car insurance rates. Understanding what determines base rates enables informed choices that may reward you with much lower annual insurance money in California

Shown below are some of the factors car insurance companies consider when setting rates.

  • High crash test scores lower rates – Safer cars are cheaper to insure. These vehicles protect occupants better and better occupant protection translates into savings for insurance companies passed on to you as lower rates.
  • Being married can save on car insurance – Being married can actually save you money when buying car insurance. Marriage means you’re more mature than a single person and statistics show married drivers get in fewer accidents.
  • Your job and insurance rates – Occupations like judges, social workers and financial analysts have higher average rates attributed to high stress and long work hours. Conversely, jobs such as farmers, engineers and retirees get better rates.
  • How your age affects price – Teen drivers in California are statistically proven to be more careless behind the wheel so they pay higher car insurance rates. Parents adding a youthful driver onto your car insurance can really hurt. Older drivers are viewed as being more responsible, tend to cause fewer accidents and receive fewer citations.
  • What type of vehicle do you drive? – The make and model of the car you drive makes a huge difference in determining your rates. Low performance passenger cars usually have the lowest rates, but other factors influence the final cost greatly.

Cut your car insurance rates with discounts

Properly insuring your vehicles can get expensive, but companies offer discounts to reduce the price significantly. Larger premium reductions will be automatically applied at quote time, but a few must be specifically requested in order for you to get them. If you’re not getting every credit available, you are throwing money away.

  • Payment Method – If paying your policy premium upfront instead of paying each month you can actually save on your bill.
  • Safety Course Discount – Taking part in a defensive driving course could cut 5% off your bill depending on where you live.
  • Sign Early and Save – Some companies give discounts for switching to them before your current policy expires. It can save you around 10%.
  • Discount for New Cars – Putting insurance coverage on a new car can cost up to 25% less compared to insuring an older model.
  • More Vehicles More Savings – Buying insurance for multiple cars or trucks on one policy qualifies for this discount.
  • Student Driver Training – Cut your cost by having your teen driver complete a driver education course if offered at their school.
  • Anti-lock Brakes – Anti-lock brake equipped vehicles are safer to drive and therefore earn up to a 10% discount.
  • Resident Student – Any of your kids who attend school more than 100 miles from home and do not have access to a covered vehicle can be insured at a reduced rate.
  • Theft Prevention System – Cars that have factory anti-theft systems help deter theft and earn discounts up to 10%.

It’s important to note that most discounts do not apply to all coverage premiums. Some only reduce the cost of specific coverages such as liability and collision coverage. Just because it seems like adding up those discounts means a free policy, you won’t be that lucky. But any discount will cut the cost of coverage.

Aren’t my neighborhood agents an option?

A small number of people would rather talk to a local agent. Agents can point out coverage gaps and give you someone to call. The biggest benefit of getting online price quotes is the fact that you can find the best rates but still work with a licensed agent. And supporting local insurance agencies is important particularly in Los Angeles.

Upon completion of this short form, your insurance coverage information is immediately sent to local insurance agents in Los Angeles who will compete for your insurance coverage. There is no reason to leave your house as quotes are delivered directly to your email. How cool is that?!

Different types of auto insurance agents in Los Angeles

When looking for a local agent, you need to know there are two types of agencies from which to choose. Los Angeles agents are categorized either captive or independent (non-captive). Both types can properly insure your vehicles, but it’s worth learning the difference between them because it can influence buying decisions.

Independent Agencies or Brokers

Independent agencies do not work for one specific company but rather can write business with lots of companies depending on which coverage is best. If you are not satisfied with one company, your agent can switch companies and that require little work on your part.

When comparing rates, it’s recommended you contact at a minimum one independent agency for the best price selection.

Shown below are Los Angeles independent insurance agencies that may be able to provide pricing information.

John C Syn Agency – 3350 Wilshire Blvd # 1005 – Los Angeles, CA 90010 – (213) 386-0123
Workman’s Auto Insurance Co – 714 W Olympic Blvd # 8 – Los Angeles, CA 90015 – (213) 747-6492
Hanin Insurance Svc – 3251 W 6th St # 401 – Los Angeles, CA 90020 – (213) 736-6000
Neuman Agency – 11845 W Olympic Blvd # 665 – Los Angeles, CA 90064 – (310) 477-6840
Lee Keller Agency – 850 Colorado Blvd # 101 – Los Angeles, CA 90041 – (323) 255-5330

Captive Agents

This type of agents write business for a single company and some examples include Allstate, State Farm and Farmers Insurance. These agents are unable to give you multiple price quotes so keep that in mind. Captives receive extensive training on their company’s products which can be an advantage.

Below is a list of captive insurance agencies in Los Angeles that can give you comparison quotes.

price insurance in Los Angeles CA

Farmers Insurance Group – 6310 W 89th St – Los Angeles, CA 90045 – (310) 410-0632
State Farm Insurance – 1401 Westwood Blvd # 280 – Los Angeles, CA 90024 – (310) 474-5531
Allstate Insurance – 3432 W 43rd St – Los Angeles, CA 90008 – (323) 292-3566
Liberty Mutual – 4902 W Slauson Ave – Los Angeles, CA 90056 – (323) 292-6218

To view a complete directory of Los Angeles captive agencies, please click here.

Picking a car insurance agent requires more thought than just a cheap price. Agents should be asked these questions:

  • Can they provide you with a list of referrals?
  • What insurance company do they write the most business with?
  • Is the agency involved in supporting local community causes?
  • Do they review policy coverages at every renewal?
  • Do they feel the quoted coverages are adequate?
  • Will vehicle repairs be made with aftermarket parts or OEM replacement parts?
  • Can glass repairs be made at your home?

Once you have answers to your satisfaction to all your questions and a low price estimate, you may have just found an insurance agency that will properly insure your vehicles.

A little work can save a LOT of money

Discount car insurance is definitely available both online as well as from independent agents in Los Angeles, so compare prices from both to have the best rate selection. Some insurance providers don’t offer the ability to get a quote online and usually these small insurance companies provide coverage only through local independent agents.

We covered a lot of ways to shop for car insurance online. The key concept to understand is the more companies you get rates for, the better your comparison will be. Consumers could even find that the lowest priced car insurance comes from some of the smallest insurance companies. They can often insure niche markets at a lower cost compared to the large companies like GEICO and State Farm.

Additional information can be found on the website for the California Department of Insurance. Click here for link. California drivers can find out which companies have the most complaints, find out industry alerts, and read state legal mandates and laws.

Other useful links include Auto Insurance 101 and this page of Los Angeles insurance agents.