Los Angeles might have one of the most expensive car insurances in America, costing an average of $857 for minimum annual coverage and $2,941 for comprehensive annual coverage in 2022. This can result from the long driving hours, making the city's highways some of the busiest in America.
With the current average annual cost of auto insurance for vehicles in Los Angeles, it might make sense to find other options to save money on your family car(s) to prevent overspending on insurance.
These high figures may sound like bad news leaving motorists asking themselves, why did my car insurance go up? Are there cheaper insurance plans for my car? Can I add my children’s vehicles to my insurance plan to save money?
Factors that affect the car insurance rates in Los Angeles
Insurance rates can generally rise or fall depending on your driving habits and the cost of maintenance and repairs for your vehicles. Any significant alterations throughout the insurance term may result in higher insurance premiums at renewal. The renewal price will reflect any new auto accidents, citations, address changes, general insurance rate adjustments, or modifications to your credit scores, among others.
Here are some factors that may cause your car insurance rate to go up;
● Your mileage per year
When a motorist wants to register for a car insurance plan, they might be asked to estimate the miles they cover annually. The rate for someone who covers more miles may be higher than for those with fewer miles. The reasoning behind this is straightforward: the fewer kilometers you drive, the lower the possibility of a collision and, thus, the lower the chances that the insurance provider will make a payment on your behalf.
● Location of your house
Insurance companies consider drivers in the city to be high-risk clients due to the city's dense population and the potential for collisions. Therefore, if you live in one of the most populated areas of Los Angeles, there is a high chance of experiencing high insurance rates.
● The type of vehicle you drive
The type of vehicle you drive could also affect your insurance rate. Older cars have lower insurance rates as they are considered to have a lesser chance of getting stolen or causing hazards. This may be reason enough to hang on to that old Jalopy.
● Your driving records
Drivers with a history of traffic violations, such as speeding citations, may pay more than those who have never been stopped. For example, your auto insurance may increase by a considerable percentage due to speeding tickets. Likewise, your insurance rates may increase if you've been in an accident, even a minor collision.
With the heavy traffic on the highway in L.A, it shouldn't be too difficult to slow down on those sunny roads. Other factors that can inflate your insurance rate include your credit history and the type of insurance plan you use. So, if you’re a parent paying for insurance for your car and your teenager's car insurance, you’d consider choosing a less expensive plan.
How to lower your car insurance rate during inflation
● Increase your Deductibles
Raising your deductibles can allow you to pay a significant portion of the out-of-pocket expenses associated with a covered loss. However, you should raise your deductible if you've cut back on how often you drive your car each week. If your vehicle is damaged and you don't have the money to pay your deductible, increasing your deductible can strain your budget.
● Reduce your coverage
If your car's value has considerably decreased, you might consider removing collision and comprehensive coverage from your insurance plan. In general, this is advisable if the current worth of your car is less than the sum of your annual premiums. To determine the right insurance policy, you can request a quick insurance quote to help you make the right decision.
● Research Multiple rates
Another way to lower your insurance rate is by researching the best rates for your car. It might be wise to browse and evaluate the current market prices. In most cases, you will find that another provider has lower premiums that fit your budget right now. You can learn more about your options by comparing rates.
Whatever you choose to do, remember that inflation isn't going anywhere anytime soon, so you have to make amendments on your part to reduce the cost of car insurance and save money.