Options for Car Insurance in Los Angeles

Understanding the Three Basic Categories of L.A. Auto Insurance

If you are thinking of buying car insurance in Los Angeles, it’s a good idea to get to know the options which are available to you.  All drivers are required to have basic property and bodily injury liability coverage, but the three programs available for drivers means that the price you pay for car insurance in Los Angeles can vary widely.  Make sure that you’re aware of all of your options, to ensure that you can get insurance when you need it, and that you don’t pay too much.

Low Cost Car Insurance in Los Angeles

If you are a good driver but are having trouble meeting your monthly insurance payments, you should look into the Low Cost Car Insurance Plan available in Los Angeles and other counties.  This program helps people whose income meets certain maximum qualifications receive affordable car insurance.  Los Angeles drivers who qualify for this plan must have a good record and a vehicle that meets plan qualifications.

Standard Car Insurance in Los Angeles

The vast majority of car insurance in Los Angeles falls under this plan.  Under California law, different insurance agencies can set their own prices for car insurance based on their losses and rates in the past.  This means that there is a lot of variation in price from one insurance company to the next.  Be sure to shop around and compare the rates and services vigorously before choosing a standard auto insurance provider.

California Automobile Assigned Risk Plan (CAARP)

Although car insurance in Los Angeles is mandatory for all drivers, people who have a poor record may have difficulty finding an agency to cover them.  If they are legally eligible to drive, but cannot because they cannot find insurance, they have a problem.  California has created a plan to help these people, called CAARP.

Under CAARP, each provider of car insurance in Los Angeles and in other areas of California is required to take on a certain number of high-risk individuals.  The number that they are required to accept is a percentage of their overall business in the last year.

Drivers who are covered by CAARP all pay the same car insurance rates, no matter which agency covers them.  These rates are much higher than standard car insurance in Los Angeles or other areas, but are better than receiving no coverage at all.  If they can maintain a clean record for three years, they can re-enter the standard insurance plan in their area.