Car Insurance Rates Vary in Southeast, L.B.

If a 42-year-old married man moved a few blocks from North Long Beach to Compton last November, the insurance premium for his 1981 Dodge Colt would have jumped from $650 a year to $1,518.

If the same man had moved to Downey, Bellflower, Paramount, northeastern Long Beach or most of Lakewood, his Automobile Club of Southern California insurance would have remained at the original $650 rate.

But if he had lived in Whittier or Cerritos, the fee would have been $717, and in Long Beach’s downtown and Belmont Shore areas it would have been $816. In Huntington Park it would have been $1,006, and in Lynwood, $1,107.

That the same driver with the same car and driving record would pay such widely varying premiums because of where he lives was underscored last week by the first state survey of Los Angeles County insurance rates since 1978.

The survey, which sampled rates of 18 companies that write 75% of California’s insurance, also found that premiums varied sharply from company to company.

State officials cautioned that the survey should be read only as a general indicator of premiums, since special features or discounts may not have been reflected in its figures.

Nowhere were company-to-company rate differences seen more clearly than in the Long Beach and Southeast areas. Data on four different types of drivers showed that residents with good driving records can often cut their premiums at least in half by buying insurance from companies that specialize in low-risk policies.

For example, a 23-year-old single woman from South Gate, who drives a 1984 Ford Mustang L and had no tickets or accidents, could have paid $567 for a 20th Century policy last November. A similar policy from the Automobile Club would have cost $927, State Farm $1,209, Allstate $1,525 and Farmers $1,545. (Those companies are the five largest writers of private auto policies in Los Angeles County.)

The same 23-year-old woman could have paid as much as $2,815 for a Farmers policy in Compton or as little as $464 for 20th Century coverage in Artesia-Cerritos, La Mirada, Norwalk, Santa Fe Springs and Whittier.

City-to-city rate disparities are the result of an insurance industry system that sets premiums based on claim losses in a specific area. Statewide, this system has meant that residents of poorer communities often have been charged more for insurance than those of wealthier ones. Rates are also far lower in rural areas. The state’s highest rates are in Los Angeles County.

Legislative backers of a change in this system have argued that it penalizes those least able to pay for insurance, regardless of their driving records.

Great Discrepancy Cited

Everett Brookhart, consumer affairs chief for the state Insurance Department, said last week that his department is no longer satisfied with the present system. He said the discrepancy in prices is now so great that many residents of poor communities cannot afford to buy insurance, as is required by law.

A bill introduced last week by state Sen. Art Torres (D-South Pasadena) would base premiums on a driver’s record. The Insurance Department is studying the same alternative, Brookhart said. The department is also analyzing a change that would establish a “bare-bones, no-fault” liability policy for all motorists at a flat rate, he said.

The Insurance Department will send its full Los Angeles County rate survey to anyone who sends a self-addressed, 9x12 envelope with stamps totaling 70 cents to: Department of Insurance Rate Survey, 600 S. Commonwealth Ave., Los Angeles 90005.

COMPARATIVE CAR INSURANCE RATES: SOUTHEAST / LONG BEACH AREA The California Department of Insurance made public these comparative annual insurance rates by accumulated ZIP code areas in the Southeast / /Long Beach area. These 18 insurance groups sell about 75% of all private preferred auto insurance in the state and rates were those in effect in November, 1985. Rates to individuals will vary based on age, driving record, use of car, mileage driven and the amount of insurance coverage. DRIVER 1 (FIGURES ARE IN BOLD TYPE) Driver 1 is a 23-year-old single woman who drives 10 miles to work and drives less than 15,000 miles a year. She has no traffic citations and no accidents. She drives a 1984 car that cost between $8,001 and $10,000 new--a Chevrolet Monte Carlo 2-door, a Honda LX or a Ford Mustang “L.” Insurance coverage includes injury liability of $15,000 per person with a maximum of $30,000 per accident; property damage liability of $10,000 per accident; medical payments of $2,000 per person; uninsured motorist (U/M) $15,000 per person, $30,000 per accident; comprehensive with a $100 deductible and collision with $200 deductible. DRIVER 2 (FIGURES ARE IN LIGHT TYPE) Driver 2, 42, is a married man who drives three miles to work and less than 12,000 miles a year. He has no citations but one at-fault accident 2 years ago. He drives a 1981 car that cost between $6,500 and $8,000 new--Dodge Colt, Mercury Zephyr sedan, Toyota Tercel 2-door or Corolla. Insurance coverage includes injury liability of $100,000 per person with a maximum of $300,000 per accident; property damage liability of $50,000 per accident; medical payments of $5,000 per person; uninsured motorist (U/M) $25,000 per person, $50,000 per accident; comprehensive with a $200 deductible and collision with $500 deductible.

City State Auto Club 20th Zip Code Farm Farmers of So. Cal. Allstate Century Artesia 871 1048 666 955 464 90701 632 719 717 677 501 Bell 1209 1545 927 1525 567 90201 895 1150 1006 1154 611 Bellflower 910 1060 611 955 567 90706 652 717 650 677 611 Cerritos 871 1048 666 955 464 90701 632 719 717 677 501 Compton 1209-2003 1901-2815 990-1341 1632 773-843 90220-22 895-1497 1383-2047 1107-1518 1234 858-957 Downey 910 1060 611 955 567 90240-42 652 717 650 677 611 Hunt. Park 1209 1545 927 1525 567 90255 895 1150 1006 1154 611 Lakewood 910 1060 611 955 567 90712-14 652 717 650 677 611 Lakewood 871 1048 666 955 567 90715-16 632 719 717 677 611 La Mirada 871 1048 666 955 464 90638 632 719 717 677 501 Long Beach 871-910 1060-1211 611-763 955-1120 567 90802-15 632-652 717-829 650-816 677-795 611 Long Beach 910 1105-1211 611-763 955-1120 567 90822+40 652 757-829 650-816 677-795 611 Los Angeles 2003 1846-2815 1341 1525-2213 567-843 90001-10 1497 1266-2047 1518 1154-1694 611-957 Los Angeles 1350-2003 1545-2815 927-1341 1525-2207 567-843 90056-60 1007-1497 1150-2047 1006-1518 1154-1649 611-957 Lynwood 1209 1545 990 1525 773 90262 895 1150 1107 1154 858 Maywood 1209 1545 927 1525 567 90270 895 1150 1006 1154 611 Montebello 910 1060 732 1100 567 90640 652 717 784 785 611 Norwalk 871 1048 666 955 464 90650 632 719 717 677 501 Paramount 910 1060 611 955 567 90723 652 717 650 677 611 Pico Rivera 910 1060 732 1100 567 90660 652 717 784 785 611 S.F. Springs 871 1048 666 955 464 90670 632 719 717 677 501 South Gate 1209 1545 927 1525 567 90280 895 1150 1006 1154 611 Whittier 871 1048 666 946-1100 464 90601-06 632 719 717 668-785 501 Wilmington 941 1087 763 1120 773 90744 669 739 816 795 858

City Ohio Mercury Zip Code U.S.A.A.* SAFECO GEICO Casualty Casualty Artesia 658 862 971 786-952 -- 90701 537 621 902 584-695 -- Bell 567 957 1099 1248 1120 90201 795 873 1160 815 662 Bellflower 700 863 1003 952 703 90706 556 649 891 695 516 Cerritos 658 862 971 786-952 -- 90701 537 621 902 584-695 -- Compton 926 1099-1772 1683 1078-1545 802-1347 90220-22 767 873-1457 1564 791-1156 581-1013 Downey 700 841-863 1003 876-952 703 90240-42 556 607-649 891 584-695 516 Hunt. Park 957 1099 1248 1120 868 90255 795 873 1160 815 662 Lakewood 700 863 1003 952 703 90712-14 556 649 891 695 516 Lakewood 659 862 971 786 -- 90715-16 537 621 902 584 -- La Mirada 659 862 971 786 693 90638 537 621 902 584 492 Long Beach 659-700 841-1099 1003 786-952 717-802 90802-15 537-556 607-873 891 584-695 514-581 Long Beach 659-700 -- 1003 -- 717 90822+40 537-556 -- 891 -- 514 Los Angeles 1241 1311-1772 1767-1819 1063-1545 1146-1347 90001-10 1080 1035-1457 1661-1718 785-1156 849-1013 Los Angeles 926-1241 1099-1772 1354-1819 1063-1545 1146-1347 90056-60 767-1080 873-1457 1221-1718 785-1156 849-1013 Lynwood 926 1099-1772 1248 1078-1545 868 90262 767 873-1457 1160 791-1156 662 Maywood 957 1099 1248 1120 868 90270 795 873 1160 815 662 Montebello 700 886 1003 952 764 90640 556 642 891 695 553 Norwalk 659 862 1240 786 693 90650 537 621 1141 584 492 Paramount 700 1099 1003 952 703 90723 556 873 891 695 516 Pico Rivera 700 841 1003 786-952 764 90660 556 607 891 584-695 553 S.F. Springs 658 862 971 786 693 90670 537 621 902 584 492 South Gate 957 1099 1248 1120 868 90280 795 873 1160 815 662 Whittier 658 841 971 786 656-693 90601-06 537 607 902 584 458-492 Wilmington 744 863 1035 1044 797 90744 603 649 920 787 557 * Military and dependents only.

City Liberty California Zip Code Continental Nationwide Mutual Casualty Artesia 1022 636 802 1033 90701 949 599 738 794 Bell 868 1591 901 1164 90201 1261 858 1092 1148 Bellflower 1371 662 847 1074 90706 1155 619 784 814 Cerritos 1022 636 802 1033 90701 949 599 738 794 Compton 1576-2181 901-1438 1164-1780 1452-1928 90220-22 1288-1643 858-1387 1092-1689 1148-1555 Downey 1072-1371 662 847 1074 90240-42 949-1155 619 784 814 Hunt. Park 1591 901 1164 1452 90255 1261 858 1092 1148 Lakewood 1371 662 847 1074 90712-14 1155 619 784 814 Lakewood 1022 636 802 1033 90715-16 949 599 738 794 La Mirada 1022 636 802 1033 90638 949 599 738 794 Long Beach 1022-1371 636-662 847 1033-1074 90802-15 949-1155 599-619 784 794-814 Long Beach -- 662 847 -- 90822+40 -- 619 784 -- Los Angeles 2181 1438 1221-1780 1928 90001-10 1643 1387 1150-1689 1555 Los Angeles 1591-2181 981-1438 1164-1780 1452-1928 90056-60 1261-1643 937-1387 1092-1689 1148-1555 Lynwood 1576-2181 901 1164 1452 90262 1288-1643 858 1092 1148 Maywood 1591 901 1164 1452 90270 1261 858 1092 1148 Montebello 1371 662 847 1074 90640 1155 619 784 814 Norwalk 1022 636 802 1033 90650 949 599 738 794 Paramount 1371 662 847 1074 90723 1155 619 784 814 Pico Rivera 1022-1371 662 847 1074 90660 949-1155 619 784 814 S.F. Springs 1022 636 802 1033 90670 949 599 738 794 South Gate 1591 901 1164 1452 90280 1261 858 1092 1148 Whittier 1022 636 802 1033 90601-06 949 599 738 794 Wilmington 1458 669 848 1098 90744 1136 622 784 846

Aetna Civil City Casualty J.C. Service Hartford Zip Code Surety Penney Employees Casualty Artesia 804 978 1096 1242 90701 700 784 932 1312 Bell 1452 1302 1530 1457 90201 1130 1276 1265 1670 Bellflower 964 1062 1096 1528 90706 814 840 932 1614 Cerritos 804 978 1096 1242 90701 700 784 932 1312 Compton 1302-1770 1612 1496-2260 1642 90220-22 1130-1556 1326 1292-2025 1718 Downey 964 1062 1096 1528 90240-42 814 840 932 1614 Hunt. Park 1302 1530 1457 1596 90255 1130 1276 1265 1670 Lakewood 964 1062 1096 1528 90712-14 814 840 932 1614 Lakewood 804 1062 877 1242 90715-16 700 840 737 1312 La Mirada 804 978 877 1242 90638 700 784 737 1312 Long Beach 964 1062-1194 1096-1496 1528 90802-15 814 840-944 932-1292 1614 Long Beach 964 1062-1194 -- 1528 90822+40 814 840-944 -- 1614 Los Angeles 1770 2286-2318 2260 2292 90001-10 1556 1926-1946 2025 2480 Los Angeles 1302-1770 1530-2286 1457-2260 1418-2292 90056-60 1130-1556 1276-1926 1265-2025 1534-2480 Lynwood 1302 1530 1496 1642 90262 1130 1276 1292 1718 Maywood 1302 1530 1457 1596 90270 1130 1276 1265 1670 Montebello 964 1530 1096 1528 90640 814 1276 932 1614 Norwalk 804 978 877 1242 90650 700 784 737 1312 Paramount 964 1062 1496 1528 90723 814 840 1292 1614 Pico Rivera 964 1530 1096 1528 90660 814 1276 932 1614 S.F. Springs 804 978 877 1242 90670 700 784 737 1312 South Gate 1302 1530 1457 1596 90280 1130 1276 1265 1670 Whittier 804 1076 877 1242 90601-06 700 866 737 1312 Wilmington 1020 1156 1378 1430 90744 972 922 1173 1548