Premium Shock : Survey Says L.A. Drivers Pay Highest Rates in State
Los Angeles County drivers continue to pay the highest auto insurance premiums in the state, while rates across California have generally remained stable in the last year, according to a survey of insurance rates released Wednesday by the state Department of Insurance.
Residents of Los Angeles County pay up to twice as much as drivers in Northern California for the same insurance, said the survey of the state’s 14 largest auto insurers, which together underwrite 82% of the policies statewide. Drivers in Orange County were also near the top of the list.
And, as in past years, residents of inner-city areas continued to pay the highest premiums in the Los Angeles area, irrespective of driving record, the survey found.
Insurance Commissioner Chuck Quackenbush recently proposed rules that would base auto rates on a driver’s safety record, mileage and driving experience and less on a driver’s ZIP code, in accordance with Proposition 103.
Some of the lowest premiums were charged by Safeco Insurance Cos. and the State Farm Insurance Group. Some of the highest rates were charged by Unitrin/Financial Indemnity.
20th Century Insurance Co. and Allstate Insurance Group saw some of the greatest premium increases, in part to cover losses from the Northridge earthquake, Quackenbush said.
Throughout California, the average premium of a 30-year-old driver with a good record was $566 a year, $23 higher than in 1993. Drivers with one ticket and one accident paid an average premium of $1,129, down $63 from 1993, the survey found.
The survey found wide discrepancies in premiums within Los Angeles. A good driver in South-Central Los Angeles could be charged as much as $2,315 a year for coverage that would cost the same driver in Palos Verdes Estates as little as $359, the survey reported.
The Times conducted its own computer analysis of the survey’s raw data. Some of the findings:
* For a driver age 30 with a good driving record and liability coverage for a single vehicle driven 12,000 miles a year, Los Angeles County had the highest average premium in the state: $1,009 a year. In Orange County, the average premium was third highest in the state, at $729. The lowest average premium for the same driver was in San Luis Obispo County: $376.
* For that same driver, the lowest premium, averaged of all Los Angeles County municipalities surveyed, was $662 by Safeco Insurance Cos. The highest, $1,604, was by Unitrin/Financial Indemnity.
* In Orange County, the lowest rate was $491 from Mercury General Group. The highest rate for such a driver was $1,323 from Unitrin/Financial Indemnity.
* For a family with two middle-age drivers with one speeding ticket each, a 17-year-old son and full coverage on two vehicles, Los Angeles County again had the highest average premium, averaged of the 14 largest companies: $6,504 a year. Orange County drivers paid on average $4,830. San Luis Obispo County again had the lowest average rate: $2,964.
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Comparing Insurers
The latest survey of insurance premiums by the state Department of Insurance found that rates had generally remained stable in 1995. The following are comparisons of average statewide rates charged by each of the state’s 14 largest insurers from 1993 to 1995 for a 30-year-old motorist with a good driving record seeking coverage on a vehicle driven 12,000 miles a year.
State Farm:
1993: $393
1994: $393
1995: $396
Farmers:
1993: $768
1994: $673
1995: $656
Allstate:
1993: $567
1994: $567
1995: $794
CSAA
1993: $420
1994: $405
1995: $420
20TH Century
1993: $380
1994: $380
1995: $498
AAA
1993: $643
1994: $626
1995: $528
Mercury
1993: $510
1994: $410
1995: $413
Safeco
1993: $398
1994: $414
1995: $393
National General*
1994: $384
1995: $414
Financial Indemnity
1993: $895
1994: $895
1995: $899
Hartford Fire
1993: $700
1994: $704
1995: $653
Liberty Mutual
1993: $463
1994: $463
1995: $464
Fireman’s Fund
1993: $721
1994: $629
1995: $631
Viking/Talagen
1993: $811
1994: $835
1995: $732
* 1993 figure not available
Source: California Department of Insurance
