The words “low-cost” and “auto insurance” really shouldn’t be used in the same sentence, in particular when you are shopping around for the lowest insurance rates for drivers under 21. To help control this cost, let’s familiarize you with some of the things that can significantly affect insurance premiums, and come up with some ideas to lower the cost of your next policy.
Comparing rates for budget insurance is difficult, and finding out which companies have the best insurance rates for drivers under 21 will require even more perseverance. Each insurance company uses their own method to set their prices, so we’ll go over the insurance companies that tend to be cheaper in California.
Find the Cheapest Auto Insurance for Minors
|Rank||Company||Cost Per Year|
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USAA generally has some of the most affordable car insurance rates in Los Angeles at around $1,155 annually. This is $496 less than the average premium paid by California drivers of $1,651. Century National, Wawanesa, Nationwide, and CSAA would also be considered some of the more affordable Los Angeles, CA insurance companies.
As the example above demonstrates, if you are currently insured with Nationwide and switched to Century National, you could earn an annual premium reduction of in the neighborhood of $48. Drivers with CSAA might save as much as $56 a year, and 21st Century insureds might lower prices by $147 a year.
Understand that those policy rates are averaged for all insureds and vehicles and and are not calculated with a specific location for drivers under 21. So the company that has the lowest price for you may not even be in the top 24 companies in the list above. That helps illustrate why you need to get auto insurance quotes using your own personalized driver profile and vehicle information.
The car, truck, or SUV on the policy is probably the largest consideration when shopping around for low-priced coverage for drivers under 21. Vehicles with lower performance, modern passenger safety features, or low incidents of liability claims will cost much less to insure than high performance models.
The table below illustrates auto insurance rates for a selection of the most budget-friendly vehicles to buy coverage for.
|Vehicle||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$8,178|
|Hyundai Elantra GLS Touring Station Wagon||$8,185|
|Ford Escape XLT 4WD||$8,271|
|Honda CR-V EX-L 4WD||$8,279|
|Ford F-150 XLT Super Cab 2WD||$9,160|
|Jeep Wrangler Sahara 4WD 2-Dr||$9,165|
|Chevrolet Impala LS||$9,614|
|Ford Focus SE 4-Dr Sedan||$9,619|
|Ford Edge Limited 2WD||$9,614|
|Dodge Grand Caravan Hero||$9,708|
|Volkswagen Jetta S 4-Dr Sedan||$9,718|
|Chevrolet Equinox LS 2WD||$9,708|
|Toyota RAV4 2WD||$9,718|
|Ford Fusion S 4-Dr Sedan||$9,708|
|Ford Explorer Limited 4WD||$9,801|
|Honda Civic VP 4-Dr Sedan||$10,159|
|Toyota Tacoma X-Runner 2WD||$10,252|
|Honda Odyssey EX-L W/Navigation||$10,258|
|Chevrolet Malibu LTZ||$10,346|
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Cost estimates assume single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in vehicle garaging location which can affect price quotes greatly.
Based on these rates, you can conclude that vehicles like the Honda Accord, Hyundai Elantra, Ford Escape, Honda CR-V, and Toyota Prius will definitely be a few of the most economical vehicles to insure for minors. Car insurance rates will trend higher because of the fact that there is more liability risk for drivers under 21, but generally speaking those vehicles will most likely have the cheapest rates available.
How violations and accidents impact rates
The easiest way to maintain the best insurance prices in Los Angeles for minors is to be a cautious driver and avoid accidents and violations. The example below illustrates how speeding tickets and accident claims can influence insurance rates for different age categories. The costs are based on a single male driver, comprehensive and collision coverage, $500 deductibles, and no policy discounts are applied.
The chart shows that the average cost of an auto insurance policy in California per year with no violations or accidents is $2,075. Add in two speeding tickets and the average cost jumps to $2,743, an increase of $668 each year. Then add one accident along with the two speeding tickets and the yearly cost of insurance for drivers under 21 jumps again to an average of $3,413. That’s an increase of $1,338, or $111 per month, just for not paying attention while driving!
Full coverage rates compared to liability-only
Finding cheaper insurance should be important to the majority of vehicle owners, and an effective way to find cheap insurance for drivers under 21 is to only buy liability insurance. The chart below visualizes the comparison of insurance costs with liability coverage only compared to full coverage. The information is based on no accidents, no driving violations, $100 deductibles, single status, and no policy discounts are applied.
If we average the cost for all age groups, full coverage on your policy costs an extra $2,812 per year more than just buying liability only. At some point, every insured wonders when is it a good idea to stop buying full coverage. There is no set guideline to drop physical damage insurance, but there is a guideline you can use. If the yearly cost for physical damage coverage is more than about 10% of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s book value is $5,000 and you have $1,000 deductibles. If your vehicle is totaled, you would only receive $4,000 after the policy deductible has been paid. If premiums are more than $400 a year for physical damage coverage, then it could be time to drop full coverage.
Get discounts on Los Angeles insurance
Insurers that sell policies for drivers under 21 may also offer rate discounts that can lower rates by 25% or more if you meet certain criteria. Larger insurance companies and some of the discounts are outlined below.
- Farmers Insurance includes discounts for switch companies, distant student, pay in full, electronic funds transfer, business and professional, and early shopping.
- State Farm may have discounts that include multiple autos, Steer Clear safe driver discount, Drive Safe & Save, defensive driving training, student away at school, accident-free, and multiple policy.
- Liberty Mutual offers premium reductions for multi-car, exclusive group savings, safety features, newly retired, teen driver discount, new vehicle discount, and hybrid vehicle.
- MetLife discounts include multi-policy, defensive driver, claim-free, accident-free, good student, and good driver.
- Progressive has savings for good student, continuous coverage, multi-policy, online signing, and online quote discount.
The example below shows the comparison of auto insurance costs with and without some available policy discounts. The rate quotes are based on a male driver, no claims or violations, California state minimum liability limits, full coverage, and $1,000 deductibles. The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with passive restraint, anti-theft, vehicle safety, paperless filing, paid-in-full, and continuous coverage discounts applied. When taking advantage of discounts, theaverage yearly reduction on insurance for drivers under 21 is 28% or $647.