Best Cheap Car Insurance for Drivers Under 21 in North Dakota

One of the key criteria that auto insurance companies use to calculate the annual cost of car insurance is where your car is garaged in North Dakota. Areas with more people or even just a higher incidence of claims like Beulah, Belcourt, and Bottineau tend to pay higher rates, whereas areas with lower vehicle theft rates and fewer weather claims tend to receive cheaper rates.

The next table lists the highest-priced places in North Dakota for drivers under 21 to buy an auto insurance policy in.

Rate quotes are estimated as the garaging address in North Dakota can decrease or increase auto insurance rates substantially.

The make and model of vehicle you are insuring is one of the largest considerations when comparing quotes for the best cheap auto insurance for drivers under 21 in North Dakota. Vehicles with high performance engines, a lack of modern safety features, or a history of substantial liability claims will cost more to insure than safer, lower-performance models.

The next list estimates car insurance costs for a number of the most cost-effective vehicles to insure.

Data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Dakota minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in the specific area where the vehicle is garaged which can change coverage prices substantially.

Based on these rates, you can presume that vehicles like the Honda CR-V, Ford Escape, Chevrolet Traverse, Toyota Prius, and Ford F-150 are some of the most economical vehicles to insure for minors. Prices will be higher anyway because of the fact that there is more risk for drivers under 21, but in general those makes and models will tend to have the cheapest car insurance rates compared to other types of vehicles.

Deciding which companies quote the cheapest insurance rates for drivers under 21 may require a little more work than just picking a company at random.

Each insurer has a proprietary formula for determining rates, so let’s examine the insurance companies that tend to be cheaper in North Dakota. Keep in mind that North Dakota insurance rates are determined by lots of factors that can increase the price you have to pay for coverage. Simply turning a year older, adding a teenager to your policy, or getting a ticket for careless driving can cause premium changes resulting in some companies being cheaper than before.

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USAA may offer some of the cheapest car insurance rates in North Dakota at around $725 per year. Allied, Nodak Mutual, Grinnell, and Safeco also qualify as some of the more affordable North Dakota car insurance companies.

As illustrated above, if you have coverage with Grinnell and switched to Allied, you could earn annual savings of in the neighborhood of $149. Customers with Safeco could save as much as $201 a year, and State Farm insureds might lower prices by up to $233 a year.

Understand that those premium estimates are averaged across all drivers and vehicles in North Dakota and do not take into consideration a price surcharge for drivers under 21. So the company that has the lowest price for you may not even be shown in the list of companies above. That emphasizes why you need to get car insurance quotes using your own driver information and specific vehicle type.

Rate difference between full and liability-only coverage

Finding the best cheap auto insurance for drivers under 21 in North Dakota is important to the majority of vehicle owners, and one of the easiest ways to lower the cost of insurance is to only pay for liability coverage. The illustration below shows the comparison of insurance prices with liability coverage only compared to full coverage. The costs are based on no driving violations, no at-fault accidents, $500 deductibles, drivers are not married, and no other discounts are factored in.

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On average, full coverage on your policy costs an extra $1,566 per year more than just buying liability only. That brings up the question if buying full coverage is worth the expense. There is no exact rule to stop paying for physical damage insurance, but there is a general convention. If the yearly cost of full coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then you may need to consider dropping full coverage.

For example, let’s assume your vehicle’s replacement value is $8,500 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, you would only receive $7,500 after paying your policy deductible. If you are paying in excess of $750 a year for your policy with full coverage, then it might be time to consider dropping full coverage.

There are some situations where removing full coverage is not in your best interest. If you haven’t paid off your loan, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should not consider dropping full coverage.

Which major car insurance company is best?

If you want the best auto insurance for minors, four of the larger companies to compare rates for are State Farm, Progressive, Allstate, and Geico. All offer your standard physical damage and liability coverages, but each one has a slightly different mix of options and features that may affect your buying decision. The data below compares ratings for price and service, as well as some optional coverages offered by each company.

Who has the cheapest insurance quotes for minors?

Thanks to the internet, there are a lot of ways to buy insurance in North Dakota, but the most frequently used are from an independent insurance agent, an exclusive agency like State Farm or Liberty Mutual, or direct online or over the phone from a company like Geico or Progressive. You can use whichever you prefer, but it’s important to point out the distinctions in how they provide rate quotes.

Independent insurance agents can place your business with multiple companies and can do rate comparisons with all of them. These types of agents are not limited to a single company and can provide you with more rates, which can help you get a better overall rate comparison. If your agent finds better pricing, they simply switch companies in-house and the insured can keep the same agent.

Exclusive agencies are only able to quote your policy with just one company, for example a State Farm or Allstate agent. They usually cannot provide a range of price quotes, which will not provide a complete price comparison.

Drivers who opt to buy insurance direct forego a local agent and instead shop buying direct from a company like Esurance or Geico. This insurance option is a good choice for families who have little risk and have knowledge of how insurance works and possible exclusions.

Which way works best for finding the best cheap auto insurance for drivers under 21 in North Dakota? We wish we could say buying from a direct car insurance company saves money since there is no middleman, but unfortunately, that is not always true. And we’d like to say buying from an independent agent can save the most money since they can provide multiple quotes, but again, that’s not a true statement. And often times, exclusive agencies have coverage prices that are well below what direct and independents offer.

Since insurance companies use so many rating factors, the only true way to buy the cheapest policy is to obtain price quotes and compare them. The ideal approach is to get prices from all three to have the best selection of rates to choose from. For a list of companies with online discounts, click here to view.

How to find the best cheap auto insurance for drivers under 21 in North Dakota

The list below summarizes some penny-pinching ideas that can help drivers get lower-cost car insurance.

• Save money by bundling your home and auto policies
• Higher comprehensive and collision coverage deductibles will save money
• Good credit scores may make rates cheaper
• Violations like speeding or DUI increase rates
• Frequent claims will increase rates
• Prevent rate increases by staying accident-free
• Comparison shop at least once a year

The last suggestion is certainly valuable, as was stressed in this write-up. Insurance prices vary greatly, so drivers shouldn’t be reluctant to change insurance companies if a cheaper price is available.

Many drivers prefer to stick with one company, but is isn’t recommended if that stubbornness costs you a lot of money. Now is a great time to shop around and find cheaper insurance for drivers under 21.