Cheapest Auto Insurance for Teenagers in Utah

Figuring out which companies offer the most affordable car insurance rates for teenagers calls for a bit more effort in order to find the lowest price. Every insurance company has a proprietary method for determining prices, so we need to take a look at the overall cheapest car insurance companies in Utah.

Cheapest Insurance Rates for Teens

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Bear River may have some of the most affordable car insurance rates in Utah at around $584 each year. USAA, Auto-Owners, American Family, and Safeco also qualify as some of the cheaper Utah insurance companies.

As depicted above, if you are insured with Safeco and switched to USAA, you could realize a yearly savings of around $228. Insureds with Allied might save as much as $247 a year, and GEICO policyholders might reduce prices by as much as $274 a year.

Bear in mind that those policy prices are averaged for all types of drivers and the different vehicles they drive and and are not calculated with a price surcharge for teenagers. So the auto insurance company that fits your needs best may not even be featured in the list of companies above. That point stresses why you need to get quotes using your own individual information.

Cost and performance of the vehicle on the policy is a significant factor when comparing the cheapest auto insurance for teenagers in Utah. Vehicles with reasonable performance levels, good crash test ratings, or a track record of few liability claims will cost significantly less to insure than higher performance models. The next lists features insurance premiums for some of the most budget-friendly vehicles to buy coverage for.

Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Utah minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in specific zip code location which can alter coverage rates substantially.

Data variables include single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Utah minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in zip code location which can impact coverage prices considerably.

Price data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Utah minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in specific zip code location which can impact coverage prices substantially.

For teen drivers, one of the big criteria that is used by insurance companies to calculate the amount you pay each year for auto insurance is where you normally keep your vehicle in Utah. More populated areas like West Valley City, Cottonwood Heights, and South Jordan tend to have more expensive auto insurance rates, whereas cities that are not as densely populated enjoy lower insurance rates.

The table below sorts the most expensive areas in Utah for teenagers to purchase car insurance in.

Rate quotes are comparative as zip code location can lower or raise auto insurance rates substantially.

Does it make sense to buy full coverage?

Finding the cheapest auto insurance for teenagers in Utah is probably important to most vehicle owners, and one of the easiest ways to pay less for insurance is to not pay for full coverage. The diagram below shows the difference between yearly insurance costs when comparing full coverage to liability only. The costs are based on a clean driving record, no at-fault accidents, $250 deductibles, marital status is single, and no discounts are applied to the premium.

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As an average for all age groups, full coverage on your policy costs an extra $1,559 per year over and above liability coverage. That raises the question if buying full coverage is worth the expense. There is no clear-cut rule to stop buying full coverage, but there is a general convention. If the annual cost of comprehensive and collision coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it’s probably a good time to buy liability coverage only.

For example, let’s assume your vehicle’s replacement value is $6,500 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most you would receive is $5,500 after the policy deductible has been paid. If premium cost is more than $550 a year for comprehensive and collision coverage, the it may be a good time to stop paying for full coverage.

There are some situations where eliminating full coverage is not in your best interest. If you haven’t paid off your loan, you must maintain physical damage coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in the even your car is totaled, you should not consider dropping full coverage.

How to find the cheapest auto insurance for teenagers in Utah

It is possible to find better rates, and here are a few thrifty solutions that can help you find more affordable coverage.

• Drive vehicles with five-star safety ratings
• Raise physical damage deductibles
• Try paying for small claims out-of-pocket
• Clean up your credit rating
• Buy your homeowners policy from the same company as your auto insurance
• Drop full coverage on older vehicles
• Ensure you have the best deal by shopping around regularly

The last tip in the list is particularly necessary, as we noted in the prior article. Auto insurance prices fluctuate considerably, so drivers shouldn’t hesitate to buy from a different company if a cheaper price is available. We understand brand loyalty, but it isn’t a good idea if that devotedness results in you overpaying hundreds of dollars year after year. Spend a few minutes and shop around to find cheaper car insurance for teenagers.

Best cheap insurance quotes for teen drivers

You have many ways to shop for and buy car insurance in Utah, but the three most common are through an independent or non-exclusive agent, an exclusive insurance agent such as State Farm or Liberty Mutual, or from a direct company like Geico or Progressive.

They all have the same end result, but it’s important to understand the differences in how they work.

Independent insurance agents have contracts with multiple insurance companies and can provide price quotes from every one. These agents are able to quote rates with many companies, which can give you the best shot at cutting your rates. If a cheaper rate is found, your policy is moved internally and the insured can keep the same agent.

Exclusive agencies are limited to one company, two examples are a State Farm or Farmers agent. Exclusive agents cannot compare other company’s rates, so it’s a good idea to get additional quotes.

The third popular method of shopping for car insurance is direct, which means you bypass a local insurance agent and instead buy direct either online or via phone. Buying car insurance direct is good for families who do not need risk management and understand what specific coverages and deductibles they need.

Which method works best to buy the cheapest auto insurance for teenagers in Utah? The obvious answer would be buying from a direct car insurance company yields the cheapest rates since that eliminates agent commissions, but unfortunately, that is not the case. A valid argument could also be made that an independent agent results in the best rates since there are more companies to choose from, but that is not accurate either. For the right applicant, exclusive agencies have very competitive rates that cannot be met by either independent or direct companies.

Because it’s impossible to say who has the best car insurance rates, the one way to ensure the lowest rates is to get rate quotes and compare. Money-saving experts recommend you get rate quotes from independent agents, exclusive agents, and direct companies to have a good selection of rates to choose from. For a list of companies with some of the cheapest Utah car insurance rates, click here to view.