Who Has Cheap Car Insurance for 16 Year Olds in Tennessee?

Figuring out which company has the cheapest insurance rates for 16 year olds calls for a bit more work than just quoting one company’s rates. Every insurance provider uses different criteria to establish rates, so we’ll go over the insurance companies with the most affordable rates in Tennessee.

It’s a good idea to be aware that Tennessee insurance rates are impacted by many factors which can substantially decrease or increase the policy price. Turning one year older, buying a home, or having an accident may generate price changes that may make certain companies cheaper than competitors.

Cheapest Insurance Rates for Teens

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Utica National has some of the best car insurance rates in Tennessee at around $767 annually. Auto-Owners, Cincinnati Insurance, Tennessee Farmers, and Penn National are also some of the lowest-priced Tennessee insurance companies.

As depicted above, if you currently buy coverage from Penn National and switched to Auto-Owners, you might realize an annual premium reduction of approxmiately $99. Policyholders with USAA may save as much as $120 a year, and Erie policyholders might see rate reductions of $170 a year.

Remember that these rates are averages across all types of insureds and vehicles and do not take into consideration a price increase for 16 year olds. So the car insurance company that can offer the best rates for your situation may not even be shown in the list above. That helps illustrate why you need to get car insurance quotes using your own individual information.

The vehicle on the policy is probably the largest consideration when trying to find the most affordable insurance for 16 year olds. Vehicles with lots of horsepower, poor safety features, or a history of substantial liability claims will cost quite a bit more to insure than more modest models.

The next table presents car insurance rates for the most cost-effective automobiles to insure.

Table data represents single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Tennessee minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in zip code location which can influence premium rates considerably.

Looking at the rates, cars like the Honda CR-V, Honda Accord, Ford Escape, and Chevrolet Traverse are most likely to be a few of the more affordable vehicles to insure for new drivers. Prices will trend higher just due to the fact that there is more inherent risk for 16 year olds, but overall those specific models will most likely have the lowest prices possible.

One of the more important components used to establish rate quotes is where you call home in Tennessee. Regions with larger populations or more claims like Memphis, Germantown, and Oak Ridge likely pay more, whereas areas with less crime or weather claims benefit from having to pay less for coverage.

The table below lists the most expensive areas in Tennessee for 16 year olds to buy car insurance in.

Table data uses approximated as specific location information can decrease or increase premiums considerably.

Difference between full coverage and liability only rates

Finding cheap auto insurance for 16 year olds in Tennessee should be important to most people, and one of the fastest ways to pay lower rates for insurance is to only buy liability coverage. The example below illustrates the comparison of car insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premiums assume no driving violations, no at-fault accidents, $500 deductibles, marital status is single, and no policy discounts are applied.

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As an average, full coverage on your policy costs $1,848 per year over and above liability coverage. That touches on the question if buying full coverage is worth the expense. There is no exact formula of when to exclude comp and collision coverage, but there is a general convention. If the yearly cost for physical damage coverage is more than about 10% of replacement cost minus your deductible, then you might want to think about dropping full coverage.

There are some cases where dropping physical damage coverage is not in your best interest. If you still owe a portion of the original loan, you have to maintain full coverage as part of the loan requirements. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should maintain full coverage.

Cheapest car insurance: Allstate, Progressive, Geico, or State Farm

If you’re looking for the cheapest auto insurance, four companies to definitely compare rates with are Allstate, Progressive, Geico, and State Farm. The following table breaks down pricing and service ratings, plus some optional coverages you can buy with each company.

Who has the cheapest insurance quotes for new drivers?

There are many different ways to quote cheap insurance rates in Tennessee, but the most preferred ways are through an independent insurance agent, a captive (or exclusive) agent such as State Farm or Auto-Owners, or buying direct from a company like Geico or Progressive.

Each way has the same basic steps, but buyers should know the differences in how they provide price quotes.

Independent agencies write business for many companies and can get rate quotes from every one. Independent agents will provide you with more rate quotes, which can give you better odds of saving money. If a cheaper price is found, the business is moved internally which makes it simple for you.

Exclusive agents are restricted to a single insurance company, two examples being an Allstate or State Farm agent. Exclusive agents cannot quote prices from more than a single company, so if their pricing is high, there is no alternative.

If you buy direct, you skip the middleman (the agent) and buy from a direct company like Esurance or Progressive. Shopping for insurance direct may be the best choice consumers who do not need high amounts of coverage and have some degree of understanding of what coverages they need.

So which method is best for finding cheap auto insurance for 16 year olds in Tennessee? It would be easy to say buying from a direct company yields the cheapest rates because there is no agent taking a commission, but that is generally not the case. We’d also like to say an independent agency is the best way to save since they have access to many companies, but that’s not always true, either. And often times, the exclusive agents have really good rates that are the cheapest.

Due to the large number of rating factors, really the only way to get rock-bottom rates is to compare, compare, and compare some more. If you want to save money, get price quotes from independent, exclusive, and direct to have the best rate selection. For a list of companies offering online discounts, click here to view.

How to find budget-friendly insurance for 16 year olds

It is possible to find better rates, and here are a few money-saving ideas that can help Tennessee drivers locate cheap auto insurance.

• Get cheaper liability coverage by choosing a safer vehicle
• Multi-policy discounts save money
• Do not pay for full coverage on older vehicles
• Good credit scores may make rates cheaper
• Remain accident-free and save
• Shop around for cheaper prices

That final tip is extremely significant, as we emphasized in the article above. Prices charged by companies fluctuate constantly, so drivers shouldn’t be resistant to switch companies if a lower price can be found.

Staying with the same car insurance company is fine, but is isn’t recommended if that stubbornness costs you major coinage every year. In just a few minutes you could shop around and find cheaper insurance for 16 year olds.