Who Has Cheap Auto Insurance Quotes for Teenagers in Minnesota?

The words “cheap” and “auto insurance” really shouldn’t be used together, specifically when comparison shopping for the cheapest car insurance for teenagers. Let’s learn about a few of the things that can significantly affect insurance rates, and find some ways to lower the cost of the next policy you buy.

Finding good, low-priced insurance is not always easy, and determining which companies offer the lowest-priced insurance rates for teenagers calls for more quotes for comparison. Premiums will most likely be quite a bit greater than the average policy in Minnesota, with the increase attributed to the higher likelihood of claims related to selling insurance for teen drivers, but reasonably-priced insurance may be possible with some perseverence.

Each insurer has a unique approach to determine premium rates, so let’s take a look at the lowest cost insurance companies in Minnesota. It’s important that readers know that Minnesota insurance rates are impacted by many factors that will increase or decrease the cost of a policy. This is why Minnesota drivers need to compare as many rates as possible when trying to get the cheapest auto insurance quotes for teenagers. Car insurance prices are influenced by many risk factors and change substantially, so the best option two years ago may now be wasting a lot of money.

Best Cheap Insurance Rates for Teens

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Travelers may offer some of the lowest car insurance rates in Minnesota at around $641 annually. Farm Bureau Mutual, USAA, Western National, and West Bend Mutual would also be considered some of the lowest-priced Minnesota car insurance companies.

As shown above, if you currently have coverage with Western National and switched to Travelers, you could realize an annual premium reduction of in the vicinity of $260. Policyholders with West Bend Mutual could save as much as $311 a year, and The Hartford policyholders might see rate reductions of $323 a year.

Understand that those policy rates are averages across all drivers and vehicles in Minnesota and do not factor in a rate increase for teenagers. So the company that can offer you the best rate may not even be featured in the chart above. That underscores the importance of why you need to compare as many prices as possible using your own driver information and specific vehicle type.

The type of vehicle you are buying coverage for is a large consideration that determines if you can find the cheapest coverage for teenagers. Vehicles with lots of speed or power, poor safety features, or an increased likelihood of liability claims will cost quite a bit more to insure than safer, lower-performance models.

The next table shows insurance premiums for the cheaper vehicles to insure.

Table data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Minnesota minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium amounts do not factor in the specific area where the vehicle is garaged which can alter auto insurance rates noticeably.

Looking at the data, we can presume that models like the Ford Escape, Honda CR-V, and Honda Accord are going to be a few of the cheaper vehicles to insure for teen drivers. The price for an auto insurance policy will tend to be more expensive because of the fact that there is a higher risk for teenagers, but overall those particular vehicles will probably have the cheapest car insurance rates that you are likely to find.

Cost of full coverage

Finding cheap auto insurance for teenagers in Minnesota is the goal of most drivers, and one great way to buy cheap insurance is to not insure for full coverage. The example below illustrates the difference between annual premium costs with and without full coverage. Data assumes no claims or violations, $250 deductibles, single marital status, and no additional discounts are factored in.

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If averaged out across all ages, physical damage insurance costs $2,265 per year more than buying just liability insurance. That is a significant amount which raises the question if paying for full coverage is a waste of money. There is no definitive guideline to exclude full coverage, but there is a broad guideline. If the annual cost of your full coverage insurance is about 10% or more of any settlement you would receive from your insurance company, then you may want to consider only buying liability coverage.

For example, let’s pretend your vehicle’s settlement value is $8,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most you would receive is $7,000 after the policy deductible has been paid. If you are paying in excess of $700 a year for full coverage, then you may need to consider dropping full coverage.

There are a few cases where removing full coverage is not financially feasible. If you still owe money on your vehicle, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if you can’t afford to buy a different vehicle if your current one is totaled, you should maintain full coverage.

The illustration below demonstrates how choosing different deductibles can change insurance prices when getting quotes for cheap insurance for teenagers. The information is based on a single male driver, full physical damage coverage, and no discounts are factored in.

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In the chart above, a 40-year-old driver could pocket $260 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $394 by changing to a $1,000 deductible. Even younger insureds, such as the 20-year-old example, could reduce their rates as much as $856 annually by choosing larger deductibles on their policy. If you do decide to increase your deductibles, it will now be necessary to have additional funds squirreled away to cover the extra out-of-pocket expense, which is the one shortcoming of high deductibles.

Find cheap auto insurance for teenagers in Minnesota

It is possible to find better rates, and here are a few thrifty suggestions that can help Minnesota drivers find the cheapest coverage.

• Buy safe vehicles
• Accidents can significantly increase rates
• Higher comprehensive and collision coverage deductibles will save money
• Avoid getting citations and tickets
• Improve your credit rating
• Ensure you have the best deal by shopping around regularly

The final tip is certainly significant, as we pointed out in the prior information. Car insurance prices can be adjusted at any time, so don’t hesitate to buy from a different company if a better rate can be found. Brand loyalty is great, but it’s not a good idea if that inflexibility results in costing you lots of hard earned cash every month. It only takes a couple minutes to compare rates and find cheaper auto insurance for teenagers.

Cheapest insurance quotes for teen drivers

There are many different ways to get cheap insurance quotes in Minnesota, but the three most common methods are through an independent or non-exclusive agent, an exclusive insurance agent such as Allstate or Liberty Mutual, or direct from companies such as Geico or Progressive. Each way has the same basic process, but it’s important to understand the differences in how they provide price quotes.

Independent agencies write for multiple companies and can get rate quotes from every one. These types of agents are able to provide multiple price quotes, which may provide you with a better chance of finding cheaper coverage. If cheaper coverage is found, your agent can just switch to a different company which prevents you from having to find an new insurance agent.

Exclusive agencies are able to place business with just one company, two of the more popular are a Liberty Mutual or State Farm agent. These agents usually cannot quote prices from more than a single company, so it’s a good idea to get additional price quotes.

Consumers who buy insurance direct skip the middleman (the agent) and buy direct either online or via phone. Shopping direct may be preferred by families who do not need risk management and have knowledge of how insurance works and possible exclusions.

Which way works best to buy cheap auto insurance for teenagers in Minnesota? It would be premature to say buying from a direct company yields the cheapest rates since it doesn’t require paying agent commissions, but unfortunately, that is not always true. An argument could also be made that buying from an independent agent guarantees the cheapest rates due to more options, but again, it’s not a sure thing. And often times, exclusive agencies may have very competitive prices that other companies cannot beat.

Since insurance companies use so many rating factors, the best way to find out which one is cheapest is to do a thorough rate comparison. Set aside the time to get price quotes all three ways in order to have enough rates to compare. We compiled a list of companies with some of the cheapest online rates that you can click here to view.