Who Has the Cheapest Auto Insurance for Young Drivers in Rhode Island?

Determining which companies offer the most affordable insurance rates for young drivers requires more work in order to find a policy that fits your budget. Each insurer has a unique approach for filing rates in each state, so let’s take a look at the insurance companies that tend to be cheaper in Rhode Island.

It’s important that readers know that Rhode Island insurance rates are based on many factors that control the policy premium. Getting older, marrying your spouse, or getting a ticket for careless driving can trigger changes in premium resulting in some companies being cheaper in comparison to the competition.

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USAA has some of the cheapest car insurance rates in Rhode Island at around $719 a year. State Farm, Travelers, Amica, and Progressive also are some of the cheaper Rhode Island insurance companies.

As shown above, if you have coverage with State Farm and switched to USAA, you may realize yearly savings of about $420. Customers with Travelers could save as much as $503 a year, and Amica policyholders might reduce rates by $778 a year.

It’s important to note that these premium estimates are averages for all drivers and vehicles and and are not calculated with a rate increase for young drivers. So the insurer that fits you best may not even be included in the above rate chart. That points out the importance of why you need to quote rates from as many companies as possible using your own personalized driver profile and vehicle information.

The vehicle model requiring coverage is probably the largest consideration when comparing the cheapest auto insurance for young drivers in Rhode Island. Vehicles with high performance features, a lack of safety features, or high incidents of liability claims will cost substantially more to insure than more modest models.

The next lists estimates car insurance premiums for the most cost-effective vehicles to insure in Rhode Island.

Above prices assume single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Rhode Island minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in the specific area where the vehicle is garaged which can affect premiums noticeably.

Premium data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Rhode Island minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in your specific Rhode Island location which can influence insurance rates substantially.

Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Rhode Island minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium costs do not factor in specific location information which can alter rates greatly.

Rate difference between full and liability-only coverage

Finding the cheapest auto insurance for young drivers in Rhode Island is important to most drivers, and one great way to pay lower rates for insurance is to not buy full coverage. The illustration below shows the difference between insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Rhode Island. The premiums are based on no tickets, no at-fault accidents, $500 deductibles, single status, and no discounts are applied.

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If we average the cost for all age groups, physical damage coverage on your policy costs an extra $2,588 per year more than buying just liability insurance. Many of you may wonder if physical damage coverage is worth the money. There isn’t a steadfast formula for phasing out physical damage coverage, but there is a general convention. If the yearly cost of comp and collision coverage is more than 10% of the settlement you would receive from your company, then you may need to consider dropping full coverage.

The illustration below illustrates how your deductible choice can influence insurance costs when searching for cheap insurance for young drivers. The price estimates are based on a married female driver, full physical damage coverage, and no discounts are applied.

google.charts.setOnLoadCallback(drawDfdqcibChart);function drawDfdqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘$100 Deductible’,’$250 Deductible’,’$500 Deductible’,’$1,000 Deductible’],[‘Age 20’, 3481,3185,2845,2525],[‘Age 30’, 2437,2223,1973,1735],[‘Age 40’, 2409,2201,1961,1733],[‘Age 50’, 2109,1929,1723,1527],[‘Age 60’, 2011,1839,1641,1451],[‘Age 70’, 2165,1981,1773,1579]]);var options = {title: ‘Deductible Levels and Auto Insurance Prices in Rhode Island’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 700,’chartArea’: {left:100,top:50,’width’: ‘100%’,’height’: ‘80%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},bar: {groupWidth: ‘80%’},colors: [‘#6791b9′,’#75a8d8′,’#98bee2′,’#bad4ec’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);formatter.format(data,3);formatter.format(data,4);var chart = new google.visualization.BarChart(document.getElementById(‘qcibdfd’));chart.draw(data, options);}

As shown above, a 40-year-old driver could reduce rates by $386 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $582 by using a $1,000 deductible. Even younger drivers, such as the Age 20 example, can cut $956 or even more by selecting a higher deductible.

If you do make the decision to raise your deductibles, it will be required to have plenty of money set aside to satisfy the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.

Who has the cheapest insurance quotes for youthful drivers?

Consumers have many ways to comparison shop for insurance in Rhode Island, but the three most common are from an exclusive insurance agency such as State Farm or Allstate, an independent insurance agent, or direct either online or via phone.

They all follow the same basic process, but each is slightly different in how they work.

Independent insurance agencies work with multiple companies and can compare coverage rates with all of them. Agents of this type have the ability to provide you with more rates, which can give you better odds of saving money. If your premiums go up, it’s simple to move the policy which requires no work on your part.

An agent who is captive is usually just provide rates from one company such as Allstate or State Farm agents. These guys and gals cannot give you multiple price quotes, so they have no alternatives for high prices.

The final way is buying direct, which means you do not use an agent and instead buy direct from companies such as Progressive or Geico. Buying insurance direct may be the best choice consumers who do not have complex finances and have a good understanding of what specific coverages and deductibles they need.

Which method works best to buy the cheapest auto insurance for young drivers in Rhode Island? Most people assume that buying direct results in the cheapest rates because you bypass the middleman, but in reality, that is not the case. An argument could also be made that an independent agency results in the cheapest rates due to more options, but again, that’s not accurate. In many circumstances, exclusive agencies have really good rates that are the cheapest.

Due to that fact that insurance uses so many rating variables, the only real way to get the cheapest rates is to compare rate quotes from as many companies as possible. To cover all the bases, get price quotes from all three to have enough rates to compare. For a list of companies with some of the cheapest Rhode Island insurance rates, click here to view.