Who Has the Cheapest Car Insurance Quotes for 19 Year Olds in South Dakota?

The words “bargain” and “insurance” really should not be used together, specifically when you are shopping around for the best coverage prices for 19 year olds. Because of the high cost, let’s start off by going over some of the things that significantly impact auto insurance rates, and see if we can help you reduce the price of the next policy you buy.

One of the key criteria that help set the price you pay for insurance is the neighborhood you call home in South Dakota. Cities with larger populations like Pine Ridge, Hot Springs, and Belle Fourche tend to have more expensive car insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.

The table below shows the most expensive places in South Dakota for 19 year olds to buy car insurance in.

Price information shown is approximated as specific South Dakota garaging address can influence price quotes greatly.

Cost and performance of the vehicle needing coverage is probably the biggest factor in finding the cheapest auto insurance for 19 year olds in South Dakota. Vehicles with high performance, poor crash test ratings, or an increased likelihood of liability claims will cost more to insure than safer, lower-performance models. The data below ranks car insurance costs for a number of the more afforable vehicles to buy insurance for.

Cost estimates assume single female driver age 19, no speeding tickets, no at-fault accidents, $1000 deductibles, and South Dakota minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in zip code location which can change auto insurance rates considerably.

Premium data assumes single female driver age 19, no speeding tickets, no at-fault accidents, $1000 deductibles, and South Dakota minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific zip code location which can affect auto insurance rates significantly.

Premium data assumes single female driver age 19, no speeding tickets, no at-fault accidents, $1000 deductibles, and South Dakota minimum liability limits. Discounts applied include claim-free, and safe-driver. Price information does not factor in specific location which can impact prices greatly.

Deciding which insurers offer the lowest-priced auto insurance rates for 19 year olds will involve a little more sweat than just getting one or two price quotes.

Every insurance company has a proprietary formula for setting prices, so we’ll take a look at the auto insurance companies with the overall cheapest rates in South Dakota. It’s important that you understand South Dakota auto insurance rates are determined by lots of factors that control the price you pay. Simply turning a year older, getting divorced, or getting a ticket for careless driving can trigger price changes that can now make some companies cheaper than competitors.

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USAA generally has some of the best car insurance rates in South Dakota at around $650 per year. Auto-Owners, State Farm, Farmers Mutual of Nebraska, and Western National are also some of the cheapest South Dakota auto insurance companies.

In the rate table above, if you are a customer of Farmers Mutual of Nebraska and switched to Auto-Owners, you may see savings of roughly $138. Policyholders with Western National could save as much as $148 a year, and Unitrin insureds might realize rate reductions of up to $187 a year.

Bear in mind that those policy prices are averaged for all drivers and vehicles in South Dakota and are not factoring in a price increase for 19 year olds. So the auto insurance company that has the cheapest price for you may not even be included in the list of companies shown earlier. That points out the importance of why you need to compare prices as often as possible using your own driver data and vehicle information.

Full coverage rates compared to liability only

Finding the cheapest auto insurance for 19 year olds in South Dakota is probably important to the majority of vehicle owners, and one good way to find cheap insurance is to buy only liability coverage. The chart below illustrates the difference between insurance rates with and without physical damage coverage. Data assumes a clean driving record, no at-fault accidents, $1,000 deductibles, single status, and no additional discounts are factored in.

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If all age groups are averaged, physical damage coverage costs $1,242 per year more than just buying liability only. That is a large expense and it proposes the question when is the right time to remove full coverage. There is no written rule to eliminate full coverage, but there is a general guideline. If the yearly cost of full coverage is about 10% or more of replacement cost minus your deductible, then you may want to consider only buying liability coverage.

For example, let’s pretend your vehicle’s book value is $6,500 and you have $1,000 deductibles. If your vehicle is totaled, the most your company will settle for is $5,500 after paying your policy deductible. If you are currently paying more than $550 a year to have full coverage, then it might be time to buy liability only.

There are some cases where only buying liability is not advised. If you have an outstanding loan on your vehicle, you have to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should not remove full coverage.

The example below highlights how deductible selection can increase or decrease insurance prices when trying to find cheap insurance for 19 year olds. The rates are based on a single male driver, comp and collision included, and no discounts are taken into consideration.

google.charts.setOnLoadCallback(drawDfdqcibChart);function drawDfdqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘$100 Deductible’,’$250 Deductible’,’$500 Deductible’,’$1,000 Deductible’],[‘Age 20’, 3241,2933,2599,2285],[‘Age 30’, 1671,1529,1363,1201],[‘Age 40’, 1667,1515,1341,1177],[‘Age 50’, 1513,1377,1221,1075],[‘Age 60’, 1461,1331,1183,1041],[‘Age 70’, 1757,1607,1443,1285]]);var options = {title: ‘Effect of Deductibles on Insurance Premiums in South Dakota’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 700,’chartArea’: {left:100,top:50,’width’: ‘100%’,’height’: ‘80%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},bar: {groupWidth: ‘80%’},colors: [‘#6791b9′,’#75a8d8′,’#98bee2′,’#bad4ec’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle’,minValue: 0,format: ‘$###,###’},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);}

The chart above illustrates that a 50-year-old driver could pocket $292 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $438 by choosing a $1,000 deductible. Youthful drivers, like the 20-year-old, could possibly save up to $956 or even more by choosing a larger deductible amount. If you do make the decision to raise your deductibles, it is important to have enough savings set aside to satisfy the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.

Best rates: Allstate, Geico, Progressive, or State Farm

When buying car insurance for teenage drivers, four companies to take a look at are Allstate, Geico, Progressive, and State Farm. All of them offer physical damage and liability coverage, but each has a distinct set of features and optional coverages that buyers can select from. The table below compares some of the different options and features that you can purchase from each one.

Cheapest insurance quotes for teenage drivers

Thanks to technology, there are a lot of ways to find lower-cost auto insurance in South Dakota, but the most prevalent ways are through an independent agent, an exclusive agency like State Farm or Liberty Mutual, or direct from companies such as Progressive or Geico.

All three ways are similar, but auto insurance buyers need to understand the differences in how they give price quotes.

Independent agencies are appointed by several companies and can provide price quotes from each one. These types of agencies are not employed by one specific company and can provide multiple price quotes, which can help you get improved chances of finding a lower rate. If you are not satisfied with one company, your policy is moved internally which makes it simple for you.

An exclusive agent is usually just provide rates from a single company, two examples are Liberty Mutual and Allstate agents. They generally cannot shop your coverage around, so if rates are not competitive, they cannot give other choices.

Choosing to buy auto insurance direct means you do not use the middleman (the agent) and buy direct from companies such as Geico or Progressive. Buying auto insurance direct is a good choice for consumers who do not need high amounts of coverage and know more than average about how their policy works.

Which way is best to buy the cheapest auto insurance for 19 year olds in South Dakota? We’d like to say buying from a direct car insurance company results in the cheapest rates since that prevents the need to pay agent commissions, but in reality, that is not true. A valid argument could also be made that using an independent agent is the best way to save since they have access to many companies, but again, it’s not a sure thing. For some people, the exclusive agents may have very competitive prices that other companies cannot beat.

Because of the variability of auto insurance rates, really the only way to ensure the lowest rates is to get as many comparison quotes as possible. The best approach is to get quotes from all three types to give yourself plenty of rates to compare. For a list of companies with cheap rates in South Dakota, click here to view.