Who Has the Cheapest Auto Insurance for Young Drivers in California?

For youthful drivers, one of the big things used to establish a rate quote is the neighborhood you call home. Areas that are more densely populated or have higher claim rates like Glendale, Oakland, and Sacramento tend to pay higher rates, whereas areas with less congestion generally pay less for insurance.

The information below displays the most expensive areas in California for young drivers to buy car insurance in.

Annual rates are approximated as the specific zip code location can revise premiums significantly.

Comparing rates for cost effective auto insurance is not the easiest thing to do, and determining which company quotes the lowest-priced car insurance rates for young drivers takes additional perseverance. Prices will most likely be significantly greater than the average price in California due to the added risk related to selling insurance for youthful drivers, but reasonable insurance may be attainable if you look hard enough. Every auto insurer has a unique formula for establishing rates, so let’s begin by taking a look at the lowest cost car insurance companies in California.

Best Cheap Insurance Rates for Teens

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USAA generally has some of the cheapest car insurance rates in California at around $1,121 annually. Wawanesa, Century National, Nationwide, and CSAA would also make the list of some of the lowest-priced California insurance companies.

As illustrated above, if you have coverage with Nationwide and switched to Wawanesa, you may see annual savings of in the neighborhood of $69. Customers with CSAA might save as much as $77 a year, and 21st Century policyholders might reduce rates by $168 a year.

To get a fast rate comparison, click here to start a quote or feel free to get quotes from the companies below.

These premiums are averages for all drivers and vehicles in California and are not factoring in a price increase for young drivers. 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 emphasizes why you need to compare rates from as many companies as possible using your own specific driver and vehicle information.

Does full coverage make sense?

Finding the cheapest auto insurance for young drivers in California should be important to the majority of drivers, and an effective way to find cheaper insurance is to not buy comprehensive and collision coverage. The example below illustrates the difference between insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in California. The premiums are based on no claims, a clean driving record, $250 deductibles, single marital status, and no additional discounts are factored in.

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If we average the cost for ages 20 through 70, comp and collision coverage costs an additional $2,314 per year over and above liability coverage. At some point, almost every driver questions if buying full coverage is worth the expense. There is no definitive rule to exclude physical damage coverage on your policy, but there is a guideline you can consider. If the yearly cost of full coverage is more than about 10% of the replacement cost of your vehicle minus the policy deductible, then it could be time to drop full coverage.

For example, let’s say your vehicle’s replacement cost is $10,500 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most you would receive is $9,500 after the policy deductible has been paid. If premiums are more than $950 annually for your policy with full coverage, then it could be time to drop full coverage.

There are some situations where buying only liability insurance is not a good plan. If you haven’t satisfied your loan, you are required to maintain full coverage as part of the loan requirements. Also, if you can’t afford to buy a different vehicle if your current one is damaged, you should keep full coverage.

Ideas for finding low-cost insurance for young drivers

Here are some of the recommended penny-pinching ideas that can help drivers locate lower-cost auto insurance.

• Save money by observing traffic laws and speed limits
• Buying your home and auto policies from the same company can earn a discount
• Maintain a safe distance and avoid accidents
• Vehicles with safetly features generally cost less to insure
• Pay for small claims rather than turning them in to your insurance company
• Compare rates often to find the best deal

That last piece of advice is certainly crucial, as was pointed out in this piece. Insurance prices change frequently, so drivers shouldn’t hesitate to switch companies if a cheaper rate is available. Having brand loyalty is commendable, but we do not recommend it if that dedication is costing a lot of money every month. In just a few minutes you could compare rates and find cheaper auto insurance for young drivers.

Who has the cheapest insurance quotes for youthful drivers?

Thanks to technology, there are a lot of ways to compare cheaper car insurance rates in California, but the most frequently used ways are from an exlusive agent like Allstate or Auto-Owners, a non-exclusive or independent agent, or direct from companies such as Geico or Progressive.

All three ways are similar, but it’s important to point out the distinctions in how they work.

Independent agencies work with multiple companies and can get policy pricing from each one. Agents of this type are not limited to a single company and can give you more rate choices, which can help you get a better overall rate comparison. If they find a cheaper price, the agent simply finds a different carrier and you don’t have to switch agencies.

An exclusive agent is usually restricted to just one company, for example a Farmers or Allstate agent. These guys and gals cannot provide rates from more than one company, which requires you to shop around.

Opting to purchase car insurance direct means you bypass a local insurance agent and instead shop from a direct company like Progressive. Shopping for car insurance direct may be preferred by families who do not have a need for a risk management assessment and know more than average about what specific coverages and deductibles they need.

So which method is best to buy the cheapest auto insurance for young drivers in California? Most drivers assume that shopping direct results in the cheapest rates because there is no agent taking a commission, but unfortunately, it’s not that cut and dried. We’d also like to say buying from an independent agent is the best way to go due to increased selection, but again, that’s not accurate. In many circumstances, exclusive agents have extremely competitive rates that cannot be beaten by either independent or direct companies.

Since car insurance rates vary so much, the only true way to buy the cheapest policy is to obtain price quotes and compare them. The ideal approach is to get price quotes all three ways to give yourself enough choices. To see some of the cheapest online companies available, click here to view.