The words “low-cost” and “auto insurance” really should not be used together, especially when comparison shopping for the cheapest coverage for drivers under 25. In an attempt to save some money, let’s start off by going over some of the factors that impact car insurance premiums, and come up with some ways to lower the price of your next policy.
The make and model of vehicle you are buying coverage for is one of the primary factors that determines if you can find economical car insurance for drivers under 25. Vehicles with higher performance, poor safety ratings, or high incidents of liability claims will cost quite a bit more to insure than more modest models. The data below ranks auto insurance prices for the more affordable automobiles to insure in California.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$2,313|
|Honda Accord LX-P 4-Dr Sedan||$2,318|
|Honda CR-V LX 2WD||$2,313|
|Ford F-150 STX Regular Cab 2WD||$2,557|
|Chevrolet Silverado LS Regular Cab 4WD||$2,563|
|Dodge Grand Caravan CV||$2,592|
|Chevrolet Impala LS||$2,704|
|Honda Odyssey EX W/Rear Entertainment||$2,709|
|Toyota RAV4 Sport 4WD||$2,739|
|Chevrolet Equinox LT AWD||$2,748|
|Volkswagen Jetta S 4-Dr Sedan||$2,739|
|Ford Explorer Limited AWD||$2,773|
|Compare Cheap Rates Go|
Table data represents single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in specific location which can influence rates significantly.
Based on these rates, we can presume that vehicles like the Ford Escape, Honda Accord, Honda CR-V, Toyota Prius, and Ford F-150 are going to be the most affordable vehicles to insure for drivers age 25 and younger. Rates will be more expensive just because there is more claim risk for drivers under 25, but generally speaking those particular models will tend to have the cheapest car insurance rates compared to other types of vehicles.
Determining which company has the cheapest auto insurance rates for drivers under 25 requires more work in order to find the lowest price quote. Every insurance company has a different formula for determining prices, so we’ll take a look at the lowest cost auto insurance companies in Fresno, CA.
It’s important to understand that Fresno auto insurance rates are determined by lots of factors which can substantially decrease or increase the cost of your policy. Getting older, buying a home instead of renting, or getting a ticket for running a stop sign may generate price changes resulting in some companies being more affordable than before.
Best Auto Insurance Prices for Young Drivers
Wawanesa offers some of the most affordable car insurance rates in Fresno at around $1,146 each year. USAA, Century National, Nationwide, and CSAA would also be considered some of the most economical Fresno, CA car insurance companies.
In this example, if you currently have a policy with Nationwide and switched to USAA, you might achieve an annual premium reduction of roughly $71. Customers with CSAA may save as much as $79 a year, and 21st Century insureds might cut rates by $224 a year.
Remember that these rates are averaged for all types of insureds and vehicles and do not factor in a specific location for drivers under 25. So the car insurance company that has the cheapest price for you may not even be in the top 24 companies shown above. That illustrates why you need to get rate quotes using your own driver information and specific vehicle type.
Rate comparison of full coverage and liability-only
Saving money on auto insurance should be important to most vehicle owners, and a good way to lower the cost of insurance for drivers under 25 is to buy liability only. The chart below shows the comparison of insurance premiums with and without full coverage. Data assumes no claims or driving citations, $1,000 deductibles, marital status is single, and no other discounts are factored in.
As an average for all age groups, physical damage coverage on your policy costs $2,003 per year over having just liability coverage. That may make you wonder if buying full coverage is worth the money. There is no set guideline that works best for making the decision to drop physical damage insurance, but there is a guideline you can use. If the yearly cost of full coverage is more than about 10% of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s book value is $6,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, you would only receive $5,500 after you pay the deductible. If you are currently paying more than $550 annually for physical damage coverage, then it’s probably a good time to buy liability coverage only.
There are some conditions where dropping physical damage coverage is not a good plan. If you still owe money on your vehicle, you are required to maintain full coverage in order to satisfy the requirements of the loan. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should keep full coverage in place.
Types of discounts on Fresno auto insurance
Car insurance companies that sell policies for drivers under 25 may also provide premium discounts that could lower prices by 30% or more if you meet the requirements. The best auto insurance companies and their possible discounts can be read below.
- State Farm has savings for accident-free, Steer Clear safe driver discount, good student, anti-theft, and student away at school.
- GEICO may offer discounts for emergency military deployment, driver training, military active duty, daytime running lights, membership and employees, and seat belt use.
- SAFECO may have discounts that include safe driver, anti-lock brakes, anti-theft, multi-car, drive less, and homeowner.
- Farmers Insurance includes discounts for electronic funds transfer, pay in full, mature driver, multi-car, homeowner, teen driver, and business and professional.
- AAA discounts include good driver, multi-policy, pay-in-full, education and occupation, good student, and anti-theft.
- USAA offers premium reductions for defensive driver, military installation, loyalty savings, new vehicle, family discount, and good student.
The illustration below shows the comparison of auto insurance costs with and without discounts being applied to the rates. The premiums are based on a male driver, no violations or accidents, California state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with good student, paid-in-full, continuous coverage, anti-theft, vehicle safety, and paperless filing discounts applied. When discounts are factored in, the amount saved on auto insurance for drivers under 25 is 19% or $429.
The importance of comparing Fresno car insurance rates
Fresno, CA auto insurance rates are impacted by many things which can substantially decrease or increase your annual premium. Simply having a birthday, having a claim, or getting a reckless driving citation can trigger changes in premium resulting in some rates now being cheaper in comparison to the competition. In addition, auto insurance companies amend pricing as often as every three months in order to remain profitable. Heavier than normal losses can result in additional price hikes, while long-term profits may produce lower-priced Fresno car insurance rates.
To illustrate this point, the data below shows a variety of companies that have the cheapest car insurance in Fresno, CA for a 30-year-old female driver with a clear driving record, no claims, and solid credit. When quoting prices based on her personal profile, USAA offers the best car insurance rates in Fresno at $1,291 each year. This is $360 less than the average premium paid by California drivers of $1,651. Wawanesa, Century National, Nationwide, and CSAA also make the list of the top five cheapest Fresno, CA auto insurance companies.
Now we will pretend the driver from above a claim surcharge, a lower credit score, and a few traffic violations. Due to the fact that every auto insurer uses their own formula for determining prices, comparing quotes most likely will result in a slightly different list of affordable companies as shown below.
Grange now has the cheapest rate in Fresno, CA with Mercury, Progressive, GEICO, and Allstate also being competitive. This example demonstrates why it is crucial to shop around to find the most budget-friendly car insurance rates for drivers under 25.
Rates can be determined by many risk factors and change dramatically, so the most affordable company when you last compared rates may now be one of the more expensive options.
The Fresno car insurance agencies listed below can most likely help you decide which policy fits your needs best, as some drivers aren’t sure which coverage they need and prefer to get some professional advice when shopping for cheaper insurance for drivers age 25 and younger. It can be hard to find the best policy on your own, so a licensed agent can bring peace of mind knowing you have adequate coverage when you need it most. To locate a Fresno car insurance agency in your neighborhood, click the link at the bottom.
Bob Perry – State Farm Insurance Agent
3210 E Shields Ave #6 – Fresno, CA 93726 – (559) 224-4546
Tim Franz – State Farm Insurance Agent
5534 E Kings Canyon Rd – Fresno, CA 93727 – (559) 251-3777
Allstate Insurance: Gary Gonzales
191 W Shaw Ave Ste 109 – Fresno, CA 93704 – (559) 243-2020
964 Pollasky Ave b – Clovis, CA 93612 – (559) 323-0333
Mc Carty Insurance Inc: Mc Carty Chad R
1625 Shaw Ave # 111 – Fresno, CA 93710 – (559) 324-1421
Ideas for buying budget-friendly auto insurance for drivers under 25
It’s not impossible to find cheaper rates, and here are some of the better thrifty solutions that can help California drivers get lower-cost coverage.
- Violations and traffic tickets increase rates
- Buy a safer vehicle
- Do not get into accidents that are your fault
- Drivers with good credit often pay less
- Claim-free policyholders usually earn a discount
- Check for cheaper rates once a year
That last piece of advice is extraordinarily critical, as was stressed in the prior article. Car insurance rates fluctuate constantly, so don’t hesitate to buy from a new company if a lower-cost policy is available.
Staying with the same car insurance company is fine, but it’s not recommended if it’s costing you a lot of money every month. It only takes a couple minutes to shop around and find cheaper auto insurance for drivers under 25 in Fresno.