Wouldn’t it be great if we could tell you instantly that one special company that has the cheapest car insurance rates for good drivers? It’s not that simple, unfortunately, as there are a lot of unknowns such as the annual mileage you drive, if you need full coverage or just liability, and if you are a homeowner, that help determine the price you have to pay. This article delves into the types of things that cause high car insurance rates and will give you a good beginning to your quest for cheaper car insurance.
The vehicle model you are trying to insure is a large factor when consumers are trying to find the best cheap insurance for good drivers. Vehicles with high performance features, poor passenger safety features, or an increased likelihood of liability claims will cost much more to insure than safer, lower-performance models. The next table estimates auto insurance costs for a number of the cheaper vehicles to insure.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$1,080|
|Honda CR-V EX 2WD||$1,221|
|Hyundai Elantra GLS Touring Station Wagon||$1,231|
|Chevrolet Impala LS||$1,253|
|Volkswagen Jetta S 2.5 Station Wagon||$1,286|
|Toyota Corolla LE||$1,347|
|Jeep Grand Cherokee SRT-8 4WD||$1,373|
|Ford Focus S 4-Dr Sedan||$1,383|
|Ford Edge Limited 2WD||$1,373|
|Dodge Grand Caravan CV||$1,375|
|Ford F-150 XL Regular Cab 4WD||$1,384|
|Chevrolet Equinox LS 2WD||$1,401|
|Toyota Camry LE||$1,408|
|Toyota Tacoma Double Cab 4WD||$1,427|
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Data variables include single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, claim-free, multi-policy, multi-vehicle, and homeowner. Table data does not factor in Omaha, NE location which can impact coverage rates considerably.
Based on these rates, we can conclude that models like the Ford Escape, Honda CR-V, and Hyundai Elantra are going to be the less-costly vehicles to insure for safe drivers.
One of the many components that are looked at to determine the annual cost of car insurance is your address in Omaha. Larger areas tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents get the luxury of paying less.
The information below rates the highest-priced places in Nebraska for good drivers in which to buy car insurance. Omaha is ranked at #9 with a yearly cost of $1,257 for car insurance, which is approximately $105 monthly.
|Rank||City||Average Per Year|
|5||South Sioux City||$1,303|
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Annual rates are comparative as zip code location can alter coverage prices significantly.
Determining which companies offer the cheapest car insurance rates for good drivers involves a bit more effort in order to find the lowest price quote.
Each auto insurance company used slightly different criteria to set their prices, so we’ll take a look at the overall cheapest car insurance companies in Omaha.
Best Cheap Insurance Rates for Good Drivers
|Rank||Company||Cost Per Year|
|6||Farmers Mutual of Nebraska||$1,009|
|7||Farm Bureau Mutual||$1,010|
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Safeco offers some of the cheapest car insurance rates in Omaha at around $788 annually. This is $528 less than the average rate paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Nationwide also make the cut as some of the lowest-priced Omaha, NE auto insurance companies.
As illustrated above, if you are a customer of Nationwide and switched to The Hartford, you might see a yearly savings of in the vicinity of $160. Insureds with Farmers Mutual of Nebraska could save as much as $162 a year, and Farm Bureau Mutual customers might cut rates by $163 a year.
Understand that those estimates are averages across all insureds and vehicles and and are not calculated with a specific zip code for good drivers. So the car insurance company that fits you best may not even be in the list above. That emphasizes why you need to compare rates from multiple companies using your own specific driver and vehicle information.
Discount Omaha car insurance
Insurance providers that sell policies for good drivers may have rate discounts that could reduce prices by as much as 25% or more if you meet specific eligibility requirements. A list of companies and some of the discounts are:
- 21st Century may offer discounts for defensive driver, good student, early bird, student driver, and driver training.
- Progressive may have discounts that include multi-vehicle, multi-policy, online signing, continuous coverage, and online quote discount.
- State Farm has savings for student away at school, multiple autos, Steer Clear safe driver discount, good student, Drive Safe & Save, safe vehicle, and anti-theft.
- Nationwide offers premium reductions for anti-theft, accident-free, Farm Bureau membership, good student, multi-policy, family plan, and business or organization.
- Esurance has discounts for renters, homeowner, safety device, Pac-12 alumni, claim free, and good driver.
- The Hartford offers discounts including anti-theft, driver training, air bag, bundle, vehicle fuel type, and defensive driver.
The chart below illustrates the difference between premium costs with and without discounts applied to the policy premium. The costs are based on a male driver, a clean driving record, no claims, Nebraska state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with homeowner, accident-free, multiple policy, multiple vehicle, marriage, and safe-driver discounts applied. In this example, the average amount saved each year on car insurance for good drivers is 28% or $528.
Full coverage versus liability-only
Finding cheaper car insurance is important to most vehicle owners, and one of the best ways to find cheaper insurance for good drivers is to buy liability only. The information below compares annual premium costs with full coverage compared to only the Nebraska minimum liability coverage. The rate quotes are based on no claims, a clean driving record, $100 deductibles, single status, and no additional discounts are factored in.
If we average the cost for ages 20 through 70, full coverage on your policy costs $2,345 per year more than buying just liability insurance. That is a significant amount which raises the question if full coverage is worth the money. There is no definitive formula that is best for determining when to drop physical damage coverage on your policy, but there is a guideline you can consider. If the yearly cost for physical damage coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
For example, let’s assume your vehicle’s book value is $5,500 and you have $1,000 deductibles. If your vehicle is totaled, the most your company will settle for is $4,500 after paying the physical damage deductible. If it’s costing in excess of $450 annually to have full coverage, then you might consider buying liability only.
There are some situations where buying only liability insurance is not in your best interest. If you still owe a portion of the original 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 in an accident, you should not opt for liability only.
How to find low-cost auto insurance for good drivers
Below you’ll find some of the recommended money-saving ideas that can help you get cheaper coverage.
- Safe vehicles generally have lower rates
- Too many claims can make car insurance unaffordable
- Drive safely
- Assess whether full coverage is needed
- Having at-fault accidents will increase rates
- Save money by bundling your home and auto policies
- Compare rates regularly to ensure the best deal
The final tip is remarkably valuable, as we hit on in this piece. Coverage rates in Omaha can change considerably in a year, so don’t be unwilling to buy a policy from a new company if a more affordable price is available.
Sticking with a specific company is fine, but it’s not recommended if that stubbornness costs you hundreds of dollars year after year. It only takes a couple minutes to shop around to find cheaper insurance for good drivers.
If you aren’t sure which coverage you need and prefer to get some guidance when trying to find lower insurance rates for safe drivers, the agents below can probably answer your questions and help you decide which car insurance company is the best fit. To locate an Omaha auto insurance agent in your neighborhood, click the button at the bottom or click here to compare price quotes now.
12100 W Center Rd #208 – Omaha, NE 68144 – (402) 697-8181
Janice Peterson – State Farm Insurance Agent
9785 Q St Ste #4 – Omaha, NE 68127 – (402) 593-1899
Tim Edwards – State Farm Insurance Agent
6550 S 84th St #200 – Omaha, NE 68127 – (402) 331-0112
Steve Skidmore – State Farm Insurance Agent
17525 Gold Plaza #105 – Omaha, NE 68130 – (402) 330-9200
Auto Insurance Mart
1913 Military Ave – Omaha, NE 68111 – (402) 553-0700