The words “low-priced” and “insurance” really shouldn’t be used together, especially when shopping around for the lowest insurance prices for teenagers. Let’s learn about a few of the factors that have an impact on car insurance premiums, and come up with some ideas to lower the cost of the next policy you buy.
The make and model of vehicle requiring coverage is one of the main factors when comparing the best cheap auto insurance for teenagers. Vehicles with high performance features, a lack of modern safety features, or a high likelihood of having liability claims will cost more to insure than safer models.
The information below showcases auto insurance costs for a selection of the most economical vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$4,109|
|Ford Escape Limited 4WD||$4,357|
|Hyundai Elantra SE Touring Station Wagon||$4,363|
|Jeep Wrangler Rubicon 4WD 2-Dr||$4,579|
|Ford F-150 XL Crew Cab 4WD||$4,616|
|Volkswagen Jetta 2.0T Station Wagon||$4,641|
|Honda Odyssey EX||$4,791|
|Chevrolet Impala LS||$4,799|
|Toyota Tacoma 2WD||$4,791|
|Toyota RAV4 2WD||$4,827|
|Chevrolet Equinox LT AWD||$4,833|
|Chevrolet Malibu LS||$4,827|
|Ford Explorer Limited 2WD||$4,864|
|Dodge Grand Caravan SXT||$4,871|
|Nissan Altima 2.5 S 4-Dr Sedan||$5,075|
|Ford Edge Sport AWD||$5,082|
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Prices based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in Omaha, NE location which can lower or raise coverage prices significantly.
Looking at the data, we can assume that models like the Honda CR-V, Ford Escape, Hyundai Elantra, and Toyota Prius are most likely to be the most budget-friendly vehicles to insure for teen drivers. The cost of auto insurance will be more expensive because of the fact that there is a higher risk for teenagers, but overall those models will probably have the best insurance prices that you’ll find.
Figuring out which insurers offer the best car insurance rates for teenagers takes more work than just getting one or two price quotes.
Each auto insurance company has a unique formula for determining rates in each state, so let’s look at the rankings for the car insurance companies with the overall cheapest rates in Omaha.
Cheapest Insurance Rates for Teens
|Rank||Company||Cost Per Year|
|5||Farmers Mutual of Nebraska||$989|
|6||Farm Bureau Mutual||$1,010|
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Safeco has some of the cheapest car insurance rates in Omaha at around $780 per year. This is $536 less than the average price paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farmers Mutual of Nebraska are also some of the most economical Omaha, NE auto insurance companies.
As depicted above, if you currently have coverage with Farmers Mutual of Nebraska and switched to The Hartford, you could earn yearly savings of in the neighborhood of $124. Drivers with Farm Bureau Mutual may save as much as $145 a year, and Nationwide customers might realize rate reductions of up to $172 a year.
Bear in mind that those estimates are averages for all types of drivers and the different vehicles they drive and are not factoring in a vehicle location for teenagers. So the auto insurance company that can offer you the best price may not even be in the top 24 companies shown above. That points out the importance of why you need to quote rates from many companies using your own driver information and specific vehicle type.
Should you buy full coverage?
Buying cheaper car insurance is important to the majority of people, and an easy way to pay lower rates for insurance for teenagers is to only pay for liability coverage. The example below illustrates the comparison of car insurance rates with and without physical damage coverage. The rate quotes are based on no violations or claims, $1,000 deductibles, drivers are not married, and no discounts are applied.
If averaged for all ages, comprehensive and collision coverage on your policy costs an extra $1,263 per year more than just buying liability insurance. That amount may make you wonder if paying for full coverage is worth it. There is no set rule of when to eliminate full coverage, but there is a general convention. If the yearly cost of full coverage is about 10% or more of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.
For example, let’s pretend your vehicle’s replacement value is $9,000 and you have $1,000 policy deductibles. If your vehicle is totaled, you would only receive $8,000 after the policy deductible has been paid. If you are paying over $800 a year for your policy with full coverage, then it could be time to drop full coverage.
How to get discounts on Omaha insurance
Insurers that sell policies for teenagers may also give you special discounts that could reduce prices by as much as 40% or more if you meet specific criteria. A list of companies and some of the premium reductions they offer are detailed below.
- State Farm has savings for passive restraint, driver’s education, multiple policy, multiple autos, accident-free, and Steer Clear safe driver discount.
- Nationwide policyholders can earn discounts including defensive driving, family plan, business or organization, easy pay, anti-theft, good student, and Farm Bureau membership.
- GEICO discounts include driver training, anti-theft, air bags, multi-policy, five-year accident-free, and military active duty.
- AAA may include discounts for good driver, multi-car, pay-in-full, good student, and AAA membership discount.
- 21st Century may have discounts that include teen driver, early bird, student driver, homeowners, automatic seat belts, anti-lock brakes, and 55 and older.
- The Hartford offers premium reductions for vehicle fuel type, defensive driver, air bag, good student, and driver training.
The diagram below compares car insurance costs with and without discounts applied. The data assumes a male driver, no accidents or driving violations, Nebraska state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with paperless filing, anti-theft, good student, vehicle safety, continuous coverage, and passive restraint discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on car insurance for teenagers is 28% or $623.
Compare rates to save
Omaha car insurance rates are impacted by many factors which can substantially decrease or increase the price you have to pay. Turning one year older, moving across town, or getting a reckless driving citation can trigger changes in premium resulting in some rates now being cheaper than competitors.
Additionally, insurance companies amend premium rates as often as every quarter in order to maintain liquidity for claims. Higher than normal claim frequency or severity may cause higher priced premiums, while a better claims history can result in lower-cost Omaha car insurance rates.
For example, the data below shows rates for the cheapest car insurance in Omaha, NE for a 35-year-old female driver with a good driving record, no prior claims, and excellent credit. When comparing rates based on her personal profile, Safeco might quote the most affordable car insurance rates in Omaha at $932 per year. This is $384 less than the average price paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual are the remaining best Omaha, NE auto insurance companies.
In this next rate comparison, we will give the driver from above a claim or two, poor credit, and a traffic citation. Due to the fact that every auto insurer has a proprietary method to determine rates, comparing insurance quotes could now result in a different set of affordable Omaha car insurance companies as shown below.
Nationwide now has the best price in Omaha, NE with State Farm, American National, USAA, and General Casualty also being competitive. This example illustrates why consumers need to perform an extensive rate comparison to get the best insurance rates for teenagers.
Car insurance prices are calculated by many risk factors and change substantially, so the best option a year ago may now be one of the more expensive options.