The words "affordable" and "auto insurance" really shouldn't be used together, especially when searching for the best car insurance for drivers under 25. Let's familiarize you with some of the factors that can significantly affect car insurance prices, and come up with some ideas to reduce the price of the next policy you buy.
The vehicle model that is being insured is one of the primary factors that determines whether or not you find low-cost coverage for drivers under 25. Vehicles with average performance, excellent safety ratings, or a low likelihood of having liability claims will cost less to insure than high performance models.
The list below presents insurance prices for the most economical automobiles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$2,459|
|Honda Accord EX 4-Dr Sedan||$2,464|
|Ford Escape XLT 2WD||$2,459|
|Volkswagen Jetta S 2.5 Station Wagon||$2,676|
|Dodge Grand Caravan SE||$2,735|
|Toyota Camry LE||$2,918|
|Toyota RAV4 2WD||$2,927|
|Nissan Altima 2.5 4-Dr Sedan||$2,918|
|Chevrolet Equinox LT 2WD||$2,927|
|Jeep Grand Cherokee Laredo 4WD||$2,918|
|Chevrolet Impala LT||$2,928|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$2,955|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$2,965|
|Ford Explorer Limited 2WD||$2,955|
|Chevrolet Malibu LT||$2,962|
|Hyundai Elantra Blue 4-Dr Sedan||$3,065|
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Premium data assumes single male 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. Price estimates do not factor in specific location which can impact auto insurance rates substantially.
Based upon the rates shown, we can conclude that vehicles like the Honda CR-V, Honda Accord, Ford Escape, Volkswagen Jetta, and Toyota Prius are most likely going to be the most affordable vehicles to insure for drivers age 25 and younger. The cost of auto insurance will be more expensive just due to the fact that there is more risk for drivers under 25, but generally speaking those particular vehicles will tend to have the cheapest rates compared to other types of vehicles.
One of the many criteria that determine the annual cost of car insurance is your address. Areas with increased crime or more people will most likely have higher rates, whereas areas with lower crime rates and fewer weather claims have the luxury of cheap car insurance rates.
The following table shows the priciest cities in California for drivers under 25 to buy car insurance in. Santa Ana ranks #14 with an annual premium of $1,497 for coverage, which is approximately $125 per month.
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Price information shown is comparative as the specific garaging location can influence coverage rates noticeably.
Liability-only versus full coverage
Lowering the price of car insurance is probably important to the majority of people, and one great way to lower the cost of insurance for drivers under 25 is to buy liability only. The information below compares premium costs with and without full coverage. The data is based on no claims or violations, $250 deductibles, single status, and no other discounts are factored in.
If the expense is averaged for all age categories, physical damage coverage costs $2,314 per year more than just buying liability insurance. That brings up the question if paying for full coverage is a waste of money. There is no exact formula of when to eliminate physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost minus the deductible, then you might consider buying liability only.
For example, let's pretend your vehicle's claim settlement value is $5,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would get paid by your company is $4,000 after paying the physical damage deductible. If it's costing in excess of $400 annually for full coverage, then it might be time to consider dropping full coverage.
There are some conditions where removing full coverage is not a good idea. If you haven't paid off your loan, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should not opt for liability only.
Get discount Santa Ana car insurance rates
Insurers that offer coverage for drivers under 25 could also offer discounts that can lower rates by 35% or more if you are eligible for them. A few popular companies and some of the premium reductions they offer are shown below.
- American Family may offer discounts for air bags, bundled insurance, early bird, Steer into Savings, and defensive driver.
- Farm Bureau may include discounts for good student, multi-policy, 55 and retired, youthful driver, renewal discount, and safe driver.
- State Farm offers discounts for multiple policy, Steer Clear safe driver discount, passive restraint, defensive driving training, student away at school, and driver's education.
- Travelers has discounts for driver training, early quote, good student, continuous insurance, save driver, home ownership, and IntelliDrive.
- The Hartford policyholders can earn discounts including defensive driver, vehicle fuel type, driver training, anti-theft, good student, and bundle.
- GEICO offers premium reductions for emergency military deployment, multi-vehicle, defensive driver, membership and employees, federal employee, and anti-lock brakes.
- Progressive offers discounts including homeowner, online signing, multi-vehicle, good student, and online quote discount.
The example below illustrates the comparison of annual premium costs with and without discounts applied to the policy premium. The price estimates are based on a female driver, no violations or accidents, California state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with paperless filing, good student, continuous coverage, passive restraint, vehicle safety, and paid-in-full discounts applied. When drivers qualify for the discounts, theamount saved on car insurance for drivers under 25 is 21% or $407.
How to find budget-friendly auto insurance for drivers under 25
The list below shows many penny-pinching ideas that can help drivers find lower-cost coverage.
- Avoid speeding and other traffic citations and pay less
- Avoid accidents and claims
- Raise comprehensive and collision coverage deductibles
- Earn discounts for being claim-free
- Assess whether full coverage is needed
- Keep rates low by comparing prices once a year
The last suggestion is very significant, as we pointed out in the prior article. Coverage rates adjust frequently, so don't be tentative to buy from a new company if a more affordable price is available. Many consumers stick with the same company and that's fine, but it isn't a good idea if that loyalty results in overpaying money that could be spent on other things. It only take a few minutes to shop around and find cheaper insurance for drivers under 25 in Santa Ana.
The agents below are a good start to help you decide which coverages and limits you need, as lots of people like to get some professional input when trying to find lower insurance rates for drivers age 25 and younger. It can be hard to find coverage yourself, so getting professional guidance from a licensed agent can give peace of mind knowing your coverage gives you adequate protection. To locate a Santa Ana insurance agent closest to you, click the button at the bottom of the list or click here to get price quotes now.
Allstate Insurance: Ramon Valerio
117 S Harbor Blvd - Santa Ana, CA 92704 - (714) 775-5423
Allstate Insurance: Jorge Bendeck
3929 S Bristol St Ste 201 - Santa Ana, CA 92704 - (714) 832-3900
Mary Juarez Insurance
1227 W 1st St c - Santa Ana, CA 92703 - (714) 542-5914
Allstate Insurance: Octavio R E Pina
1926 S Main St - Santa Ana, CA 92707 - (714) 444-3022