The words “affordable” and “insurance” probably shouldn’t be used in the same sentence, especially when shopping around for the lowest insurance prices for young drivers. Because it’s so expensive, let’s take a look at some of the factors the can have a considerable influence on car insurance rates, and see how we can help you shave a little off the next policy you buy.
One of the more important considerations that are looked at to determine auto insurance rates is where you normally keep your vehicle. Areas with more people or higher crime rates tend to pay slightly more, whereas areas that tend to be more rural tend to receive slightly lower rates.
The next table rates the most expensive areas in Arizona for young drivers to purchase a policy in. Chandler makes the list at #12 with the annual price of $1,093 for the average insured, which is around $91 monthly.
|2||San Tan Valley||$1,196|
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Rates are comparative as specific Chandler zip code can increase or decrease insurance rates significantly.
The type of vehicle driven is a large consideration that determines if you can find the lowest-priced insurance for young drivers. Vehicles with lots of speed or power, a lack of modern safety features, or high incidents of liability claims will cost significantly more to insure than more economical and safe models. The list below outlines coverage costs for a handful of the most economical vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$5,840|
|Honda Accord EX 4-Dr Sedan||$5,848|
|Ford Escape Limited 4WD||$6,254|
|Ford F-150 STX Super Cab 2WD||$6,513|
|Ford Explorer XLT AWD||$6,567|
|Chevrolet Impala LS||$6,872|
|Chevrolet Equinox LS 2WD||$6,927|
|Volkswagen Jetta LE 4-Dr Sedan||$6,936|
|Ford Fusion S 4-Dr Sedan||$6,927|
|Toyota RAV4 4WD||$6,933|
|Toyota Camry LE||$6,927|
|Dodge Grand Caravan SXT||$6,984|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$6,994|
|Hyundai Elantra Blue 4-Dr Sedan||$7,230|
|Toyota Corolla XLE||$7,284|
|Honda Odyssey EX-L W/Navigation||$7,292|
|Ford Edge Sport 2WD||$7,284|
|Jeep Grand Cherokee Limited 2WD||$7,341|
|Chevrolet Malibu LTZ||$7,351|
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Prices above based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in Chandler, AZ location which can influence prices significantly.
Based upon these rates, you can figure that cars like the Honda CR-V, Honda Accord, and Ford Escape are going to be the most economical vehicles to insure for youthful drivers. Rates will tend to be more expensive because there is more risk for young drivers, but generally speaking those particular models will tend to have the cheapest auto insurance rates possible.
Difference between full coverage and liability only rates
Reducing the cost of insurance is important to the majority of vehicle owners, and a good way to reduce the cost of insurance for young drivers is to buy liability only. The diagram below shows the difference between insurance costs when comparing full coverage to liability only. The data is based on no tickets, no at-fault accidents, $1,000 deductibles, drivers are single, and no additional discounts are factored in.
Averaged for all ages 20 through 70, physical damage coverage on your policy costs $1,704 per year more than just buying liability only. That amount may make you wonder when is it safe to stop buying full coverage. There is no clear-cut formula of when to stop paying for full coverage on your policy, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is about 10% or more of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $6,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $5,500 after paying your deductible. If it’s costing you more than $550 a year for physical damage coverage, then it might be time to consider dropping full coverage.
There are a few situations where dropping full coverage is not a good idea. If you still have a lienholder on your title, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should not consider dropping full coverage.
The information below shows how choosing a deductible can impact insurance costs when searching for cheap insurance for young drivers. The premiums are based on a single male driver, comprehensive and collision coverage, and no discounts are factored in.
A 40-year-old driver could reduce rates by $244 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $370 by using a $1,000 deductible. Even younger insureds, like the 20-year-old category, could potentially save $808 or more by using a higher deductible.
If you do decide to increase your deductibles, it is a good idea to have enough in a savings account to cover the extra out-of-pocket expense that is associated with using high deductibles.
How to get discounts on Chandler insurance
Insurance companies that offer cheap quotes for young drivers may have premium discounts that may potentially lower prices by as much as 25% or more if you are eligible to receive them. Popular insurance companies and their possible discounts are shown below.
- 21st Century policyholders can earn discounts including homeowners, teen driver, student driver, early bird, and good student.
- State Farm offers discounts including multiple policy, safe vehicle, good driver, Steer Clear safe driver discount, and accident-free.
- AAA may have discounts that include AAA membership discount, multi-car, anti-theft, good student, and multi-policy.
- Liberty Mutual may include discounts for teen driver discount, multi-policy, hybrid vehicle, new vehicle discount, newly married, and safety features.
- Progressive offers discounts for online signing, good student, multi-policy, continuous coverage, homeowner, multi-vehicle, and online quote discount.
The example below illustrates the comparison of auto insurance costs with and without discounts applied to the premium. The information is based on a male driver, no claims or driving citations, Arizona state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with paperless filing, vehicle safety, continuous coverage, good student, anti-theft, and passive restraint discounts applied. When these discounts are applied, theaverage yearly reduction on insurance for young drivers is 28% or $784.
How to find the cheapest auto insurance for young drivers
The list below details some of the better penny-pinching ideas that can help drivers locate more affordable auto insurance.
- Drop full coverage on older vehicles
- Discounts for being claim-free can be substantial
- Maintain a safe distance and avoid accidents
- Raise deductibles
- Do not get traffic citations
- Compare rates once a year for cheaper prices
That last idea is highly significant, as we noted in the prior article. Prices charged by companies can change in a short period of time, so drivers shouldn’t hesitate to change insurance companies if a better deal can be had. Many drivers have brand loyalty and that’s fine, but it isn’t a good idea if it’s costing you hundreds of dollars a year. It only take a few minutes to compare rates to find cheaper auto insurance for young drivers in Chandler.
If you aren’t sure which coverage to buy and prefer to get some professional advice when shopping for cheaper insurance for young drivers, the agents below can most likely provide answers to your questions and help you determine which car insurance policy is best. To locate a Chandler auto insurance agent close to you, click the button following the list.
American Family Insurance – Arturo Alatorre
600 W Ray Rd Ste D4 – Chandler, AZ 85225 – (480) 246-8479
Independent Insurance Agent
5165 S Eileen Dr – Chandler, AZ 85248 – (480) 220-7233
1200 N Arizona Ave #3 – Chandler, AZ 85225 – (480) 782-9202
Nationwide – Daniel McLean Kendree AGENCY
1005 S Arizona Ave – Chandler, AZ 85286 – (480) 857-0056
Sean Paul Insurance Agency
333 N Dobson Rd #160 – Chandler, AZ 85224 – (480) 525-8846