You have surely seen all the catchy advertisements from car insurance companies like Liberty Mutual and State Farm that make claims of big savings. So drivers should just pick the company with the cutest commercial, right?
Regrettably, it’s not quite that easy, as there are many unknown factors such as if you have a coverage lapse, how old you are, your credit rating, and whether you are married or single. This article covers the different ways to avoid overpaying and also should give you some help in finding cheaper rates.
The vehicle you are trying to insure is a large consideration when shopping around for the most economical insurance for 18 year olds. Vehicles with higher performance, a lack of advanced safety features, or high incidents of liability claims will cost much more to insure than more modest models. The list below estimates auto insurance premiums for some of the most cost-effective vehicles to insure.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$5,123|
|Ford Escape Limited 2WD||$5,181|
|Honda CR-V EX 4WD||$5,189|
|Jeep Wrangler Sahara 4WD 2-Dr||$5,736|
|Ford Explorer XLT 4WD||$5,743|
|Dodge Grand Caravan SE||$5,736|
|Honda Odyssey EX||$6,019|
|Toyota RAV4 2WD||$6,077|
|Jeep Grand Cherokee Laredo 2WD||$6,087|
|Chevrolet Malibu LS||$6,077|
|Ford F-150 FX4 Super Cab 4WD||$6,135|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$6,141|
|Hyundai Elantra Blue 4-Dr Sedan||$6,360|
|Chevrolet Impala LTZ||$6,418|
|Ford Edge Sport AWD||$6,424|
|Toyota Corolla XLE||$6,418|
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Data based on single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include claim-free, and safe-driver. Estimates do not factor in specific location information which can decrease or increase rates significantly.
Based upon these rates, we can infer that makes and models like the Honda Accord, Ford Escape, Honda CR-V, Toyota Prius, and Jeep Wrangler will be a few of the cheapest vehicles to insure for teen drivers. Car insurance rates will tend to be more expensive anyway because there is a higher risk for 18 year olds, but generally speaking those models will probably have the least expensive rates that you are likely to find.
For teen drivers, one of the largest things that are used to help calculate insurance cost is where your residence is in Chandler. Regions with more people or even just more weather-related claims will most likely pay more, whereas areas that tend to be more rural have the benefit of cheaper auto insurance prices.
The illustration below lists the highest-priced areas in Arizona for 18 year olds to purchase car insurance in. Chandler ranks #14 with a yearly cost of $1,093 on average, which is about $91 per month.
|Rank||City||Premium Per Year|
|4||San Tan Valley||$1,185|
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Premium amounts are approximated as specific location information can increase or decrease prices substantially.
Full coverage rates compared to liability-only
Finding cheaper auto insurance is important to most people, and a great way to reduce the cost of insurance for 18 year olds is to only buy liability coverage. The information below shows the comparison of car insurance rates with full physical damage coverage compared to only buying liability only. The premiums are based on no violations or claims, $250 deductibles, single status, and no additional discounts are factored in.
On average, physical damage coverage on your policy costs $1,745 per year over and above liability only. That is a large expense and it proposes the question if you should buy full coverage at all. There is no written rule to delete physical damage insurance, but there is a guideline you can use. If the yearly cost of full coverage is more than 10% of replacement cost minus your deductible, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement cost is $3,000 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 $2,000 after paying the physical damage deductible. If premium cost is more than $200 annually to have full coverage, then you may want to consider only buying liability coverage.
There are some situations where buying only liability insurance is not a good plan. If you still owe money on your vehicle, you have to carry full coverage to protect the lienholder’s interest. Also, if you don’t have enough money to buy a different vehicle if your current one is totaled, you should not eliminate full coverage.
The example below highlights how deductible selection can change insurance costs when trying to find cheap insurance for 18 year olds. The prices are based on a married female driver, full coverage, and no other discounts are factored in.
The chart above illustrates that a 40-year-old driver could cut expenses by $206 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $310 by using a $1,000 deductible. Youthful drivers, like the 20-year-old, could reduce their rates $508 or more by selecting a higher deductible.
If you make the decision to raise deductibles, it is necessary to have additional funds squirreled away to satisfy the extra out-of-pocket expense, which is the main drawback of higher deductibles.
You may be paying too much for car insurance
Arizona auto insurance rates are impacted by many factors which can substantially decrease or increase the policy price. Simply having another birthday, getting divorced, or having an at-fault accident can cause premium changes that may make certain companies much cheaper than others.
Also, auto insurance companies modify pricing every year to adjust for gains or losses. An extended period of higher than normal claims may result in price increases, while a profitable period may produce cheaper Chandler car insurance rates.
For instance, the graph below analyzes the cheapest car insurance in Chandler, AZ for a 40-year-old female driver with a good driving record, no prior claims, and a good credit history. If we compare prices based on her current situation, The Hartford offers the cheapest car insurance rates in Chandler at $1,105 a year. This is $323 less than the average rate paid by Arizona drivers of $1,428. Auto-Owners, Safeco, USAA, and Travelers are also on the list of the cheapest Chandler, AZ auto insurance companies.
The example below compares rates after we give the driver in the first example an at-fault accident, a lower credit rating, and a stop sign violation. Since each company uses their own calculation to set their prices, analyzing rates will most likely result in a different list of affordable Chandler car insurance companies as shown below.
Progressive now has the lowest price in Chandler with Ameriprise Group, CSAA, Allied, and Farm Bureau Mutual also having competitive pricing. This shows why it is critical to compare rates to find the cheapest auto insurance rates for 18 year olds. Prices consist of many things and can decrease or increase without notice, so the lowest-price company the last time you shopped your coverage around may now be priced much higher than other options.
How to find the cheapest car insurance for 18 year olds
Lowering your rates is not difficult, and here are some of the recommended money-saving suggestions that can help Arizona drivers locate cheaper auto insurance.
- Having at-fault accidents will increase rates
- Do not waste money insuring older vehicles for full coverage
- Raise comprehensive and collision coverage deductibles
- Vehicles with good safety ratings are usually cheaper to insure
- Better credit rating means better rates
- Save money by observing traffic laws and speed limits
- Shop around for cheaper prices often
That last piece of advice is particularly significant, as we pointed out in this write-up. Prices can be changed at any time, so don’t be hesitant to switch to a new company if a better deal can be had. Loyalty to a specific company is fine, but is isn’t recommended if that inflexibility results in costing you a lot of money. Now is a great time to shop around and find cheaper auto insurance for 18 year olds in Chandler.
The insurance agencies below are willing to provide answers to your questions and help you determine which insurance coverage you need, as lots of people like to have the advice of a professional agent when shopping for the best coverage for teen drivers. It can be difficult to find the best coverage on your own, so using a licensed agent can add satisfaction knowing your policy gives you sufficient coverage for your assets.
To find an agent near you, click the button at the bottom of the list.
Sean Paul Insurance Agency
333 N Dobson Rd #160 – Chandler, AZ 85224 – (480) 525-8846
Arizona Insurance Guys
3414 W Oakland St – Chandler, AZ 85226 – (480) 331-6408
State Farm: Debbie Wiltse
4980 S Alma School Rd #A6 – Chandler, AZ 85248 – (480) 792-9468