Finding good, budget car insurance is not the easiest thing to do, and finding out which insurers offer the most affordable insurance rates for teenagers may require even more work. Each auto insurance company has a unique approach for determining rates, so let’s take a look at the insurance companies that tend to be cheaper in Sacramento, CA.
It’s important to know that California insurance rates are calculated based on many things that can increase the price of your policy. Simply improving your credit score, buying higher coverage limits, or having a fender bender can produce rate changes resulting in some rates now being more affordable than competitors.
Best Auto Insurance Prices for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,109 |
| 2 | Wawanesa | $1,192 |
| 3 | Century National | $1,226 |
| 4 | CSAA | $1,234 |
| 5 | Nationwide | $1,263 |
| 6 | 21st Century | $1,325 |
| 7 | Grange | $1,491 |
| 8 | Progressive | $1,496 |
| 9 | Mercury | $1,503 |
| 10 | Allied | $1,556 |
| 11 | GEICO | $1,559 |
| 12 | Allstate | $1,559 |
| 13 | MetLife | $1,606 |
| 14 | The Hartford | $1,623 |
| 15 | Unitrin | $1,699 |
| 16 | State Farm | $1,699 |
| 17 | Esurance | $1,739 |
| 18 | Travelers | $1,788 |
| 19 | Bristol West | $1,795 |
| 20 | Farmers | $1,946 |
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USAA generally has some of the cheapest car insurance rates in Sacramento at around $1,109 annually. Wawanesa, Century National, CSAA, and Nationwide would also be considered some of the more affordable Sacramento, CA insurance companies.
As shown above, if you currently have coverage with Wawanesa and switched to USAA, you might achieve yearly savings of in the vicinity of $83. Customers with Century National could save as much as $117 a year, and CSAA policyholders might lower prices by $125 a year.
Bear in mind that those estimates are averaged across all drivers and vehicles in California and do not factor in a specific vehicle garaging location for teenagers. So the car insurance company that fits your needs best may not even be in the list above. That helps illustrate why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
One of the many factors that aid in calculating car insurance rates is where you choose to live. More densely populated places will most likely have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper car insurance.
The information below lists the highest-priced places in California for teenagers to buy auto insurance in. Sacramento comes in at #5 with the annual price of $1,720 on average, which is approximately $143 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,168 |
| 2 | Glendale | $2,079 |
| 3 | Oakland | $1,755 |
| 4 | San Francisco | $1,745 |
| 5 | Sacramento | $1,720 |
| 6 | San Bernardino | $1,628 |
| 7 | Long Beach | $1,610 |
| 8 | Santa Clarita | $1,595 |
| 9 | Stockton | $1,556 |
| 10 | Modesto | $1,547 |
| 11 | Fontana | $1,535 |
| 12 | Garden Grove | $1,524 |
| 13 | Moreno Valley | $1,506 |
| 14 | Fresno | $1,502 |
| 15 | Riverside | $1,482 |
| 16 | Santa Ana | $1,439 |
| 17 | San Jose | $1,437 |
| 18 | Anaheim | $1,430 |
| 19 | Fremont | $1,403 |
| 20 | Bakersfield | $1,394 |
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Information shown are estimated as the specific geographic location can revise premiums substantially.
The car, truck, or SUV on the policy is a large factor in finding cheaper insurance for teenagers. Vehicles with lots of horsepower, a lack of modern safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than safer, lower-performance models.
The next table outlines auto insurance premiums for a number of the most economical vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $5,371 |
| Honda CR-V EX 4WD | $5,419 |
| Jeep Wrangler Sport 4WD 2-Dr | $5,669 |
| Toyota Prius | $5,796 |
| Ford Explorer XLT AWD | $6,044 |
| Ford Edge Limited 2WD | $6,323 |
| Toyota RAV4 Limited 4WD | $6,371 |
| Toyota Tacoma Double Cab 4WD | $6,376 |
| Ford F-150 FX4 Super Cab 4WD | $6,421 |
| Dodge Grand Caravan SXT | $6,430 |
| Ford Focus SEL 4-Dr Sedan | $6,650 |
| Hyundai Elantra Blue 4-Dr Sedan | $6,660 |
| Chevrolet Impala LTZ | $6,698 |
| Honda Odyssey EX-L W/Navigation | $6,704 |
| Nissan Altima 2.5 S 4-Dr Sedan | $6,698 |
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Table data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in specific location which can alter prices substantially.
By looking at the data, we can conclude that models like the Ford Escape, Honda CR-V, and Jeep Wrangler will be a few of the cheapest vehicles to insure for teen drivers. The cost of auto insurance will tend to be higher just due to the fact that there is more claim exposure for teenagers, but generally speaking those makes and models will tend to have the cheapest car insurance rates compared to other types of vehicles.
The illustration below demonstrates how choosing different deductibles can raise or lower insurance prices when searching for cheap insurance for teenagers. The data is based on a single female driver, comprehensive and collision coverage, and no discounts are applied.
As shown above, a 40-year-old driver could pocket $350 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $530 by selecting a $1,000 deductible. Young drivers, like the 20-year-old category, could potentially save $888 or more just by choosing higher deductibles. If you make the decision to raise deductibles, it is important to have additional funds squirreled away to enable you to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Cost comparison with and without full coverage
Saving on insurance is the goal of most vehicle owners, and one of the fastest ways to save on the cost of insurance for teenagers is to buy only liability coverage. The diagram below illustrates the comparison of car insurance rates when comparing full coverage to liability only. The price estimates are based on no violations or claims, $250 deductibles, single marital status, and no discounts are taken into consideration.
If we average all the age groups together, physical damage insurance costs $3,147 per year over having just liability coverage. That touches on the question when is it safe to stop buying full coverage. There is no clear-cut formula to exclude comp and collision coverage, but there is a general convention. If the annual cost of comprehensive and collision coverage is about 10% or more of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s replacement value is $9,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $8,000 after the policy deductible has been paid. If you are paying over $800 a year for full coverage, then you might want to think about dropping full coverage.
There are some situations where removing full coverage is not in your best interest. If you still have a lienholder on your title, you have to keep full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should not remove full coverage.
The importance of comparing Sacramento car insurance rates
Sacramento insurance rates are impacted by many things that may substantially change the price of your policy. Turning one year older, having a claim, or getting a couple of tickets can produce rate changes resulting in some companies being cheaper than before.
Also, car insurance companies change the rates they charge in California without warning in order to protect their financial rating. An unexpected high level of claims can result in price increases, while profitable underwriting can cause more affordable Sacramento car insurance rates.
For instance, the graph below shows the company with the cheapest car insurance in Sacramento, CA for a 45-year-old female driver with a clear driving record, no claims, and great credit. When comparing rates based on her personal risk profile, USAA has the lowest car insurance rates in Sacramento at $1,523 annually. This is $128 less than the average price paid by California drivers of $1,651. Wawanesa, Nationwide, Century National, and CSAA are the rest of the cheapest Sacramento, CA auto insurance companies.
Now we will give the driver from the above example an at-fault accident, a lower credit score, and a few blemishes on her driving record. Since every car insurance company has a different process for determining prices, comparing insurance quotes may now result in a different set of affordable companies as shown below.
Grange now has the lowest price on auto insurance in Sacramento with Mercury, Progressive, Allstate, and GEICO also having competitive pricing. This example demonstrates why it is critical to do a thorough rate comparison when trying to find the lowest auto insurance quotes for teenagers.
Rates can be determined by many risk factors and can decrease or increase without notice, so the most affordable company the last time you shopped your coverage around may now be an over-priced policy.
How to find the cheapest insurance for teenagers
The list below summarizes many thrifty solutions that can help you get more affordable car insurance.
- Do not get tickets or violations
- Vehicles with good safety ratings are usually cheaper to insure
- Having too many claims will increase rates substantially
- Avoid at-fault accidents and claims
- Buy your auto and home insurance from the same company and save
- Compare rates regularly to ensure the best deal
That last tip is highly significant, as was discussed in the prior article. Coverage rates go up and down frequently, so don’t be tentative to buy from a different company if you can save money.
Many drivers have brand loyalty and that’s fine, but we do not recommend it if that faithfulness ends up costing you money that could be used for better things. Take a few minutes and shop around and find cheaper car insurance for teenagers in Sacramento.