The words “low-priced” and “auto insurance” really should not be used together, specifically when you are shopping around for the best price on coverage for teenagers. Because it’s so expensive, let’s start the ball rolling by going over a few of the things that have an effect on car insurance premiums, and figure out some ideas to slash the price of the next policy you buy.
Finding reliable, cheap insurance is hard enough, and determining which companies quote the cheapest auto insurance rates for teenagers takes even more rate comparisons.
Each auto insurer has a proprietary method to establish rates, so let’s begin by taking a look at the auto insurance companies with the overall best prices in Ohio. We do need to point out that Columbus auto insurance rates are based on many factors that will increase or decrease the price of coverage. This price variability is why consumers need to take the time to compare as many rates as possible when trying to find the lowest auto insurance quotes for teenagers. Prices are impacted by many things and can decrease or increase without notice, so the most economical option the last time you shopped around may now be quite expensive.
Find Cheaper Auto Insurance for Teens
Utica National may offer some of the cheapest car insurance rates in Columbus at around $654 per year. Frankenmuth, Erie, Allied, and USAA also are some of the cheaper Columbus, OH insurance companies.
As shown in the table above, if you currently buy coverage from Allied and switched to Frankenmuth, you may realize annual savings of in the vicinity of $10. Ohio drivers with USAA could save as much as $39 a year, and Travelers insureds might cut rates by $46 a year.
It’s important to note that these premiums are averaged for all insureds and vehicles and and are not calculated with a vehicle location for teenagers. So the company that is most affordable for your situation may not even be in the top 33 companies in the list above. That is why you need to compare rates from as many companies as possible using your own driver data and vehicle information.
For teen drivers, one of the big factors that determine the amount you pay each year for auto insurance is where you keep your car in Columbus. More densely populated places are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates profit from lower rates.
The information below rates the most expensive places in Ohio for teenagers in which to purchase auto insurance. Columbus comes in at #2 with a yearly cost of $1,247 for the average policy, which is about $104 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Youngstown | $1,285 |
| 2 | Columbus | $1,247 |
| 3 | Toledo | $1,229 |
| 4 | Cleveland | $1,222 |
| 5 | Cincinnati | $1,186 |
| 6 | Akron | $1,169 |
| 7 | Cleveland Heights | $1,166 |
| 8 | Hamilton | $1,135 |
| 9 | Euclid | $1,129 |
| 10 | Dayton | $1,108 |
| 11 | Springfield | $1,105 |
| 12 | Newark | $1,095 |
| 13 | Canton | $1,069 |
| 14 | Fairfield | $1,063 |
| 15 | Lakewood | $1,063 |
| 16 | Beavercreek | $1,058 |
| 17 | Middletown | $1,035 |
| 18 | Parma | $1,027 |
| 19 | Strongsville | $1,011 |
| 20 | Kettering | $1,009 |
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Rate information is estimated as the vehicle garaging location can modify premiums noticeably.
The vehicle on the policy is a large factor that determines whether or not you can buy cheap car insurance for teenagers. Vehicles with high performance engines, poor safety ratings, or a track record of large liability claims will cost much more to insure than more economical and safe models. The next table estimates auto insurance rates for the most cost-effective automobiles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $5,272 |
| Honda CR-V EX 4WD | $5,321 |
| Hyundai Elantra SE Touring Station Wagon | $5,643 |
| Ford Escape Limited 4WD | $5,653 |
| Toyota Prius | $5,692 |
| Ford F-150 STX Regular Cab 2WD | $5,884 |
| Dodge Grand Caravan SE | $5,933 |
| Chevrolet Impala LS | $6,206 |
| GMC Sierra SLE Crew Cab 2WD | $6,255 |
| Chevrolet Equinox LS 2WD | $6,264 |
| Chevrolet Malibu Hybrid | $6,255 |
| Toyota RAV4 Limited 4WD | $6,261 |
| Ford Explorer Eddie Bauer 4WD | $6,305 |
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Price data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in garaging location in Columbus, OH which can raise or lower coverage rates substantially.
Based upon these rates, we can tell that vehicles like the Honda Accord, Honda CR-V, and Hyundai Elantra are most likely to be a few of the more affordable vehicles to insure for teen drivers. The cost of a car insurance policy will trend higher just due to the fact that there is more liability exposure for teenagers, but generally speaking those models will probably have the least expensive rates compared to all other vehicles.
Should you buy full coverage?
Lowering the price of auto insurance is probably important to most people, and one of the easiest ways to buy cheap insurance for teenagers is to not pay for full coverage. The diagram below visualizes the comparison of insurance rates with liability coverage only compared to full coverage. The information is based on a clean driving record, no claims, $100 deductibles, drivers are single, and no additional discounts are factored in.
If the expense is averaged for all age categories, physical damage insurance costs $1,455 per year more than just insuring for liability. That touches on the question if it’s a good idea to buy full coverage. There is no set rule to stop paying for comprehensive and collision coverage on your policy, but there is a guideline you can consider. If the yearly cost of full coverage is more than 10% of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s assume your vehicle’s claim settlement value is $9,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $8,500 after paying your deductible. If you are paying over $850 annually for full coverage, then you might consider buying liability only.
There are a few situations where dropping physical damage coverage is not a good idea. If you still have a loan on your vehicle, you are required to maintain full coverage to protect the lienholder’s interest. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should not eliminate full coverage.
The information below demonstrates how choosing different deductibles can affect annual premium costs when getting quotes for cheap insurance for teenagers. The costs are based on a married female driver, comp and collision included, and no discounts are applied to the premium.
The data above shows that a 30-year-old driver could cut expenses by $178 a year by switching from a $100 deductible to a $500 deductible, or save $272 by switching to a $1,000 deductible. Even younger drivers, like the age 20 example, could drop their prices $384 each year by choosing a larger deductible amount.
When raising deductibles, it will now be necessary to have plenty of savings on hand to enable you to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Driving violations and accidents
In a perfect world, the best way to maintain cheap auto insurance rates in Ohio for teen drivers is to pay attention while driving and avoid traffic citations and accidents. The chart below shows how traffic citations and at-fault accidents influence car insurance rates for each different age group. The data assumes a single male driver, comp and collision included, $1,000 deductibles, and no discounts are taken into consideration.
In the chart above, the average cost of auto insurance in Ohio per year with no violations or accidents is $961. Get written up for two speeding tickets and the average cost rises to $1,263, an increase of $302 each year. Now get one accident along with the two speeding tickets and the annual cost of auto insurance for teenagers goes up to an average of $1,569. That’s an increase of $608, or $51 per month, just for not driving attentively!
The importance of shopping around
Columbus auto insurance rates are impacted by many factors which can significantly increase or decrease your annual premium. Simply having a birthday, having a claim, or having an at-fault accident can cause premium changes that may make certain companies cheaper than before.
Also, companies file new rates as often as every three months in order to be able to pay unexpected claims. An unexpected high level of claims may cause increased policy costs, while lower claim expenses can produce cheaper Columbus car insurance rates.
To illustrate this point, the bar chart below analyzes the cheapest car insurance in Columbus, OH for a 30-year-old male driver with no accidents or violations, and a good credit history. If we estimate prices based on his personal risk profile, Utica National offers the lowest car insurance rates in Columbus at $772 annually. This is $268 less than the average premium paid by Ohio drivers of $1,040. Allied, Erie, Frankenmuth, and USAA round out the rest of the best Columbus, OH auto insurance companies.
In this next rate comparison, we will give the driver from the above example an accident claim, a lower credit rating, and an imperfect driving record. Due to the fact that each insurance company has a different process to establish rates, getting updated rate quotes will most likely result in a significantly different list of the cheapest car insurance companies in Columbus as shown below.
Merchants Insurance Group now has the best auto insurance rate in Columbus with Cincinnati Insurance, Motorists Mutual, Grange Mutual, and General Casualty also being competitive. This example shows why drivers need to shop around when trying to get the most affordable auto insurance rates for teenagers.
Rates are calculated by many risk factors and change dramatically, so the most affordable company the last time you compared rates may now be wasting a lot of money.