The words “cheap” and “insurance” probably shouldn’t be used in the same sentence, specifically when you are trying to find the cheapest auto insurance for drivers under 25. Because it’s so expensive, let’s take a look at a few of the things that have a considerable impact on auto insurance premiums, and find out if you can take the bite out of the next policy you buy.
Establishing which company has the most affordable insurance rates for drivers under 25 calls for a bit more effort in order to find the most economical policy.
Each auto insurance company has their own formula to set premium rates, so let’s examine the insurance companies with the most affordable rates in Virginia Beach. It’s a good idea to be aware that Virginia Beach insurance rates are calculated based on many things that will increase or decrease your annual premium. Improving your credit score, getting married, or getting a speeding ticket can trigger rate changes resulting in some companies being cheaper than competitors.
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|Rank||Company||Cost Per Year|
|9||Virginia Farm Bureau||$834|
|15||National Grange Mutual||$1,071|
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Travelers quotes some of the most affordable car insurance rates in Virginia Beach at around $673 each year. USAA, Cincinnati Insurance, Penn National, and Utica National also are some of the more affordable Virginia Beach, VA auto insurance companies.
As the example above demonstrates, if you currently buy coverage from USAA and switched to Travelers, you may realize a yearly savings of in the neighborhood of $22. Insureds with Cincinnati Insurance may save as much as $68 a year, and Penn National customers might lower prices by up to $75 a year.
It’s important to note that these premiums are averaged across all ages of drivers and types of vehicles and are not factoring in an exact location for drivers under 25. So the insurer that can offer you the lowest price may not even be in the top 30 companies in the list above. That is why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.
For drivers age 25 and younger, one of the largest components that aid in calculating the amount you pay for auto insurance is where you normally keep your vehicle. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with less congestion can boast about having cheaper rates.
The illustration below rates the most costly cities in Virginia for drivers under 25 in which to buy car insurance. Virginia Beach makes the list at #19 with the yearly price of $910 on average, which is around $76 per month.
|Rank||City||Premium Per Year|
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Prices are comparative as specific location information can raise or lower price quotes substantially.
The vehicle you are insuring is one of the primary factors that determines the availability of low-cost auto insurance for drivers under 25. Vehicles with economical engines, an excellent safety record, or a low likelihood of liability claims will cost substantially less to insure than high performance models. The information below outlines auto insurance costs for a handful of the cheaper automobiles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$3,044|
|Honda CR-V EX 2WD||$3,052|
|Ford Escape XLT 2WD||$3,044|
|Ford F-150 STX Regular Cab 4WD||$3,389|
|Dodge Grand Caravan SE||$3,394|
|Ford Edge SEL 2WD||$3,570|
|Honda Civic DX 4-Dr Sedan||$3,579|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$3,614|
|Volkswagen Jetta LE 4-Dr Sedan||$3,616|
|Toyota RAV4 Limited 4WD||$3,626|
|Chevrolet Malibu Hybrid||$3,616|
|Dodge Ram Quad Cab ST 2WD||$3,645|
|Toyota Tacoma Double Cab 4WD||$3,660|
|Ford Explorer Limited 4WD||$3,666|
|Toyota Corolla XLE||$3,843|
|Chevrolet Impala LTZ||$3,850|
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Price data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Virginia minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in zip code location which can lower or raise rates significantly.
Looking at the data, you can presume that cars like the Hyundai Elantra, Honda CR-V, and Ford Escape are most likely going to be the cheaper vehicles to insure for drivers age 25 and younger. Car insurance rates will be more costly just due to the fact that there is more liability exposure for drivers under 25, but in general those models will tend to have the cheapest auto insurance rates compared to other vehicles.
Full coverage versus liability only rates
Saving money on insurance is important to most drivers, and a great way to reduce the cost of insurance for drivers under 25 is to not pay for full coverage. The diagram below shows the comparison of insurance prices with liability coverage only compared to full coverage. The rates are based on no accidents or driving violations, $100 deductibles, drivers are single, and no policy discounts are applied.
Averaged for all age groups, comp and collision coverage costs an additional $1,481 per year more than insuring for liability only. At some point, every insured wonders if buying full coverage is a good investment. There is no specific rule of when to exclude physical damage insurance, 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 you might want to think about dropping full coverage.
There are some circumstances where dropping physical damage coverage is not financially feasible. If you still owe a portion of the original loan, you must maintain physical damage coverage to protect the lienholder’s interest in the vehicle. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not remove full coverage.
The diagram below demonstrates how choosing different deductibles can affect insurance rates when trying to find cheap insurance for drivers under 25. Data assumes a single male driver, comp and collision included, and no discounts are applied.
The chart above illustrates that a 40-year-old driver could reduce rates by $212 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $320 by using a $1,000 deductible. Even younger insureds, like the Age 20 category, could shave up to $694 each year by choosing a higher deductible. If you do make the decision to raise your deductibles, it is necessary to have enough savings set aside to cover the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
How to get discounts on Virginia Beach car insurance rates
Insurers that provide coverage for drivers under 25 may have discounts that may potentially lower prices by 40% or more if you meet the requirements. A list of companies and the discounts they provide can be found below.
- GEICO includes discounts for federal employee, emergency military deployment, five-year accident-free, seat belt use, membership and employees, driver training, and multi-vehicle.
- MetLife may have discounts that include good student, good driver, defensive driver, accident-free, claim-free, and multi-policy.
- State Farm offers discounts for defensive driving training, passive restraint, good student, multiple policy, good driver, anti-theft, and student away at school.
- Progressive discounts include homeowner, online quote discount, multi-vehicle, multi-policy, good student, and online signing.
- Mercury Insurance has discounts for good driver, accident-free, professional/association, multi-car, low natural disaster claims, and location of vehicle.
- 21st Century has savings for driver training, defensive driver, air bags, theft prevention, anti-lock brakes, and automatic seat belts.
- Allstate offers premium reductions for passive restraint, farm vehicle, good payer, multi-policy, safe driver, and premier plus.
The illustration below illustrates the comparison of insurance rates with and without some available policy discounts. The rates are based on a male driver, no claims or violations, Virginia state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with good student, paperless filing, paid-in-full, vehicle safety, anti-theft, and passive restraint discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on insurance for drivers under 25 is 18% or $369.