The words “low-cost” and “insurance” probably shouldn’t be used together, in particular when you are trying to find the best car insurance rates for young drivers. To save some money, let’s start off by going over a few of the factors that have an effect on insurance rates, and see if we can help you take a little off the next policy you buy.
Establishing which company has the best car insurance rates for young drivers will take a bit more effort in order to find coverage that fits your budget. Every insurance provider uses a slightly different approach for establishing rates, so let’s take a look at the most budget-friendly car insurance companies in Scottsdale, AZ.
Find Cheaper Auto Insurance for Teens
|Rank||Company||Cost Per Year|
|11||Farm Bureau Mutual||$1,259|
|Find Cheaper Rates Go|
The Hartford may have some of the lowest car insurance rates in Scottsdale at around $845 each year. Safeco, Auto-Owners, USAA, and Travelers also are some of the cheapest Scottsdale, AZ auto insurance companies.
As shown in the table above, if you are insured with Safeco and switched to The Hartford, you could see a yearly price reduction of in the vicinity of $60. Insureds with Auto-Owners could save as much as $79 a year, and USAA customers might lower prices by up to $235 a year.
If you want to see how much you could save, click here to start your custom quote or feel free to get quotes from the companies below.
These estimates are averaged for all drivers and vehicles and do not take into consideration a specific zip code for young drivers. So the company that fits your situation best may not even be in the list above. That’s why you need to get auto insurance quotes using your own driver information and specific vehicle type.
For youthful drivers, one of the largest things that are used to help calculate the amount you pay for auto insurance is where you live in Scottsdale. Areas with more people or more claims tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims benefit from lower coverage costs.
The table below lists the most costly cities in Arizona for young drivers to buy an auto insurance policy in. Scottsdale is listed at #5 with an annual cost of $1,163 for car insurance, which is approximately $97 per month.
|3||San Tan Valley||$1,185|
|Compare Prices Now Go|
Price information shown is estimated as specific Scottsdale garaging address can affect rates significantly.
Impact of speeding/accidents on Scottsdale car insurance rates
The recommended way to earn affordable car insurance prices in Scottsdale for youthful drivers is to drive safe and avoid tickets and accidents. The chart below illustrates how violations and fender-benders influence auto insurance costs for different age groups. The data is based on a single male driver, full physical damage coverage, $1,000 deductibles, and no discounts are factored in.
The data charted above shows the average cost of a car insurance policy per year with no accidents and a clean driving record is $1,263. Receive two speeding tickets and the average cost increases to $1,660, an increase of $397 each year. Now include two accidents along with the two speeding tickets and the annual cost of car insurance for young drivers goes up to an average of $3,322. That’s an increase of $2,060, or $172 per month, just for not driving safely!
Should you buy full coverage?
Finding cheaper car insurance should be important to most people, and one way to reduce the cost of insurance for young drivers is to only buy liability coverage. The information below shows the difference between car insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data is based on no accidents, no driving violations, $500 deductibles, marital status is single, and no other discounts are factored in.
On average, comp and collision coverage costs an additional $1,417 per year more than just buying liability only. A very common question is if you should buy full coverage. There isn’t a steadfast formula that is best for determining when to drop full coverage, but there is a general school of thought. If the yearly cost for physical damage coverage is about 10% or more of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s book value is $4,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company would pay you is $3,500 after the policy deductible has been paid. If it’s costing in excess of $350 annually to have full coverage, then it may be the right time to buy liability only.
There are some cases where dropping physical damage coverage is not a good idea. If you haven’t satisfied your loan, you must maintain physical damage coverage to protect the lienholder’s interest in the vehicle. Also, if your finances do not allow you to purchase a different vehicle in the event your current vehicle is totaled, you should keep full coverage.
The diagram below demonstrates how choosing different deductibles can change insurance rates when getting quotes for cheap insurance for young drivers. The rate quotes are based on a married female driver, comp and collision included, and no discounts are factored in.
The chart above illustrates that a 30-year-old driver could lower their car insurance rates by $322 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $484 by choosing a $1,000 deductible. Even younger insureds, such as the 20-year-old chart data, could save $684 annually just by choosing larger deductibles. If you make the decision to raise deductibles, it will be required to have emergency funds available to enable you to pay the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Ideas to find budget-friendly insurance for young drivers
Below you’ll find some penny-pinching ideas that can help Arizona drivers locate cheaper car insurance.
- Do not get into accidents
- Raise your physical damage coverage deductibles
- Drive vehicles with five-star safety ratings
- Good credit can help you save money
- Drop full coverage on older vehicles
- Save money by obeying traffic laws and keeping a clean driving record
- Compare rates often to find the best deal
The last idea is highly valuable, as we discussed in this write-up. Car insurance rates change frequently, so don’t be afraid to change to a new company if you can find a cheaper rate. We understand brand loyalty, but it’s not a good idea if it’s costing you money that could be spent on other things. Spend a few minutes and compare prices to find cheaper insurance for young drivers in Scottsdale.
The insurance agencies below are a good start to aid you in deciding which insurance coverage will be best for you, as some drivers have questions and prefer to have professional advice when comparing insurance rates for youthful drivers. It can be difficult to find the cheapest rates, so getting professional guidance from a licensed agent can add comfort knowing you have suitable coverage if you ever need to use it.
To locate an agency close to you, click the link at the bottom or click here to compare rates now.
J B Martin Insurance Agency
4835 E Cholla St – Scottsdale, AZ 85254 – (480) 423-7444
Steve Fair – State Farm Insurance Agent
33717 N Scottsdale Rd #101 – Scottsdale, AZ 85266 – (480) 563-2710
Ric Newman – State Farm Insurance Agent
10401 E McDowell Mountain Ranch Rd #110 – Scottsdale, AZ 85255 – (480) 860-2121