It’s impossible to miss the ads from car insurance companies like Allstate, Nationwide, and Progressive that claim big savings, so you should just pick one at random, right?
It’s not that easy, however, as there are many unknown factors such as if you have maintained coverage continuously, how high your deductibles should be, and what liability limits you need. This article should teach you a little about the best ways to avoid overpriced car insurance and should give you some help in finding cheaper rates.
The make and model of vehicle needing coverage is one of the biggest factors when quoting the most economical auto insurance for a learners permit. Vehicles with economical engines, advanced safety features, or a low likelihood of liability claims will cost significantly less to insure than high performance models. The next list showcases car insurance costs for a handful of the more affordable vehicles to insure.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape Limited 2WD||$6,260|
|Honda CR-V EX-L 2WD||$6,267|
|Honda Accord EX-L 4-Dr Sedan||$6,639|
|Hyundai Elantra SE Touring Station Wagon||$6,648|
|Ford Explorer XLT AWD||$6,975|
|Jeep Wrangler Rubicon 4WD 2-Dr||$6,980|
|Volkswagen Jetta 2.0T Station Wagon||$7,082|
|Honda Odyssey EX W/Rear Entertainment||$7,295|
|Toyota RAV4 Limited 2WD||$7,354|
|Toyota Camry LE||$7,364|
|Chevrolet Equinox LS 2WD||$7,354|
|Dodge Grand Caravan Hero||$7,364|
|Nissan Altima 2.5 4-Dr Sedan||$7,354|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$7,415|
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Above prices assume single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Arizona minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in vehicle garaging location which can modify auto insurance rates greatly.
Looking at the data, we can expect cars like the Ford Escape, Honda CR-V, Honda Accord, Hyundai Elantra, and Toyota Prius are likely to be the most economical vehicles to insure for new drivers. Auto insurance rates will trend higher because of the fact that there is more risk for a learners permit, but generally speaking those specific models will tend to have the cheapest car insurance rates compared to other types of vehicles.
One of the many criteria that are used to help calculate auto insurance rates is the neighborhood you call home in Scottsdale. Cities with larger populations or higher claim trends are more likely to have higher rates, whereas areas that tend to be more rural tend to receive slightly lower rates.
The information below rates the priciest cities in Arizona for a learners permit in which to purchase auto insurance. Scottsdale comes in at #4 costing $1,163 for coverage, which is approximately $97 each month.
|Rank||City||Average Per Year|
|5||San Tan Valley||$1,150|
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Rates are comparative as the garaging address in Scottsdale can increase or decrease insurance rates substantially.
Cost comparison with and without full coverage
Saving money on car insurance is important to most people, and a great way to buy cheap insurance for a learners permit is to buy only liability coverage. The information below shows the difference between yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The costs are based on a clean driving record, no claims, $500 deductibles, single marital status, and no discounts are factored in.
If the expense is averaged for all age categories, comprehensive and collision coverage on your policy costs $1,417 per year more than just buying liability only. At some point, almost every driver questions if buying full coverage is worth the money. There is no specific rule of when to phase out comp and collision coverage, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is more than 10% of the vehicle’s replacement cost less your deductible, then you might want to consider buying only liability coverage.
There are some situations where buying only liability insurance is not recommended. If you still owe money on your vehicle, you have to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you don’t have enough money to buy a different vehicle if your current one is in an accident, you should not consider dropping full coverage.
The chart below demonstrates how deductibles can influence annual premium costs when getting quotes for cheap insurance for a learners permit. The rate quotes are based on a married male driver, full physical damage coverage, and no discounts are applied to the premium.
As shown above, a 50-year-old driver could lower rates by $282 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $424 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old category, could reduce their rates up to $950 each year by choosing larger deductibles on their policy. When using a larger deductible, it will be important to have plenty of savings on hand to allow you to cover the extra out-of-pocket expense that is associated with using high deductibles.
Insuring your vehicle with a good quality insurer can be challenging considering how many companies there are to choose from in Scottsdale. The information shown below can help you select which auto insurers to look at when comparing rates.
These ratings are only made up of the largest companies in America, so smaller companies are not factored into this list. If you wish to compare rates from these top insurers and more, just click here.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies