You have probably watched the commercials from auto insurance companies like Farmers, GEICO, and State Farm that claim dirt cheap rates. So drivers just need to choose the one with the most memorable commercial, right?
Regrettably, it’s not quite that easy, as there are a whole slew of unknowns like the neighborhood you live in, how well you maintain your credit, and your gender, that all impact the cost of your policy. This article will discuss the best ways to find cheap car insurance and also should give you a good beginning to your search for cheaper coverage.
For veterans, one of the largest components that determine car insurance rates is where you call home in San Diego. Cities with larger populations tend to pay more, whereas more rural areas can boast about having cheaper rates.
The information below sorts the most expensive areas in California for retired military to purchase car insurance in. San Diego is listed at #24 with an annual rate of $1,340 on average, which is about $112 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Los Angeles | $2,146 |
| 2 | Glendale | $2,058 |
| 3 | Oakland | $1,738 |
| 4 | Sacramento | $1,703 |
| 5 | San Francisco | $1,693 |
| 6 | San Bernardino | $1,628 |
| 7 | Santa Clarita | $1,595 |
| 8 | Fontana | $1,581 |
| 9 | Long Beach | $1,578 |
| 10 | Stockton | $1,541 |
| 11 | Moreno Valley | $1,536 |
| 12 | Riverside | $1,527 |
| 13 | Fresno | $1,517 |
| 14 | Garden Grove | $1,508 |
| 15 | Modesto | $1,502 |
| 16 | Santa Ana | $1,453 |
| 17 | Anaheim | $1,430 |
| 18 | San Jose | $1,423 |
| 19 | Huntington Beach | $1,416 |
| 20 | Bakersfield | $1,381 |
| 21 | Irvine | $1,371 |
| 22 | Chula Vista | $1,350 |
| 23 | Fremont | $1,348 |
| 24 | San Diego | $1,340 |
| 25 | Oxnard | $1,304 |
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Rates are estimated as zip code location can change premiums considerably.
The vehicle model that needs insurance is one of the main factors when comparing the most affordable insurance for retired military. Vehicles with lots of speed or power, a lack of safety features, or high incidents of liability claims will cost substantially more to insure than safer models. The table below shows car insurance prices for some of the cheapest automobiles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $679 |
| Ford F-150 XLT Crew Cab 2WD | $763 |
| Chevrolet Equinox LS 2WD | $805 |
| Honda Odyssey LX | $828 |
| Ford Escape Limited 4WD | $830 |
| Ford Edge Sport AWD | $848 |
| Ford Explorer Eddie Bauer 2WD | $857 |
| Toyota Prius | $852 |
| Ford Fusion Sport 4-Dr Sedan | $864 |
| Toyota Tacoma Double Cab 4WD | $876 |
| Chevrolet Malibu LS | $886 |
| Volkswagen Jetta S 4-Dr Sedan | $876 |
| Chevrolet Impala LS | $878 |
| Dodge Grand Caravan Crew | $894 |
| Toyota RAV4 Sport 2WD | $898 |
| Honda Accord LX-S 2-Dr Coupe | $906 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $913 |
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Data based on married male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, homeowner, multi-policy, multi-vehicle, and safe-driver. Information does not factor in specific garaging location which can decrease or increase insurance rates considerably.
Looking at the rates, we can assume that vehicles like the Honda CR-V, Ford F-150, and Chevrolet Equinox are most likely to be the cheapest vehicles to insure for veterans.
Liability only or full coverage
Saving money on insurance is important to most people, and one good way to buy cheap insurance for retired military is to only buy liability coverage. The chart below illustrates the difference between auto insurance costs with and without full coverage. The information is based on no violations or claims, $500 deductibles, single status, and no additional discounts are factored in.
If we average all the age groups together, physical damage coverage costs $2,273 per year more than insuring for liability only. Many drivers will wonder if buying full coverage is a good investment. There is no specific rule for dropping full coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than around 10% of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $7,500 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most your company would pay you is $6,500 after the policy deductible has been paid. If you are paying in excess of $650 a year to have full coverage, then you may want to consider only buying liability coverage.
There are some situations where dropping full coverage is not a good idea. If you still have a lienholder on your title, you have to carry full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not eliminate full coverage.
The illustration below demonstrates how deductibles can influence yearly insurance costs when getting quotes for cheap insurance for retired military. The rates are based on a single female driver, comprehensive and collision coverage, and no discounts are factored in.
In the chart above, a 50-year-old driver could reduce rates by $350 a year by changing from a $100 deductible up to a $500 deductible, or save $530 by changing to a $1,000 deductible. Even younger insureds, such as the 20-year-old example, could drop their prices $888 annually just by using higher deductibles. When choosing a higher deductible, it is a good idea to have additional savings on hand to enable you to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Why you should be shopping around
California insurance rates are impacted by many things which can substantially change the price you have to pay. Simply getting older, buying higher coverage limits, or having an at-fault accident can cause premium changes that can cause some rates to be cheaper than before. And not only may your rating factors change, but auto insurance companies change prices as often as every quarter in order to remain profitable. Heavier than normal losses may cause additional premium costs, while lower claim expenses can cause lower-cost San Diego car insurance rates.
As an example, the chart below shows rates for the cheapest car insurance in San Diego, CA for a 40-year-old female driver with no violations or accidents, and a high credit rating. Based on her current risk factors, USAA may have the best car insurance rates in San Diego at $1,151 a year. This is $500 less than the average policy premium paid by California drivers of $1,651. Wawanesa, CSAA, Century National, and Nationwide are the remaining most affordable San Diego, CA auto insurance companies.
Now we will give the driver from the first set of rates an accident surcharge, bad credit, and a couple of points charged on her driving record. Due to the fact that every insurance company has a proprietary method to set their prices, analyzing rate quotes may result in a substantially altered list of affordable companies as shown below.
Grange now has the best car insurance rate in San Diego, CA with Progressive, Allstate, Mercury, and GEICO now rounding out the top five. This example shows why California drivers need to compare rates to find the cheapest car insurance quotes for retired military. Auto insurance prices can be altered by many factors and change dramatically, so the best price when you last compared rates may now be costing you a lot of money.
The professional agents shown below can help you make a decision which policy fits your needs best, since some drivers wish to get some professional advice when shopping around for cheaper insurance for retired military. It’s not always easy to find the best policy on your own, and professional agents can give you satisfaction knowing your coverage gives you adequate coverage if you have an accident or claim. To locate a San Diego insurance agent close to where you live, click the link after the list.
- Leavitt Insurance Agency of San Diego
380 Stevens Ave – Solana Beach, CA 92075 – (858) 259-5800 - Barney and Barney Insurance Services LLC
9171 Towne Centre Dr Suite 500 – San Diego, CA 92122 – (800) 321-4696 - Rod Thelen – State Farm Insurance Agent
110 W A St #775 – San Diego, CA 92101 – (619) 234-4882 - Steve Elder – State Farm Insurance Agent
9225 Mira Mesa Blvd #208d – San Diego, CA 92126 – (858) 271-8928 - Rubin Insurance
6363 Greenwich Dr #120 – San Diego, CA 92122 – (858) 457-5720