The words “bargain” and “insurance” probably shouldn’t be used together, especially when trying to find the lowest insurance prices for a learners permit. Let’s introduce you to some situations that have an effect on car insurance prices, and come up with some ways to reduce the cost of the next policy you buy.
The type of vehicle you are trying to insure is probably the most important factor when comparing quotes for the best coverage for a learners permit. Vehicles with limited top-end speed, an excellent safety record, or a positive history of liability claims will cost quite a bit less to insure than adrenaline junky models.
The table below estimates car insurance premiums for a handful of the cheapest automobiles to buy insurance for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $2,967 |
| Honda CR-V EX 2WD | $2,973 |
| Ford Escape XLS 4WD | $2,967 |
| Hyundai Elantra GLS Touring Station Wagon | $2,972 |
| Jeep Wrangler Sport 4WD 2-Dr | $3,118 |
| Toyota Prius | $3,214 |
| Honda Odyssey LX | $3,305 |
| Dodge Grand Caravan CV | $3,334 |
| Ford Explorer XLT 2WD | $3,343 |
| Volkswagen Jetta 2.0T Station Wagon | $3,401 |
| Ford Edge Limited 2WD | $3,493 |
| Ford Fusion S 4-Dr Sedan | $3,521 |
| GMC Sierra SLE Crew Cab 2WD | $3,530 |
| Chevrolet Equinox LS AWD | $3,521 |
| Toyota RAV4 Limited 2WD | $3,528 |
| Chevrolet Impala LT | $3,521 |
| Chevrolet Malibu LS | $3,527 |
| Ford F-150 XLT Crew Cab 4WD | $3,552 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $3,557 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $3,552 |
| Chevrolet Silverado LS Regular Cab 2WD | $3,598 |
| Honda Civic EX 4-Dr Sedan | $3,680 |
| Nissan Altima 2.5 S 4-Dr Sedan | $3,708 |
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Prices above based on single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in vehicle garaging location which can influence premium rates greatly.
Looking at the numbers, cars like the Honda Accord, Honda CR-V, Ford Escape, Hyundai Elantra, and Jeep Wrangler will be some of the most affordable vehicles to insure for new drivers. Prices will be higher anyway just because there is a higher risk for a learners permit, but generally speaking those particular models will have the best insurance prices possible.
One of the many things that aid in calculating car insurance rates is where you call home in San Diego. More densely populated places are more likely to have higher rates, whereas areas that tend to be more rural have the benefit of cheaper car insurance.
The illustration below ranks the highest-priced places in California for a learners permit to buy an auto insurance policy in. San Diego shows up at #24 with the annual price of $1,327 on average, which is around $111 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Los Angeles | $2,168 |
| 2 | Glendale | $2,058 |
| 3 | San Francisco | $1,745 |
| 4 | Oakland | $1,704 |
| 5 | Sacramento | $1,652 |
| 6 | San Bernardino | $1,628 |
| 7 | Stockton | $1,588 |
| 8 | Long Beach | $1,578 |
| 9 | Garden Grove | $1,570 |
| 10 | Fontana | $1,566 |
| 11 | Santa Clarita | $1,548 |
| 12 | Moreno Valley | $1,536 |
| 13 | Modesto | $1,532 |
| 14 | Fresno | $1,502 |
| 15 | Santa Ana | $1,497 |
| 16 | Riverside | $1,482 |
| 17 | Anaheim | $1,444 |
| 18 | Huntington Beach | $1,416 |
| 19 | San Jose | $1,395 |
| 20 | Bakersfield | $1,381 |
| Quote Best Rates Go | ||
Premium amounts are comparative as the vehicle garaging location can influence insurance rates substantially.
The information below highlights how deductible selection can affect insurance prices when researching cheap insurance for a learners permit. Data assumes a single female driver, full coverage, and no discounts are taken into consideration.
The data above shows that a 50-year-old driver could lower their car insurance rates by $476 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $712 by changing to a $1,000 deductible. Even younger drivers, like the 20-year-old, could roll back prices as much as $1,216 or even more by using a higher deductible.
When choosing a higher deductible, it is essential to have enough funds in savings to enable you to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Liability-only versus full coverage
Saving money when shopping for insurance should be important to most drivers, and a good way to pay less for insurance for a learners permit is to only buy liability insurance. The example below shows the difference between insurance premiums when comparing full coverage to liability only. The costs are based on no violations or claims, $1,000 deductibles, single status, and no other discounts are factored in.
If all age groups are averaged, comp and collision coverage costs an extra $1,849 per year more than buying just liability insurance. That may make you wonder when is the right time to remove full coverage. There is no clear-cut rule of when to exclude physical damage coverage, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than about 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.
For example, let’s say your vehicle’s book value is $6,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $5,500 after paying your deductible. If you are currently paying more than $550 a year for your policy with full coverage, the it may be a good time to stop paying for full coverage.
There are a few cases where only buying liability is not recommended. If you haven’t satisfied your loan, you have to maintain full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should keep full coverage on your policy.
Why you are probably overpaying for car insurance
California insurance rates are impacted by many things which can significantly increase or decrease the price you have to pay for coverage. Turning one year older, buying a home instead of renting, or getting a driving violation may generate price changes that can cause some rates to be more affordable than the competition. Not only may things change on your end, but insurance companies file new California auto insurance rates without warning to help ensure profitability. An extended period of higher than normal claims can result in rate hikes, while better underwriting may produce cheaper San Diego car insurance rates.
For instance, the graph below demonstrates which company has the cheapest car insurance in San Diego, CA for a 40-year-old male driver with no accidents, a clean driving record, and a good credit rating. If we estimate rates based on his personal risk profile, USAA quotes the best car insurance rates in San Diego at $1,140 per year. This is $511 less than the average premium paid by California drivers of $1,651. Wawanesa, CSAA, Nationwide, and Century National round out the rest of the top five cheapest San Diego, CA auto insurance companies.
Let’s now give the driver in the first example a claim or two, a lower credit rating, and a stop sign violation. Because each company has a proprietary formula for setting rates, analyzing rate quotes could now result in a different ranking of affordable San Diego car insurance companies as shown below.
Grange now has the cheapest rate in San Diego, CA with Progressive, Allstate, Mercury, and GEICO completing the list. This demonstrates why it is critical to shop around when trying to find the most economical auto insurance rates for a learners permit. Car insurance prices are influenced by many things and can decrease or increase without notice, so the cheapest option the last time you shopped your coverage around may now cost much more than other companies.