The words “affordable” and “auto insurance” really shouldn’t be used in the same sentence, especially when shopping around for the lowest insurance prices for drivers under 25. Because of the high cost, let’s teach you some things the can have a considerable influence on auto insurance premiums, and figure out some ideas to reduce the price of your next policy.
The vehicle model you are insuring is probably the biggest factor that determines whether or not you find affordable auto insurance for drivers under 25. Vehicles with higher performance characteristics, a lack of safety features, or a track record of large liability claims will cost quite a bit more to insure than safer, lower-performance models. The next table ranks car insurance premiums for a number of the cheapest automobiles to insure in California.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX-P 4-Dr Sedan | $3,058 |
| Ford Escape XLS 4WD | $3,065 |
| Honda CR-V EX 2WD | $3,058 |
| Toyota Prius | $3,344 |
| Chevrolet Silverado LS Regular Cab 4WD | $3,384 |
| Ford F-150 STX Regular Cab 2WD | $3,394 |
| Chevrolet Impala LS | $3,580 |
| Jeep Grand Cherokee Laredo 4WD | $3,625 |
| Toyota RAV4 Limited 4WD | $3,631 |
| Chevrolet Equinox LT 2WD | $3,625 |
| Toyota Camry LE | $3,634 |
| Ford Explorer Eddie Bauer AWD | $3,670 |
| Dodge Grand Caravan SXT | $3,675 |
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Above prices assume single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in San Francisco, CA location which can change premiums noticeably.
Based upon the table data, we can infer that cars like the Honda Accord, Ford Escape, Honda CR-V, Toyota Prius, and Chevrolet Silverado are likely to be some of the less-costly vehicles to insure for drivers age 25 and younger. The cost of a car insurance policy will tend to be more expensive anyway just due to the fact that there is more risk for drivers under 25, but generally speaking those models will probably have the least expensive rates available.
One of the more important things that are looked at to help calculate the amount you pay for auto insurance is where you normally keep your vehicle in San Francisco. More densely populated places will most likely have higher rates, whereas areas with less crime or weather claims benefit from having to pay less for coverage.
The following table sorts the priciest cities in California for drivers under 25 in which to purchase auto insurance. San Francisco shows up at #3 having an annual price of $1,763 on average, which is around $147 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Los Angeles | $2,146 |
| 2 | Glendale | $2,121 |
| 3 | San Francisco | $1,763 |
| 4 | Oakland | $1,738 |
| 5 | Sacramento | $1,652 |
| 6 | San Bernardino | $1,644 |
| 7 | Long Beach | $1,626 |
| 8 | Santa Clarita | $1,595 |
| 9 | Stockton | $1,588 |
| 10 | Fontana | $1,581 |
| 11 | Moreno Valley | $1,536 |
| 12 | Modesto | $1,532 |
| 13 | Garden Grove | $1,508 |
| 14 | Riverside | $1,497 |
| 15 | Fresno | $1,457 |
| 16 | Santa Ana | $1,453 |
| 17 | Anaheim | $1,444 |
| 18 | Huntington Beach | $1,416 |
| 19 | Fremont | $1,403 |
| 20 | Bakersfield | $1,394 |
| 21 | San Jose | $1,381 |
| 22 | Irvine | $1,330 |
| 23 | San Diego | $1,327 |
| 24 | Oxnard | $1,318 |
| 25 | Chula Vista | $1,311 |
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Premium costs are estimated as the specific San Francisco residence address can lower or raise coverage prices significantly.
Determining which insurers offer the cheapest insurance rates for drivers under 25 calls for more work in order to find a policy that fits your budget. Each insurer uses a different method to set premium rates, so we’ll go over the most affordable insurance companies in California.
It’s a good idea to be aware that San Francisco insurance rates are impacted by many things that may substantially change the cost of your policy. Simply turning a year older, getting divorced, or having an accident can produce rate changes that can make some companies much cheaper than others.
Find the Best Cheap Insurance for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,155 |
| 2 | CSAA | $1,186 |
| 3 | Wawanesa | $1,192 |
| 4 | Nationwide | $1,213 |
| 5 | Century National | $1,226 |
| 6 | 21st Century | $1,366 |
| 7 | Mercury | $1,488 |
| 8 | Grange | $1,491 |
| 9 | Allstate | $1,497 |
| 10 | GEICO | $1,529 |
| 11 | Allied | $1,541 |
| 12 | Progressive | $1,558 |
| 13 | The Hartford | $1,575 |
| 14 | MetLife | $1,590 |
| 15 | Unitrin | $1,682 |
| 16 | Esurance | $1,688 |
| 17 | State Farm | $1,699 |
| 18 | Bristol West | $1,777 |
| 19 | Travelers | $1,788 |
| 20 | Farmers | $1,966 |
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USAA quotes some of the cheapest car insurance rates in San Francisco at around $1,155 each year. CSAA, Wawanesa, Nationwide, and Century National also are some of the cheapest San Francisco, CA auto insurance companies.
In the above example, if you currently have coverage with Nationwide and switched to CSAA, you could earn a yearly price reduction of upwards of $27. Insureds with Century National might save as much as $40 a year, and 21st Century policyholders might realize rate reductions of up to $180 a year.
Be aware that those prices are averages for all types of drivers and the different vehicles they drive and and are not figured with a specific zip code for drivers under 25. So the insurer that has the cheapest price for you may not even be in the list above. That illustrates why you need to get rate quotes from many companies using your own driver information and specific vehicle type.
Discount San Francisco car insurance rates
Insurers that offer coverage for drivers under 25 may also give you price discounts that can reduce rates by as much as 30% if you meet the requirements. A list of insurance companies and a partial list of their discounts are outlined below.
- State Farm has savings for passive restraint, student away at school, multiple autos, anti-theft, and accident-free.
- Farmers Insurance may include discounts for good student, youthful driver, bundle discounts, early shopping, and switch companies.
- Progressive has discounts for multi-policy, multi-vehicle, good student, homeowner, online quote discount, online signing, and continuous coverage.
- GEICO offers premium reductions for federal employee, good student, daytime running lights, five-year accident-free, and seat belt use.
- Auto-Owners Insurance discounts include good student, paid in full, company car, teen driver, group or association, mature driver, and safe driver.
- The Hartford policyholders can earn discounts including air bag, good student, driver training, anti-theft, vehicle fuel type, and defensive driver.
- Farm Bureau may have discounts that include 55 and retired, youthful driver, renewal discount, good student, driver training, multi-policy, and multi-vehicle.
- USAA offers discounts for defensive driver, multi-vehicle, safe driver, annual mileage, loyalty savings, and good student.
The diagram below shows the comparison of premium costs with and without discounts applied to the policy premium. The data assumes a female driver, a clean driving record, no claims, California state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with anti-theft, paid-in-full, paperless filing, good student, continuous coverage, and passive restraint discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on insurance for drivers under 25 is 21% or $571.
Full coverage rates compared to liability only
Reducing premiums for insurance is important to most people, and one easy way to buy cheaper insurance for drivers under 25 is to not pay for full coverage. The diagram below visualizes the comparison of yearly insurance costs with full coverage and liability only. The costs are based on a clean driving record, no claims, $500 deductibles, drivers are single, and no discounts are applied to the premium.
If we average the cost for all age groups, physical damage coverage on your policy costs $2,075 per year over liability only. That touches on the question if buying full coverage is worth the expense. There is no definitive rule of when to phase out comprehensive and collision coverage on your policy, but there is a guideline you can consider. If the yearly cost for physical damage coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
Your low-price policy may be costing you money
San Francisco insurance rates are impacted by many factors that can increase the price you have to pay for coverage. Simply having a birthday, becoming a homeowner, or getting a reckless driving citation can produce rate changes that can now make some companies cheaper in comparison to the competition. Additionally, insurance companies file new California car insurance rates every year or even multiple times each year in order to be able to pay unexpected claims. Larger than normal claims can cause higher rates, while a better loss history may produce cheaper San Francisco car insurance rates.
The bar chart below shows rates for the cheapest car insurance in San Francisco, CA for a 45-year-old female driver with no prior accidents, a clean driving record, and a good credit rating. If we compare prices based on her current rating profile, USAA quotes the lowest car insurance rates in San Francisco at $1,484 a year. This is $167 less than the average price paid by California drivers of $1,651. Century National, CSAA, Wawanesa, and Nationwide also make the list of the cheapest San Francisco, CA auto insurance companies.
Now let’s give the driver from the above example a couple of claims, a little lower credit rating, and a traffic citation. Since each insurance company has a proprietary formula for setting rates, getting updated rate quotes may result in a substantially altered list of affordable San Francisco car insurance companies as shown below.
Grange now has the best auto insurance rate in San Francisco, CA with Mercury, Progressive, Allstate, and GEICO now being in the top five. This example shows why it is critical to shop around with many companies when trying to find the best insurance quotes for drivers under 25.
Auto insurance prices can be determined by many risk factors and can change without notice, so the most economical option the last time you checked may now cost much more than other companies.
How to find the cheapest insurance for drivers under 25
Lowering your rates is not difficult, and here are some of the better money-saving ideas that can help California drivers find more affordable car insurance.
- Drivers with good credit often pay less
- Ensure your driving record is clean
- Claim-free policyholders usually earn a discount
- Accidents can significantly increase rates
- Choose a safer vehicle and pay lower rates
- Compare rate quotes frequently
The final tip is extremely vital, as we discussed in the prior article. Car insurance prices can be changed at any time, so don’t be unwilling to buy from a new company if a lower price can be found. Sticking with a specific company is fine, but is isn’t recommended if that faithfulness ends up costing you a wad of cash every year. Take a couple minutes and shop around to find cheaper car insurance for drivers under 25 in San Francisco.