One of the many considerations that aid in calculating the cost of insurance is where you choose to live. Areas with a lot of weather claims or more people are more likely to pay higher prices, whereas areas with lower vehicle theft rates and fewer weather claims tend to receive cheaper rates.
The table below lists the most expensive places in Nebraska for 16 year olds to buy car insurance in. Lincoln comes in at #24 having an annual price of $1,095 for coverage, which is approximately $91 each month.
|5||South Sioux City||$1,290|
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Table data uses estimated as vehicle location can modify premium rates considerably.
The vehicle on the policy is a large factor when trying to find low-priced auto insurance for 16 year olds. Vehicles with average performance, advanced safety features, or a positive history of liability claims will cost much less to insure than fast, unsafe models.
The next table features car insurance prices for a handful of the cheapest automobiles to insure in Nebraska.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$3,086|
|Honda CR-V LX 4WD||$3,095|
|Jeep Wrangler Sport 4WD 2-Dr||$3,258|
|Honda Accord EX-L 4-Dr Sedan||$3,302|
|Volkswagen Jetta S 2.5 Station Wagon||$3,310|
|Ford F-150 XL Super Cab 4WD||$3,474|
|Dodge Grand Caravan Hero||$3,662|
|Chevrolet Equinox LT AWD||$3,671|
|Toyota RAV4 Limited 4WD||$3,662|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$3,690|
|Ford Explorer Limited 2WD||$3,699|
|Chevrolet Malibu LT||$3,690|
|Dodge Ram Quad Cab ST 2WD||$3,784|
|Ford Focus SES 4-Dr Sedan||$3,822|
|Honda Civic VP 4-Dr Sedan||$3,830|
|Hyundai Elantra Blue 4-Dr Sedan||$3,822|
|Toyota Camry SE||$3,850|
|Honda Odyssey EX-L||$3,857|
|Ford Edge Sport 2WD||$3,850|
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Data variables include single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in Lincoln, NE location which can influence coverage prices substantially.
Looking at the numbers, cars like the Ford Escape, Honda CR-V, Jeep Wrangler, and Honda Accord are likely to be some of the most economical vehicles to insure for new drivers. Auto insurance rates will be more expensive just because there is a higher risk for 16 year olds, but overall those vehicles will tend to have the least expensive rates compared to other vehicles.
How much more does full coverage cost in Lincoln?
Paying a lower price for auto insurance is important to the majority of drivers, and one of the easiest ways to pay less for insurance for 16 year olds is to not buy comprehensive and collision coverage. The chart below visualizes the comparison of insurance costs with liability coverage only compared to full coverage. The premiums are based on no accidents or driving violations, $100 deductibles, single marital status, and no other discounts are factored in.
If averaged for all ages, full coverage costs an additional $1,722 per year more than insuring for liability only. Many drivers will wonder when is the right time to remove full coverage. There is no set guideline of when to drop comprehensive and collision coverage on your policy, but there is a general convention. If the annual cost of coverage is about 10% or more of replacement cost minus your deductible, then you may want to consider only buying liability coverage.
For example, let’s assume your vehicle’s claim settlement value is $5,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would receive is $4,500 after you pay the deductible. If it’s costing you more than $450 annually for physical damage coverage, then it might be time to buy liability only.
There are some circumstances where only buying liability is not a good plan. If you still have a loan on your vehicle, you have to carry full coverage in order to satisfy the requirements of the loan. Also, if you don’t have enough money to buy a different vehicle in case of an accident, you should not opt for liability only.
The illustration below shows how choosing a deductible can affect insurance costs when quoting cheap insurance for 16 year olds. The data assumes a single female driver, comp and collision included, and no policy discounts are applied.
In the chart above, a 50-year-old driver could save $236 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $358 by changing to a $1,000 deductible. Youthful drivers, like the 20-year-old example, could drop their prices as much as $602 or more just by choosing larger deductibles. If you do decide to increase your deductibles, it is important to have enough funds in savings to offset the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Don’t make the mistake of not shopping around
Lincoln auto insurance rates are impacted by many factors that control the price of coverage. Simply turning a year older, having a claim, or getting a driving violation can trigger changes in premium that may make certain companies cheaper than competitors. In addition, insurers change their prices as often as every quarter to adjust for heavy claims or excess profits. A period of increased losses may cause price increases, while lower claim expenses may cause lower-priced Lincoln car insurance rates.
To help illustrate this point, the data below analyzes the cheapest car insurance in Lincoln, NE for a 30-year-old female driver with no accidents or violations, and excellent credit. When quoting prices based on her personal profile, Safeco might quote the cheapest car insurance rates in Lincoln at $804 per year. This is $512 less than the average premium paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual are the rest of the top five cheapest Lincoln, NE auto insurance companies.
Now let’s give the driver in the first example a chargeable accident, a lower credit score, and a traffic citation. Since each company has a unique formula to set policy rates, analyzing rate quotes could now result in a substantially altered list of the cheapest companies as shown below.
Nationwide now has the best auto insurance rate in Lincoln, NE with State Farm, American National, General Casualty, and USAA completing the list. This example shows why it is critical to shop around with many companies when trying to find affordable car insurance quotes for 16 year olds. Car insurance prices are impacted by many risk factors and can change without notice, so the cheapest option the last time you checked may now cost much more than other companies.
If you wish to get some guidance when shopping for the best coverage for 16 year olds, the agents shown below are willing to help you make a decision which car insurance policy is best. To find an auto insurance agency near you, click the button after the list.
State Farm – Lincoln – Steve Lang
1401 N 66th St Suite 206 – Lincoln, NE 68505 – (402) 467-2272
Paul Johnson – State Farm Insurance Agent
5533 S 27th St #204 – Lincoln, NE 68512 – (402) 420-2288
Sarah Kohlhof – State Farm Insurance Agent
1221 N Cotner Blvd #2 – Lincoln, NE 68505 – (402) 466-8245