You’ve seen the captivating commercials from car insurance companies like Allstate and The General claiming big savings, so you should just pick the one with the best commercial, right?
Unfortunately, it’s just not that easy, as there are many unknowns such as the annual mileage you drive, the deductible level you need, and whether you are married or single, that all go into determining the rate you pay. In this article, we will teach you about some of these things and will hopefully give you a solid foundation to find cheaper car insurance in Lincoln.
For teen drivers, one of the more important things that aid in calculating the cost of insurance is where you normally keep your vehicle in Lincoln. Areas with a lot of weather claims or more people tend to have more expensive auto insurance rates, whereas areas with lower crime rates and fewer weather claims get the luxury of paying less.
The table below ranks the most expensive places in Nebraska for teenagers to buy an auto insurance policy in. Lincoln is listed at #24 with the yearly price of $1,073 for the average policy, which is around $89 monthly.
|6||South Sioux City||$1,290|
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Rate quotes are estimated as the specific geographic location can lower or raise prices noticeably.
The vehicle driven is one of the largest considerations when comparing the best cheap car insurance for teenagers. Vehicles with higher performance, a lack of modern safety features, or a track record of large liability claims will cost substantially more to insure than more modest models.
The data below outlines auto insurance rates for the most cost-effective vehicles to insure.
|Vehicle||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$3,490|
|Honda Accord EX 4-Dr Sedan||$3,499|
|Ford Escape XLS 2WD||$3,490|
|Honda CR-V EX-L 4WD||$3,522|
|Volkswagen Jetta S 2.5 Station Wagon||$3,734|
|Ford Explorer Eddie Bauer 2WD||$3,924|
|Toyota Tacoma 2WD||$4,104|
|Chevrolet Equinox LT 2WD||$4,136|
|Nissan Altima 2.5 4-Dr Sedan||$4,144|
|Dodge Grand Caravan Hero||$4,136|
|Chevrolet Malibu LS||$4,144|
|Toyota RAV4 Limited 2WD||$4,136|
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Data based on single male 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. Rate information does not factor in specific Lincoln, NE garaging location which can alter coverage rates significantly.
Looking at the rates, models like the Hyundai Elantra, Honda Accord, and Ford Escape are a few of the cheaper vehicles to insure for teen drivers. The price for an auto insurance policy will tend to be more expensive anyway just because there is more inherent risk for teenagers, but in general those models will tend to have the cheapest auto insurance rates that you’ll find.
Finding good, budget insurance is not the easiest thing to accomplish, and deciding which companies have the best insurance rates for teenagers takes even more work.
Each insurer uses their own formula to set their prices, so let’s begin by taking a look at the most competitive insurance companies in Lincoln, NE. It’s a good idea to be aware that Lincoln insurance rates are calculated based on many things which can substantially change the cost of having a policy. Improving your financial situation, buying a different home, or getting a reckless driving citation can trigger price changes that may make certain companies more expensive than others.
Find the Cheapest Car Insurance for Teens
Safeco generally has some of the lowest car insurance rates in Lincoln at around $804 a year. The Hartford, Auto-Owners, Allied, and Farmers Mutual of Nebraska also make the cut as some of the most economical Lincoln, NE insurance companies.
As shown above, if you are insured with Auto-Owners and switched to Safeco, you could realize annual savings of upwards of $128. Customers with Allied may save as much as $145 a year, and Farmers Mutual of Nebraska policyholders might realize rate reductions of up to $185 a year.
To discover how much you can save, click here to start your custom quote or visit any of the companies below.
Understand that those prices are averaged across all drivers and vehicles and are not factoring in a specific vehicle garaging location for teenagers. So the car insurance company that has the cheapest rates for you may not even be in the top 24 companies shown above. That’s why you need to compare rates from multiple companies using your own driver information and specific vehicle type.
The information below shows how choosing a deductible can influence insurance prices when trying to find cheap insurance for teenagers. The premiums assume a single female driver, full physical damage coverage, and no discounts are applied to the premium.
In the chart above, a 40-year-old driver could save $236 a year by increasing from a $100 deductible to a $500 deductible, or save $358 by switching to a $1,000 deductible. Younger drivers, like the 20-year-old, could shave as much as $602 or even more by selecting a higher deductible. When using a larger deductible, it is important to have enough spare savings to allow you to pay the extra out-of-pocket expense, which deters some people from using high deductibles.
How much more does full coverage cost?
Buying cheaper insurance is probably important to the majority of drivers, and one common way to save on the cost of insurance for teenagers is to buy only liability coverage. The illustration below shows the difference between auto insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. Data assumes no accidents, no driving violations, $100 deductibles, drivers are single, and no discounts are factored in.
If the expense is averaged for all age categories, full coverage on your policy costs $1,917 per year more than just buying liability only. That proposes the question when is the right time to remove full coverage. There is no exact formula that is best for determining when to drop full coverage on your policy, but there is a general guideline. If the yearly cost for physical damage coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then you might consider buying liability only.
For example, let’s say your vehicle’s settlement value is $8,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $7,500 after the policy deductible has been paid. If you are paying in excess of $750 a year to have full coverage, then it might be time to buy liability only.
There are some scenarios where dropping physical damage coverage is not a good idea. If you haven’t satisfied your loan, you have to carry full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your finances do not allow you to purchase a different vehicle in the even your car is totaled, you should keep full coverage in place.
Don’t make the mistake of not shopping around
Lincoln, NE insurance rates are influenced by many factors which can substantially change the policy premium. Turning one year older, marrying your spouse, or getting a couple of tickets can produce rate changes that can make some companies more affordable than competitors.
Not only may things change on your end, but companies file new rates multiple times each year to reflect underwriting profits or losses. Unexpectedly high claims may cause high rates, while lower claim expenses may cause lower-cost Lincoln car insurance rates.
For instance, the chart below analyzes the cheapest car insurance in Lincoln, NE for a 30-year-old female driver with a clear driving record, no claims, and great credit. If we look at prices based on her current risk profile, Safeco may offer the lowest car insurance rates in Lincoln at $780 per year. This is $536 less than the average rate paid by Nebraska drivers of $1,316. The Hartford, Allied, Auto-Owners, and Farmers Mutual of Nebraska are the remainder of the top five cheapest Lincoln, NE auto insurance companies.
Let’s now give the driver from the first set of rates some claims, slightly worse credit, and a traffic ticket or two. Because each insurer uses their own calculation to set premium rates, analyzing rates may result in a substantially altered list of the cheapest companies as shown below.
Nationwide now has the lowest price on auto insurance in Lincoln, NE with State Farm, American National, General Casualty, and USAA now rounding out the top five. This example demonstrates why it is important to perform a complete rate comparison when trying to get the lowest insurance quotes for teenagers.
Insurance prices are calculated by many risk factors and can change substantially, so the most economical option the last time you compared rates may now cost much more than other companies.
If you aren’t sure which coverage you need and prefer to get help from a professional when trying to find the best insurance rates for teen drivers, the professional agents shown below are a good start to answer your questions and help you decide which insurance coverage will be best for you. To find an auto insurance agency near you, click the button link following the list.
- Allstate Insurance: Earnest and Associates, Inc
4221 O St – Lincoln, NE 68510 – (402) 488-0955
- Brokers Insurance
3325 A St – Lincoln, NE 68510 – (402) 434-0480
- Jeff Munns Agency, Inc.
1617 Normandy Ct #102 – Lincoln, NE 68512 – (402) 436-2140
- Rick Self – State Farm Insurance Agent
6030 Village Dr #101 – Lincoln, NE 68516 – (402) 434-2800
How to find economical insurance for teenagers
The list below details some thrifty solutions that can help Lincoln drivers quote more affordable coverage.
- Do not get tickets or violations
- Increase deductibles to save money
- Vehicles with safetly features generally cost less to insure
- Higher credit scores may earn you cheaper rates
- Remain accident-free and save
- Drop full coverage on older vehicles
- Compare rates and switch if you can find a better deal
The final tip is highly crucial, as was noted in the article above. Prices fluctuate constantly, so don’t be tentative to change to a new company if you can find a cheaper rate. Having a favorite company is great, but it’s not a great idea if your bullheadedness ends up costing you a considerable chunk of change every month. It only take a few minutes to compare rates and find cheaper insurance for teenagers in Lincoln.