I’m sure you’ve seen the commercials from insurers like Allstate and Progressive that make promises of huge savings, so drivers should just pick the company with the cutest commercial, right?
It’s not quite that easy, unfortunately, as there are a lot of unknowns like if you are a good driver, the safety ratings of your vehicle, the neighborhood you live in, and if you are currently insured, that all impact the price you pay. The content below will cover the things that cause high insurance rates and will hopefully give you a good beginning to your quest for cheaper car insurance.
For new drivers, one of the more important considerations that aid in calculating the amount you pay for auto insurance is where you keep your car in Lincoln. Cities with larger populations likely pay more, whereas areas with less people or fewer weather incidents have the luxury of cheap car insurance rates.
The illustration below ranks the highest-priced places in Nebraska for first-time drivers to buy auto insurance in. Lincoln is ranked at #24 with a yearly premium of $1,106 on average, which is around $92 per month.
|Rank||City||Average Per Year|
|9||South Sioux City||$1,251|
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Information shown are approximated as the specific garaging location can impact coverage prices noticeably.
The vehicle requiring insurance is a large consideration when comparison shopping for the most affordable insurance for first-time drivers. Vehicles with limited top-end speed, excellent safety ratings, or a track record of few liability claims will cost substantially less to insure than fast, unsafe models. The next table ranks insurance costs for a number of the most affordable automobiles to insure in Nebraska.
|Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$3,212|
|Ford Escape Limited 4WD||$3,418|
|Honda Accord EX-L 4-Dr Sedan||$3,423|
|Honda Odyssey LX||$3,530|
|Ford F-150 STX Super Cab 2WD||$3,536|
|Chevrolet Silverado LS Regular Cab 4WD||$3,530|
|Dodge Grand Caravan SE||$3,562|
|Ford Explorer XLT 4WD||$3,568|
|Volkswagen Jetta 2.0T Station Wagon||$3,660|
|Chevrolet Impala LS||$3,736|
|Ford Edge SE AWD||$3,746|
|Chevrolet Equinox LT 2WD||$3,768|
|Toyota RAV4 4WD||$3,775|
|Toyota Camry LE||$3,768|
|Jeep Grand Cherokee Laredo 4WD||$3,778|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$3,802|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$3,807|
|Jeep Wrangler Unlimited Sport 4WD 4-Dr||$3,940|
|Ford Focus SEL 4-Dr Sedan||$3,944|
|Nissan Altima 2.5 S 4-Dr Sedan||$3,976|
|Toyota Corolla S||$3,982|
|Hyundai Elantra SE 4-Dr Sedan||$3,976|
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Above prices assume single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in Lincoln, NE location which can affect coverage rates considerably.
Looking at the numbers, we can presume that cars like the Honda CR-V, Ford Escape, and Honda Accord will definitely be a few of the more affordable vehicles to insure for new drivers. Prices will be more expensive just due to the fact that there is a higher risk for first-time drivers, but generally speaking those specific models will most likely have the best insurance prices possible.
Establishing which insurers offer the cheapest auto insurance rates for first-time drivers calls for more time in order to find the best price.
Each auto insurance company has their own guidelines to determine premium rates, so let’s examine the auto insurance companies with the most affordable rates in Lincoln. We do need to point out that Lincoln, NE auto insurance rates are calculated based on many things which can substantially decrease or increase the cost of having a policy. Simply having a birthday, having a claim, or getting caught speeding may cause policy rate changes that can cause some rates to be cheaper in comparison to the competition.
Find the Cheapest Car Insurance for Inexperienced Drivers
|Rank||Company||Cost Per Year|
|5||Farm Bureau Mutual||$980|
|7||Farmers Mutual of Nebraska||$1,019|
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Safeco may offer some of the cheapest car insurance rates in Lincoln at around $812 a year. This is $504 less than the average rate paid by Nebraska drivers of $1,316. The Hartford, Allied, Auto-Owners, and Farm Bureau Mutual also rank well as some of the cheapest Lincoln, NE auto insurance companies.
In this example, if you are insured with Auto-Owners and switched to Safeco, you could see annual savings of around $111. Nebraska drivers with Farm Bureau Mutual might save as much as $168 a year, and Nationwide customers might lower prices by up to $185 a year.
To compare your rates to other Nebraska insurance companies, click here to start your free quote or quote rates from the companies below.
It’s important to note that these rates are averages for all types of drivers and the different vehicles they drive and and are not figured with a specific vehicle garaging location for first-time drivers. So the auto insurance company that fits your needs best may not even be in the top 24 companies shown above. That is why you need to get auto insurance quotes using your own specific driver and vehicle information.
Price comparison of only insuring for liability
Finding the cheapest auto insurance is important to most people, and one common way to buy cheaper insurance for first-time drivers is to not pay for full coverage. The illustration below shows the comparison of insurance rates with and without physical damage coverage. The costs are based on no accidents or driving violations, $250 deductibles, drivers are single, and no other discounts are factored in.
If we average the cost for all age groups, comp and collision coverage costs $1,579 per year more than just buying liability only. A very common question is if physical damage coverage is worth the money. There is no exact formula for eliminating comp and collision coverage, but there is a broad guideline. If the annual cost of comprehensive and collision coverage is more than 10% of the settlement you would receive from your company, then you may want to consider only buying liability coverage.
There are a few situations where dropping physical damage coverage is not a good idea. If you still owe money on your vehicle, you must maintain physical damage coverage as part of the loan requirements. Also, if you don’t have enough money to buy a different vehicle in the even your car is totaled, you should keep full coverage.
Selecting the highest-rated car insurance company can be a challenge considering how many different companies insure vehicles in Nebraska. The rank data in the lists below may help you pick which car insurance companies you want to consider when comparing rate quotes.
The rankings below include the companies with a significant amount of written premium nationwide, so companies that may only write in Nebraska are not included in this list. To check prices from these top-rated insurers and more, just click here.
Top 10 Large Auto Insurers in Lincoln Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- State Farm – A++
- GEICO – A++
- Nationwide – A+
- Esurance – A+
- The Hartford – A+
- Progressive – A+
- Allstate – A+
- The General – A-
Top 10 Large Auto Insurers Overall in Lincoln
- 21st Century
- AAA Insurance
- Liberty Mutual
- Safeco Insurance
- State Farm
- American Family
Don’t stick with an overpriced policy
Lincoln auto insurance rates are impacted by many things that can increase the policy premium. Getting older, moving to a different location, or getting into an accident may generate price changes that can now make some companies more affordable than before. Not only that, but auto insurance companies modify pricing at least once a year in order to be able to pay unexpected claims. A period of increased losses can cause additional price hikes, while lower claim levels may result in cheaper Lincoln car insurance rates.
The graph below shows a variety of companies that have the cheapest car insurance in Lincoln, NE for a 45-year-old female driver with a good driving record, no prior claims, and a good credit rating. When comparing rates based on her personal profile, Safeco quotes the best car insurance rates in Lincoln at $788 each year. This is $528 less than the average premium paid by Nebraska drivers of $1,316. The Hartford, Allied, Auto-Owners, and Farmers Mutual of Nebraska round out the rest of the best Lincoln, NE auto insurance companies.
In this example, we will give the driver from above an at-fault accident, a lower credit rating, and a couple of points charged on her driving record. Because each company has their own guidelines for setting prices, comparing prices may result in a completely different list of cheap Lincoln auto insurance companies as shown below.
Nationwide now has the cheapest price in Lincoln with State Farm, American National, General Casualty, and USAA also having competitive pricing. This example proves why Lincoln drivers need to do a thorough rate comparison to find the most budget-friendly car insurance rates for first-time drivers.
Car insurance prices are influenced by many factors and can increase or decrease at any time, so the cheapest company the last time you shopped around may now be one of the more expensive options.
If you have coverage questions and would like to get some guidance when comparing insurance rates for first-time drivers, the agents shown below can probably provide answers to your questions and help you determine which auto insurance policy fits you best. To find a Lincoln insurance agency closest to you, click the link at the bottom.
- John Curry – State Farm Insurance Agent
4640 Champlain Dr #121 – Lincoln, NE 68521 – (402) 477-8383
- Ogden Insurance Agency, Inc.
8531 Lexington Ave #102a – Lincoln, NE 68505 – (402) 466-5655
- State Farm: Shawn Kreifels
570 Fallbrook Blvd #111 – Lincoln, NE 68521 – (402) 435-2250