Factors that insurance companies use to determine what premium will be charged include your age, occupation, where you live and the type of car you drive. Of these factors, you can really only influence the type of car that you drive or are considering. Even if you can afford to buy a sporty car, an expensive car or a car with a high performance engine – don’t. Even if you can afford the car – you probably won’t be able to afford the car insurance premium. Instead, choose a car with a small or medium sized engine – a middle of the road vehicle that is not too old.
I shopped around for the best price for the coverage I wanted and Progressive undercut the others by around $1200. Every 6 months my monthly premium goes down. After the first six months we added another car, and the premium only went up by $6 because the policy dropped by such a significant amount. They've been good at getting my documents to me quickly, and having 24 hour customer service - which I'm coming to appreciate more and more with the odd hours I'm awake and work.
Being in the business for a very long time, I have found that most people are clueless about insurance, even most agents who sell them. I will agree that their rates are cheap. But I wouldn’t recommend them. Inexperienced adjusters. They do not fully investigate. The policy does not cover like, kind, and quality which is bad if you have a new vehicle.
The higher the liability, the higher your insurance quote. At this point in your life, a young person may not be able to afford $300,000 coverage for liability insurance. However, experts remind you that huge liability settlements are few and far between. Should you lose a liability settlement, it could ultimately result in garnishment of your wages. That means you'd be shelling out payments for years.
Car insurance for college students can be pricey for sure, but you can capitalize on certain discounts. One that can reap up to 20 percent off is the “Student Away” discount. Typically, you qualify if you are listed on your parent’s policy and drive one of their cars they keep at home but attend college 100 or miles away. Some insurers may also require that you are under age 26 and unmarried to receive the discount.
As you can see, there are ways to save -- even for young drivers. However, in the end, young people should brace themselves to pay more for car insurance than their elders. Sure, you can find cheap car insurance, but if you’re a teen or young driver, expect to pay more for years. Then, as your rates drop, it'll be among the things you can appreciate as your youth slips away.
Every car is classified into a different insurance group, numbered from one to 50. The cheapest cars to insure sit in the first group, but the more powerful or valuable the car, the higher and therefore more expensive the insurance grouping. Cars which have been modified to improve their performance also sit in the higher groups, making them much more expensive to insure.
I just switched from State Farm to Nationwide and State Farm was reasonable, though I wasn't necessarily happy with the coverage. It was only $79 a month for full coverage, but they didn't have accident forgiveness, if I got into an accident, I would have to pay 20% of the rental fee for a car, and the lowest deductible for collision they will go is $250. I switched to Nationwide a week ago and the quote was for $70 a month, (every little bit counts) but the big difference is the coverage. I got accident forgiveness included, also they pay 100% of car rental fee, and I only have $100 deductible for collision. However they do have $0 deductible but 100 I can do. This is for a 2011 Ford Focus which Focuses are generally cheap to insure.
Claims and price satisfaction: We looked at J.D. Power’s 2018 Auto Claims Satisfaction Reports, Insure.com’s Best Car Insurance Companies for 2018, and Consumer Reports’ 2017 Car Insurance Ratings to get a bird’s-eye view of the industry across the nation. We also conducted a survey of 100 insured drivers who had filed a claim within the past 12 months.
"Many companies offer discounts for good grades and for completion of an approved driver’s education or defensive driving course," continued Doreen Haughton-James of 123 Drive! Driving Academy. "Some also have their own discount programs. State Farm, for example, has a program called 'Steer Clear' where students receive discounts for logging driving hours and completing a program."
Type of car: If you have an expensive or powerful car then you are seen as a higher risk for a number of reasons. If it’s expensive, it has a higher risk of being stolen. If it’s powerful, it’s deemed more at risk of getting into an accident driving at speed. If you want to see how your car impacts your insurance, you can check which insurance group it’s in for an indication.
NerdWallet compared quotes from these insurers in ZIP codes across the country. Rates are for policies that include liability, collision, comprehensive, and uninsured/underinsured motorist coverages, as well as any other coverage required in each state. Our “good driver” profile is a 40-year-old with no moving violations and credit in the “good” tier.