The words “economical” and “insurance” really don’t belong together, in particular when you are searching for the best car insurance for young drivers. Because of the high cost, let’s open your eyes to some of the factors that have an impact on car insurance prices, and see how we can help you take the bite out of the next policy you buy.
Deciphering which companies have the best insurance rates for young drivers takes more work in order to find the lowest price.
Each insurance company used slightly different criteria for filing rates in each state, so to begin we’ll rank the most competitive insurance companies in Colorado.
Best Auto Insurance Prices for Teens
|Rank||Company||Cost Per Year|
|15||Colorado Farm Bureau||$1,640|
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The Hartford quotes some of the cheapest car insurance rates in Denver at around $850 per year. This is $728 less than the average price paid by Colorado drivers of $1,578. Grange, USAA, GEICO, and Nationwide would also make the list of some of the lowest-priced Denver, CO insurance companies.
In the above example, if you currently have a policy with GEICO and switched to The Hartford, you may see a yearly savings of approximately $302. Colorado drivers with Nationwide could save as much as $305 a year, and Auto-Owners policyholders might reduce rates by $342 a year.
Be aware that those prices are averages for all types of insureds and vehicles and are not factoring in an exact location for young drivers. So the auto insurance company that has the lowest price for you may not even be in the top 21 companies shown above. That points out the importance of why you need to compare rates from multiple companies using your own personal information and vehicle type.
The make and model of vehicle you are trying to insure is one of the largest factors when comparing low-priced coverage for young drivers. Vehicles with average performance, excellent safety ratings, or a low likelihood of liability claims will cost substantially less to insure than fast, unsafe models.
The next list outlines insurance costs for a selection of the cheaper vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 4WD||$6,538|
|Honda CR-V EX 4WD||$6,546|
|Ford Edge SE 2WD||$7,225|
|Toyota Tacoma 4WD||$7,285|
|Dodge Grand Caravan Hero||$7,683|
|Toyota RAV4 2WD||$7,693|
|Chevrolet Equinox LT AWD||$7,683|
|Chevrolet Malibu LS||$7,689|
|Ford Explorer Eddie Bauer AWD||$7,746|
|Ford F-150 SVT Raptor Super Cab 4WD||$7,752|
|Ford Focus SEL 4-Dr Sedan||$8,018|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$8,073|
|Toyota Camry SE||$8,078|
|Chevrolet Impala LTZ||$8,084|
|Toyota Corolla S||$8,078|
|Honda Odyssey EX-L W/Navigation||$8,083|
|Hyundai Elantra SE 4-Dr Sedan||$8,078|
|Nissan Altima 2.5 S 4-Dr Sedan||$8,086|
|GMC Sierra SL Crew Cab 2WD||$8,141|
|Volkswagen Jetta SE 4-Dr Sedan||$8,148|
|Jeep Grand Cherokee Limited 2WD||$8,141|
|Chevrolet Silverado 3500HD LT Crew Cab 2WD||$8,203|
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Colorado minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in specific location information which can revise premium rates greatly.
Looking at the rates, we can assume that cars like the Ford Escape, Honda CR-V, and Toyota Prius are likely to be some of the most economical vehicles to insure for youthful drivers. Rates will tend to be more expensive just due to the fact that there is more risk for young drivers, but generally speaking those models will probably have the cheapest auto insurance rates possible.
For youthful drivers, one of the more important criteria that are looked at to determine the amount you pay for auto insurance is where your car is garaged in Denver. Areas with more people or higher crime rates will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates have the benefit of cheaper auto insurance prices.
The following table rates the most expensive areas in Colorado for young drivers to buy car insurance in. Denver comes in at #3 having an annual price of $1,397 on average, which is about $116 monthly.
|Rank||City||Average Per Year|
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Table data uses approximated as the specific zip code location can affect insurance rates noticeably.
Cost comparison with and without full coverage
Saving money on insurance is important to the majority of drivers, and a great way to find cheaper insurance for young drivers is to not pay for full coverage. The chart below compares car insurance costs with full coverage and liability only. The data assumes no claims or driving citations, $1,000 deductibles, single marital status, and no additional discounts are factored in.
Averaged for all ages 20 through 70, full coverage on your policy costs $1,476 per year more than buying just liability insurance. That brings up the question if buying full coverage is a waste of money. There is no set guideline for excluding physical damage insurance, but there is a general guideline you can use. If the yearly cost of full coverage is more than about 10% of the settlement you would receive from your company, then you may need to consider dropping full coverage.
Poor driving habits will raise your insurance rates
The common sense way to earn cheap insurance prices for youthful drivers is to be a careful driver and avoid accidents and violations. The chart below demonstrates how citations and accident claims can affect premium costs for each different age group. The premiums assume a married male driver, full physical damage coverage, $1,000 deductibles, and no other discounts are factored in.
The chart shows that the average cost of car insurance per year with no violations or accidents is $1,667. Get written up for one speeding ticket and the average cost hikes up to $1,922, an increase of $255 each year. Now throw in two accidents along with the one speeding ticket and the annual cost of insurance for young drivers goes up to an average of $4,319. That’s an increase of $2,652, or $221 per month, just for not driving attentively!
The illustration below shows how different deductible levels can affect insurance costs when researching cheap insurance for young drivers. The data assumes a single female driver, full physical damage coverage, and no other discounts are factored in.
In the chart above, a 30-year-old driver could reduce rates by $318 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $482 by selecting a $1,000 deductible. Even younger drivers, like the Age 20 category, have the ability to save $706 or even more by choosing a higher deductible. If you do decide to increase your deductibles, it is a good idea to have additional savings on hand to satisfy the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.