You have most likely watched the captivating ads from car insurance companies like Progressive, GEICO, and State Farm that claim big savings. So drivers just need to choose any one of them, right?
That is not the case, however, as there are a lot of unknown elements like what level of deductibles you need, whether you are a man or a woman, and the annual mileage you drive. If you keep reading, we will teach you about the best ways to save money and will hopefully give the reader a good start to your coverage search.
The car, truck, or SUV you are insuring is a large factor that determines whether or not you can buy the best cheap auto insurance for young drivers. Vehicles with lower performance, advanced safety features, or low incidents of liability claims will cost significantly less to insure than fast, unsafe models. The table below estimates coverage rates for the most affordable automobiles to insure in Minnesota.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $5,555 |
| Ford Escape XLS 2WD | $5,560 |
| Toyota Prius | $5,990 |
| Chevrolet Silverado LS Regular Cab 4WD | $6,199 |
| Honda Odyssey LX | $6,208 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $6,199 |
| Ford Explorer XLT 2WD | $6,250 |
| Ford Edge SEL AWD | $6,534 |
| Toyota Tacoma 2WD | $6,543 |
| Chevrolet Impala LS | $6,534 |
| Chevrolet Equinox LT AWD | $6,585 |
| GMC Sierra SL Extended Cab 2WD | $6,594 |
| Toyota RAV4 Limited 4WD | $6,585 |
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Data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Minnesota minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in Minneapolis, MN location which can lower or raise auto insurance rates significantly.
Based upon the rates shown, makes and models like the Honda CR-V, Ford Escape, Toyota Prius, Chevrolet Silverado, and Honda Odyssey will definitely be the most affordable vehicles to insure for youthful drivers. The price for car insurance will trend higher just because there is more claim risk for young drivers, but generally speaking those specific models will probably have the lowest insurance rates that you are likely to find.
For youthful drivers, one of the largest components that help determine the annual cost of car insurance is your address. Areas with increased crime or more people are more likely to pay higher prices, whereas areas with less crime or weather claims benefit from having to pay less for coverage.
The information below sorts the priciest cities in Minnesota for young drivers to purchase car insurance in. Minneapolis ranks #3 costing $1,997 for the average policyholder, which is about $166 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Saint Paul | $2,070 |
| 2 | Maplewood | $2,045 |
| 3 | Minneapolis | $1,997 |
| 4 | Coon Rapids | $1,809 |
| 5 | Bloomington | $1,792 |
| 6 | Blaine | $1,784 |
| 7 | Duluth | $1,777 |
| 8 | Richfield | $1,760 |
| 9 | Brooklyn Park | $1,744 |
| 10 | Edina | $1,725 |
| 11 | Eden Prairie | $1,723 |
| 12 | Minnetonka | $1,723 |
| 13 | Saint Louis Park | $1,720 |
| 14 | Lakeville | $1,717 |
| 15 | Eagan | $1,712 |
| 16 | Shakopee | $1,710 |
| 17 | Saint Cloud | $1,702 |
| 18 | Woodbury | $1,697 |
| 19 | Maple Grove | $1,690 |
| 20 | Plymouth | $1,663 |
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Rate quotes are comparative as the specific Minneapolis residence address can impact premium rates considerably.
The chart below shows how different deductible levels can increase or decrease yearly insurance costs when trying to find cheap insurance for young drivers. The information is based on a married male driver, full coverage, and no discounts are taken into consideration.
The chart above illustrates that a 40-year-old driver could pocket $298 a year by changing from a $100 deductible up to a $500 deductible, or save $450 by switching to a $1,000 deductible. Even younger drivers, such as the 20-year-old example, could save up to $1,004 every year just by choosing larger deductibles.
If you make the decision to raise deductibles, it will now be necessary to have additional savings on hand to satisfy the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Do you need full coverage?
Saving money on auto insurance should be important to the majority of people, and a good way to pay lower rates for insurance for young drivers is to not insure for full coverage. The example below illustrates the comparison of insurance prices with full physical damage coverage compared to only buying liability only. The data assumes a clean driving record, no at-fault accidents, $500 deductibles, single marital status, and no policy discounts are applied.
On average, physical damage insurance costs an extra $2,027 per year over having just liability coverage. That proposes the question if buying full coverage is worth the money. There is no set rule to eliminate full coverage on your policy, but there is a general guideline. If the yearly cost of full coverage is more than around 10% of the settlement you would receive from your company, then it could be time to drop full coverage.
Last year’s bargain might be this year’s rip off
Minneapolis, MN auto insurance rates are determined by lots of factors which can significantly increase or decrease the cost of coverage. Simply having another birthday, getting divorced, or having an accident can trigger price changes that can cause some rates to be much cheaper than others. In addition, insurance companies change their prices without warning in order to be able to pay unexpected claims. Heavy losses may cause more expensive prices, while a profitable period may produce more affordable Minneapolis car insurance rates.
To help illustrate this point, the data below shows the companies that have the cheapest car insurance in Minneapolis, MN for a 30-year-old male driver with no prior claims, no tickets, and a decent credit rating. When comparing rates based on his current rating profile, Travelers offers the most affordable car insurance rates in Minneapolis at $860 each year. This is $561 less than the average price paid by Minnesota drivers of $1,421. USAA, Farm Bureau Mutual, Western National, and The Hartford are the rest of the best Minneapolis, MN auto insurance companies.
Now we will give the driver from above a chargeable claim, a little lower credit rating, and an imperfect driving record. Because each company has their own unique process to determining premium rates, analyzing rate quotes may now result in a new list of affordable Minneapolis car insurance companies as shown below.
USAA now has the cheapest insurance rate in Minneapolis with Farm Bureau Mutual, Allied, State Farm, and California Casualty also being competitive. This demonstrates why it is so important to take the time to shop around when trying to find the most budget-friendly insurance quotes for young drivers.
Auto insurance prices are made up of many different factors and can decrease or increase without notice, so the best price six months ago may now be an over-priced policy.
How to find more affordable auto insurance for young drivers
Lowering your rates is not difficult, and here are a few penny-pinching suggestions that can help you buy low-cost auto insurance.
- Maintaining good credit helps earn cheaper rates
- Violations and traffic tickets increase rates
- Buy safe vehicles
- Frequent claims may make car insurance unaffordable
- Accidents can significantly increase rates
- Compare quotes from other companies often
The last tip in the list is extraordinarily necessary, as we stressed in this piece. Rates in Minneapolis fluctuate considerably, so drivers shouldn’t be resistant to buy a policy from a new company if you find a cheaper price. Having brand loyalty is commendable, but it’s not a good idea if that loyalty results in overpaying a considerable chunk of change every month. Take a couple minutes and shop around and find cheaper insurance for young drivers.
The auto insurance agents in Minneapolis shown below can probably help you make a decision which coverage fits your budget, as some people prefer to have some professional guidance when trying to find lower insurance rates for young drivers. It can be complicated to find the cheapest rates, so using a licensed agent can provide you satisfaction knowing your policy gives you enough coverage when you need it. To find a Minneapolis insurance agency close to you, click the link at the bottom or click here to compare price quotes now.
- Allstate Insurance: Charles Fritz
2213 Johnson St NE – Minneapolis, MN 55418 – (612) 788-6279 - American Family Insurance – Katie Bard
5459 Nicollet Ave – Minneapolis, MN 55419 – (612) 345-7900 - Bernie Glover Insurance Agency
2520 Lowry Ave N – Minneapolis, MN 55411 – (612) 522-6531 - Alisho Dependable Ins. Agency
1929 S 5th St #104 – Minneapolis, MN 55454 – (612) 354-2576 - CBIZ Associated Insurance Agents
2800 Freeway Blvd – Minneapolis, MN 55430 – (763) 549-2200