Who Has Affordable Auto Insurance for Young Drivers in Madison?

Wouldn’t it be great if we knew the one best car insurance company that has the most affordable coverage for young drivers? It’s just not that easy, however, as there are a ton of unknown factors like any driving violations you may have, how far you drive each year, and your credit rating, that all help calculate your car insurance rates. The content below will cover the things that influence insurance rates and also should give you some help in finding cheaper rates.

Figuring out which company offers the most affordable insurance rates for young drivers requires more time than just comparing rates from one or two companies. Every car insurance company has their own guidelines for filing rates in each state, so let’s look at the rankings for the insurance companies with the overall best prices in Madison.

Keep in mind that Madison, WI insurance rates are impacted by many things that control the cost of coverage. Simply having another birthday, increasing liability limits, or getting a reckless driving citation can cause premium changes resulting in some rates now being cheaper in comparison to the competition.

Best Auto Insurance Prices for Teens

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Rankings for the cheapest Wisconsin auto insurance companies
Rank Company Cost Per Year
1 USAA $580
2 Partners Mutual $614
3 Erie $724
4 Rockford Mutual $732
5 Pekin Insurance $752
6 Nationwide $768
7 Western National $769
8 Integrity Mutual $770
9 Rural Mutual Insurance $772
10 Travelers $796
11 West Bend Mutual $890
12 The Hartford $922
13 State Farm $923
14 Auto Club Group $948
15 General Casualty $954
16 Progressive $1,118
17 Auto-Owners $1,160
18 American Family $1,171
19 Farmers $1,176
20 GEICO $1,190
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USAA may offer some of the cheapest car insurance rates in Madison at around $580 per year. Partners Mutual, Erie, Rockford Mutual, and Pekin Insurance would also be considered some of the lowest-priced Madison, WI insurance companies.

In this example, if you currently have a policy with Pekin Insurance and switched to Partners Mutual, you could earn an annual savings of about $138. Drivers with Nationwide may save as much as $154 a year, and Western National insureds might lower prices by $155 a year.

Understand that those policy rates are averages across all ages of drivers and types of vehicles and are not factoring in a specific zip code for young drivers. So the auto insurance company that has the cheapest rates for you may not even be in the top 30 companies in the list above. That is why you need to quote rates from many companies using your own specific driver and vehicle information.

For youthful drivers, one of the largest considerations that are used to help calculate the price you pay for insurance is your zip code in Madison. Areas with more people or more claims tend to have more expensive auto insurance rates, whereas areas with lower crime rates and fewer weather claims tend to receive cheaper rates.

The illustration below rates the most expensive places in Wisconsin for young drivers to buy auto insurance in. Madison is ranked at #17 costing $1,030 for coverage, which is approximately $86 per month.

Car insurance prices in Madison
Rank City Premium Per Year
1 Milwaukee $1,354
2 Wauwatosa $1,319
3 Kenosha $1,230
4 West Allis $1,198
5 Racine $1,193
6 Greenfield $1,192
7 Oak Creek $1,190
8 Beloit $1,164
9 Franklin $1,151
10 Brookfield $1,077
11 Eau Claire $1,059
12 Janesville $1,053
13 Wausau $1,047
14 Menomonee Falls $1,037
15 Waukesha $1,034
16 La Crosse $1,033
17 Madison $1,030
18 New Berlin $1,018
19 West Bend $1,007
20 Manitowoc $957
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Information shown are approximated as specific Madison garaging address can modify insurance rates substantially.

Ratings for Madison insurance companies

Picking the highest-rated car insurance provider can be challenging considering how many choices you have in Madison. The company ratings displayed below may help you analyze which providers to look at when buying insurance for young drivers. The rankings below only include companies with a national presence, so companies with more of a regional focus are not taken into consideration for the list.

Top 10 Major Auto Insurers in Madison Ranked by Customer Satisfaction

  1. USAA – 92%
  2. Erie Insurance – 88%
  3. American Family – 88%
  4. State Farm – 88%
  5. Nationwide – 88%
  6. 21st Century – 88%
  7. AAA Insurance – 87%
  8. Liberty Mutual – 87%
  9. Farmers Insurance – 87%
  10. The Hartford – 87%

Top 10 Major Auto Insurers in Madison Ranked by Value

  1. USAA
  2. GEICO
  3. AAA Insurance
  4. Erie Insurance
  5. Liberty Mutual
  6. State Farm
  7. Allstate
  8. Safeco Insurance
  9. Travelers
  10. 21st Century

Rate increases following a ticket or accident

The best way to score affordable insurance premiums for youthful drivers is to drive cautiously and have a clean driving record. The information below demonstrates how traffic citations and at-fault accidents influence insurance rates for each age group. The rates are based on a married male driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.

In the chart above, the average cost of an auto insurance policy in Wisconsin per year with no violations or accidents is $1,259. Add in two speeding tickets and the average cost increases to $1,734, an increase of $475 each year. Then include two accidents along with the two speeding tickets and the 12-month cost of insurance for young drivers jumps again to an average of $3,570. That’s an increase of $2,311, or $193 per month, just for not keeping your driving record clean!

The importance of shopping around

Wisconsin insurance rates are influenced by many factors which can substantially change the cost of a policy. Improving your credit score, moving to a different location, or getting a reckless driving citation can produce rate changes that can make some companies more affordable than competitors. Not only that, but companies change prices every year in order to offset underwriting gains or losses. Higher than normal claims can cause a rate increase, while lower claim expenses may result in cheaper Madison car insurance rates.

To illustrate this point, the graph below shows which companies have the cheapest car insurance in Madison, WI for a 40-year-old male driver with no prior claims, no tickets, and a decent credit rating. If we look at prices based on his current situation, USAA offers the lowest car insurance rates in Madison at $633 a year. This is $528 less than the average policy premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Nationwide, and Rockford Mutual are the remaining top five cheapest Madison, WI auto insurance companies.

Now let’s give the driver from the first example a chargeable claim, slightly worse credit, and a couple of points charged on his driving record. Due to the fact that every auto insurer has a unique formula to establish rates, comparing quotes may now present a substantially altered list of companies as shown below.

Western National now has the cheapest auto insurance in Madison, WI with Rural Mutual Insurance, Integrity Mutual, Travelers, and Partners Mutual also having competitive pricing. This example demonstrates why it is critical to compare as many rates as possible when trying to get the most budget-friendly insurance quotes for young drivers.

Prices are impacted by many risk factors and can change substantially, so the best price when you bought your policy may now be quite expensive.