The words "bargain" and "insurance" really don't belong together, especially when looking for the cheapest coverage for teenagers. Because it's so expensive, let's take a look at some of the factors that have an effect on car insurance rates, and see how we can help you lower the price of your next policy.
One of the many criteria that are looked at to help calculate the cost of insurance is where your car is garaged. Cities with larger populations or higher claim trends tend to have higher auto insurance costs, whereas less populated areas profit from lower rates.
The information below sorts the highest-priced areas in Wisconsin for teenagers to purchase a policy in. Madison is listed at #15 with an annual cost of $1,030 for the average insured, which is approximately $86 monthly.
|20||Fond du Lac||$985|
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Information shown are approximated as the garaging address in Madison can change price quotes considerably.
The vehicle model that is being insured is a large factor when comparing quotes for the most affordable auto insurance for teenagers. Vehicles with limited top-end speed, advanced safety features, or low incidents of liability claims will cost significantly less to insure than high performance models.
The data below outlines auto insurance prices for the most affordable automobiles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$3,809|
|Honda CR-V EX-L 2WD||$3,844|
|Ford F-150 FX2 Super Cab 2WD||$4,287|
|Jeep Wrangler Rubicon 4WD 2-Dr||$4,294|
|Ford Explorer XLT 4WD||$4,287|
|Volkswagen Jetta 2.0T Station Wagon||$4,342|
|Honda Odyssey EX||$4,482|
|Toyota RAV4 Sport 2WD||$4,518|
|Toyota Camry LE||$4,524|
|Dodge Grand Caravan Hero||$4,518|
|Chevrolet Malibu LS||$4,523|
|Toyota Tacoma Double Cab 4WD||$4,518|
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Table data represents single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in the specific area where the vehicle is garaged which can raise or lower price quotes substantially.
Based upon the rates shown, you can infer that vehicles like the Ford Escape, Honda CR-V, Toyota Prius, and Ford F-150 are likely to be some of the less-costly vehicles to insure for teen drivers. The price for an auto insurance policy will trend higher just due to the fact that there is more liability exposure for teenagers, but generally speaking those particular models will tend to have the lowest insurance rates compared to all other vehicles.
How much more does full coverage cost in Madison?
Saving money when shopping for car insurance is important to most drivers, and one of the best ways to buy cheap insurance for teenagers is to only pay for liability coverage. The diagram below compares insurance costs with full coverage and liability only. The premium estimates are based on no violations or accidents, $100 deductibles, drivers are not married, and no discounts are applied.
As an overall average, full coverage on your policy costs $1,476 per year more than just buying liability only. At some point, every insured wonders when is it safe to stop buying full coverage. There is no definitive rule of when to exclude comprehensive and collision coverage on your policy, but there is a general school of thought. If the annual cost of your full coverage insurance is 10% or more of the settlement you would receive from your company, then it could be time to drop full coverage.
For example, let's say your vehicle's settlement value is $9,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled, you would only receive $8,500 after you pay the deductible. If it's costing in excess of $850 a year to have full coverage, then it might be time to consider dropping full coverage.
There are some situations where buying only liability insurance is not financially feasible. If you still owe money on your vehicle, you must maintain physical damage coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should maintain full coverage.
Types of discounts on Madison insurance
Car insurance companies that sell policies for teenagers may additionally offer policy discounts that may potentially lower prices by as much as 30% if you qualify. A few popular companies and the discounts they provide are:
- State Farm policyholders can earn discounts including good student, Steer Clear safe driver discount, Drive Safe & Save, anti-theft, and multiple policy.
- GEICO may include discounts for emergency military deployment, federal employee, anti-lock brakes, multi-vehicle, air bags, anti-theft, and military active duty.
- Liberty Mutual may have discounts that include teen driver discount, good student, safety features, new vehicle discount, and exclusive group savings.
- The Hartford discounts include anti-theft, air bag, driver training, defensive driver, vehicle fuel type, and bundle.
- MetLife may offer discounts for defensive driver, multi-policy, claim-free, good driver, good student, and accident-free.
- Progressive offers premium reductions for multi-policy, online quote discount, homeowner, online signing, and continuous coverage.
The diagram below compares premium costs with and without discounts being applied to the rates. Data assumes a female driver, no claims or violations, Wisconsin state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with paid-in-full, anti-theft, vehicle safety, good student, passive restraint, and paperless filing discounts applied. When discounts are applied, the average savings per year on car insurance for teenagers is 28% or $449.
Careless driving habits raise Madison car insurance rates
A great way to earn cheap car insurance prices in Madison for teen drivers is to be a careful driver and avoid accidents and violations. The chart below shows how traffic citations and at-fault accidents raise insurance prices for each different age category. The rates are based on a single male driver, comp and collision included, $100 deductibles, and no other discounts are factored in.
The data charted above shows the average cost of car insurance per year with a clean driving record and no accidents is $1,327. Factor in one speeding ticket and the average cost hikes up to $1,493, an increase of $166 each year. Then add in one accident along with the one speeding ticket and the 12-month cost of car insurance for teenagers increases to an average of $1,961. That's an increase of $634, or $53 per month, just for not driving carefully!
How to find economical insurance for teenagers
Here are some of the better money-saving suggestions that can help Wisconsin drivers find lower-cost auto insurance.
- Remove physical damage coverage on older vehicles
- Improve your credit
- Avoid filing small claims
- Bundle home and auto and earn a discount
- Vehicles with good safety ratings are usually cheaper to insure
- Raise comprehensive and collision coverage deductibles
- Compare quotes from other companies often
The last suggestion is certainly crucial, as we stressed in the article above. Car insurance rates can change considerably in a year, so don't be tentative to change to a new company if a lower-cost policy is available.
Brand loyalty is not necessarily bad, but it's not a good idea if that loyalty ends up costing hundreds of dollars year after year. It only takes a couple minutes to shop around and find cheaper car insurance for teenagers in Madison.
The agents below are a good start to provide answers to your questions and help you determine which coverages are best, since many consumers aren't sure which coverage to buy and prefer to have the advice of a professional agent when trying to find the best insurance rates for teenagers. It's not always easy to find the best coverage yourself, so insurance agents can add comfort knowing your policy gives you enough protection.
To locate a Madison car insurance agency in your neighborhood, click the button after the list or click here to compare price quotes now.
Kevin Lease - State Farm Insurance Agent
7941 Tree Ln #205 - Madison, WI 53717 - (608) 824-9950
Aaron Perry - State Farm Insurance Agent
2605 Monroe St - Madison, WI 53711 - (608) 238-7107
Melissa Eckstrom - State Farm Insurance Agent
1771 Thierer Rd - Madison, WI 53704 - (608) 663-5000