What Auto Insurance is Cheapest for First-time Drivers in Madison?

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Comparing rates for low-priced car insurance is not easy, and deciding which company has the most affordable auto insurance rates for first-time drivers may require a bit more work.

Every insurance company uses their own method for determining rates, so let's take a look at the most budget-friendly auto insurance companies in Madison. It's important to understand that Madison, WI auto insurance rates are based on many factors that control the price you have to pay. This price variation is why it is critical to compare lots of rates to get affordable car insurance quotes for first-time drivers. Auto insurance prices are calculated by many risk factors and change dramatically, so the cheapest rate when you last compared rates may now be quite expensive.

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Rankings for the cheapest Wisconsin auto insurance companies
Rank Company Cost Per Year
1 USAA $604
2 Partners Mutual $632
3 Erie $703
4 Rockford Mutual $732
5 Nationwide $768
6 Pekin Insurance $768
7 Integrity Mutual $770
8 Rural Mutual Insurance $772
9 Western National $801
10 Travelers $820
11 West Bend Mutual $890
12 State Farm $905
13 The Hartford $912
14 Auto Club Group $948
15 General Casualty $964
16 American Family $1,125
17 Auto-Owners $1,148
18 Progressive $1,152
19 Farmers $1,176
20 GEICO $1,190
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USAA normally has some of the most affordable car insurance rates in Madison at around $604 a year. Partners Mutual, Erie, Rockford Mutual, and Nationwide would also be considered some of the lowest-priced Madison, WI auto insurance companies.

As shown in the table above, if you currently buy coverage from Rockford Mutual and switched to Partners Mutual, you could realize a yearly price reduction of upwards of $100. Insureds with Nationwide may save as much as $136 a year, and Pekin Insurance insureds might lower prices by $136 a year.

To find cheaper insurance rates for your vehicle, click here to get quotes or visit several of the following companies.

Bear in mind that those rates are averages across all drivers and vehicles in Wisconsin and and are not figured with an exact zip code location for first-time drivers. So the auto insurance company that can offer you the best rate may not even be in the top 30 companies in the list above. That helps illustrate why you need to get rate quotes from many companies using your own personal information and vehicle type.

The type of vehicle you are trying to insure is one of the main factors when shopping for the best coverage for first-time drivers. Vehicles with limited top-end speed, modern passenger safety features, or a low likelihood of liability claims will cost much less to insure than adrenaline junky models. The list below shows auto insurance premiums for a handful of the most economical vehicles to insure.

Cheapest Vehicles to Insure in Madison, WI
Vehicle Estimated Cost for Full Coverage
Honda CR-V EX 4WD $4,485
Volkswagen Jetta S 2.5 Station Wagon $4,756
Ford Escape Limited 4WD $4,766
Toyota Prius $4,799
Jeep Wrangler Sport Islander Package 4WD 2-Dr $4,952
Dodge Grand Caravan SE $4,995
Ford F-150 XLT Crew Cab 2WD $5,004
Toyota RAV4 4WD $5,266
GMC Sierra SL Extended Cab 2WD $5,271
Chevrolet Malibu Hybrid $5,266
Ford Explorer Limited 4WD $5,309
Honda Civic VP 4-Dr Sedan $5,496
Hyundai Elantra Blue 4-Dr Sedan $5,501
Ford Edge Sport AWD $5,539
Toyota Corolla LE $5,546
Toyota Tacoma X-Runner 2WD $5,539
Toyota Camry XLE $5,548
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Table data assumes single male 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. Prices do not factor in the specific area where the vehicle is garaged which can raise or lower prices substantially.

By looking at the data, you can presume that makes and models like the Honda CR-V, Volkswagen Jetta, Ford Escape, Toyota Prius, and Jeep Wrangler are likely to be the cheaper vehicles to insure for new drivers. Auto insurance rates will be more costly just because there is a higher risk for first-time drivers, but generally speaking those models will have the lowest insurance prices that you are likely to find.

Get discount Madison car insurance

Cheaper Madison, WI auto insurance for new driversCar insurance companies that offer quotes for first-time drivers may also provide special discounts that can lower rates by as much as 35% if you meet eligibility requirements. A few of the larger companies and a partial list of their discounts are shown below.

The example below visualizes the comparison of car insurance rates with and without discounts applied to the policy premium. The costs are based on a female driver, no claims or driving citations, Wisconsin state minimum liability limits, full physical damage coverage, and $250 deductibles. The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with good student, paperless filing, continuous coverage, anti-theft, paid-in-full, and passive restraint discounts applied. In this example, theaverage amount saved on auto insurance for first-time drivers is 28% or $550.

Careless drivers pay higher rates

The easiest way to obtain the most affordable auto insurance rates in Madison for new drivers is to drive cautiously and not get tickets or have accidents. The example below highlights how speeding tickets and fender-benders increase insurance costs for different age categories. Data assumes a single male driver, full physical damage coverage, $1,000 deductibles, and no policy discounts are applied.

The data above shows the average cost of an auto insurance policy in Wisconsin per year with no accidents or violations is $1,313. Get two speeding tickets and the average cost surges to $1,728, an increase of $415 each year. Then throw in one accident along with the two speeding tickets and the yearly cost of auto insurance for first-time drivers increases to an average of $2,152. That's an increase of $839, or $70 per month, just for a couple of infractions!

The illustration below highlights how deductible selection can impact premium costs when getting quotes for cheap insurance for first-time drivers. The price estimates are based on a single female driver, comp and collision included, and no discounts are applied to the premium.

A 50-year-old driver could pocket $182 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $276 by choosing a $1,000 deductible. Young drivers, like the 20-year-old category, could lower their rates as much as $462 or even more by choosing a higher deductible. When increasing deductibles, it is essential to have enough savings to allow you to cover the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.

How to find cheaper car insurance for first-time drivers

It's not impossible to find cheaper rates, and here are some penny-pinching suggestions that can help drivers get cheaper coverage.

That last piece of advice is especially vital, as we stressed in the prior article. Prices charged by auto insurers in Madison can be changed at any time, so drivers shouldn't hesitate to switch companies if a cheaper rate is available.

Staying with the same car insurance company is fine, but it's not a great idea if that dedication is costing a lot of money. In just a couple of minutes you could compare prices and find cheaper insurance for first-time drivers.