Who Has the Cheapest Madison Car Insurance for Drivers Under 21?

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The vehicle to be insured is probably the biggest factor that determines whether or not you find low-cost coverage for drivers under 21. Vehicles with lower acceleration and performance, a plethora of safety features, or a low likelihood of liability claims will cost substantially less to insure than high performance models.

The list below features coverage costs for some of the cheapest automobiles to insure.

Cheapest Vehicles to Insure in Madison, WI
Make, Model, and Trim Level Estimated Cost for Full Coverage
Honda Accord EX 4-Dr Sedan $2,628
Honda CR-V LX 4WD $2,636
Ford Escape XLT 4WD $2,669
Ford F-150 XL Regular Cab 2WD $2,689
Toyota Prius $2,902
Dodge Grand Caravan CV $2,925
Chevrolet Impala LS $3,079
Ford Edge Limited 2WD $3,086
Volkswagen Jetta SE 2.5 Station Wagon $3,098
GMC Sierra SLE Regular Cab 2WD $3,120
Toyota RAV4 Sport 4WD $3,129
Chevrolet Malibu LS $3,120
Chevrolet Equinox LS AWD $3,128
Ford Explorer Limited AWD $3,159
Hyundai Elantra GLS 4-Dr Sedan $3,315
Honda Odyssey EX-L $3,325
Toyota Corolla XLE $3,315
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Table data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in specific location which can affect insurance rates considerably.

Based on these rates, you can presume that cars like the Honda Accord, Honda CR-V, Ford Escape, and Ford F-150 are some of the most economical vehicles to insure for minors. Rates will tend to be more expensive just because there is more exposure for drivers under 21, but overall those particular vehicles will tend to have the lowest insurance prices compared to other vehicles.

For minors, one of the largest factors that are looked at to help calculate the amount you pay for auto insurance is where your car is garaged. Cities with more crime and/or more people tend to pay more, whereas more rural areas benefit from having to pay less for coverage.

The illustration below sorts the priciest cities in Wisconsin for drivers under 21 in which to purchase auto insurance. Madison ranks #13 with an annual cost of $1,062 for coverage, which is approximately $89 each month.

How much does car insurance cost in Madison, WI?
Rank City Average Per Year
1 Milwaukee $1,354
2 Wauwatosa $1,305
3 Racine $1,229
4 Kenosha $1,218
5 West Allis $1,210
6 Oak Creek $1,202
7 Franklin $1,163
8 Greenfield $1,156
9 Beloit $1,118
10 Wausau $1,079
11 Brookfield $1,077
12 La Crosse $1,064
13 Madison $1,062
14 Menomonee Falls $1,057
15 Waukesha $1,054
16 Eau Claire $1,049
17 New Berlin $1,018
18 Janesville $1,011
19 Manitowoc $997
20 Fond du Lac $995
21 West Bend $977
22 Green Bay $969
23 Sheboygan $963
24 Oshkosh $960
25 Appleton $936
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Rates are estimated as specific location information can alter price quotes noticeably.

Locating reasonably-priced auto insurance is not easy, and deciding which company quotes the lowest-priced car insurance rates for drivers under 21 takes a bit more work. Every car insurance company has a unique formula for determining rates in each state, so let's begin by taking a look at the lowest cost car insurance companies in Wisconsin.

It's a good idea to know that Wisconsin car insurance rates are based on many factors that may substantially change the policy premium. This price variation is why it is critical to spend some time comparing rates to find the most affordable insurance rates for drivers under 21. Rates are made up of many risk factors and can decrease or increase without notice, so the most economical company the last time you compared rates may now cost much more than other companies.

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USAA normally has some of the best car insurance rates in Madison at around $580 per year. This is $581 less than the average premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Nationwide also rank well as some of the lowest-priced Madison, WI insurance companies.

In this example, if you are currently insured with Erie and switched to USAA, you may see a yearly price reduction of about $123. Wisconsin drivers with Rockford Mutual may save as much as $152 a year, and Nationwide customers might lower prices by up to $172 a year.

Understand that those estimates are averages for all ages of drivers and types of vehicles and and are not calculated with a vehicle location for drivers under 21. So the company that can offer the best rates for your situation may not even be in the list above. That affirms the importance of why you need to compare as many prices as possible using your own personal information and vehicle type.

Do you need full coverage?

Saving on car insurance is the goal of the majority of vehicle owners, and a great way to pay less for insurance for drivers under 21 is to only buy liability coverage. The example below shows the comparison of insurance rates with full coverage compared to only the Wisconsin minimum liability coverage. The rates are based on no driving violations, no at-fault accidents, $1,000 deductibles, single marital status, and no discounts are factored in.

Averaged for all age groups, physical damage insurance costs $974 per year more than just buying liability only. That touches on the question if buying full coverage is a waste of money. There is no definitive formula for excluding full coverage on your policy, but there is a general guideline. If the annual cost of coverage is about 10% or more of the replacement cost minus the deductible, then you might consider buying liability only.

There are a few situations where removing full coverage is not a good plan. If you haven't satisfied your loan, you are required to maintain full coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should keep full coverage in place.

The chart below shows how choosing a deductible can impact premium costs when searching for cheap insurance for drivers under 21. The rate quotes are based on a married male driver, comp and collision included, and no discounts are taken into consideration.

In the chart above, a 30-year-old driver could cut expenses by $176 a year by changing from a $100 deductible up to a $500 deductible, or save $268 by using a $1,000 deductible. Youthful drivers, like the 20-year-old example, could shave $536 or more by choosing larger deductibles on their policy.

When insureds make the decision to increase the deductibles on their policy, it's a good idea to have spare funds to cover the extra out-of-pocket expense that is associated with using high deductibles.

Types of discounts on Madison auto insurance

Discounts on car insurance for drivers under 21Car insurance companies that provide policies for drivers under 21 may also give you policy discounts that can lower rates by as much as 35% or more if you meet eligibility requirements. A few of the larger companies and the discounts they provide are:

The chart below shows the difference between insurance rates with and without discounts applied to the policy rates. The prices are based on a male driver, no claims or driving citations, Wisconsin state minimum liability limits, full physical damage coverage, and $500 deductibles.

The first bar for each age group shows premium with no discounts. The second bar shows the rates with good student, anti-theft, paperless filing, passive restraint, vehicle safety, and paid-in-full discounts applied. When taking advantage of discounts, theamount saved on car insurance for drivers under 21 is 19% or $204.

Who has the cheapest Madison car insurance?

Wisconsin car insurance rates are influenced by many factors which can substantially change the cost of having a policy. Simply getting older, getting married, or getting a ticket for careless driving may cause policy rate changes that can now make some companies cheaper than others. And not only may your rating factors change, but auto insurance companies change rates as often as every quarter to ensure their profitability. An extended period of higher than normal claims can cause high rates, while lower claims can cause cheaper Madison car insurance rates.

To illustrate this example, the data below analyzes the cheapest car insurance in Madison, WI for a 30-year-old female driver with no prior accidents, a clean driving record, and a decent credit rating. When comparing rates based on her current risk factors, USAA might offer the cheapest car insurance rates in Madison at $685 per year. This is $476 less than the average premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Rural Mutual Insurance are also included in the most affordable Madison, WI auto insurance companies.

Now we will pretend the driver from above some claims, a little lower credit rating, and a speeding citation. Since each auto insurer has a unique approach for establishing rates, comparing prices could result in a completely different list of affordable companies as shown below.

Nationwide now has the best car insurance rate in Madison with Pekin Insurance, Western National, Travelers, and West Bend Mutual completing the list. This example shows why consumers need to take the time to perform a complete rate comparison when trying to find the most economical insurance rates for drivers under 21. Insurance prices consist of many factors and can decrease or increase without notice, so the cheapest rate the last time you compared rates may now be one of the higher cost companies.