You’ve seen the captivating ads from car insurance companies like GEICO and The General that make claims of the cheapest rates, so you should just pick the company with the catchiest ad, right?
It’s not that easy, however, as there are a whole bunch of unknown factors such as how experienced of a driver you are, the performance level of your vehicle, and what physical damage coverage deductibles you want. In this article, we will teach you about the things that influence insurance rates and will give you a solid foundation to find cheaper car insurance.
One of the more important things that aid in calculating car insurance rates is where your car is garaged in Sacramento. Cities with more crime and/or more people tend to pay more, whereas areas with lower crime rates and fewer weather claims tend to receive cheaper rates.
The information below shows the priciest cities in California for drivers under 21 to buy an auto insurance policy in. Sacramento comes in at #5 costing $1,720 for the average policy, which is approximately $143 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,146 |
| 2 | Glendale | $2,142 |
| 3 | Oakland | $1,755 |
| 4 | San Francisco | $1,745 |
| 5 | Sacramento | $1,720 |
| 6 | San Bernardino | $1,628 |
| 7 | Long Beach | $1,610 |
| 8 | Garden Grove | $1,570 |
| 9 | Santa Clarita | $1,548 |
| 10 | Stockton | $1,541 |
| 11 | Fontana | $1,535 |
| 12 | Modesto | $1,532 |
| 13 | Riverside | $1,527 |
| 14 | Moreno Valley | $1,506 |
| 15 | Anaheim | $1,474 |
| 16 | Fresno | $1,457 |
| 17 | Santa Ana | $1,453 |
| 18 | San Jose | $1,423 |
| 19 | Bakersfield | $1,381 |
| 20 | San Diego | $1,368 |
| 21 | Huntington Beach | $1,360 |
| 22 | Oxnard | $1,358 |
| 23 | Chula Vista | $1,350 |
| 24 | Fremont | $1,348 |
| 25 | Irvine | $1,330 |
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Premium amounts are estimated as specific location information can affect coverage rates substantially.
The type of vehicle you are seeking coverage for is a large consideration when consumers are trying to find low-priced car insurance for drivers under 21. Vehicles with economical engines, excellent safety ratings, or a track record of few liability claims will cost much less to insure than fast, unsafe models.
The information below outlines auto insurance costs for a number of the most budget-friendly automobiles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $4,990 |
| Hyundai Elantra GLS Touring Station Wagon | $4,999 |
| Honda CR-V EX-L 4WD | $5,048 |
| Ford Escape XLT 4WD | $5,057 |
| Toyota Prius | $5,437 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $5,593 |
| Toyota Tacoma 4WD | $5,598 |
| Ford Explorer XLT AWD | $5,593 |
| Ford Edge SEL 2WD | $5,870 |
| Ford Focus S 4-Dr Sedan | $5,876 |
| Chevrolet Equinox LT 2WD | $5,927 |
| Dodge Grand Caravan Hero | $5,932 |
| Toyota RAV4 Limited 4WD | $5,927 |
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Premium data assumes single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in zip code location which can impact coverage rates significantly.
Based upon the rates shown, cars like the Honda Accord, Hyundai Elantra, and Honda CR-V are a few of the most budget-friendly vehicles to insure for minors. Auto insurance rates will tend to be more expensive just due to the fact that there is more risk for drivers under 21, but overall those makes and models will tend to have the cheapest car insurance rates that you’ll find.
Establishing which companies offer the best auto insurance rates for drivers under 21 involves a little more sweat in order to find a policy that fits your budget. Each insurance company has their own guidelines to set policy rates, so let’s examine the auto insurance companies with the overall cheapest rates in Sacramento.
Compare Cheap Insurance Quotes for Minors
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,143 |
| 2 | Wawanesa | $1,146 |
| 3 | Century National | $1,178 |
| 4 | CSAA | $1,198 |
| 5 | Nationwide | $1,213 |
| 6 | 21st Century | $1,338 |
| 7 | Grange | $1,433 |
| 8 | Mercury | $1,488 |
| 9 | GEICO | $1,529 |
| 10 | Progressive | $1,542 |
| 11 | Allstate | $1,543 |
| 12 | Allied | $1,556 |
| 13 | The Hartford | $1,575 |
| 14 | MetLife | $1,638 |
| 15 | State Farm | $1,682 |
| 16 | Esurance | $1,739 |
| 17 | Unitrin | $1,750 |
| 18 | Bristol West | $1,777 |
| 19 | Travelers | $1,788 |
| 20 | Farmers | $2,026 |
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USAA may have some of the cheapest car insurance rates in Sacramento at around $1,143 each year. This is $508 less than the average premium paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide would also be considered some of the more affordable Sacramento, CA insurance companies.
In the above rates, if you are insured with Nationwide and switched to Wawanesa, you could see annual savings of approximately $67. Drivers with 21st Century may save as much as $192 a year, and Grange insureds might lower prices by $287 a year.
To see if your current coverage is too expensive, click here to start your free quote or visit any of the companies below.
Understand that those rates are averages across all types of drivers and the different vehicles they drive and do not take into consideration a specific vehicle garaging location for drivers under 21. So the company that can offer you the best price may not even be in the top 24 companies in the list above. That is why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
How to get discounts on Sacramento car insurance rates
Auto insurance companies that offer quotes for drivers under 21 may also provide discounts that could potentially reduce rates by 30% or more if you qualify. The best auto insurance companies and their offered discounts are:
- State Farm has discounts for multiple autos, student away at school, safe vehicle, Steer Clear safe driver discount, and defensive driving training.
- GEICO offers discounts including driver training, multi-policy, five-year accident-free, membership and employees, air bags, and federal employee.
- Liberty Mutual may offer discounts for good student, newly married, preferred payment discount, newly retired, new vehicle discount, and new graduate.
- The Hartford may have discounts that include bundle, vehicle fuel type, air bag, anti-theft, driver training, good student, and defensive driver.
- MetLife policyholders can earn discounts including multi-policy, good student, defensive driver, accident-free, claim-free, and good driver.
- Progressive offers premium reductions for online quote discount, homeowner, multi-vehicle, continuous coverage, multi-policy, and good student.
The diagram below illustrates the comparison of insurance costs with and without discounts applied to the rates. The data is based on a male driver, no violations or claims, California 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 bar shows the rates with vehicle safety, paperless filing, passive restraint, anti-theft, good student, and paid-in-full discounts applied. When discounts are factored in, theaverage yearly reduction on auto insurance for drivers under 21 is 28% or $699.
Liability-only versus full coverage
Reducing premiums for auto insurance is the goal of the majority of drivers, and one of the fastest ways to lower the cost of insurance for drivers under 21 is to not buy full coverage. The illustration below shows the comparison of auto insurance rates with full physical damage coverage and with liability coverage only. The premiums are based on no claims or violations, $100 deductibles, single marital status, and no discounts are factored in.
As an average for all age groups, physical damage insurance costs an extra $3,444 per year more than just buying liability only. That may make you wonder if you should buy full coverage at all. There is no set guideline that works best for making the decision to drop comp and collision coverage, but there is a broad guideline. If the annual cost of having full coverage is more than 10% of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
There are some circumstances where eliminating full coverage is not recommended. If you haven’t satisfied your loan, you have to keep full coverage in order to prevent your loan from defaulting. Also, if you cannot afford to purchase a different vehicle if your current one is in an accident, you should not buy liability only.
How to find budget-friendly insurance for drivers under 21
It is possible to find better rates, and here are many penny-pinching suggestions that can help Sacramento drivers quote lower-cost auto insurance.
- Prevent price hikes by avoiding at-fault accidents
- Vehicles with good safety ratings are usually cheaper to insure
- If your vehicles are older, consider dropping full coverage
- Good credit can mean cheaper rates
- Save money by insuring your home and auto with the same company
- Compare quotes from other companies often
The last tip is particularly necessary, as was noted in this write-up. Coverage rates in Sacramento vary greatly, so drivers shouldn’t be resistant to change to a new company if a more affordable price is available. Being loyal to a particular company is commendable, but it’s not a great idea if that stubbornness costs you thousands of dollars over several years. In less than five minutes you could compare rates to find cheaper insurance for drivers under 21.
The agents shown below are a good start to help you determine which insurance coverage will be best for you, since some drivers aren’t sure which coverage they need and prefer to get some guidance when comparing insurance rates for drivers under 21. It’s not always easy to find the best rates on your own, and professional agents can provide you peace of mind knowing you have suitable coverage if you have an accident. To find an agent by location nearest to you, click the link after the list.
- Pan American Underwriters
1610 Arden Way # 121 – Sacramento, CA 95815 – (916) 286-5960 - Apna Insurance Agency
3022 Stockton Blvd #5 – Sacramento, CA 95820 – (916) 454-4495 - Yeh Ferguson – State Farm Insurance Agent
7273 14th Ave Ste 100 – Sacramento, CA 95820 – (916) 455-5000