The words "low-cost" and "auto insurance" really shouldn't be used in the same sentence, specifically when searching for the lowest insurance rates for young drivers. Because it's so expensive, let's take a look at some of the factors the can have a considerable influence on auto insurance rates, and find a way to lower the price of the next policy you buy.
Deciphering which insurers offer the cheapest auto insurance rates for young drivers calls for a bit more work than just getting one or two price quotes. Each insurer uses different criteria to set premium rates, so let's take a look at the most competitive auto insurance companies in Atlanta.
Find the Cheapest Auto Insurance for Teens
|Rank||Company||Cost Per Year|
|6||Georgia Farm Bureau||$1,273|
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Auto-Owners generally has some of the cheapest car insurance rates in Atlanta at around $855 each year. This is $674 less than the average price paid by Georgia drivers of $1,529. The Hartford, USAA, Central Mutual, and MetLife would also make the list of some of the best Atlanta, GA auto insurance companies.
In this example, if you are a policyholder with USAA and switched to Auto-Owners, you might see savings of about $123. Policyholders with Central Mutual could save as much as $338 a year, and MetLife insureds might reduce prices by as much as $371 a year.
If you want to find out if you're overpaying, click here to get a free quote or quote prices from the following companies.
Remember that these premium estimates are averaged for all insureds and vehicles and and are not calculated with an exact vehicle garaging location for young drivers. So the company that has the lowest price for you may not even be in the list above. That point stresses why you need to get quotes using your own specific driver information and vehicle.
The vehicle model you are buying coverage for is a large consideration when shopping around for low-priced insurance for young drivers. Vehicles with average performance, modern passenger safety features, or a positive history of liability claims will cost significantly less to insure than adrenaline junky models. The data below shows car insurance prices for a handful of the most affordable vehicles to insure in Georgia.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$5,963|
|Honda Accord EX 4-Dr Sedan||$5,970|
|Hyundai Elantra GLS Touring Station Wagon||$5,963|
|Honda CR-V EX-L 4WD||$6,026|
|Volkswagen Jetta S 2.5 Station Wagon||$6,415|
|Dodge Grand Caravan SE||$6,686|
|Ford Explorer XLT 2WD||$6,696|
|Toyota Tacoma 4WD||$6,686|
|Ford F-150 XLT Regular Cab 4WD||$6,693|
|Chevrolet Impala LS||$7,012|
|Ford Edge SE AWD||$7,020|
|Honda Odyssey EX||$7,012|
|Chevrolet Equinox LT 2WD||$7,075|
|Jeep Grand Cherokee Laredo 2WD||$7,085|
|Toyota RAV4 Sport 2WD||$7,075|
|Nissan Altima 2.5 4-Dr Sedan||$7,083|
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Data variables include single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Georgia minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in vehicle location which can change price quotes considerably.
Based upon the table data, we can infer that vehicles like the Ford Escape, Honda Accord, and Hyundai Elantra are going to be some of the cheaper vehicles to insure for youthful drivers. The cost of auto insurance will be more expensive just because there is more inherent risk for young drivers, but overall those makes and models will probably have the lowest insurance prices compared to other vehicles.
One of the many components that help determine insurance cost is where you live in Atlanta. Regions with larger populations or more claims tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims benefit from lower coverage costs.
The next table shows the most costly cities in Georgia for young drivers to buy car insurance in. Atlanta makes the list at #2 with an annual rate of $1,363 for car insurance, which is about $114 monthly.
|Rank||City||Average Per Year|
|Compare Rates Now Go|
Premium costs are comparative as specific Atlanta garaging address can influence insurance rates significantly.
Irresponsible driving raises your rates
One of the best ways to snag low auto insurance premiums in Atlanta for youthful drivers is to drive attentively and avoid at-fault accidents and violations. The chart below shows how violations and at-fault fender-benders can influence car insurance rates for each different age category. The rate quotes are based on a married male driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.
In the prior example, the average cost of an auto insurance policy in Georgia per year with no accidents and a clean driving record is $2,100. Add in two speeding tickets and the average cost increases to $2,895, an increase of $795 each year. Then add two accidents along with the two speeding tickets and the annual cost of auto insurance for young drivers goes up to an average of $6,030. That's an increase of $3,930, or $327 per month, just for not keeping your driving record clean!
Should you buy full coverage?
Saving money when shopping for auto insurance should be important to most drivers, and one of the quickest ways to reduce the cost of insurance for young drivers is to buy liability only. The example below shows the comparison of insurance rates with full physical damage coverage compared to only buying the minimum liability limits required in Georgia. The data assumes no driving violations, no at-fault accidents, $500 deductibles, drivers are not married, and no other discounts are factored in.
On average, comp and collision coverage costs $2,471 per year more than carrying just liability coverage. That is a big expense that brings up the question when is the right time to remove full coverage. There is no definitive guideline to delete physical damage coverage on your policy, but there is a guideline you can consider. If the annual cost of having full coverage is 10% or more of the settlement you would receive from your company, then it may be the right time to buy liability only.
There are some scenarios where eliminating full coverage is not recommended. If you still owe money on your vehicle, you have to carry full coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle in the event your current vehicle is totaled, you should keep full coverage on your policy.
The diagram below illustrates how choosing a deductible can influence annual premium costs when getting quotes for cheap insurance for young drivers. The data assumes a married female driver, full coverage, and no discounts are factored in.
The chart above illustrates that a 50-year-old driver could lower their car insurance rates by $268 a year by increasing from a $100 deductible up to a $500 deductible, or save $406 by switching to a $1,000 deductible. Youthful drivers, like the 20-year-old example, could save up to $666 annually by using higher deductibles when buying full coverage. When choosing a higher deductible, it is necessary to have enough spare savings to enable you to cover the extra out-of-pocket expense that deters many people from opting for higher deductibles.
How to find more affordable insurance for young drivers
Lowering your rates is not difficult, and here are some money-saving suggestions that can help Atlanta drivers get lower-cost auto insurance.
- Higher credit ratings may save you money
- Older vehicles may not need full coverage
- Buying home and auto insurance together can earn discounts
- Buy a vehicle with excellent safety ratings
- Raise deductibles
- Claim-free drivers earn discounts
- Comparison shop at least once a year
That last tip is especially vital, as we discussed in the prior information. Auto insurance prices adjust often, so don't be unwilling to buy a different policy if a better deal can be had.
Having a favorite company is fine, but it's not a great idea if that stubbornness costs you potentially thousands of dollars a year. It only takes a couple minutes to compare prices to find cheaper car insurance for young drivers in Atlanta.
If you would rather get some professional input when trying to find the best insurance rates for young drivers, the insurance agencies listed below can most likely help you make a decision which insurance coverage will be best for you.
To find an Atlanta insurance agency nearest to you, click the button at the bottom of the list.
- Aaron Frazier - State Farm Insurance Agent
NE, 4246 Peachtree Rd NE #7 - Atlanta, GA 30319 - (404) 233-4847
- Ryan King - State Farm Insurance Agent
3355 Lenox Rd NE #230 - Atlanta, GA 30326 - (404) 816-3276
- American Family Insurance - Sheree Johnson
1218 Fairburn Rd SW #204 - Atlanta, GA 30331 - (404) 682-1940
- Georgia Insurance Brokerage
193 Auburn Ave NE - Atlanta, GA 30303 - (404) 525-1600
- Lindsay Mullen - State Farm Insurance Agent
2250 N Druid Hills Rd Ste 145 - Atlanta, GA 30329 - (404) 728-1000