The words “low-cost” and “auto insurance” really don’t belong together, specifically when looking for the best car insurance for drivers under 21. In an attempt to save some money, let’s teach you a few of the things that have an effect on auto insurance premiums, and see how we can help you reduce the cost of your next policy.
The car, truck, or SUV you are trying to insure is a large factor when shopping around for the cheapest coverage for drivers under 21. Vehicles with lower acceleration and performance, a great safety record, or a low likelihood of having liability claims will cost less to insure than fast, unsafe models.
The information below presents car insurance prices for the more affordable automobiles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$4,545|
|Ford Escape Limited 2WD||$4,604|
|Honda CR-V EX-L 2WD||$4,610|
|Ford Edge SE 2WD||$5,022|
|Honda Odyssey LX||$5,029|
|Ford Explorer XLT 2WD||$5,081|
|Volkswagen Jetta SE 2.5 Station Wagon||$5,295|
|Ford Focus SE 4-Dr Sedan||$5,340|
|Chevrolet Impala LS||$5,347|
|Toyota Tacoma 2WD||$5,340|
|Toyota RAV4 Sport 2WD||$5,398|
|Jeep Grand Cherokee Laredo 4WD||$5,408|
|GMC Sierra SLE Crew Cab 2WD||$5,398|
|Dodge Grand Caravan SXT||$5,457|
|Ford F-150 FX2 2WD||$5,462|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$5,499|
|Hyundai Elantra Blue 4-Dr Sedan||$5,655|
|Nissan Altima 2.5 S 4-Dr Sedan||$5,714|
|Toyota Camry SE||$5,722|
|Toyota Corolla LE||$5,714|
|Chevrolet Malibu LTZ||$5,772|
|Chevrolet Equinox LTZ AWD||$5,779|
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Data variables include single male driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Massachusetts minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in Boston, MA location which can change coverage prices significantly.
Based upon these rates, models like the Honda Accord, Ford Escape, and Honda CR-V are most likely to be some of the most economical vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive just because there is more claim risk for drivers under 21, but in general those particular models will have the cheapest auto insurance rates compared to other vehicles.
For minors, one of the largest considerations that help determine insurance cost is where you choose to live in Boston. Areas with more people or higher crime rates tend to pay slightly more, whereas areas that tend to be more rural have the luxury of cheap car insurance rates.
The following table ranks the most expensive cities in Massachusetts for drivers under 21 in which to purchase auto insurance. Boston makes the list at #7 with an annual premium of $1,805 for the average insurance policy, which is approximately $150 each month.
|Rank||City||Average Per Year|
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Premium amounts are comparative as specific Boston zip code can revise prices noticeably.
Trying to find budget car insurance is not the easiest thing to accomplish, and finding out which insurers offer the cheapest insurance rates for drivers under 21 involves more quotes for comparison.
Each company uses a slightly different approach to establish rates, so first we will examine the insurance companies with the overall cheapest rates in Massachusetts.
Cheap Insurance Rates for Minors
|Rank||Company||Cost Per Year|
|2||National Grange Mutual||$831|
|9||Norfolk and Dedham||$1,068|
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State Farm has some of the most affordable car insurance rates in Boston at around $741 each year. This is $494 less than the average rate paid by Massachusetts drivers of $1,235. National Grange Mutual, GEICO, OneBeacon, and Commerce Group would also make the list of some of the best Boston, MA car insurance companies.
In the rate table above, if you have coverage with National Grange Mutual and switched to State Farm, you could see yearly savings of upwards of $90. Customers with GEICO could save as much as $127 a year, and OneBeacon customers might lower prices by up to $162 a year.
Remember that these rates are averaged across all ages of drivers and types of vehicles and are not factoring in a specific zip code for drivers under 21. So the company that is best for you may not even be in the list above. That is why you need to compare as many prices as possible using your own personalized driver profile and vehicle information.
Cost difference between full coverage and liability
Reducing the cost of insurance is the goal of the majority of drivers, and one of the fastest ways to pay lower rates for insurance for drivers under 21 is to buy only liability coverage. The chart below shows the comparison of auto insurance costs with liability coverage only compared to full coverage. The premiums are based on no violations or claims, $250 deductibles, single marital status, and no discounts are applied to the premium.
On average, physical damage coverage on your policy costs an extra $1,756 per year over and above liability only. That brings up the question when is it a good idea to stop buying full coverage. There is no clear-cut rule for dropping physical damage coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than about 10% of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s pretend your vehicle’s replacement value is $3,000 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, you would only receive $2,000 after you pay the deductible. If you are paying in excess of $200 a year for physical damage coverage, then it could be time to drop full coverage.
There are some situations where removing full coverage is not financially feasible. If you haven’t paid off your loan, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should keep full coverage on your policy.
Drive responsibly or pay higher rates
The obvious way to get low insurance premiums in Boston for minors is to pay attention while driving and avoid accidents and traffic citations. The chart below illustrates how traffic citations and at-fault collisions can raise auto insurance costs for different categories of driver ages. The costs are based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are applied.
In the prior example, the average cost of an auto insurance policy in Boston per year with a clean driving record and no accidents is $2,133. Get written up for two speeding tickets and the average cost hikes up to $2,839, an increase of $706 each year. Then throw in two accidents along with the two speeding tickets and the yearly cost of insurance for drivers under 21 increases to an average of $5,225. That’s an increase of $3,093, or $258 per month, just for not driving safely!
The importance of comparing Boston car insurance rates
Boston insurance rates are influenced by many factors which can significantly increase or decrease the price of coverage. Improving your credit score, buying a home, or getting a ticket for running a stop sign can trigger rate changes resulting in some rates now being more affordable than others.
In addition to those changes, companies amend premium rates multiple times each year to adjust for heavy claims or excess profits. Significantly higher claims may cause additional price hikes, while lower claim levels can produce cheaper Boston car insurance rates.
As an example, the graph below analyzes the cheapest car insurance in Boston, MA for a 35-year-old female driver with no violations or accidents, and a good credit history. If we estimate prices based on her personal risk profile, State Farm may offer the most affordable car insurance rates in Boston at $952 a year. This is $283 less than the average price paid by Massachusetts drivers of $1,235. National Grange Mutual, OneBeacon, GEICO, and Commerce Group are the rest of the cheapest Boston, MA auto insurance companies.
In the next rate comparison, we’ll give the driver in the first example some claims, bad credit, and a traffic citation. Due to the fact that every insurance company has a unique approach for filing rates in each state, analyzing rates may result in a completely different list of cheap Boston auto insurance companies as shown below.
Arbella now has the best price in Boston, MA with Norfolk and Dedham, USAA, Amica, and National Grange Mutual now being in the top five. This example shows why Boston drivers need to compare as many rates as possible to get the best auto insurance quotes for drivers under 21. Rates can be determined by many things and can decrease or increase without notice, so the cheapest option the last time you shopped around may now be quite expensive.