The words “cheap” and “auto insurance” probably shouldn’t be used in the same sentence, in particular when you are shopping around for the cheapest car insurance for drivers under 21. Because it’s not cheap, let’s lead off by showing you some things that determine auto insurance rates, and come up with some ways to lower the price of the next policy you buy.
One of the more important considerations that are looked at to help calculate the price you pay for insurance is where you keep your vehicle in Albuquerque. Areas with a lot of weather claims or more people are more likely to have higher rates, whereas areas with less congestion have the benefit of cheaper car insurance.
The information below lists the most expensive cities in New Mexico for drivers under 21 to purchase a policy in. Albuquerque makes the list at #1 with an annual premium of $1,417 for coverage, which is about $118 monthly.
|Rank||City||Average Per Year|
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Premium amounts are estimated as the specific zip code location can impact coverage rates greatly.
Determining which company offers the most affordable car insurance rates for drivers under 21 calls for a little more effort in order to find the lowest price quote. Each auto insurance company uses a little different formula for determining rates, so let’s take a look at the most affordable car insurance companies in Albuquerque, NM.
It’s important to understand that Albuquerque car insurance rates are influenced by many factors that can increase your annual premium. Simply having another birthday, moving to a different location, or getting a ticket for running a stop sign may cause policy rate changes that can cause some rates to be cheaper than competitors.
Find the Best Cheap Insurance for Minors
|Rank||Company||Cost Per Year|
|4||Farm Bureau Mutual||$1,166|
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USAA may have some of the cheapest car insurance rates in Albuquerque at around $677 a year. This is $891 less than the average premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are also some of the best Albuquerque, NM insurance companies.
As shown in the rates above, if you have coverage with Allied and switched to USAA, you may see savings of roughly $281. Insureds with Safeco could save as much as $327 a year, and Farm Bureau Mutual customers might lower prices by $489 a year.
To find out how much you can save, click here to start a quote or click through to the companies below.
Remember that these policy rates are averages across all types of insureds and vehicles and and are not calculated with an exact vehicle garaging location for drivers under 21. So the car insurance company that can offer you the best rate may not even be in the list above. That points out the importance of why you need to get rate quotes from many companies using your own driver data and vehicle information.
The car, truck, or SUV on the policy is one of the primary factors when looking for low-priced car insurance for drivers under 21. Vehicles with reasonable performance levels, advanced safety features, or a low likelihood of liability claims will cost substantially less to insure than high performance models.
The table below presents car insurance prices for a number of the most economical vehicles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$3,196|
|Hyundai Elantra SE Touring Station Wagon||$3,397|
|Ford Escape Limited 4WD||$3,405|
|Ford Explorer XLT 2WD||$3,533|
|Ford Edge Limited 2WD||$3,687|
|Ford Fusion S 4-Dr Sedan||$3,734|
|Dodge Grand Caravan Hero||$3,743|
|Jeep Grand Cherokee Laredo 2WD||$3,734|
|Toyota RAV4 Limited 4WD||$3,740|
|Chevrolet Malibu Hybrid||$3,734|
|Chevrolet Equinox LS AWD||$3,742|
|Chevrolet Impala LT||$3,734|
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Premium data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in specific zip code location which can affect auto insurance rates noticeably.
Looking at the rates, we can assume that cars like the Honda CR-V, Hyundai Elantra, and Ford Escape are most likely to be the less-costly vehicles to insure for minors. Prices will tend to be more expensive anyway because of the fact that there is more liability risk for drivers under 21, but overall those particular models will tend to have the least expensive rates that you’ll find.
Drive responsibly or pay higher rates
In a perfect world, the best way to maintain the cheapest car insurance rates in New Mexico for minors is to pay attention while driving and maintain a clean driving record. The diagram below illustrates how traffic citations and at-fault claims can affect insurance costs for each age group. Data assumes a single female driver, comp and collision included, $100 deductibles, and no additional discounts are factored in.
In the example above, the average cost of a car insurance policy in Albuquerque per year with no accidents and a clean driving record is $1,947. Receive two speeding tickets and the average cost hikes up to $2,626, an increase of $679 each year. Then throw in one accident along with the two speeding tickets and the annual cost of car insurance for drivers under 21 jumps again to an average of $3,307. That’s an increase of $1,360, or $113 per month, just for not driving responsibly!
Rate comparison of full coverage and liability-only
Paying a lower price for car insurance is the goal of the majority of vehicle owners, and one of the fastest ways to buy cheaper insurance for drivers under 21 is to only pay for liability coverage. The example below shows the comparison of insurance prices when comparing full coverage to liability only. The costs are based on no claims or driving violations, $250 deductibles, single status, and no policy discounts are applied.
If we average the cost for all age groups, physical damage insurance costs an additional $2,262 per year over having just liability coverage. Lot’s of drivers question if paying for full coverage is a waste of money. There isn’t a steadfast formula for eliminating physical damage coverage on your policy, but there is a general convention. If the annual cost of your full coverage insurance is about 10% or more of replacement cost minus your deductible, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement value is $9,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, you would only receive $8,000 after paying the physical damage deductible. If you are paying more than $800 a year for your policy with full coverage, then you might consider buying liability only.
Why you should shop around
Albuquerque car insurance rates are impacted by many factors that control the price you pay. Improving your credit score, buying a home, or having an accident may generate price changes that can cause some rates to be cheaper than others.
In addition, car insurance companies change the rates they charge in New Mexico every year to adjust for unexpected claims or profits. Significantly higher claims may result in a rate increase, while less frequent claims may result in lower-priced Albuquerque car insurance rates.
For instance, the graph below shows which companies have the cheapest car insurance in Albuquerque, NM for a 45-year-old male driver with a clean driving record, no accidents, and a high credit rating. If we look at prices based on his current situation, USAA might offer the most affordable car insurance rates in Albuquerque at $928 per year. This is $640 less than the average policy premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and State Farm are the rest of the cheapest Albuquerque, NM auto insurance companies.
In the next rate comparison, we’ll give the driver from the above example a chargeable accident, a lower credit rating, and a blemish on his driving record. Since each auto insurance company has their own guidelines to determine rates, comparing rates may now present a substantially altered list of the cheapest car insurance companies in Albuquerque as shown below.
Allied now has the cheapest auto insurance in Albuquerque with Farmers, The Hartford, USAA, and Safeco also having competitive pricing. This shows why it is crucial to shop around with many companies when trying to find the best auto insurance quotes for drivers under 21. Rates are impacted by many different factors and change frequently, so the best company six months ago may now be one of the higher cost companies.
How to find more affordable auto insurance for drivers under 21
It is possible to find better rates, and here are many money-saving ideas that can help New Mexico drivers get more affordable car insurance.
- Avoid filing excessive claims
- Buy your auto and home insurance from the same company and save
- Increase your physical damage deductibles
- Be a safe driver
- Good credit can mean cheaper rates
- Staying accident-free helps keep rates low
- Comparison shop frequently
The last suggestion is extremely important, as we pointed out in the article above. Coverage rates in Albuquerque can change in a short period of time, so drivers shouldn’t be reluctant to switch companies if a lower price can be found.
Sticking with a specific company is fine, but it’s not recommended if that dedication is costing money that could be used for better things. Now is a great time to compare prices and find cheaper car insurance for drivers under 21.
The Albuquerque auto insurance agencies shown below can aid you in deciding which coverage fits your budget, as some drivers aren’t sure which coverage they need and prefer to have a little guidance when trying to find lower insurance rates for drivers under 21. It can be complicated to find the cheapest rates, so professional agents can provide you peace of mind knowing you have adequate protection in the event of a claim.
To locate an Albuquerque car insurance agency nearest to you, click the button following the list.
- J. B. Martin Insurance Agency
8500 Menaul Blvd NE #345 – Albuquerque, NM 87112 – (505) 888-8846
- Bob Strilich – State Farm Insurance Agent
6751 Academy Rd NE a – Albuquerque, NM 87109 – (505) 823-9333
- Emily Rivera – State Farm Insurance Agent
3500 Indian School Rd NE – Albuquerque, NM 87106 – (505) 294-3330