Wouldn’t it be great if you could just know the one company that has the cheapest car insurance rates for drivers under 25? It’s just not that easy, however, as there are a lot of unknown factors such as how many years you have been driving, if you are a man or woman, and what physical damage coverage deductibles you want, that all have an effect on the price. This article should teach you a little about the best ways to find cheap auto insurance and should give you some help in finding cheaper rates.
Figuring out which companies quote the most affordable insurance rates for drivers under 25 involves more time in order to find the lowest price. Each auto insurance company has a proprietary formula to determine rates, so we’ll go over the insurance companies that tend to have lower prices in Albuquerque, NM.
Find Cheaper Auto Insurance for Young Drivers
|Rank||Company||Cost Per Year|
|4||Farm Bureau Mutual||$1,166|
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USAA quotes some of the best car insurance rates in Albuquerque at around $663 each year. Allied, Safeco, Farm Bureau Mutual, and Farmers also make the cut as some of the cheaper Albuquerque, NM insurance companies.
In the above rates, if you have coverage with Farmers and switched to Allied, you might see an annual savings of approximately $367. Insureds with State Farm could save as much as $401 a year, and The Hartford customers might realize rate reductions of up to $404 a year.
Remember that these premium estimates are averaged across all drivers and vehicles in New Mexico and do not take into consideration an exact vehicle garaging location for drivers under 25. So the auto insurance company that has the lowest price for you may not even be in the top 17 companies in the list above. That helps illustrate why you need to compare rates from multiple companies using your own specific driver information and vehicle.
The car, truck, or SUV driven is a significant factor when looking for the lowest-priced coverage for drivers under 25. Vehicles with limited top-end speed, good crash test ratings, or low incidents of liability claims will cost quite a bit less to insure than higher performance models. The list below outlines auto insurance prices for the most affordable vehicles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$3,228|
|Ford Escape Limited 4WD||$3,483|
|Honda Accord EX-L 4-Dr Sedan||$3,493|
|Ford Explorer XLT 2WD||$3,621|
|Dodge Grand Caravan SE||$3,631|
|Ford F-150 XLT Regular Cab 4WD||$3,621|
|Ford Focus SE 4-Dr Sedan||$3,778|
|Ford Edge Limited 2WD||$3,785|
|Chevrolet Impala LS||$3,778|
|Toyota RAV4 Sport 4WD||$3,827|
|Toyota Tacoma Double Cab 4WD||$3,837|
|Volkswagen Jetta S 4-Dr Sedan||$3,827|
|Chevrolet Equinox LT AWD||$3,834|
|Jeep Grand Cherokee Laredo 4WD||$3,827|
|Ford F-350 XL Super Cab 2WD||$3,923|
|Honda Odyssey EX-L||$4,036|
|Hyundai Elantra GLS 4-Dr Sedan||$4,045|
|Nissan Altima 2.5 S 4-Dr Sedan||$4,036|
|Toyota Camry SE||$4,046|
|Toyota Corolla XRS||$4,083|
|Chevrolet Silverado 2500HD LT Crew Cab 4WD||$4,093|
|Chevrolet Malibu LTZ||$4,083|
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Table data represents 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. Estimates do not factor in specific location information which can impact price quotes noticeably.
Looking at the rates, you can expect cars like the Honda CR-V, Ford Escape, and Honda Accord are most likely to be a few of the more affordable vehicles to insure for drivers age 25 and younger. Car insurance rates will tend to be more expensive because there is more claim risk for drivers under 25, but generally speaking those models will most likely have the cheapest rates that you’ll find.
For drivers age 25 and younger, one of the largest criteria that help determine insurance cost is where you call home in Albuquerque. More populated areas tend to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates tend to receive slightly lower rates.
The information below ranks the highest-priced places in New Mexico for drivers under 25 in which to buy car insurance. Albuquerque is ranked #2 with the annual price of $1,375 for the average insurance policy, which is about $115 each month.
|Rank||City||Premium Per Year|
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Information shown are comparative as the vehicle garaging location can affect prices considerably.
Best insurance company in Albuquerque
Buying coverage from a highly-rated company is difficult considering how many companies are available to choose from in Albuquerque. The information listed below may help you analyze which auto insurance companies you want to consider to insure your vehicles. The rankings below are only made up of companies who write in the majority of U.S. states, so smaller companies that only insure vehicles in New Mexico are not included in the list.
Top 10 Large Auto Insurers Overall in Albuquerque
- American Family
- State Farm
- The Hartford
- AAA Insurance
- The General
- Titan Insurance
Top 10 Large Auto Insurers in Albuquerque Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- GEICO – A++
- State Farm – A++
- The Hartford – A+
- Esurance – A+
- Nationwide – A+
- Allstate – A+
- Titan Insurance – A+
- Progressive – A+
Full coverage rates compared to liability only
Reducing the cost of insurance is important to most drivers, and a great way to reduce the cost of insurance for drivers under 25 is to not buy comprehensive and collision coverage. The chart below compares car insurance rates when comparing full coverage to liability only. The data is based on no tickets, no at-fault accidents, $250 deductibles, single status, and no additional discounts are factored in.
Averaged for all ages 20 through 70, comp and collision coverage costs $1,695 per year over liability only. That may make you wonder if paying for full coverage is worth it. There is no set guideline of when to exclude physical damage insurance, but there is a general guideline you can use. If the annual cost of having full coverage is more than around 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
You are probably paying too much for car insurance
Albuquerque, NM insurance rates are based on many factors that can increase the cost of your policy. Simply having a birthday, buying a different vehicle, or getting into an accident can cause premium changes that can make some companies more affordable than before. Not only may your situation change, but companies change premium rates at least once a year in order to be able to pay unexpected claims. A period of increased losses can result in rate increases, while lower claim expenses can cause lower-priced Albuquerque car insurance rates.
To help illustrate this point, the bar chart below compares the cheapest car insurance in Albuquerque, NM for a 30-year-old female driver with no prior claims, no tickets, and good credit. If we estimate prices based on her current situation, USAA offers the most affordable car insurance rates in Albuquerque at $903 a year. This is $665 less than the average price paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers round out the rest of the cheapest Albuquerque, NM auto insurance companies.
In this next rate comparison, we will give the driver from the first rate comparison some claims, a lower credit rating, and a few blemishes on her driving record. Since every car insurance company uses their own calculation for determining rates in each state, analyzing rate quotes could result in a completely different list of the cheapest car insurance companies in Albuquerque as shown below.
USAA now has the cheapest car insurance in Albuquerque with Allied, The Hartford, Central Mutual, and Safeco also being competitive. This illustrates why it is critical to compare rates when trying to find the most affordable insurance quotes for drivers under 25. Car insurance prices are impacted by many risk factors and change dramatically, so the cheapest option the last time you shopped your coverage around may now cost much more than other companies.
How to find budget-friendly car insurance for drivers under 25
Below you’ll find many money-saving suggestions that can help drivers locate more affordable auto insurance.
- Bundle home or renters insurance to earn a discount on car insurance
- Buy vehicles with five-star safety ratings
- At-fault accidents will increase rates
- Remove physical damage coverage on older vehicles
- Avoid speeding and other traffic citations and pay less
- Save money by staying claim-free
- Comparison shop at least every other year
The last suggestion is highly necessary, as we noted in the article above. Auto insurance rates change frequently, so don’t be tentative to buy a policy from a new company if a better deal can be had. Many consumers stick with the same company and that’s fine, but is isn’t recommended if it’s costing you lots of hard earned cash every month. In just a couple of minutes you could shop around and find cheaper insurance for drivers under 25 in Albuquerque.