The words “economical” and “insurance” really shouldn’t be used in the same sentence, in particular when searching for the best car insurance for young drivers. To help control this cost, let’s teach you some of the things that have a considerable impact on insurance premiums, and figure out some ideas to take the bite out of your next policy.
The make and model of vehicle that needs insurance is one of the primary factors that determines if you can find the most affordable auto insurance for young drivers. Vehicles with high performance features, poor crash test ratings, or a history of substantial liability claims will cost quite a bit more to insure than more economical and safe models. The data below presents car insurance rates for some of the most cost-effective vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$5,836|
|Honda CR-V EX-L 2WD||$5,891|
|Ford F-150 STX Regular Cab 2WD||$6,509|
|Ford Edge SEL AWD||$6,866|
|Chevrolet Equinox LT 2WD||$6,920|
|Toyota Camry LE||$6,928|
|Volkswagen Jetta LE 4-Dr Sedan||$6,920|
|Toyota RAV4 2WD||$6,930|
|Chevrolet Impala LT||$6,920|
|Nissan Altima 2.5 4-Dr Sedan||$6,929|
|Ford Explorer Limited 2WD||$6,977|
|Dodge Grand Caravan Crew||$6,985|
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Above prices assume single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and New Mexico minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate information does not factor in specific garaging location which can modify premiums substantially.
Looking at the data, we can conclude that cars like the Ford Escape, Honda CR-V, and Toyota Prius will definitely be a few of the most economical vehicles to insure for youthful drivers. The cost of auto insurance will tend to be higher because there is more liability risk for young drivers, but in general those particular models will have the lowest insurance rates available.
Deciphering which company offers the best auto insurance rates for young drivers takes a bit more work than just quoting one company’s rates. Each insurer has a proprietary formula to determine rates, so to begin we’ll rank the auto insurance companies with the overall cheapest rates in Albuquerque, NM.
It’s a good idea to know that Albuquerque auto insurance rates are influenced by many factors that can increase your annual premium. Turning one year older, adding a teenager to your policy, or getting a couple of tickets can trigger rate changes resulting in some rates now being cheaper than competitors.
Find the Best Cheap Insurance for Teens
|Rank||Company||Cost Per Year|
|4||Farm Bureau Mutual||$1,178|
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USAA may offer some of the most affordable car insurance rates in Albuquerque at around $663 a year. Allied, Safeco, Farm Bureau Mutual, and State Farm would also be considered some of the cheaper Albuquerque, NM car insurance companies.
In the above rates, if you are a policyholder with Allied and switched to USAA, you may realize a yearly price reduction of upwards of $257. Insureds with Safeco might save as much as $311 a year, and Farm Bureau Mutual customers might see rate reductions of $515 a year.
Be aware that those prices are averaged for all types of insureds and vehicles and are not factoring in an exact zip code location for young drivers. So the car insurance company that fits your age and vehicle best may not even be in the top 17 companies shown above. That point stresses why you need to get rate quotes from many companies using your own driver data and vehicle information.
Impact of speeding/accidents on Albuquerque auto insurance rates
In a perfect world, the best way to earn the most affordable auto insurance prices for youthful drivers is to drive cautiously and avoid accidents and violations. The illustration below illustrates how traffic citations and accidents increase insurance rates for different age groups of insureds. The rates are based on a single female driver, comp and collision included, $250 deductibles, and no policy discounts are applied.
In the prior example, the average cost of auto insurance in Albuquerque per year with no accidents or violations is $1,610. Get one speeding ticket and the average cost rises to $1,824, an increase of $214 each year. Then add in two accidents along with the one speeding ticket and the 12-month cost of auto insurance for young drivers increases to an average of $3,673. That’s an increase of $2,063, or $172 per month, just for not paying attention while driving!
Discounts on Albuquerque insurance
Insurers that offer cheap quotes for young drivers may also give you discounts that could lower prices by as much as 25% or more if you can meet the requirements. Large auto insurance companies and the discounts they provide are shown below.
- GEICO has savings for multi-policy, good student, defensive driver, daytime running lights, membership and employees, and air bags.
- Travelers offers discounts including multi-car, good student, payment discounts, multi-policy, and hybrid/electric vehicle.
- Nationwide includes discounts for family plan, multi-policy, Farm Bureau membership, business or organization, and anti-theft.
- Farmers Insurance may include discounts for electronic funds transfer, switch companies, youthful driver, multi-car, alternative fuel, and pay in full.
- Esurance offers discounts for homeowner, defensive driver, claim free, good student, safety device, and emergency road assistance.
- State Farm discounts include passive restraint, Steer Clear safe driver discount, Drive Safe & Save, safe vehicle, accident-free, and good driver.
- Progressive policyholders can earn discounts including continuous coverage, online quote discount, multi-policy, online signing, good student, and multi-vehicle.
- Mercury Insurance offers premium reductions for age of vehicle, multi-car, type of vehicle, annual mileage, location of vehicle, good driver, and good student.
The illustration below illustrates the comparison of car insurance costs with and without discounts applied to the policy rates. The data assumes a male driver, no claims or driving citations, New Mexico state minimum liability limits, full coverage, and $1,000 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with continuous coverage, vehicle safety, good student, passive restraint, paperless filing, and anti-theft discounts applied. When drivers take advantage of discounts, the average amount saved each year on auto insurance for young drivers is 28% or $683.
Compare rates to save
Albuquerque auto insurance rates are impacted by many factors that control the price of coverage. Simply having another birthday, becoming a homeowner, or getting a DUI can trigger rate changes that can now make some companies more affordable than others. And not only may your rating factors change, but insurers file new New Mexico auto insurance rates every year to adjust for unexpected claims or profits. Higher than usual claims may cause a rate increase, while long-term profits may result in cheaper Albuquerque car insurance rates.
To help illustrate this point, the bar chart below shows a variety of companies that have the cheapest car insurance in Albuquerque, NM for a 30-year-old male driver with a clean driving record, no accidents, and a high credit rating. If we estimate prices based on his personal profile, USAA may have the best car insurance rates in Albuquerque at $858 per year. This is $710 less than the average policy premium paid by New Mexico drivers of $1,568. Allied, Safeco, Farm Bureau Mutual, and Farmers are the rest of the cheapest Albuquerque, NM auto insurance companies.
Now we will pretend the driver from the above example a chargeable claim, bad credit, and a traffic ticket or two. Due to the fact that each insurance company has their own formula to set premium rates, comparing insurance quotes could now result in a completely different list of affordable Albuquerque car insurance companies as shown below.
USAA now has the lowest car insurance rate in Albuquerque with State Farm, Central Mutual, Safeco, and Allied completing the list. This shows why it is important to compare as many rates as possible to find affordable auto insurance quotes for young drivers. Prices can be altered by many things and can increase or decrease at any time, so the lowest-price company the last time you shopped your coverage around may now be quite expensive.
The Albuquerque, NM, insurance agents below can probably help you decide which auto insurance coverages would be the best in your situation, since lots of people like to have some professional guidance when shopping for cheaper insurance for young drivers. It can be difficult to find the best rates on your own, so professional agents can provide you satisfaction knowing your policy gives you sufficient coverage at claim time.
To find an agent close to you, click the button after the list.
J. B. Martin Insurance Agency
8500 Menaul Blvd NE #345 – Albuquerque, NM 87112 – (505) 888-8846
Marty Saiz – State Farm Insurance Agent
1029 Montaño Rd NW – Albuquerque, NM 87107 – (505) 345-3431
Allstate Insurance: Krista L. Sanchez
3300 San Mateo Blvd NE e – Albuquerque, NM 87110 – (505) 255-3371
Ron Pino – State Farm Insurance Agent
4250 Coors Blvd SW a – Albuquerque, NM 87121 – (505) 877-1391