The car, truck, or SUV to be insured is probably the largest consideration when shopping for cheaper car insurance for 18 year olds. Vehicles with high performance features, poor crash test ratings, or high incidents of liability claims will cost quite a bit more to insure than safer models. The next table outlines coverage rates for a handful of the most budget-friendly automobiles to insure in California.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $4,205 |
| Honda CR-V LX 2WD | $4,212 |
| Toyota Prius | $4,581 |
| Honda Civic DX 4-Dr Sedan | $4,944 |
| Chevrolet Impala LT | $4,990 |
| Toyota RAV4 Sport 4WD | $5,000 |
| Jeep Grand Cherokee Laredo 2WD | $4,990 |
| Chevrolet Equinox LT AWD | $4,996 |
| Chevrolet Malibu LS | $4,990 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $5,037 |
| Dodge Grand Caravan SXT | $5,042 |
| Ford F-150 Lariat Super Cab 4WD | $5,037 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $5,043 |
| Ford Explorer Eddie Bauer 4WD | $5,037 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $5,181 |
| Ford Focus SES 4-Dr Sedan | $5,230 |
| Nissan Altima 2.5 S 4-Dr Sedan | $5,276 |
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Data based on single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in zip code location which can revise coverage rates noticeably.
Based upon these rates, vehicles like the Ford Escape, Honda CR-V, Toyota Prius, and Honda Civic will definitely be the most budget-friendly vehicles to insure for teen drivers. The cost of a car insurance policy will be higher anyway because of the fact that there is a higher risk for 18 year olds, but overall those particular models will most likely have the cheapest rates compared to other types of vehicles.
Determining which companies have the most affordable car insurance rates for 18 year olds takes more time in order to find the lowest price quote. Every insurance provider has a different formula to set their prices, so we will examine the car insurance companies with the overall cheapest rates in Oakland, CA.
It’s important that readers know that California car insurance rates are calculated based on many things which can significantly increase or decrease the price of your policy. Getting older, buying a home, or getting a DUI may generate price changes resulting in some companies being more affordable than before.
Best Auto Insurance Prices for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,121 |
| 2 | Wawanesa | $1,157 |
| 3 | Century National | $1,178 |
| 4 | CSAA | $1,222 |
| 5 | Nationwide | $1,263 |
| 6 | 21st Century | $1,338 |
| 7 | Grange | $1,447 |
| 8 | Progressive | $1,542 |
| 9 | Mercury | $1,548 |
| 10 | Allied | $1,556 |
| 11 | GEICO | $1,559 |
| 12 | Allstate | $1,559 |
| 13 | MetLife | $1,606 |
| 14 | The Hartford | $1,639 |
| 15 | State Farm | $1,682 |
| 16 | Unitrin | $1,699 |
| 17 | Esurance | $1,739 |
| 18 | Bristol West | $1,777 |
| 19 | Travelers | $1,842 |
| 20 | Farmers | $1,966 |
| Find Your Rate Go | ||
USAA may offer some of the most affordable car insurance rates in Oakland at around $1,121 per year. Wawanesa, Century National, CSAA, and Nationwide would also make the list of some of the more affordable Oakland, CA auto insurance companies.
As shown in the rates above, if you are a policyholder with Century National and switched to USAA, you may realize an annual savings of roughly $57. California drivers with CSAA might save as much as $101 a year, and Nationwide insureds might reduce prices by as much as $142 a year.
These policy rates are averaged for all insureds and vehicles and do not take into consideration a specific location for 18 year olds. So the company that has the cheapest price for you may not even be in the top 24 companies in the list above. That is why you need to get car insurance quotes using your own specific driver information and vehicle.
One of the many factors that are used to help calculate the price you pay for insurance is where your residence is in Oakland. Cities with more crime and/or more people tend to have higher rates, whereas more rural areas profit from lower rates.
The table below ranks the most expensive areas in California for 18 year olds in which to purchase auto insurance. Oakland ranks #4 with an annual rate of $1,738 for car insurance, which is about $145 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Los Angeles | $2,104 |
| 2 | Glendale | $2,058 |
| 3 | San Francisco | $1,763 |
| 4 | Oakland | $1,738 |
| 5 | Sacramento | $1,720 |
| 6 | San Bernardino | $1,596 |
| 7 | Santa Clarita | $1,580 |
| 8 | Long Beach | $1,562 |
| 9 | Stockton | $1,541 |
| 10 | Riverside | $1,527 |
| 11 | Fontana | $1,519 |
| 12 | Garden Grove | $1,508 |
| 13 | Moreno Valley | $1,506 |
| 14 | Anaheim | $1,488 |
| 15 | Modesto | $1,487 |
| 16 | Fresno | $1,457 |
| 17 | Santa Ana | $1,439 |
| 18 | San Jose | $1,437 |
| 19 | Huntington Beach | $1,416 |
| 20 | Fremont | $1,403 |
| Find Cheaper Rates Go | ||
Rate information is approximated as the specific garaging location can change price quotes noticeably.
Difference between liability only and full coverage rates
Saving money when shopping for car insurance should be important to most vehicle owners, and an easy way to find cheap insurance for 18 year olds is to buy only liability coverage. The chart below compares auto insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in California. Data assumes no claims, a clean driving record, $250 deductibles, single status, and no discounts are applied to the premium.
As an average for all age groups, physical damage coverage costs $2,314 per year over and above liability only. That brings up the question if buying full coverage is a waste of money. There is no written rule to drop physical damage coverage on your policy, but there is a general guideline you can use. If the yearly cost for physical damage coverage is 10% or more of any settlement you would receive from your insurance company, then you might consider buying liability only.
For example, let’s say your vehicle’s book value is $9,000 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company will settle for is $8,000 after paying your policy deductible. If you are paying over $800 annually to have full coverage, then you might consider buying liability only.
How accidents and tickets impact rates
The common sense way to obtain affordable car insurance premiums in Oakland for teen drivers is to drive cautiously and avoid accidents and traffic violations. The information below illustrates how speeding tickets and at-fault fender-benders can impact car insurance rates for each different age category. Data assumes a single female driver, full physical damage coverage, $250 deductibles, and no additional discounts are factored in.
The chart shows that the average cost of car insurance in Oakland per year with no violations or accidents is $2,199. Add in two speeding tickets and the average cost rises to $2,951, an increase of $752 each year. Now add in two accidents along with the two speeding tickets and the annual cost of car insurance for 18 year olds goes up to an average of $5,726. That’s an increase of $3,527, or $294 per month, just for being a careless driver!
Ideas for buying more affordable auto insurance for 18 year olds
Lowering your rates is not difficult, and here are some penny-pinching ideas that can help drivers locate more affordable car insurance.
- At-fault accidents can raise rates significantly
- Safer vehicles generally have cheaper insurance rates
- Increase the comprehensive and collision deductibles on your policy
- Speeding tickets and other violations increase rates
- Good credit scores may make rates cheaper
- Shop around for cheaper prices
The last tip in the list is especially critical, as we pointed out in the prior article. Prices charged by car insurance companies adjust frequently, so don’t be tentative to switch companies if a more affordable rate is found. Brand loyalty is not necessarily bad, but we do not recommend it if that devotion results in you overpaying major coinage every year. Now is a great time to compare prices and find cheaper car insurance for 18 year olds in Oakland.