The words “low-priced” and “insurance” really should not be used together, specifically when comparison shopping for the cheapest coverage for 16 year olds. To help control this cost, let’s open your eyes to some of the factors that impact auto insurance prices, and find some ways to shave a little off your next policy.
Finding good, cost effective car insurance is challenging, and finding out which companies have the most affordable car insurance rates for 16 year olds takes a little more work. Each auto insurer uses different criteria for determining rates, so we’ll go over the car insurance companies with the overall best prices in California.
Find the Cheapest Car Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,155 |
| 2 | Wawanesa | $1,157 |
| 3 | CSAA | $1,198 |
| 4 | Century National | $1,214 |
| 5 | Nationwide | $1,263 |
| 6 | 21st Century | $1,366 |
| 7 | Mercury | $1,488 |
| 8 | Grange | $1,491 |
| 9 | Progressive | $1,512 |
| 10 | GEICO | $1,513 |
| 11 | Allstate | $1,559 |
| 12 | Allied | $1,588 |
| 13 | The Hartford | $1,591 |
| 14 | MetLife | $1,606 |
| 15 | Esurance | $1,688 |
| 16 | State Farm | $1,699 |
| 17 | Unitrin | $1,750 |
| 18 | Travelers | $1,788 |
| 19 | Bristol West | $1,831 |
| 20 | Farmers | $1,946 |
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USAA may offer some of the best car insurance rates in Oakland at around $1,155 a year. This is $496 less than the average price paid by California drivers of $1,651. Wawanesa, CSAA, Century National, and Nationwide are also some of the best Oakland, CA car insurance companies.
As depicted above, if you buy coverage from CSAA and switched to USAA, you might see a yearly savings of in the neighborhood of $43. Drivers with Century National might save as much as $59 a year, and Nationwide customers might see rate reductions of $108 a year.
If you want to see how much you could save, click here to get a free quote or quote rates from the companies below.
Understand that those prices are averages for all types of drivers and the different vehicles they drive and are not factoring in a specific zip code for 16 year olds. So the insurer that is best suited for you may not even be in the top 24 companies shown above. That helps illustrate why you need to compare rates from as many companies as possible using your own personalized driver profile and vehicle information.
For new drivers, one of the largest things that determine the price you pay for insurance is where you normally keep your vehicle. Areas with more people or even just a higher incidence of claims likely pay more, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower rates.
The information below lists the most costly cities in California for 16 year olds to buy auto insurance in. Oakland comes in at #3 with a yearly premium of $1,755 for the average policy, which is around $146 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Los Angeles | $2,168 |
| 2 | Glendale | $2,121 |
| 3 | Oakland | $1,755 |
| 4 | San Francisco | $1,745 |
| 5 | Sacramento | $1,703 |
| 6 | Long Beach | $1,610 |
| 7 | San Bernardino | $1,596 |
| 8 | Stockton | $1,556 |
| 9 | Garden Grove | $1,554 |
| 10 | Santa Clarita | $1,548 |
| 11 | Fontana | $1,535 |
| 12 | Fresno | $1,517 |
| 13 | Moreno Valley | $1,506 |
| 14 | Modesto | $1,502 |
| 15 | Riverside | $1,482 |
| 16 | Anaheim | $1,444 |
| 17 | Santa Ana | $1,439 |
| 18 | Huntington Beach | $1,416 |
| 19 | San Jose | $1,395 |
| 20 | Fremont | $1,389 |
| 21 | Irvine | $1,371 |
| 22 | Bakersfield | $1,353 |
| 23 | Oxnard | $1,344 |
| 24 | San Diego | $1,327 |
| 25 | Chula Vista | $1,298 |
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Rate quotes are approximated as the specific zip code location can impact coverage rates significantly.
The vehicle model you are seeking coverage for is a large consideration that determines whether or not you find the best cheap auto insurance for 16 year olds. Vehicles with reasonable performance levels, good crash test ratings, or a track record of few liability claims will cost significantly less to insure than adrenaline junky models. The data below showcases car insurance premiums for some of the most budget-friendly automobiles to insure.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $5,088 |
| Ford Escape XLS 2WD | $5,095 |
| Honda CR-V EX 2WD | $5,088 |
| Toyota Prius | $5,488 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $5,725 |
| Ford Explorer Eddie Bauer 2WD | $5,734 |
| Ford Edge SEL AWD | $5,986 |
| Volkswagen Jetta S 4-Dr Sedan | $6,033 |
| Chevrolet Equinox LT 2WD | $6,042 |
| Toyota RAV4 4WD | $6,033 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $6,079 |
| Dodge Grand Caravan SXT | $6,087 |
| Ford F-150 Lariat Super Cab 4WD | $6,079 |
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Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in specific location which can decrease or increase insurance rates noticeably.
Based on these rates, you can infer that makes and models like the Hyundai Elantra, Ford Escape, Honda CR-V, Toyota Prius, and Jeep Wrangler are going to be some of the most economical vehicles to insure for new drivers. Auto insurance rates will tend to be higher because of the fact that there is more claim risk for 16 year olds, but overall those particular vehicles will probably have the best insurance prices that you are likely to find.
Safe drivers pay cheaper rates
A great way to earn the most affordable car insurance premiums in California for new drivers is to be a cautious driver and maintain a clean driving record. The example below demonstrates how speeding tickets and fender-benders can raise annual premium costs for each different age category. The prices are based on a married female driver, full physical damage coverage, $250 deductibles, and no policy discounts are applied.
The data above shows the average cost of an auto insurance policy in Oakland per year with a clean driving record and no accidents is $1,785. Get two speeding tickets and the average cost jumps to $2,536, an increase of $752 each year. Now include one accident along with the two speeding tickets and the annual cost of car insurance for 16 year olds goes up to an average of $3,288. That’s an increase of $1,503, or $125 per month, just for not driving carefully!
Types of discounts on Oakland auto insurance rates
Insurance companies that provide coverage for 16 year olds could also offer rate discounts that could reduce prices by as much as 35% if you are eligible for them. Larger car insurance companies and the discounts they provide are outlined below.
- State Farm policyholders can earn discounts including anti-theft, Steer Clear safe driver discount, passive restraint, good driver, student away at school, defensive driving training, and Drive Safe & Save.
- Progressive may include discounts for multi-policy, good student, multi-vehicle, online signing, online quote discount, continuous coverage, and homeowner.
- Progressive offers premium reductions for online quote discount, continuous coverage, homeowner, good student, and multi-policy.
- MetLife may have discounts that include defensive driver, claim-free, good driver, accident-free, good student, and multi-policy.
- Farm Bureau offers discounts including renewal discount, multi-policy, safe driver, youthful driver, 55 and retired, and driver training.
- GEICO has discounts for daytime running lights, air bags, membership and employees, good student, anti-theft, and five-year accident-free.
- SAFECO includes discounts for anti-theft, anti-lock brakes, accident prevention training, bundle discounts, teen safety rewards, teen safe driver, and safe driver.
The example below illustrates the difference between yearly insurance costs with and without policy discounts. Data assumes a female driver, no claims or driving citations, California state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows the price with no discounts. The lower bar shows the rates with good student, anti-theft, paid-in-full, continuous coverage, vehicle safety, and paperless filing discounts applied. When discounts are factored in, the average amount saved each year on car insurance for 16 year olds is 28% or $967.
The example below highlights how deductible choice can raise or lower insurance costs when quoting cheap insurance for 16 year olds. Data assumes a single female driver, full coverage, and no discounts are taken into consideration.
In the chart above, a 40-year-old driver could lower their car insurance rates by $490 a year by changing from a $100 deductible to a $500 deductible, or save $736 by selecting a $1,000 deductible. Younger drivers, like the 20-year-old example, could possibly save up to $1,246 annually by choosing larger deductibles on their policy. When insureds make the decision to increase the deductibles on their policy, it’s a good idea to have enough savings set aside to be able to pay the extra out-of-pocket expense associated with higher deductibles.
Here’s why price comparisons are so important
California car insurance rates are based on many factors that can increase the price of your policy. Simply getting older, adding a teenager to your policy, or getting a DUI can trigger rate changes that can cause some rates to be more affordable than before. Not only that, but car insurance companies change their prices every year or even multiple times each year in order to remain profitable. A period of higher than normal claims may result in more expensive prices, while lower claims can cause more affordable Oakland car insurance rates.
To help illustrate this point, the graph below demonstrates which company has the cheapest car insurance in Oakland, CA for a 40-year-old female driver with no violations or accidents, and great credit. If we compare prices based on her current situation, USAA may offer the best car insurance rates in Oakland at $1,468 per year. This is $183 less than the average policy premium paid by California drivers of $1,651. Century National, Wawanesa, CSAA, and Nationwide also make the list of the cheapest Oakland, CA auto insurance companies.
In the next rate comparison, we’ll give the driver from the first rate comparison an at-fault accident, less-than-perfect credit, and a traffic citation. Because each company has their own formula for determining rates in each state, comparing rates may now present a different set of cheap Oakland auto insurance companies as shown below.
Grange now has the lowest car insurance rate in Oakland with Mercury, GEICO, Progressive, and Allstate now rounding out the top five. This example proves why it is critical to compare lots of rates to get the most budget-friendly insurance quotes for 16 year olds. Auto insurance prices are influenced by many different factors and can increase or decrease at any time, so the best option when you last compared rates may now be an over-priced policy.