The vehicle model that is being insured is probably the most important factor that determines the availability of cheaper coverage for young drivers. Vehicles with higher performance, poor crash test ratings, or an increased likelihood of liability claims will cost quite a bit more to insure than safer models. The next table illustrates car insurance rates for a selection of the most cost-effective vehicles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $6,010 |
| Honda Accord EX 4-Dr Sedan | $6,017 |
| Honda CR-V EX-L 4WD | $6,068 |
| Toyota Prius | $6,493 |
| Toyota Tacoma 4WD | $6,763 |
| Ford Explorer XLT AWD | $6,770 |
| Dodge Grand Caravan CV | $6,763 |
| Volkswagen Jetta 2.0T Station Wagon | $6,861 |
| Ford Focus SE 4-Dr Sedan | $7,073 |
| Ford Fusion S 4-Dr Sedan | $7,131 |
| Chevrolet Malibu LS | $7,138 |
| GMC Sierra SL Extended Cab 2WD | $7,131 |
| Toyota RAV4 4WD | $7,138 |
| Chevrolet Impala LT | $7,131 |
| Ford F-150 Lariat Crew Cab 4WD | $7,189 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $7,194 |
| Ford Edge Sport AWD | $7,499 |
| Toyota Corolla XLE | $7,505 |
| Hyundai Elantra SE 4-Dr Sedan | $7,499 |
| Honda Odyssey EX-L W/Rear Entertainment | $7,507 |
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Price data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in vehicle location which can affect coverage prices significantly.
Based upon the rates shown, makes and models like the Ford Escape, Honda Accord, Honda CR-V, Toyota Prius, and Toyota Tacoma are the most economical vehicles to insure for youthful drivers. The price for car insurance will tend to be more expensive just because there is more exposure for young drivers, but generally speaking those vehicles will most likely have the cheapest car insurance rates possible.
Figuring out which company offers the cheapest insurance rates for young drivers may require a tad more effort in order to find the best price.
Every insurance provider has a different formula for setting prices, so let’s examine the most competitive insurance companies in California. We do need to point out that Oakland, CA insurance rates are impacted by many things that will increase or decrease your annual premium. Getting older, increasing liability limits, or getting a few speeding tickets may generate price changes that may make certain companies cheaper than before.
Best Cheap Insurance Rates for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,121 |
| 2 | Wawanesa | $1,157 |
| 3 | CSAA | $1,186 |
| 4 | Century National | $1,190 |
| 5 | Nationwide | $1,250 |
| 6 | 21st Century | $1,366 |
| 7 | Grange | $1,477 |
| 8 | Mercury | $1,488 |
| 9 | GEICO | $1,513 |
| 10 | Progressive | $1,558 |
| 11 | Allstate | $1,559 |
| 12 | Allied | $1,603 |
| 13 | MetLife | $1,606 |
| 14 | The Hartford | $1,623 |
| 15 | State Farm | $1,699 |
| 16 | Unitrin | $1,750 |
| 17 | Esurance | $1,756 |
| 18 | Bristol West | $1,777 |
| 19 | Travelers | $1,842 |
| 20 | Farmers | $2,026 |
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USAA has some of the best car insurance rates in Oakland at around $1,121 per year. Wawanesa, CSAA, Century National, and Nationwide also make the cut as some of the cheapest Oakland, CA car insurance companies.
As the example above demonstrates, if you buy coverage from Wawanesa and switched to USAA, you might realize an annual savings of in the neighborhood of $36. Customers with CSAA could save as much as $65 a year, and Century National insureds might see rate reductions of $69 a year.
Remember that these prices are averaged across all types of drivers and the different vehicles they drive and do not factor in a specific zip code for young drivers. So the insurer that fits your needs best may not even be in the list above. That points out the importance of why you need to get quotes using your own driver and vehicle profiles.
For youthful drivers, one of the more important considerations that are looked at to help calculate car insurance rates is where you keep your car in Oakland. Areas with more people or even just a higher incidence of claims tend to pay slightly more, whereas areas with less congestion have the gratification of cheaper auto insurance rates.
The following table shows the most expensive cities in California for young drivers to buy car insurance in. Oakland is ranked at #5 with an annual premium of $1,687 for car insurance, which is approximately $141 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,083 |
| 2 | Glendale | $2,079 |
| 3 | Sacramento | $1,720 |
| 4 | San Francisco | $1,693 |
| 5 | Oakland | $1,687 |
| 6 | Stockton | $1,603 |
| 7 | San Bernardino | $1,580 |
| 8 | Long Beach | $1,562 |
| 9 | Moreno Valley | $1,551 |
| 10 | Santa Clarita | $1,548 |
| 11 | Fontana | $1,535 |
| 12 | Riverside | $1,527 |
| 13 | Garden Grove | $1,524 |
| 14 | Fresno | $1,517 |
| 15 | Modesto | $1,502 |
| 16 | Santa Ana | $1,453 |
| 17 | Anaheim | $1,430 |
| 18 | San Jose | $1,395 |
| 19 | Huntington Beach | $1,374 |
| 20 | San Diego | $1,368 |
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Price information shown is approximated as specific Oakland zip code can impact prices significantly.
Accidents and violations increase rates
The easiest method to get low insurance premiums in California for youthful drivers is to be an attentive driver and avoid accidents and traffic citations. The example below demonstrates how speeding tickets and accidents can increase auto insurance rates for each different age group. The premiums assume a married male driver, comp and collision included, $1,000 deductibles, and no additional discounts are factored in.
In the prior example, the average cost of a car insurance policy in Oakland per year with no violations or accidents is $2,122. Get written up for two speeding tickets and the average cost rises to $2,920, an increase of $798 each year. Then include one accident along with the two speeding tickets and the 12-month cost of insurance for young drivers jumps again to an average of $3,733. That’s an increase of $1,611, or $134 per month, just for being a little careless behind the wheel!
How to get discounts on Oakland insurance
Insurers that sell policies for young drivers may also offer policy discounts that could lower prices by 30% or more if you meet specific eligibility requirements. The best insurance companies and their offered discounts are:
- State Farm offers discounts including defensive driving training, safe vehicle, anti-theft, good student, driver’s education, multiple policy, and student away at school.
- American Family has savings for good student, early bird, Steer into Savings, defensive driver, and good driver.
- AAA has discounts for education and occupation, AAA membership discount, anti-theft, multi-car, and good student.
- GEICO may have discounts that include five-year accident-free, air bags, federal employee, defensive driver, multi-policy, anti-lock brakes, and military active duty.
- Mercury Insurance offers discounts for good student, annual mileage, accident-free, professional/association, and age of vehicle.
- Farmers Insurance policyholders can earn discounts including youthful driver, teen driver, mature driver, distant student, alternative fuel, and pay in full.
- Progressive may offer discounts for homeowner, online signing, good student, continuous coverage, multi-vehicle, and online quote discount.
The chart below compares insurance costs with and without discounts applied to the premium. The costs are based on a male driver, no violations or accidents, California state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with vehicle safety, paid-in-full, anti-theft, continuous coverage, paperless filing, and good student discounts applied. When drivers take advantage of discounts, theaverage yearly reduction on insurance for young drivers is 28% or $1,032.
Liability-only versus full coverage
Finding the cheapest insurance should be important to most drivers, and an easy way to reduce the cost of insurance for young drivers is to not insure for full coverage. The chart below compares insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data assumes no claims or violations, $1,000 deductibles, single status, and no discounts are taken into consideration.
Averaged out for all age groups, full coverage on your policy costs an extra $2,501 per year over liability only. At some point, about every driver wonders if paying for full coverage is a waste of money. There is no definitive guideline of when to stop paying for physical damage insurance, but there is a general guideline. If the annual cost of having full coverage is more than 10% of replacement cost minus your deductible, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s book value is $10,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $9,500 after the deductible is paid. If you are currently paying more than $950 annually to have full coverage, then it could be time to drop full coverage.
There are some cases where dropping full coverage is not recommended. If you haven’t paid off your loan, you have to maintain full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is damaged, you should not remove full coverage.
How to find cheaper insurance for young drivers
Below you’ll find many thrifty suggestions that can help drivers find cheap car insurance.
- Good credit scores may lower your rates
- Avoid preventable accidents
- Violations like speeding or DUI increase rates
- Save money by insuring older vehicles for liability only
- Buy a vehicle with excellent safety ratings
- Raise deductibles to save money
- Shop around once a year for cheaper rates
The last item on the list is extraordinarily important, as was emphasized in the prior information. Prices charged by companies adjust frequently, so don’t be tentative to change to a new company if you can find a cheaper rate. Sticking with a specific company is fine, but it’s not a great idea if that faithfulness ends up costing you major coinage every year. Take a couple minutes and shop around and find cheaper auto insurance for young drivers in Oakland.