I’m sure you’ve seen the catchy advertisements from car insurance companies like The General, Nationwide, and Farmers that make promises of enormous savings. So drivers just need to pick the one with the best commercial, right?
Regrettably, it’s not quite that easy, as there are a whole slew of unknowns such as your marital status, when you were born, whether or not your vehicle has good safety ratings, and your gender. We will touch on some of these things and will hopefully give the reader a good beginning to your search for cheaper coverage.
One of the many factors that help determine the price you pay for insurance is your address in Riverside. Areas with more people or higher crime rates will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates have the enjoyment of a little cheaper coverage.
The information below ranks the most expensive areas in California for drivers under 25 to purchase car insurance in. Riverside is listed at #14 with a yearly premium of $1,497 for car insurance, which is around $125 each month.
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Annual rates are estimated as the vehicle garaging location can lower or raise auto insurance rates greatly.
Figuring out which company quotes the cheapest auto insurance rates for drivers under 25 will take more time than just quoting one company’s rates.
Each company used slightly different criteria for setting rates, so we’ll go over the most competitive auto insurance companies in Riverside. It’s important to know that Riverside auto insurance rates are impacted by many things which can substantially change the cost of coverage. Turning one year older, buying higher coverage limits, or getting a couple of tickets can cause premium changes that may make certain companies affordable when they were higher priced.
Cheapest Insurance Rates for Young Drivers
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USAA offers some of the lowest car insurance rates in Riverside at around $1,121 annually. Wawanesa, Century National, Nationwide, and CSAA are also some of the most economical Riverside, CA auto insurance companies.
In the rate table above, if you currently buy coverage from Century National and switched to USAA, you could earn savings of roughly $105. Policyholders with Nationwide may save as much as $105 a year, and CSAA policyholders might lower prices by $113 a year.
These estimates are averaged for all types of drivers and the different vehicles they drive and do not take into consideration an exact zip code location for drivers under 25. So the auto insurance company that has the cheapest rates for you may not even be in the top 24 companies in the list above. That is why you need to get rate quotes from many companies using your own driver data and vehicle information.
Full coverage rates vs. liability-only in Riverside
Paying less for auto insurance is important to the majority of vehicle owners, and one easy way to find cheaper insurance for drivers under 25 is to only pay for liability coverage. The illustration below shows the difference between auto insurance costs with and without full coverage. The rates are based on no accidents, no driving violations, $1,000 deductibles, single status, and no discounts are applied to the premium.
If we average all the age groups together, full coverage costs $2,003 per year over and above liability coverage. That raises the question if you should buy full coverage at all. There is no definitive rule to stop paying for physical damage insurance, but there is a general convention. If the annual cost of comprehensive and collision coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement cost is $11,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, you would only receive $10,000 after the policy deductible has been paid. If you are currently paying more than $1,000 annually for comprehensive and collision coverage, then it might be time to consider dropping full coverage.
There are some conditions where eliminating full coverage is not recommended. If you still have a lienholder on your title, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your emergency fund is not enough to purchase a different vehicle in the even your car is totaled, you should not remove full coverage.
The example below shows how choosing a deductible can affect insurance prices when researching cheap insurance for drivers under 25. The premium estimates are based on a married male driver, comp and collision included, and no discounts are taken into consideration.
As shown above, a 30-year-old driver could save $408 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $618 by selecting a $1,000 deductible. Younger drivers, such as the Age 20 example, could drop their prices as much as $1,230 annually just by choosing higher deductibles. When choosing a higher deductible, it is necessary to have additional funds squirreled away to enable you to pay the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Why you should be shopping around
Riverside, CA auto insurance rates are influenced by many factors that control the cost of a policy. Simply having another birthday, marrying your spouse, or getting a few speeding tickets may generate price changes that can cause some rates to be cheaper than others. Also, insurers change rates at least once a year to adjust for gains or losses. An extended period of higher than normal claims may cause more expensive premiums, while a profitable period may cause cheaper Riverside car insurance rates.
To illustrate this point, the bar chart below shows the cheapest car insurance in Riverside, CA for a 30-year-old female driver with no prior claims, no tickets, and a decent credit rating. If we look at prices based on her current risk factors, USAA may offer the best car insurance rates in Riverside at $1,312 per year. This is $339 less than the average premium paid by California drivers of $1,651. Wawanesa, Nationwide, Century National, and CSAA are the remaining cheapest Riverside, CA auto insurance companies.
In the next rate comparison, we’ll give the driver from the first example a claim or two, a lower credit score, and a speeding ticket. Since each insurance company uses their own calculation to set policy rates, analyzing rate quotes may now result in a slightly different list of affordable Riverside car insurance companies as shown below.
Grange now has the lowest price in Riverside with Progressive, Allstate, GEICO, and Mercury completing the list. This example demonstrates why consumers need to compare as many rates as possible when trying to get cheap insurance rates for drivers under 25.
Insurance prices consist of many risk factors and change frequently, so the most affordable company the last time you checked may now not even be in the top five.