The words “cheap” and “insurance” really don’t belong together, especially when searching for the lowest insurance rates for drivers under 25. To help control this cost, let’s learn about some of the factors that have an impact on car insurance premiums, and figure out some ways to reduce the price of the next policy you buy.
Deciding which company offers the best insurance rates for drivers under 25 requires a little more sweat in order to find a policy that fits your budget. Every insurance provider uses their own calculation to establish rates, so let’s take a look at the insurance companies that tend to have lower prices in Ohio.
It’s important to understand that Cleveland insurance rates are influenced by many factors that will increase or decrease the cost of having a policy. Simply having a birthday, buying a home, or getting a ticket for running a stop sign can trigger changes in premium that can cause some rates to be cheaper in comparison to the competition.
Find Cheaper Car Insurance for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $635 |
| 2 | Frankenmuth | $680 |
| 3 | Erie | $687 |
| 4 | Allied | $690 |
| 5 | Travelers | $705 |
| 6 | USAA | $711 |
| 7 | Merchants Insurance Group | $748 |
| 8 | Cincinnati Insurance | $749 |
| 9 | General Casualty | $813 |
| 10 | Motorists Mutual | $824 |
| 11 | Grange Mutual | $828 |
| 12 | Central Mutual | $866 |
| 13 | Hastings Mutual | $884 |
| 14 | State Farm | $894 |
| 15 | Westfield | $908 |
| 16 | Atlantic States | $931 |
| 17 | Progressive | $953 |
| 18 | Auto-Owners | $968 |
| 19 | Western Reserve | $970 |
| 20 | American Family | $1,010 |
| Find Cheaper Rates Go | ||
Utica National may have some of the most affordable car insurance rates in Cleveland at around $635 annually. This is $405 less than the average policy premium paid by Ohio drivers of $1,040. Frankenmuth, Erie, Allied, and Travelers would also be considered some of the most economical Cleveland, OH car insurance companies.
As the example above demonstrates, if you currently buy coverage from Frankenmuth and switched to Utica National, you may see an annual premium reduction of in the vicinity of $45. Policyholders with Erie may save as much as $52 a year, and Allied policyholders might see rate reductions of $55 a year.
If you would like to find cheaper car insurance rates, click here or visit several of the following companies.
Bear in mind that those prices are averages for all ages of drivers and types of vehicles and do not take into consideration a specific location for drivers under 25. So the insurer that can offer you the best rate may not even be in the top 33 companies in the list above. That point stresses why you need to quote rates from as many companies as possible using your own driver data and vehicle information.
The vehicle to be insured is one of the primary factors when comparing quotes for the best coverage for drivers under 25. Vehicles with average performance, a plethora of safety features, or low incidents of liability claims will cost quite a bit less to insure than adrenaline junky models. The next table illustrates auto insurance prices for the cheaper vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $3,270 |
| Honda CR-V EX-L 2WD | $3,318 |
| Chevrolet Silverado LS Regular Cab 4WD | $3,591 |
| Toyota Prius | $3,609 |
| Dodge Grand Caravan CV | $3,639 |
| Chevrolet Malibu Hybrid | $3,883 |
| Jeep Grand Cherokee Laredo 4WD | $3,888 |
| Toyota RAV4 Limited 4WD | $3,883 |
| Chevrolet Impala LT | $3,892 |
| Nissan Altima 2.5 4-Dr Sedan | $3,883 |
| Chevrolet Equinox LT 2WD | $3,888 |
| Ford Explorer Eddie Bauer 4WD | $3,931 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $3,940 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $3,933 |
| Toyota Camry SE | $4,126 |
| Compare Cheap Rates Go | |
Data rating is based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in vehicle garaging location which can raise or lower auto insurance rates considerably.
Based upon the rates shown, we can tell that cars like the Ford Escape, Honda CR-V, and Chevrolet Silverado should be some of the most affordable vehicles to insure for drivers age 25 and younger. The cost of a car insurance policy will be more costly because of the fact that there is more claim risk for drivers under 25, but generally speaking those vehicles will probably have the cheapest car insurance rates that you’ll find.
Full coverage rates compared to liability only
Saving money on insurance should be important to the majority of drivers, and one of the best ways to buy cheap insurance for drivers under 25 is to not buy full coverage. The diagram below illustrates the difference between auto insurance costs with and without full coverage. The rates are based on no driving violations, no at-fault accidents, $250 deductibles, drivers are not married, and no other discounts are factored in.
As an average, full coverage costs an additional $1,601 per year over and above liability only. That amount may make you wonder when is the right time to remove full coverage. There is no definitive formula to delete physical damage coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you may need to consider dropping full coverage.
There are a few cases where only buying liability is not recommended. If you haven’t satisfied your loan, you must maintain physical damage coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is damaged, you should not drop full coverage.
Discounts on Cleveland insurance
Car insurance companies that provide policies for drivers under 25 may provide policy discounts that may potentially lower prices by as much as 40% or more if you are eligible for them. Companies and their offered discounts are shown below.
- GEICO offers discounts for seat belt use, multi-policy, anti-theft, multi-vehicle, and good student.
- Mercury Insurance discounts include annual mileage, good student, professional/association, age of vehicle, low natural disaster claims, and location of vehicle.
- Farmers Insurance policyholders can earn discounts including alternative fuel, mature driver, early shopping, business and professional, electronic funds transfer, switch companies, and bundle discounts.
- Auto-Owners Insurance may include discounts for anti-lock brakes, company car, mature driver, student away at school, teen driver, and group or association.
- Liberty Mutual has discounts for preferred payment discount, hybrid vehicle, teen driver discount, exclusive group savings, multi-car, and safety features.
- SAFECO includes discounts for teen safety rewards, multi-car, accident prevention training, anti-theft, anti-lock brakes, teen safe driver, and drive less.
- Progressive has savings for good student, multi-vehicle, online quote discount, multi-policy, continuous coverage, online signing, and homeowner.
- USAA may offer discounts for new vehicle, defensive driver, family discount, vehicle storage, military installation, and annual mileage.
The example below illustrates the comparison of auto insurance costs with and without discounts applied. Data assumes a male driver, no accidents, no driving violations, Ohio state minimum liability limits, full coverage, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with paperless filing, anti-theft, passive restraint, paid-in-full, continuous coverage, and vehicle safety discounts applied. When discounts are factored in, theaverage yearly reduction on insurance for drivers under 25 is 19% or $182.
The diagram below demonstrates how choosing different deductibles can affect yearly insurance costs when trying to find cheap insurance for drivers under 25. The prices are based on a single male driver, comp and collision included, and no policy discounts are applied.
The data above shows that a 30-year-old driver could cut expenses by $210 a year by changing from a $100 deductible to a $500 deductible, or save $318 by switching to a $1,000 deductible. Youthful drivers, like the age 20 example, can cut as much as $612 or more by using higher deductibles when buying full coverage.
When choosing a higher deductible, it will be required to have additional funds in a savings account to pay the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
How to find economical auto insurance for drivers under 25
Here are a few money-saving ideas that can help you quote low-cost auto insurance.
- Do not pay for full coverage on older vehicles
- Accidents can significantly increase rates
- Save money by insuring your home and auto with the same company
- Increase your credit score
- Choose a safer vehicle and pay lower rates
- Shop around for cheaper prices often
The last tip in the list is incredibly important, as we discussed in this write-up. Auto insurance rates in Cleveland change frequently, so don’t hesitate to switch companies if a lower-cost policy is available. Brand loyalty is great, but it’s not a great idea if that loyalty ends up costing big bucks every year. In just a couple of minutes you could shop around to find cheaper insurance for drivers under 25.
If you prefer to have the advice of a professional agent when buying car insurance for drivers under 25, the agents listed below can help you decide which policy fits your needs best.
To find a Cleveland insurance agent nearest to you, click the button after the list.
- Pinkney-Perry Insurance
1701 E 12th St #101 – Cleveland, OH 44114 – (216) 795-1995 - Abc Auto Insurance Agency Inc.
1970 E 55th St – Cleveland, OH 44103 – (216) 881-2600 - Coventry Insurance Agency
230 W Huron Rd – Cleveland, OH 44113 – (216) 307-3611 - Robert Jones – State Farm Insurance Agent
12405 Larchmere Blvd – Cleveland, OH 44120 – (216) 229-3276