Who Has Cheap Car Insurance Quotes for Young Drivers in Minnesota?

When writing about shopping for car insurance, the word cheap shouldn’t be used anywhere in the article to describe car insurance prices. Regardless, cheap auto insurance for young drivers can be difficult to find. But don’t despair, because we are going to tell you how you can still get auto insurance that is more affordable.

Finding out which company offers the most affordable auto insurance rates for young drivers will involve a bit more work in order to find the most economical policy. Each auto insurer has a unique approach for establishing rates, so we’ll go over the most budget-friendly auto insurance companies in Minnesota.

It’s a good idea to be aware that Minnesota auto insurance rates are based on many factors that may substantially change the cost of having a policy. Improving your credit rating, buying a different home, or getting caught speeding can cause premium changes resulting in some rates now being cheaper than competitors.

Cheap Insurance Rates for Teens

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Travelers may offer some of the lowest car insurance rates in Minnesota at around $641 annually. USAA, Farm Bureau Mutual, Western National, and The Hartford also are some of the cheaper Minnesota auto insurance companies.

In the above example, if you have coverage with Western National and switched to Travelers, you might see an annual savings of in the vicinity of $269. Insureds with The Hartford might save as much as $285 a year, and West Bend Mutual insureds might lower prices by up to $302 a year.

These estimates are averaged for all types of drivers and the different vehicles they drive and and are not calculated with a price increase for young drivers. So the car insurance company that is most affordable for your situation may not even be included in the rate chart shown above. That is why you need to compare prices as often as possible using your own driver and vehicle profiles.

The type of vehicle requiring insurance is one of the largest factors when consumers are trying to find cheap auto insurance for young drivers in Minnesota. Vehicles with lots of speed or power, poor safety ratings, or a track record of large liability claims will cost quite a bit more to insure than safer models. The data below showcases insurance rates for some of the most affordable automobiles to buy insurance for.

Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Minnesota minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific Minnesota garaging location which can modify insurance rates noticeably.

Based upon the table data, you can see that makes and models like the Ford Escape, Honda CR-V, Toyota Prius, Chevrolet Traverse, and Ford F-150 will be some of the less-costly vehicles to insure for youthful drivers. The cost of a car insurance policy will be higher anyway because of the fact that there is more inherent risk for young drivers, but generally speaking those particular vehicles will most likely have the lowest insurance rates compared to all other vehicles.

For youthful drivers, one of the big components that aid in calculating rate quotes is where you live in Minnesota. Areas that are more densely populated or have higher claim rates like Maplewood, Saint Paul, and Coon Rapids tend to have higher rates, whereas areas with less congestion benefit from having to pay less for coverage.

The following table ranks the most expensive places in Minnesota for young drivers in which to buy car insurance.

Rates are estimated as the specific garaging location can impact premium rates significantly.

Full coverage rates compared to liability only

Finding cheap auto insurance for young drivers in Minnesota should be important to the majority of drivers, and one of the easiest ways to buy cheaper insurance is to not buy comprehensive and collision coverage. The chart below illustrates the comparison of auto insurance costs with liability coverage only compared to full coverage. Data assumes a clean driving record, no claims, $500 deductibles, single marital status, and no policy discounts are applied.

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Averaged for all ages 20 through 70, physical damage coverage on your policy costs $1,996 per year more than just buying liability insurance. Lot’s of drivers question if paying for full coverage is worth it. There is no set guideline of when to stop paying for physical damage coverage on your policy, but there is a general convention. If the annual cost of coverage is more than 10% of the settlement you would receive from your company, then it may be the right time to buy liability only.

For example, let’s pretend your vehicle’s replacement value is $10,500 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most you would receive is $9,500 after paying your policy deductible. If you are paying in excess of $950 annually for comprehensive and collision coverage, then you might want to consider buying only liability coverage.

There are some conditions where dropping physical damage coverage is not a good plan. If you still owe a portion of the original loan, you must maintain physical damage coverage in order to keep the loan. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should not consider dropping full coverage.

Find cheap auto insurance for young drivers in Minnesota

The list below summarizes some money-saving ideas that can help drivers quote the cheapest coverage.

• Buying home and auto insurance together can earn discounts
• If possible, pay for small claims out-of-pocket
• Older vehicles may not need full coverage
• Do not get into accidents that are your fault
• Buy a vehicle with excellent safety ratings
• Tickets and violations raise rates
• Compare rate quotes often

The last item on the list is remarkably valuable, as we pointed out in the prior article. Rates in Minnesota can change considerably in a year, so drivers shouldn’t be resistant to change insurance companies if a more affordable rate is found. Many drivers tend to have loyalty to a certain company, but it’s not a great idea if your bullheadedness ends up costing you hundreds every year. Spend a few minutes and compare prices and find cheaper car insurance for young drivers.

Who has the cheapest insurance quotes for youthful drivers?

There are many different ways to shop around for auto insurance in Minnesota, but the most prevalent are through a captive (or exclusive) agent like Liberty Mutual or State Farm, an independent or non-exclusive agent, or direct online or over the phone from a company like Progressive or Geico. Each way has the same basic steps, but buyers should know the differences in how they price policies.

Independent insurance agencies are appointed by several companies and can compare coverage rates with each one. They are not limited to a single company and can give you a larger rate selection, which can help you get more bang for your buck. If a cheaper price is found, your agent can switch companies and you can remain with the same agent.

An exclusive agent is only able to give rates for just one company, two of the more popular are an Allstate or Liberty Mutual agent. These agents usually cannot compare rates from other companies, so you will not be able to compare their rates to other companies.

Buying from a direct company means skip either of the other two types of agents and instead buy from a direct company like Geico or Esurance. Shopping direct may be good for drivers who have fewer assets and have a good understanding of the exclusions of a policy.

Which way works best to buy cheap auto insurance for young drivers in Minnesota? It would be obvious to point out buying direct saves money since that prevents the need to pay agent commissions, but unfortunately, that is not the case. We’d also like to say an independent agency is the best way to save because you have more choices, but that assumption is also not necessarily accurate. And occasionally, exclusive agencies have really good rates that other auto insurance companies cannot touch.

Due to the fact that auto insurance rates vary so much, the guaranteed way to get rock-bottom rates is to compare lots of quotes. Money-saving experts recommend you get rate quotes from all three to have enough rates to compare. For a list of companies offering online discounts in Minnesota, click here to view.