The words “affordable” and “insurance” really don’t belong together, specifically when you are looking for the cheapest car insurance for drivers under 21. To save some money, let’s introduce you to some of the things that have an effect on car insurance prices, and see how we can help you lower the price of the next policy you buy.
Establishing which companies quote the best auto insurance rates for drivers under 21 requires a little more effort than just picking a company at random. Each insurance company uses their own calculation to set their prices, so we’ll take a look at the auto insurance companies with the most affordable rates in Fort Wayne.
Best Car Insurance Prices for Minors
|Rank||Company||Cost Per Year|
|7||Indiana Farmers Mutual||$867|
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Travelers may offer some of the most affordable car insurance rates in Fort Wayne at around $620 per year. Cincinnati Insurance, USAA, Erie, and The Hartford are also some of the best Fort Wayne, IN auto insurance companies.
As illustrated above, if you buy coverage from Erie and switched to Cincinnati Insurance, you might see annual savings of about $48. Insureds with The Hartford might save as much as $185 a year, and Western Reserve insureds might lower prices by $186 a year.
These prices are averages across all drivers and vehicles in Indiana and do not take into consideration a specific location for drivers under 21. So the insurer that can offer you the best price may not even be in the list above. That affirms the importance of why you need to compare rates from multiple companies using your own specific driver and vehicle information.
For minors, one of the more important considerations that are looked at to determine the amount you pay each year for auto insurance is your zip code in Fort Wayne. Areas with more people or higher crime rates are more likely to pay higher prices, whereas areas with less people or fewer weather incidents can boast about having cheaper rates.
The information below ranks the highest-priced places in Indiana for drivers under 21 to buy auto insurance in. Fort Wayne is listed at #14 with the yearly price of $976 for the average policy, which is approximately $81 monthly.
|Rank||City||Premium Per Year|
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Rates are estimated as the specific Fort Wayne residence address can change prices significantly.
Difference between full coverage and liability only rates
Saving on auto insurance should be important to most vehicle owners, and an easy way to reduce the cost of insurance for drivers under 21 is to not buy comprehensive and collision coverage. The diagram below illustrates the difference between yearly insurance costs when comparing full coverage to liability only. The price estimates are based on no driving violations, no at-fault accidents, $100 deductibles, marital status is single, and no discounts are factored in.
If all age groups are averaged, full coverage costs $1,613 per year more than carrying just liability coverage. That is a significant amount which raises the question if buying full coverage is a good investment. There isn’t a written rule to eliminate full coverage, but there is a general convention. If the yearly cost of comp and collision coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s claim settlement value is $11,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $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’s probably a good time to buy liability coverage only.
Reckless driving habits raise Fort Wayne auto insurance rates
In a perfect world, the ideal way to maintain the cheapest auto insurance premiums for minors is to drive carefully and avoid accidents and violations. The information below illustrates how speeding tickets and fender-benders can increase premium costs for each different age category. The premium estimates are based on a single male driver, comp and collision included, $100 deductibles, and no additional discounts are factored in.
In the chart above, the average cost of an auto insurance policy in Indiana per year with a clean driving record and no accidents is $1,613. Get two speeding tickets and the average cost rises to $2,140, an increase of $527 each year. Then add two accidents along with the two speeding tickets and the annual cost of auto insurance for drivers under 21 jumps again to an average of $4,006. That’s an increase of $2,393, or $199 per month, just for a couple of infractions!
How to get discounts on Fort Wayne car insurance
Insurance companies that provide policies for drivers under 21 may have policy discounts that can lower rates by as much as 30% if you meet eligibility requirements. A few popular companies and the discounts they provide are outlined below.
- American Family offers premium reductions for good student, accident-free, defensive driver, air bags, and multi-vehicle.
- State Farm policyholders can earn discounts including driver’s education, Steer Clear safe driver discount, Drive Safe & Save, multiple autos, and passive restraint.
- 21st Century discounts include good student, homeowners, early bird, defensive driver, teen driver, and theft prevention.
- Travelers offers discounts for driver training, multi-policy, early quote, continuous insurance, payment discounts, save driver, and good student.
- GEICO offers discounts including military active duty, multi-vehicle, good student, air bags, daytime running lights, membership and employees, and anti-theft.
The diagram below illustrates the comparison of premium costs with and without discounts applied to the policy premium. The price estimates are based on a female driver, a clean driving record, no at-fault accidents, Indiana state minimum liability limits, full physical damage coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second shows the rates with paid-in-full, good student, vehicle safety, continuous coverage, passive restraint, and anti-theft discounts applied. When drivers take advantage of discounts, theaverage amount saved on auto insurance for drivers under 21 is 28% or $641.