It would sure make life easier if we could simply give you the name of the company that has the rock bottom lowest rates in California. It’s just not that easy, however, as there are many unknown elements like if you are currently insured, tickets or driving violations, if you own or rent your home, and how much you actually drive in a year, that all have an effect on the price of a policy. This article will detail the best ways to save on auto insurance and hopefully give you enough understanding to have some help in finding cheaper rates.
The vehicle model needing coverage is one of the main factors that determines if you can find the best cheap insurance for first-time drivers. Vehicles with lots of horsepower, poor safety features, or a history of substantial liability claims will cost significantly more to insure than more modest models.
The next list showcases car insurance prices for the cheapest automobiles to insure.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $3,774 |
| Hyundai Elantra GLS Touring Station Wagon | $3,783 |
| Ford Escape Limited 2WD | $3,807 |
| Jeep Wrangler Sport 4WD 2-Dr | $3,982 |
| Honda Accord EX-L 4-Dr Sedan | $4,035 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,041 |
| Toyota Prius | $4,068 |
| Ford F-150 XLT Super Cab 4WD | $4,278 |
| Chevrolet Impala LS | $4,440 |
| Ford Edge Limited 2WD | $4,447 |
| Toyota RAV4 Sport 2WD | $4,473 |
| Nissan Altima 2.5 4-Dr Sedan | $4,478 |
| Chevrolet Equinox LT 2WD | $4,473 |
| Dodge Grand Caravan Hero | $4,483 |
| Ford Explorer Limited 2WD | $4,506 |
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Above prices assume single female 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. Rate information does not factor in specific zip code location which can change price quotes significantly.
Based upon the rates shown, we can tell that cars like the Honda CR-V, Hyundai Elantra, and Ford Escape are a few of the most budget-friendly vehicles to insure for new drivers. Auto insurance rates will tend to be more expensive just because there is more liability exposure for first-time drivers, but in general those vehicles will have the lowest insurance rates available.
Shopping around for cost effective car insurance is not most people’s favorite thing to do, and deciding which company has the cheapest car insurance rates for first-time drivers will take a little more work.
Every car insurance company uses a little different formula to set their prices, so let’s begin by taking a look at the most budget-friendly car insurance companies in Fresno. It’s important that readers know that Fresno car insurance rates are impacted by many factors which can substantially decrease or increase the policy premium. Turning one year older, getting married, or getting a speeding ticket can trigger price changes that can make some companies more expensive than others.
Cheap Insurance Rates for Inexperienced Drivers
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,155 |
| 2 | Wawanesa | $1,181 |
| 3 | Century National | $1,214 |
| 4 | CSAA | $1,222 |
| 5 | Nationwide | $1,263 |
| 6 | 21st Century | $1,325 |
| 7 | Grange | $1,433 |
| 8 | Mercury | $1,488 |
| 9 | GEICO | $1,529 |
| 10 | Progressive | $1,558 |
| 11 | Allstate | $1,559 |
| 12 | The Hartford | $1,591 |
| 13 | Allied | $1,603 |
| 14 | MetLife | $1,654 |
| 15 | State Farm | $1,682 |
| 16 | Unitrin | $1,750 |
| 17 | Esurance | $1,756 |
| 18 | Bristol West | $1,777 |
| 19 | Travelers | $1,806 |
| 20 | Farmers | $2,026 |
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USAA has some of the best car insurance rates in Fresno at around $1,155 annually. Wawanesa, Century National, CSAA, and Nationwide also qualify as some of the more affordable Fresno, CA auto insurance companies.
As the example above demonstrates, if you have coverage with CSAA and switched to Wawanesa, you could realize a yearly price reduction of in the vicinity of $41. Customers with Nationwide might save as much as $82 a year, and 21st Century customers might reduce prices by as much as $144 a year.
If you want to find out if you’re overpaying, click here to get quotes or quote rates from the companies below.
Be aware that those prices are averages across all insureds and vehicles and do not factor in an exact vehicle garaging location for first-time drivers. So the company that fits your needs best may not even be in the list above. That emphasizes why you need to quote rates from as many companies as possible using your own specific driver and vehicle information.
One of the more important factors that aid in calculating auto insurance rates is where you live. Cities with larger populations or higher claim trends will most likely pay more, whereas areas with less crime or weather claims have the benefit of cheaper car insurance.
The following table lists the highest-priced places in California for first-time drivers in which to purchase auto insurance. Fresno makes the list at #15 costing $1,502 for the average insured, which is approximately $125 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Glendale | $2,142 |
| 2 | Los Angeles | $2,083 |
| 3 | Oakland | $1,738 |
| 4 | San Francisco | $1,711 |
| 5 | Sacramento | $1,703 |
| 6 | San Bernardino | $1,644 |
| 7 | Santa Clarita | $1,580 |
| 8 | Long Beach | $1,578 |
| 9 | Garden Grove | $1,554 |
| 10 | Moreno Valley | $1,551 |
| 11 | Modesto | $1,547 |
| 12 | Riverside | $1,542 |
| 13 | Stockton | $1,541 |
| 14 | Fontana | $1,519 |
| 15 | Fresno | $1,502 |
| 16 | Santa Ana | $1,453 |
| 17 | Anaheim | $1,430 |
| 18 | San Jose | $1,423 |
| 19 | Huntington Beach | $1,416 |
| 20 | Bakersfield | $1,394 |
| 21 | Fremont | $1,361 |
| 22 | Oxnard | $1,358 |
| 23 | Irvine | $1,343 |
| 24 | San Diego | $1,327 |
| 25 | Chula Vista | $1,298 |
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Rate quotes are comparative as specific Fresno zip code can lower or raise prices noticeably.
The chart below highlights how deductible selection can change insurance costs when researching cheap insurance for first-time drivers. The premiums are based on a married male driver, comprehensive and collision coverage, and no additional discounts are factored in.
A 50-year-old driver could lower their car insurance rates by $308 a year by switching from a $100 deductible to a $500 deductible, or save $466 by selecting a $1,000 deductible. Even younger drivers, such as the 20-year-old example, could save up to $1,026 or more just by choosing larger deductibles.
If you do make the decision to raise your deductibles, it is important to have enough savings set aside to pay the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
Get discount Fresno car insurance
Auto insurance companies that sell policies for first-time drivers may also give you discounts that could lower prices by as much as 30% if you meet specific criteria. Popular car insurance companies and some of their more popular discounts include:
- GEICO policyholders can earn discounts including multi-policy, emergency military deployment, driver training, federal employee, anti-theft, defensive driver, and multi-vehicle.
- USAA offers discounts including vehicle storage, multi-policy, military installation, loyalty savings, good student, annual mileage, and new vehicle.
- Progressive has discounts for online quote discount, multi-vehicle, continuous coverage, homeowner, multi-policy, online signing, and good student.
- American Family may include discounts for early bird, Steer into Savings, multi-vehicle, defensive driver, and accident-free.
- Esurance may offer discounts for good student, safety device, paid-in-full, defensive driver, and claim free.
- Farmers Insurance offers premium reductions for early shopping, alternative fuel, mature driver, pay in full, multi-car, and good student.
- State Farm includes discounts for Steer Clear safe driver discount, safe vehicle, student away at school, Drive Safe & Save, and passive restraint.
The diagram below illustrates the comparison of insurance premiums with and without discounts being applied to the rates. The price estimates are based on a male driver, no violations or claims, California state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with good student, anti-theft, passive restraint, paid-in-full, continuous coverage, and vehicle safety discounts applied. In this example, the average amount saved on car insurance for first-time drivers is 28% or $844.
Should you buy full coverage?
Saving on car insurance is the goal of most vehicle owners, and an easy way to pay lower rates for insurance for first-time drivers is to only pay for liability coverage. The illustration below illustrates the difference between yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on a clean driving record, no at-fault accidents, $250 deductibles, drivers are single, and no discounts are applied.
Averaged out for all age groups, full coverage costs $2,314 per year more than insuring for liability only. That is a large expense and it proposes the question when is it safe to stop buying full coverage. There is no specific rule that works best for making the decision to drop physical damage coverage on your policy, but there is a general school of thought. If the annual cost of your full coverage insurance is more than around 10% of the vehicle’s replacement cost less your deductible, then you might want to consider buying only liability coverage.
There are some scenarios where dropping physical damage coverage is not financially feasible. If you haven’t paid off your loan, you have to carry full coverage in order to satisfy the requirements of the loan. Also, if your emergency fund is not enough to purchase a different vehicle in the even your car is totaled, you should keep full coverage on your policy.
Can you find cheaper Fresno car insurance?
California car insurance rates are determined by lots of factors which can significantly increase or decrease the price of coverage. Simply getting older, adding a teenager to your policy, or getting a reckless driving citation can produce rate changes resulting in some companies being more affordable than others. Also, insurance companies file new California car insurance rates every year in order to be able to pay unexpected claims. A period of increased losses can result in increased rates, while long-term profits can produce cheaper Fresno car insurance rates.
To illustrate this example, the chart below shows which companies have the cheapest car insurance in Fresno, CA for a 35-year-old male driver with no violations or accidents, and excellent credit. If we compare prices based on his personal risk profile, USAA has the best car insurance rates in Fresno at $1,276 per year. This is $375 less than the average policy premium paid by California drivers of $1,651. Wawanesa, Nationwide, Century National, and CSAA are also on the list of the cheapest Fresno, CA auto insurance companies.
In this example, we will give the driver from the first example a claim or two, a lower credit rating, and a speeding ticket. Because each insurer uses their own formula to set premium rates, getting updated rate quotes could result in a new list of cheap Fresno auto insurance companies as shown below.
Grange now has the lowest car insurance rate in Fresno with Mercury, GEICO, Allied, and Progressive now being in the top five. This demonstrates why it is critical to take the time to shop around to find the cheapest insurance quotes for first-time drivers. Prices are made up of many factors and can change without notice, so the cheapest rate the last time you shopped around may now be one of the higher cost companies.
If you aren’t sure which coverage you need and prefer to have the advice of a professional agent when comparing insurance rates for first-time drivers, the insurance agencies below can probably help you decide which coverages you need. To find an auto insurance agency close to you, click the link after the list.
- Allstate Insurance: Frank Salvio
745 E Locust Ave Ste 109 – Fresno, CA 93720 – (559) 449-1603 - New Horizon Insurance Services
325 Clovis Ave #114 – Clovis, CA 93612 – (559) 322-2525 - DiBuduo and DeFendis Insurance Brokers LLC
6873 N West Ave – Fresno, CA 93711 – (559) 432-0222