One of the more important things that are used to help calculate insurance cost is where you keep your vehicle in San Diego. More densely populated places tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.
The table below shows the most expensive places in California for drivers under 25 to purchase a policy in. San Diego is ranked at #24 costing $1,327 for car insurance, which is approximately $111 monthly.
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Rate quotes are comparative as specific location information can lower or raise insurance rates noticeably.
Finding good, cheap insurance is not easy, and determining which company quotes the cheapest insurance rates for drivers under 25 involves even more shopping around. Each insurance company has their own guidelines to determine rates, so first we will examine the most budget-friendly insurance companies in San Diego.
Find the Best Cheap Insurance for Young Drivers
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USAA normally has some of the cheapest car insurance rates in San Diego at around $1,143 per year. Wawanesa, CSAA, Century National, and Nationwide also qualify as some of the most economical San Diego, CA car insurance companies.
In the above example, if you currently have a policy with CSAA and switched to USAA, you may realize an annual savings of about $43. Insureds with Century National might save as much as $47 a year, and Nationwide customers might reduce rates by $107 a year.
Understand that those estimates are averaged for all types of insureds and vehicles and do not factor in an exact vehicle garaging location for drivers under 25. So the auto insurance company that is most affordable for your situation may not even be in the list above. That emphasizes why you need to get car insurance quotes using your own driver and vehicle profiles.
Should you buy full coverage?
Reducing the cost of insurance is important to most people, and one of the best ways to pay lower rates for insurance for drivers under 25 is to not insure for full coverage. The example below shows the difference between insurance rates with full coverage compared to only the California minimum liability coverage. The price estimates are based on no claims or driving citations, $100 deductibles, marital status is single, and no additional discounts are factored in.
As an overall average, comp and collision coverage costs $2,812 per year over and above liability coverage. That proposes the question if full coverage is worth the money. There is no written rule of when to exclude full coverage, but there is a general guideline. If the yearly cost of full coverage is more than around 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s book value is $5,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most you would get paid by your company is $4,000 after paying the physical damage deductible. If premiums are more than $400 annually for full coverage, then it might be time to consider dropping full coverage.
There are some conditions where eliminating full coverage is not recommended. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage in order to satisfy the requirements of the loan. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should not drop full coverage.
Accidents and violations increase rates
The recommended way to enjoy low insurance rates in California for drivers age 25 and younger is to drive attentively and avoid accidents and keep your driving record clean. The example below highlights how speeding tickets and accidents raise insurance premiums for different categories of driver ages. The rates are based on a single female driver, full physical damage coverage, $500 deductibles, and no discounts are factored in.
The data charted above shows the average cost of auto insurance in San Diego per year with a clean driving record and no accidents is $2,637. Receive one speeding ticket and the average cost hikes up to $2,993, an increase of $356 each year. Next add two accidents along with the one speeding ticket and the annual cost of insurance for drivers under 25 increases to an average of $6,206. That’s an increase of $3,569, or $297 per month, just for not driving responsibly!
Ending up with a good quality company is hard considering how many different companies there are to choose from in San Diego. The ranking data displayed below could help you choose which providers to look at when shopping car insurance rates for drivers under 25. The rankings below are only made up of companies with a nationwide focus, so companies that may only write in California are not included in this list.
Top 10 Large Auto Insurance Companies in San Diego Ranked by Customer Satisfaction
- Titan Insurance – 95%
- USAA – 94%
- AAA of Southern California – 92%
- AAA Insurance – 91%
- Nationwide – 90%
- State Farm – 90%
- The Hartford – 89%
- GEICO – 89%
- The General – 88%
- 21st Century – 88%
Who has the cheapest San Diego car insurance?
San Diego, CA insurance rates are influenced by many factors which can substantially decrease or increase the cost of your policy. Turning one year older, buying a home, or having an accident can produce rate changes resulting in some rates now being cheaper than before.
And not only may your rating factors change, but car insurance companies file new California car insurance rates every year or even multiple times each year as an adjustment for underwriting gains or losses. An extended period of higher than normal claims may result in price increases, while a better loss history can result in lower-cost San Diego car insurance rates.
For instance, the data below shows the company with the cheapest car insurance in San Diego, CA for a 30-year-old female driver with no accidents, a clean driving record, and a decent credit rating. When quoting prices based on her current situation, USAA may have the cheapest car insurance rates in San Diego at $1,205 per year. This is $446 less than the average rate paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide round out the rest of the top five cheapest San Diego, CA auto insurance companies.
In this example, we will give the driver from the first rate comparison a claim surcharge, bad credit, and a couple of points charged on her driving record. Since every car insurance company has their own guidelines for determining rates, getting updated rate quotes could now result in a different set of the cheapest companies as shown below.
Grange now has the best price on car insurance in San Diego with Mercury, Progressive, Allstate, and GEICO now being in the top five. This example illustrates why consumers need to take the time to compare rates when trying to get the best insurance quotes for drivers under 25. Rates can be determined by many factors and can increase or decrease at any time, so the cheapest rate six months ago may now cost much more than other companies.