Things would sure be easy if we could just tell you the single company that has the cheapest rate quotes in California. Unfortunately, it’s just not that easy, as there are a whole bunch of unknown aspects such as the area you live in, what deductibles to use for physical damage coverage, if you have ever had a gap in coverage, and if you need full coverage or just liability, that all impact the cost of coverage. In this article, we will cover the best ways to compare rates and also should give you a jump start in finding the best auto insurance in San Diego.
For teen drivers, one of the more important considerations that are looked at to determine the amount you pay each year for auto insurance is the neighborhood you call home. Regions with larger populations or more claims are more likely to have higher rates, whereas areas with less congestion benefit from lower prices.
The illustration below rates the most expensive places in California for teenagers in which to purchase auto insurance. San Diego is ranked at #19 with an annual cost of $1,381 for the average policy, which is about $115 per month.
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Table data uses approximated as specific San Diego zip code can raise or lower auto insurance rates substantially.
Shopping around for low-priced auto insurance is not always easy, and finding out which company offers the lowest-priced car insurance rates for teenagers takes even more diligence. Every insurance provider has their own formula for establishing rates, so we need to take a look at the overall cheapest car insurance companies in California.
It’s important to understand that San Diego car insurance rates are impacted by many factors that will increase or decrease the cost of having a policy. This price fluctuation is why it is crucial to compare many different companies to find the lowest car insurance quotes for teenagers. Prices are made up of many things and change substantially, so the best company six months ago may now cost much more than other companies.
Best Insurance Companies for Teens
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USAA normally has some of the lowest car insurance rates in San Diego at around $1,155 annually. Century National, Wawanesa, CSAA, and Nationwide would also be considered some of the most economical San Diego, CA car insurance companies.
In the above rates, if you are a customer of Century National and switched to USAA, you may realize annual savings of upwards of $23. Drivers with Wawanesa might save as much as $26 a year, and CSAA policyholders might lower prices by up to $79 a year.
It’s important to note that these policy rates are averaged for all types of insureds and vehicles and and are not figured with a specific vehicle garaging location for teenagers. So the car insurance company that fits your age and vehicle best may not even be in the top 24 companies in the list above. That’s why you need to compare rates from as many companies as possible using your own specific driver information and vehicle.
Choosing a highly-rated auto insurance company can be a challenge considering how many companies sell coverage in California. The information listed below may help you select which car insurance providers to look at comparing prices from.
These ratings are for companies with a national presence, so smaller companies are not taken into consideration for these rankings. To view rates from many more California auto insurance companies, click this link.
Top 10 Large Auto Insurance Providers in San Diego Ranked by Claims Service
- AAA of Southern California
- State Farm
- AAA Insurance
- Liberty Mutual
- Titan Insurance
- The Hartford
Full coverage rates vs. liability-only
Reducing the cost of car insurance is the goal of the majority of drivers, and one common way to pay less for insurance for teenagers is to buy only liability coverage. The illustration below shows the comparison of insurance costs when comparing full coverage to liability only. The price estimates are based on no violations or claims, $500 deductibles, marital status is single, and no discounts are applied to the premium.
Averaged out for all age groups, physical damage insurance costs an extra $2,075 per year over and above liability coverage. That is a large expense and it proposes the question when is the right time to remove full coverage. There isn’t a steadfast formula to stop buying comp and collision coverage, but there is a general convention. 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 assume your vehicle’s claim settlement value is $5,500 and you have $1,000 policy deductibles. If your vehicle is totaled, the most you would get paid by your company is $4,500 after paying your policy deductible. If you are currently paying more than $450 annually to have full coverage, then you might want to think about dropping full coverage.
The benefits of price comparisons
California car insurance rates are calculated based on many things which can significantly increase or decrease the cost of your policy. Simply having another birthday, buying a home, or getting into an accident can trigger rate changes resulting in some companies being cheaper than others. Additionally, insurance companies file new California car insurance rates multiple times each year in order to be able to pay unexpected claims. A period of higher than normal claims may result in higher rates, while a profitable period can result in cheaper San Diego car insurance rates.
The bar chart below compares the cheapest car insurance in San Diego, CA for a 35-year-old male driver with no prior accidents, a clean driving record, and a decent credit rating. If we compare prices based on his current risk factors, USAA may offer the cheapest car insurance rates in San Diego at $1,152 per year. This is $499 less than the average premium paid by California drivers of $1,651. Century National, Wawanesa, CSAA, and Nationwide are also on the list of the cheapest San Diego, CA auto insurance companies.
Now we will pretend the driver from the first set of rates a claim surcharge, poor credit, and a couple of points charged on his driving record. Due to the fact that every insurance company has a different process for filing rates in each state, analyzing rate quotes could result in a new list of affordable San Diego car insurance companies as shown below.
Grange now has the lowest price in San Diego with GEICO, Allied, Progressive, and Mercury now rounding out the top five. This example shows why drivers need to shop around when trying to get cheap auto insurance quotes for teenagers.
Prices can be altered by many things and can increase or decrease at any time, so the most affordable company three years ago may now be one of the more expensive options.
How to find economical auto insurance for teenagers
The list below shows some of the recommended money-saving ideas that can help San Diego drivers get more affordable auto insurance.
- Bundle car and home insurance and save money
- Do not get into accidents that are your fault
- Pay cheaper rates with good credit scores
- Do not insure for full coverage
- Buy a car with high safety ratings
- Compare rates often to find the best deal
The last tip in the list is extraordinarily valuable, as we stressed in this article. Prices charged by companies change frequently, so don’t be afraid to switch carriers if a more affordable price is available.
Many drivers have brand loyalty and that’s fine, but it isn’t a good idea if that loyalty results in overpaying a lot of money every month. If you have a few minutes, now is a great time to shop around and find cheaper insurance for teenagers in San Diego.
If you aren’t sure which coverage to buy and prefer to have a little guidance when shopping for cheaper insurance for teenagers, the agencies below can probably help you determine which insurance coverage will be best for you.
To locate a San Diego insurance agent using an interactive map, click the button at the bottom of the list.
Myles Collins – State Farm Insurance Agent
9920 Mira Mesa Blvd A – San Diego, CA 92131 – (858) 271-6400
Farmers Insurance – Aaron Farmer
7960 Silverton Ave #202 – San Diego, CA 92126 – (858) 689-0466
Mike Davis – State Farm Insurance Agent
2254 Moore St #103 – San Diego, CA 92110 – (619) 295-8412
Barney and Barney Insurance Services LLC
9171 Towne Centre Dr Suite 500 – San Diego, CA 92122 – (800) 321-4696