It would sure be easy if we could just give you the name of the one company in Georgia that has the best car insurance rates for 18 year olds in Georgia. That is not the case, however, as there are a whole bunch of unknowns such as if you have ever had a coverage lapse, the miles you drive each year, the amount of liability insurance you need, and your date of birth, that all impact the cost of coverage. We know insurance is not everyone's favorite topic, but in this article we will cover the best ways to avoid high prices and will hopefully give the reader a good start in finding the cheapest car insurance for teens.
Trying to buy cost effective car insurance is not always easy, and determining which companies have the cheapest insurance rates for 18 year olds in Georgia calls for additional perseverance. Insurance premiums will be quite a bit higher than the average rate in Georgia, with the extra cost attributed to the additional risk associated with selling insurance for teen drivers, but reasonably-priced insurance may be attainable if you do a thorough comparison. Each auto insurer has their own formula for setting prices, so let's take a look at the lowest cost insurance companies in Georgia.
It's important that you understand Georgia insurance rates are influenced by many factors which can substantially change the policy premium. That is why it is critical to spend some time comparing rates when trying to find the most affordable insurance quotes for 18 year olds. Insurance prices are made up of many factors and change substantially, so the most economical option two years ago may now be one of the more expensive options.
Find Cheaper Car Insurance for Teens
Auto-Owners normally has some of the best car insurance rates in Georgia at around $830 each year. This is $699 less than the average policy premium paid by Georgia drivers of $1,529. The Hartford, USAA, Central Mutual, and MetLife also are some of the cheaper Georgia car insurance companies.
In the above example, if you buy coverage from Central Mutual and switched to Auto-Owners, you could realize savings of approximately $339. Policyholders with MetLife might save as much as $408 a year, and Travelers customers might reduce prices by as much as $462 a year.
To find out how much you can save, click here to get a free quote or quote prices from the following companies.
Be aware that those premium estimates are averages for all insureds and vehicles and do not factor in a price surcharge for 18 year olds. So the insurer that can offer you the best rate may not even be in the list above. That affirms the importance of why you need to compare prices as often as possible using your own individual information.
The vehicle model that is being insured is one of the primary factors that determines whether or not you can buy low-cost insurance for 18 year olds. Vehicles with lower acceleration and performance, a great safety record, or a low likelihood of liability claims will cost much less to insure than high performance models.
The next table showcases insurance prices for a handful of the most economical vehicles to buy insurance for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$4,061|
|Ford Escape Limited 2WD||$4,105|
|Honda CR-V EX-L 4WD||$4,111|
|Jeep Wrangler Sahara 4WD 2-Dr||$4,548|
|Dodge Grand Caravan SE||$4,553|
|Volkswagen Jetta 2.0T Station Wagon||$4,694|
|Ford Focus SE 4-Dr Sedan||$4,774|
|Ford Edge SE AWD||$4,780|
|Toyota RAV4 4WD||$4,819|
|Chevrolet Impala LT||$4,824|
|Chevrolet Silverado LT Extended Cab 4WD||$4,819|
|Chevrolet Malibu LS||$4,828|
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Cost estimates assume single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Georgia minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in Georgia location which can impact rates substantially.
Based upon the rates shown, we can assume that vehicles like the Honda Accord, Ford Escape, and Honda CR-V will definitely be the less-costly vehicles to insure for teen drivers. Auto insurance rates will tend to be higher just because there is more claim risk for 18 year olds, but overall those vehicles will have the least expensive rates compared to other vehicles.
One of the more important criteria that are used to help calculate the annual cost of car insurance is your address. More densely populated places like East Point, North Atlanta, and Mableton tend to pay slightly more, whereas areas with less crime or weather claims have the benefit of cheaper car insurance.
The following table shows the highest-priced areas in Georgia for 18 year olds to buy car insurance in.
|Rank||City||Average Per Year|
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Premium costs are approximated as zip code location can increase or decrease prices significantly.
Liability rates compared to full coverage
Saving on insurance is the goal of the majority of vehicle owners, and one good way to buy cheaper insurance for 18 year olds in Georgia is to only buy liability insurance. The example below shows the comparison of car insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data assumes no claims or driving citations, $500 deductibles, drivers are single, and no discounts are taken into consideration.
Averaged for all ages 20 through 70, physical damage insurance costs an extra $2,471 per year over liability only. That brings up the question if buying full coverage is a waste of money. There isn't a written rule to drop physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of your full coverage insurance is 10% or more of the settlement you would receive from your company, then you may need to consider dropping full coverage.
Impact of violations and accidents on rates in Georgia
The obvious way to enjoy low insurance premiums for teen drivers is to pay attention while driving and avoid traffic citations and accidents. The information below shows how traffic citations and at-fault fender-benders drive up yearly insurance costs for each different age category. The data is based on a single male driver, full coverage, $1,000 deductibles, and no other discounts are factored in.
In the previous chart, the average cost of auto insurance in Georgia per year with a clean driving record and no accidents is $2,229. Factor in one speeding ticket and the average cost swells to $2,516, an increase of $287 each year. Next add two accidents along with the one speeding ticket and the yearly cost of insurance for 18 year olds in Georgia increases to an average of $5,208. That's an increase of $2,979, or $248 per month, just for not driving safely!
The importance of shopping around
Georgia insurance rates are influenced by many factors that may substantially change the price you have to pay. Improving your credit score, moving to a new city, or getting a reckless driving citation may prompt premium changes that may make certain companies cheaper than competitors. Not only may your risk profile change, but car insurance companies change the rates they charge in Georgia at least once a year to adjust for heavy claims or excess profits. Higher than normal claims may cause higher rates, while profitable underwriting can result in more affordable Georgia car insurance rates.
The graph below shows the companies that have the cheapest car insurance in Georgia for a 40-year-old female driver with no prior claims, no tickets, and good financial standing. If we estimate prices based on her current risk profile, Auto-Owners offers the cheapest car insurance rates in Georgia at $839 annually. This is $690 less than the average price paid by Georgia drivers of $1,529. The Hartford, USAA, Central Mutual, and MetLife round out the rest of the top five cheapest Georgia auto insurance companies.
Now we will give the driver from the above example some claims, less-than-perfect credit, and a few traffic violations. Since each auto insurance company has their own unique process to determining premium rates, analyzing rate quotes may now present a different list of the cheapest Georgia car insurance companies as shown below.
Travelers now has the best price on car insurance in Georgia with USAA, The Hartford, Mercury, and State Farm now being in the top five. This example proves why drivers need to compare many different companies when trying to find cheap auto insurance quotes for 18 year olds.
Insurance rates can be altered by many things and change dramatically, so the most affordable company when you bought your policy may now not even be in the top five.