You have most likely seen the catchy commercials from auto insurance companies like Farmers and GEICO that guarantee the cheapest price, so drivers should just choose one randomly, right?
It's just not that easy, however, as there are a lot of unknown elements like the type of vehicle you drive, your marital status, if you are a homeowner, and when you were born. We will touch on some of these criteria and hopefully give you enough understanding to have a jump start in finding the best auto insurance for teens.
The type of vehicle requiring coverage is probably the most important factor when shopping for the cheapest auto insurance for teenage females. Vehicles with economical engines, modern passenger safety features, or a low likelihood of having liability claims will cost significantly less to insure than high performance models. The next table estimates auto insurance rates for a number of the cheapest vehicles to insure in Georgia.
|Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$4,011|
|Hyundai Elantra SE Touring Station Wagon||$4,261|
|Ford Escape Limited 4WD||$4,271|
|Chevrolet Silverado LS Regular Cab 4WD||$4,421|
|Ford Explorer XLT 2WD||$4,461|
|Toyota Tacoma 4WD||$4,470|
|Ford Edge SE AWD||$4,670|
|Jeep Grand Cherokee Laredo 2WD||$4,710|
|Chevrolet Equinox LT 2WD||$4,718|
|Toyota RAV4 4WD||$4,710|
|Ford Fusion S 4-Dr Sedan||$4,720|
|Dodge Grand Caravan SXT||$4,748|
|Toyota Camry XLE||$4,962|
|Toyota Corolla LE||$4,967|
|Chevrolet Impala LTZ||$4,962|
|Honda Odyssey Touring||$5,000|
|Honda Civic Hybrid 4-Dr Sedan||$5,008|
|Nissan Altima Hybrid 4-Dr Sedan||$5,000|
|Chevrolet Malibu LTZ||$5,008|
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Data assumes single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Georgia minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in specific location information which can alter rates considerably.
Looking at the rates, models like the Honda CR-V, Hyundai Elantra, and Ford Escape will be some of the cheaper vehicles to insure for teen girls. Rates will tend to be higher because there is more exposure for teenage females, but generally speaking those vehicles will have the lowest prices that you are likely to find.
Deciphering which company quotes the best insurance rates for teenage females in Georgia takes a little more work in order to find the most economical policy.
Each company has a different formula to set their prices, so we'll take a look at the insurance companies that tend to be cheaper in Georgia.
Best Insurance Companies for Teens
|Rank||Company||Cost Per Year|
|7||Georgia Farm Bureau||$1,299|
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Auto-Owners may offer some of the cheapest car insurance rates in Georgia at around $855 annually. This is $674 less than the average policy premium paid by Georgia drivers of $1,529. The Hartford, USAA, Central Mutual, and MetLife also make the cut as some of the cheaper Georgia auto insurance companies.
As illustrated above, if you currently have coverage with Central Mutual and switched to Auto-Owners, you might see an annual premium reduction of upwards of $350. Customers with MetLife might save as much as $421 a year, and Travelers customers might realize rate reductions of up to $424 a year.
Understand that those policy prices are averages across all types of drivers and the different vehicles they drive and do not take into consideration a rate surcharge for teenage females. So the car insurance company that is most affordable for your situation may not even be in the top 20 companies in the list above. That affirms the importance of why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
One of the more important things that aid in calculating auto insurance rates is your zip code in Georgia. Areas with a lot of weather claims or more people like East Point, Dunwoody, and North Atlanta likely pay more, whereas areas with less crime or weather claims have the benefit of cheaper auto insurance prices.
The next table sorts the most expensive places in Georgia for teenage females in which to purchase auto insurance.
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Prices are approximated as specific Georgia zip code can lower or raise auto insurance rates significantly.
Poor driving habits will raise your insurance rates
A great way to receive low insurance rates in Georgia for teen girls is to drive cautiously and avoid tickets and accidents. The chart below demonstrates how traffic citations and at-fault collisions impact insurance costs for different insured age categories. The data assumes a married female driver, comp and collision included, $100 deductibles, and no discounts are applied.
In the example above, the average cost of car insurance in Georgia per year with a clean driving record and no accidents is $1,736. Get two speeding tickets and the average cost swells to $2,474, an increase of $737 each year. Now throw in two accidents along with the two speeding tickets and the 12-month cost of insurance for teenage females in Georgia increases to an average of $5,090. That's an increase of $3,353, or $279 per month, just for not driving responsibly!
Discounts on Georgia car insurance rates
Car insurance companies that sell policies for teenage females could also offer rate discounts that could potentially reduce rates by 25% or more if you are eligible. A few of the larger companies and their offered discounts are detailed below.
- State Farm offers premium reductions for Steer Clear safe driver discount, Drive Safe & Save, defensive driving training, safe vehicle, student away at school, driver's education, and good student.
- GEICO offers discounts including daytime running lights, good student, seat belt use, multi-vehicle, and defensive driver.
- Allstate includes discounts for defensive driver, anti-theft, safe driver, anti-lock brakes, premier plus, and premier discount.
- SAFECO has savings for anti-lock brakes, drive less, accident prevention training, multi-car, teen safe driver, homeowner, and bundle discounts.
- Farm Bureau has discounts for multi-vehicle, 55 and retired, safe driver, driver training, youthful driver, good student, and multi-policy.
- Progressive offers discounts for online signing, multi-vehicle, continuous coverage, good student, homeowner, and multi-policy.
- AAA discounts include pay-in-full, multi-car, AAA membership discount, anti-theft, good driver, and education and occupation.
The diagram below shows the difference between car insurance rates with and without discounts applied to the premium. The premiums are based on a female driver, no violations or claims, Georgia state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with vehicle safety, paid-in-full, good student, anti-theft, passive restraint, and continuous coverage discounts applied. When these discounts are applied, the the amount saved on insurance for teenage females is 28% or $740.
Should you buy full coverage?
Saving money when shopping for insurance is probably important to most drivers, and one common way to reduce the cost of insurance for teenage females in Georgia is to only buy liability coverage. The chart below shows the comparison of insurance premiums with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The rates are based on no violations or claims, $500 deductibles, marital status is single, and no additional discounts are factored in.
If all age groups are averaged, full coverage costs $2,471 per year over and above liability only. At some point, about every driver wonders when is the right time to remove full coverage. There isn't a written rule of when to exclude comp and collision coverage, but there is a general convention. If the yearly cost of full coverage is more than around 10% of replacement cost minus your deductible, then it might be time to buy liability only.
For example, let's assume your vehicle's settlement value is $4,000 and you have $1,000 policy deductibles. If your vehicle is destroyed, you would only receive $3,000 after paying your policy deductible. If you are currently paying more than $300 a year for physical damage coverage, then you might want to consider buying only liability coverage.
There are some scenarios where removing full coverage is not in your best interest. If you still owe a portion of the original loan, you are required to maintain full coverage to protect the lienholder's interest in the vehicle. Also, if you can't afford to buy a different vehicle if your current one is damaged, you should not consider dropping full coverage.
The importance of comparing Georgia car insurance rates
Georgia insurance rates are influenced by many factors that can increase the cost of coverage. Simply improving your credit, buying another vehicle, or getting a ticket for careless driving can trigger rate changes resulting in some companies being cheaper than before.
In addition to those changes, companies amend pricing every year or even multiple times each year to adjust for heavy claims or excess profits. A period of increased losses can cause higher rates, while lower claim expenses may result in cheaper Georgia car insurance rates.
To illustrate this example, the chart below compares the cheapest car insurance in Georgia for a 45-year-old female driver with no prior accidents, a clean driving record, and good credit. If we compare prices based on her current situation, Auto-Owners has the lowest car insurance rates in Georgia at $830 a year. This is $699 less than the average rate paid by Georgia drivers of $1,529. The Hartford, USAA, Central Mutual, and Georgia Farm Bureau are also included in the top five cheapest Georgia auto insurance companies.
The next chart shows rates after we give the driver from the above example an at-fault accident, bad credit, and a traffic citation. Due to the fact that each insurance company has a different formula for determing rates in each state, comparing prices may result in a completely different list of the cheapest car insurance companies in Georgia as shown below.
The Hartford now has the cheapest rate in Georgia with Travelers, USAA, Allied, and Safeco now rounding out the top five. This illustrates why it is crucial to shop around to find the lowest auto insurance quotes for teenage females. Auto insurance prices are calculated by many risk factors and can change without notice, so the cheapest rate the last time you checked may now be wasting a lot of money.