This would be a real easy article to write if we could tell you the single company that has the cheapest coverage in California. It’s just not that simple, as there are a whole bunch of unknown elements like how high your deductibles should be, how old you are, where you live in Long Beach, and if you own a home. The content below covers the best ways to find cheap car insurance and will hopefully give you a good start to your coverage search.
The make and model of vehicle you are seeking coverage for is probably the biggest factor when consumers are trying to find the most affordable car insurance for young drivers. Vehicles with economical engines, modern passenger safety features, or a low likelihood of having liability claims will cost quite a bit less to insure than higher performance models. The data below illustrates insurance premiums for the more affordable automobiles to insure in California.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$4,750|
|Ford Escape Limited 2WD||$4,795|
|Honda CR-V EX 4WD||$4,800|
|Dodge Grand Caravan SE||$5,346|
|Ford F-150 XLT Crew Cab 2WD||$5,355|
|Ford Explorer XLT 2WD||$5,346|
|Ford Focus SE 4-Dr Sedan||$5,589|
|Ford Edge SE AWD||$5,594|
|Toyota Tacoma 2WD||$5,589|
|Chevrolet Equinox LT 2WD||$5,633|
|Jeep Grand Cherokee Laredo 2WD||$5,641|
|Volkswagen Jetta S 4-Dr Sedan||$5,633|
|Toyota RAV4 4WD||$5,642|
|Nissan Altima 2.5 4-Dr Sedan||$5,633|
|Honda Odyssey EX-L||$5,924|
|Hyundai Elantra GLS 4-Dr Sedan||$5,932|
|Chevrolet Impala LTZ||$5,924|
|Toyota Corolla S||$5,930|
|Jeep Wrangler Unlimited Sport 2WD 4-Dr||$5,929|
|Chevrolet Silverado LS Crew Cab 4WD||$5,966|
|GMC Sierra SLE Extended Cab 4WD||$5,975|
|GMC Sierra 2500HD SLE Regular Cab 4WD||$5,966|
|Start Your Quote Go|
Premium data assumes 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. Table data does not factor in specific location information which can raise or lower premium rates noticeably.
By looking at the data, you can infer that makes and models like the Honda Accord, Ford Escape, Honda CR-V, Toyota Prius, and Dodge Grand Caravan should be the most economical vehicles to insure for youthful drivers. Prices will tend to be more expensive anyway just due to the fact that there is more claim risk for young drivers, but generally speaking those makes and models will most likely have the lowest prices available.
Deciphering which company offers the cheapest insurance rates for young drivers requires a bit more effort in order to find a policy that fits your budget.
Each company uses different criteria to determine premium rates, so let’s examine the insurance companies that tend to have lower prices in California. It’s important that you understand Long Beach, CA insurance rates are impacted by many factors which can substantially decrease or increase the policy price. Turning one year older, having a claim, or getting a few speeding tickets may generate price changes resulting in some rates now being more affordable than the competition.
Find the Best Cheap Insurance for Teens
|Rank||Company||Cost Per Year|
|Find Cheaper Rates Go|
USAA may have some of the best car insurance rates in Long Beach at around $1,155 each year. This is $496 less than the average price paid by California drivers of $1,651. Century National, CSAA, Wawanesa, and Nationwide also qualify as some of the best Long Beach, CA insurance companies.
As shown in the table above, if you are insured with Wawanesa and switched to USAA, you might see a yearly savings of approximately $37. Customers with Nationwide might save as much as $108 a year, and 21st Century policyholders might see rate reductions of $224 a year.
These rates are averages for all ages of drivers and types of vehicles and do not take into consideration an exact vehicle garaging location for young drivers. So the company that fits you best may not even be in the list above. That illustrates why you need to quote rates from as many companies as possible using your own specific driver information and vehicle.
One of the more important things that are looked at to help calculate auto insurance rates is where you live. Cities with larger populations or higher claim trends tend to pay more, whereas areas that tend to be more rural tend to receive slightly lower rates.
The next table sorts the priciest cities in California for young drivers in which to buy car insurance. Long Beach is listed at #8 with an annual cost of $1,578 for the average insurance policy, which is approximately $132 per month.
|Rank||City||Average Per Year|
|Compare Prices Now Go|
Rate quotes are comparative as specific Long Beach zip code can change coverage prices significantly.
Discounts on Long Beach auto insurance
Auto insurance companies that provide coverage for young drivers may have policy discounts that could reduce prices by as much as 35% or more if you are eligible. Companies and their possible discounts are outlined below.
- The Hartford offers premium reductions for bundle, defensive driver, anti-theft, vehicle fuel type, good student, air bag, and driver training.
- American Family discounts include good driver, Steer into Savings, multi-vehicle, defensive driver, TimeAway discount, and early bird.
- Progressive may have discounts that include homeowner, good student, multi-policy, multi-vehicle, and online quote discount.
- Travelers offers discounts including new car, good student, student away at school, driver training, IntelliDrive, multi-policy, and home ownership.
- Farmers Insurance may include discounts for distant student, early shopping, multi-car, bundle discounts, homeowner, and electronic funds transfer.
- USAA policyholders can earn discounts including multi-vehicle, loyalty savings, driver training, safe driver, and family discount.
- Liberty Mutual includes discounts for exclusive group savings, new graduate, newly married, hybrid vehicle, multi-policy, preferred payment discount, and multi-car.
The information below shows the difference between auto insurance costs with and without discounts applied to the premium. The rate quotes are based on a male driver, no claims or driving violations, California state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with anti-theft, paid-in-full, vehicle safety, passive restraint, paperless filing, and good student discounts applied. In this example, the average savings per year on insurance for young drivers is 28% or $1,043.
Full coverage rates compared to liability only
Paying less for insurance should be important to most drivers, and one easy way to reduce the cost of insurance for young drivers is to only buy liability coverage. The chart below visualizes the comparison of insurance prices with and without physical damage coverage. The data assumes no driving violations, no at-fault accidents, $1,000 deductibles, marital status is single, and no policy discounts are applied.
Averaged for all ages 20 through 70, full coverage costs an additional $2,003 per year over having just liability coverage. That brings up the question if it’s a good idea to buy full coverage. There isn’t a steadfast formula of when to eliminate comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the annual cost of coverage is 10% or more of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $10,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, you would only receive $9,000 after paying your deductible. If you are paying more than $900 a year for full coverage, then you might consider buying liability only.
There are some cases where only buying liability is not a good idea. If you still have a lienholder on your title, you have to carry full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle in the even your car is totaled, you should not drop full coverage.
Which insurance company is best in California?
Choosing a high-quality auto insurance company can be difficult considering how many different companies there are to choose from in Long Beach. The company rank data in the lists below could help you select which car insurance companies you want to consider when comparing auto insurance rates for young drivers.
These ratings are only made up of insurance companies that insure vehicles in the majority of U.S. states, so companies with more of a regional focus are not factored into the list. To get price quotes from the most competitive companies in California, click here.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
|AAA of Southern California||91||94||97||92%||A+||94.1|
|Compare Rates Now Go|
Data Source: Insure.com Best Car Insurance Companies
The benefit of shopping around
Long Beach insurance rates are influenced by many factors which can significantly increase or decrease the policy premium. Improving your credit score, buying another vehicle, or getting a few speeding tickets may prompt premium changes that may make certain companies cheaper than competitors.
Additionally, companies file new California auto insurance rates as needed in order to maintain liquidity for claims. An unexpected high level of claims may result in higher rates, while a profitable period can cause cheaper Long Beach car insurance rates.
For example, the chart below analyzes the cheapest car insurance in Long Beach, CA for a 40-year-old male driver with a clean driving record, no accidents, and good financial standing. If we estimate rates based on his personal profile, USAA may offer the most affordable car insurance rates in Long Beach at $1,432 per year. This is $219 less than the average premium paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide also make the list of the top five cheapest Long Beach, CA auto insurance companies.
In the next rate comparison, we’ll give the driver from the first example a couple of claims, a lower credit rating, and an imperfect driving record. Since each auto insurer has a proprietary formula to determine rates, comparing quotes most likely will result in a different list of the cheapest car insurance companies in Long Beach as shown below.
Mercury now has the cheapest insurance rate in Long Beach, CA with Grange, Progressive, Allstate, and GEICO completing the list. This example illustrates why it is crucial to perform a complete rate comparison to find the most affordable car insurance rates for young drivers. Rates can be determined by many risk factors and change dramatically, so the most economical company two years ago may now be one of the more expensive options.