For teen drivers, one of the more important considerations that determine auto insurance rates is where your car is garaged. Areas with high crime rates or more dense population tend to have more expensive car insurance rates, whereas more rural areas benefit from lower rates.
The following table ranks the highest-priced places in California for 18 year olds in which to purchase auto insurance. Long Beach is ranked at #6 with the yearly price of $1,610 for the average insured, which is about $134 each month.
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Annual rates are estimated as vehicle location can change auto insurance rates significantly.
Trying to buy cheap car insurance is not the easiest thing to do, and deciding which company has the cheapest insurance rates for 18 year olds may require even more perseverance. Every auto insurer uses a different method for determining prices, so to begin we’ll rank the most affordable insurance companies in Long Beach, CA.
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USAA may have some of the lowest car insurance rates in Long Beach at around $1,121 each year. Wawanesa, Century National, CSAA, and Nationwide also make the cut as some of the best Long Beach, CA auto insurance companies.
As the example above demonstrates, if you are a customer of Century National and switched to USAA, you could see a yearly savings of upwards of $69. Policyholders with CSAA might save as much as $77 a year, and Nationwide insureds might lower prices by $105 a year.
Understand that those premium estimates are averages across all insureds and vehicles and and are not figured with a vehicle location for 18 year olds. So the auto insurance company that is best for you may not even be in the top 24 companies in the list above. That affirms the importance of why you need to get quotes using your own specific driver and vehicle information.
Rate increases following a ticket or accident
A great way to score good insurance prices in California for teen drivers is to drive carefully and avoid accidents and traffic citations. The information below demonstrates how citations and at-fault claims raise insurance premiums for different insured age categories. The costs are based on a married female driver, full coverage, $500 deductibles, and no additional discounts are factored in.
The data above shows the average cost of car insurance per year with no accidents or violations is $2,160. Factor in two speeding tickets and the average cost hikes up to $3,071, an increase of $911 each year. Next add one accident along with the two speeding tickets and the yearly cost of insurance for 18 year olds increases to an average of $3,991. That’s an increase of $1,831, or $153 per month, just for not driving attentively!
Types of discounts on Long Beach auto insurance rates
Insurance providers that offer coverage for 18 year olds may provide special discounts that can reduce rates by as much as 30% if you are eligible. The best insurance companies and some of their more popular discounts can be found below.
- Mercury Insurance may include discounts for good student, type of vehicle, multi-policy, location of vehicle, annual mileage, and anti-theft.
- Farmers Insurance has savings for electronic funds transfer, business and professional, alternative fuel, pay in full, and homeowner.
- Farm Bureau offers discounts for 55 and retired, youthful driver, renewal discount, driver training, multi-policy, and safe driver.
- State Farm may offer discounts for accident-free, safe vehicle, Drive Safe & Save, passive restraint, and multiple policy.
- Allstate discounts include FullPay discount, anti-lock brakes, new car, multi-policy, and passive restraint.
- GEICO offers premium reductions for good student, multi-vehicle, multi-policy, anti-lock brakes, federal employee, anti-theft, and military active duty.
The example below illustrates the comparison of insurance prices with and without policy discounts. The data is based on a female driver, no claims or driving citations, California state minimum liability limits, comp and collision included, and $1,000 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with vehicle safety, anti-theft, paid-in-full, passive restraint, good student, and paperless filing discounts applied. When discounts are applied, theaverage yearly reduction on insurance for 18 year olds is 28% or $809.
Difference between full coverage and liability only rates
Paying a lower price for insurance should be important to most drivers, and one great way to pay less for insurance for 18 year olds is to only pay for liability coverage. The diagram below illustrates the comparison of car insurance costs when comparing full coverage to liability only. The prices are based on no accidents, no driving violations, $1,000 deductibles, drivers are not married, and no additional discounts are factored in.
If averaged out across all ages, full coverage on your policy costs $2,003 per year more than just buying liability only. At some point, almost every driver questions when is it safe to stop buying full coverage. There isn’t a steadfast formula to exclude physical damage coverage on your policy, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $3,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $2,000 after paying your policy deductible. If premiums are more than $200 a year for comprehensive and collision coverage, then you may need to consider dropping full coverage.