The words "bargain" and "auto insurance" really shouldn't be used together, in particular when shopping around for the cheapest auto insurance for a school permit. Because of the high cost, let's teach you some of the factors that have a considerable impact on car insurance prices, and see if we can help you reduce the price of your next policy.
The car, truck, or SUV to be insured is one of the biggest factors that determines the availability of cheaper auto insurance for a school permit. Vehicles with lots of speed or power, poor safety features, or a high likelihood of having liability claims will cost more to insure than safer, lower-performance models.
The information below illustrates auto insurance costs for some of the most budget-friendly automobiles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$2,243|
|Honda Accord LX 4-Dr Sedan||$2,249|
|Honda CR-V EX 4WD||$2,266|
|Jeep Wrangler Sport 4WD 2-Dr||$2,344|
|Chevrolet Silverado LS Regular Cab 4WD||$2,490|
|Ford F-150 XLT Regular Cab 4WD||$2,513|
|Ford Explorer XLT 2WD||$2,521|
|Toyota RAV4 2WD||$2,659|
|Chevrolet Equinox LS AWD||$2,669|
|Chevrolet Impala LT||$2,659|
|Jeep Grand Cherokee Laredo 2WD||$2,669|
|Dodge Grand Caravan Hero||$2,659|
|Volkswagen Jetta LE 4-Dr Sedan||$2,669|
|Chevrolet Malibu LT||$2,683|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$2,691|
|Ford Focus SEL 4-Dr Sedan||$2,782|
|Honda Civic LX-S 4-Dr Sedan||$2,790|
|Toyota Camry XLE||$2,806|
|Toyota Corolla LE||$2,814|
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Premium data assumes single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in specific Indiana garaging location which can decrease or increase coverage prices greatly.
Based upon the rates shown, makes and models like the Ford Escape, Honda Accord, Honda CR-V, Jeep Wrangler, and Toyota Prius are a few of the more affordable vehicles to insure for a learners permit. The cost of auto insurance will be more expensive just due to the fact that there is more claim risk for a school permit, but overall those specific models will most likely have the lowest insurance prices that you are likely to find.
Trying to buy cheap insurance is easier said than done, and deciding which company has the lowest-priced insurance rates for a school permit in Indiana will take even more work. Coverage prices will probably be much more expensive than the average rate in Indiana, with the higher price attributed to the posibility of more claims that comes with selling insurance for a learners permit, but competitive coverage should be achievable if you compare enough rates. Every insurance provider has a different formula for determining prices, so first let's look at the rankings for the insurance companies with the overall cheapest rates in Indiana.
It's important to know that Indiana insurance rates are impacted by many factors that can increase the price of your policy. Simply getting older, buying a new vehicle, or getting a speeding ticket may generate price changes that can make some companies less affordable than competitors.
Best Cheap Insurance Rates for Students
|Rank||Company||Cost Per Year|
|6||Indiana Farmers Mutual||$849|
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Travelers quotes some of the lowest car insurance rates in Indiana at around $620 per year. This is $620 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Western Reserve would also make the list of some of the best Indiana auto insurance companies.
As shown above, if you have coverage with Cincinnati Insurance and switched to Travelers, you could see yearly savings of about $38. Drivers with USAA may save as much as $67 a year, and Erie insureds might lower prices by up to $85 a year.
Bear in mind that those policy rates are averages across all drivers and vehicles in Indiana and and are not calculated with a rate surcharge for a school permit. So the company that has the cheapest price for you may not even be in the list above. That helps illustrate why you need to compare rates from as many companies as possible using your own specific driver and vehicle information.
The illustration below shows how different deductible levels can influence annual premium costs when trying to find cheap insurance for a school permit in Indiana. The premium estimates are based on a married male driver, full physical damage coverage, and no discounts are taken into consideration.
In the chart above, a 50-year-old driver could lower their policy premium by $198 a year by increasing from a $100 deductible up to a $500 deductible, or save $296 by changing to a $1,000 deductible. Even younger drivers, like the 20-year-old category, could roll back prices $652 each year by using higher deductibles when buying full coverage.
When choosing a higher deductible, it will be required to have emergency funds available to satisfy the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Difference between liability only and full coverage rates
Reducing the cost of insurance is probably important to the majority of people, and a good way to find cheap insurance for a school permit in Indiana is to not insure for full coverage. The illustration below illustrates the difference between insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premiums are based on no driving violations, no at-fault accidents, $500 deductibles, drivers are not married, and no discounts are applied to the premium.
As an overall average, comprehensive and collision coverage on your policy costs an additional $1,771 per year over having just liability coverage. At some point, about every driver wonders when is it safe to stop buying full coverage. There is no exact formula of when to exclude physical damage coverage on your policy, but there is a general convention. If the annual cost of comprehensive and collision coverage is more than around 10% 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 $10,500 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company will settle for is $9,500 after the deductible is paid. If premiums are more than $950 a year for your policy with full coverage, then you might want to think about dropping full coverage.
There are some scenarios where dropping physical damage coverage is not a good plan. If you haven't satisfied your loan, you are required to maintain full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not consider dropping full coverage.
Why are you paying too much for car insurance?
Indiana insurance rates are calculated based on many things which can substantially change the policy price. Simply getting older, buying a different home, or getting a driving violation can trigger rate changes that can cause some rates to be much cheaper than others.
Not only that, but insurers amend pricing every year in order to be able to pay unexpected claims. A period of increased losses may cause more expensive prices, while a better loss history can cause lower-cost Indiana car insurance rates.
For instance, the bar chart below shows rates for the cheapest car insurance in Indiana for a 45-year-old female driver with a clean driving record, no accidents, and a decent credit rating. If we compare prices based on her personal profile, Travelers may have the lowest car insurance rates in Indiana at $596 a year. This is $644 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and The Hartford are the remaining cheapest Indiana auto insurance companies.
Now let's give the driver in the first chart a chargeable accident, poor credit, and a blemish on her driving record. Due to the fact that each insurance company has a different process to set their prices, analyzing rates most likely will result in a different list of cheap Indiana auto insurance companies as shown below.
Western Reserve now has the best auto insurance rate in Indiana with Auto-Owners, Cincinnati Insurance, USAA, and Nationwide also being competitive. This example proves why it is crucial to spend some time comparing rates when trying to get affordable auto insurance rates for a school permit. Insurance prices are made up of many factors and change substantially, so the best price two years ago may now be one of the more expensive options.