The words “bargain” and “insurance” really should not be used together, specifically when you are shopping around for the lowest insurance rates for 16 year olds. Let’s open your eyes to some of the things that have an effect on auto insurance premiums, and figure out some ideas to take the bite out of your next policy.
The car, truck, or SUV that needs insurance is a significant factor that determines the availability of the most affordable insurance for 16 year olds. Vehicles with higher performance characteristics, poor safety features, or a track record of large liability claims will cost more to insure than more economical and safe models. The next table estimates auto insurance rates for a handful of the cheapest vehicles to insure.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $6,278 |
| Ford Escape XLS 4WD | $6,283 |
| Hyundai Elantra GLS Touring Station Wagon | $6,278 |
| Toyota Prius | $6,783 |
| Jeep Wrangler Sahara 4WD 2-Dr | $7,059 |
| Ford Edge Limited 2WD | $7,384 |
| Ford Focus SE 4-Dr Sedan | $7,389 |
| Chevrolet Impala LS | $7,384 |
| Volkswagen Jetta S 4-Dr Sedan | $7,443 |
| GMC Sierra SL Extended Cab 2WD | $7,448 |
| Chevrolet Silverado LT Extended Cab 4WD | $7,443 |
| Chevrolet Equinox LT 2WD | $7,452 |
| Toyota RAV4 Sport 2WD | $7,443 |
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Price data assumes single male driver age 16, 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 vehicle location which can influence coverage rates greatly.
By looking at the data, we can conclude that models like the Honda CR-V, Ford Escape, Hyundai Elantra, and Toyota Prius will definitely be some of the cheapest vehicles to insure for new drivers. Auto insurance rates will tend to be higher because of the fact that there is more liability risk for 16 year olds, but overall those particular vehicles will probably have the lowest insurance prices compared to all other vehicles.
One of the more important factors that help determine the annual cost of car insurance is where you keep your vehicle in Atlanta. Cities with larger populations tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims get the luxury of paying less.
The information below ranks the most expensive places in Georgia for 16 year olds to purchase auto insurance in. Atlanta is ranked #2 having an annual price of $1,377 for the average insured, which is around $115 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | East Point | $1,450 |
| 2 | Atlanta | $1,377 |
| 3 | Dunwoody | $1,320 |
| 4 | North Atlanta | $1,297 |
| 5 | Mableton | $1,293 |
| 6 | Sandy Springs | $1,280 |
| 7 | Smyrna | $1,280 |
| 8 | Alpharetta | $1,272 |
| 9 | Roswell | $1,259 |
| 10 | Macon | $1,253 |
| 11 | Marietta | $1,241 |
| 12 | Savannah | $1,227 |
| 13 | Augusta | $1,221 |
| 14 | Columbus | $1,206 |
| 15 | Rome | $1,206 |
| 16 | Gainesville | $1,196 |
| 17 | Peachtree City | $1,168 |
| 18 | Martinez | $1,164 |
| 19 | Athens | $1,136 |
| 20 | Warner Robins | $1,127 |
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Premium costs are comparative as vehicle location can modify coverage rates significantly.
Discount Atlanta car insurance rates
Auto insurance companies that offer coverage for 16 year olds may provide price discounts that could lower prices by 35% or more if you are eligible for them. Large car insurance companies and the discounts they provide are detailed below.
- Travelers may have discounts that include good student, save driver, student away at school, multi-car, and driver training.
- 21st Century may include discounts for automatic seat belts, homeowners, good student, teen driver, theft prevention, and 55 and older.
- State Farm discounts include multiple policy, multiple autos, good student, accident-free, and student away at school.
- GEICO policyholders can earn discounts including daytime running lights, defensive driver, multi-vehicle, membership and employees, and military active duty.
- SAFECO includes discounts for teen safety rewards, homeowner, bundle discounts, anti-lock brakes, drive less, and multi-car.
- AAA has discounts for education and occupation, multi-policy, pay-in-full, AAA membership discount, and good driver.
The chart below illustrates the difference between annual premium costs with and without discounts applied to the premium. The rate quotes are based on a male driver, no driving violations, no at-fault accidents, Georgia state minimum liability limits, full 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 passive restraint, anti-theft, paid-in-full, paperless filing, vehicle safety, and good student discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on car insurance for 16 year olds is 28% or $1,107.
Finding a highly-rated company can be rather challenging considering how many different companies sell coverage in Atlanta. The ranking data in the lists below could help you analyze which coverage providers you want to consider comparing rate quotes with. These ratings are only made up of the largest companies in the United States, so companies that have a smaller presence will not be included in the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
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Data Source: Insure.com Best Car Insurance Companies
Here’s why you should compare rates often
Atlanta, GA car insurance rates are calculated based on many things which can significantly increase or decrease the price of your policy. Simply having another birthday, buying another vehicle, or getting a couple of tickets may generate price changes that may make certain companies more affordable than competitors. And not only may your rating factors change, but auto insurance companies change premium rates every year or even multiple times each year to adjust for heavy claims or excess profits. Unexpectedly high claims can cause higher priced premiums, while lower claim levels may produce lower-cost Atlanta car insurance rates.
To help illustrate this point, the bar chart below shows which companies have the cheapest car insurance in Atlanta, GA for a 40-year-old male driver with a clear driving record, no claims, and solid credit. If we compare prices based on his personal profile, Auto-Owners might offer the most affordable car insurance rates in Atlanta at $1,125 annually. This is $404 less than the average premium paid by Georgia drivers of $1,529. The Hartford, USAA, Central Mutual, and MetLife are the rest of the best Atlanta, GA auto insurance companies.
Now we will give the driver from above an accident surcharge, poor credit, and a few traffic violations. Since every car insurance company uses their own method to set their prices, comparing prices most likely will result in a significantly different list of affordable Atlanta car insurance companies as shown below.
The Hartford now has the best price in Atlanta with Travelers, Safeco, Mercury, and USAA also being competitive. This demonstrates why consumers need to take the time to shop around with many companies to find cheap auto insurance rates for 16 year olds.
Prices are influenced by many risk factors and change substantially, so the most economical option the last time you checked may now be one of the more expensive options.