For new drivers, one of the largest things that aid in calculating the price you pay for insurance is where your residence is in Milwaukee. Larger areas are more likely to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.
The illustration below sorts the most expensive places in Wisconsin for 16 year olds in which to purchase auto insurance. Milwaukee makes the list at #1 with the annual price of $1,410 for coverage, which is approximately $118 each month.
|20||Fond du Lac||$985|
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Price information shown is estimated as the vehicle garaging location can raise or lower auto insurance rates substantially.
Buying low-cost insurance is tough enough, and determining which companies offer the best car insurance rates for 16 year olds will involve even more perseverance. Each insurance company uses a little different formula for setting prices, so we need to take a look at the most competitive car insurance companies in Wisconsin.
Best Car Insurance Prices for Teens
|Rank||Company||Cost Per Year|
|5||Rural Mutual Insurance||$749|
|11||West Bend Mutual||$890|
|14||Auto Club Group||$939|
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USAA may have some of the cheapest car insurance rates in Milwaukee at around $604 per year. This is $557 less than the average premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Rural Mutual Insurance also rank well as some of the best Milwaukee, WI auto insurance companies.
As the example above demonstrates, if you are a policyholder with Rural Mutual Insurance and switched to Partners Mutual, you might see an annual savings of upwards of $117. Policyholders with Nationwide may save as much as $120 a year, and Integrity Mutual insureds might reduce rates by $130 a year.
Understand that those premiums are averaged for all insureds and vehicles and are not factoring in a vehicle location for 16 year olds. So the company that fits your age and vehicle best may not even be in the top 30 companies shown above. That point stresses why you need to get auto insurance quotes using your own driver data and vehicle information.
The make and model of vehicle driven is one of the biggest factors that determines the availability of the best cheap auto insurance for 16 year olds. Vehicles with reasonable performance levels, excellent safety ratings, or a low likelihood of having liability claims will cost much less to insure than fast, unsafe models.
The data below ranks coverage costs for some of the most cost-effective automobiles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$6,533|
|Ford Escape XLT 2WD||$6,542|
|Jeep Wrangler Sport 4WD 2-Dr||$6,888|
|Hyundai Elantra SE Touring Station Wagon||$6,987|
|Honda Accord EX-L 4-Dr Sedan||$6,992|
|Honda Odyssey LX||$7,286|
|Ford F-150 XLT Crew Cab 2WD||$7,344|
|Dodge Grand Caravan SE||$7,352|
|Ford Explorer XLT 2WD||$7,344|
|Ford Edge SEL 2WD||$7,682|
|Nissan Altima 2.5 4-Dr Sedan||$7,740|
|Toyota RAV4 Limited 4WD||$7,747|
|Honda Civic LX 4-Dr Sedan||$8,080|
|Ford Focus SES 4-Dr Sedan||$8,089|
|Chevrolet Impala LTZ||$8,139|
|Toyota Tacoma X-Runner 2WD||$8,144|
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Prices based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in specific Milwaukee, WI garaging location which can alter price quotes greatly.
Based upon the table data, we can infer that vehicles like the Honda CR-V, Ford Escape, Jeep Wrangler, Hyundai Elantra, and Honda Accord are most likely to be a few of the most budget-friendly vehicles to insure for new drivers. The price for car insurance will be more costly just due to the fact that there is more liability exposure for 16 year olds, but generally speaking those vehicles will most likely have the lowest prices compared to other types of vehicles.
Get discounts on Milwaukee auto insurance
Insurance companies that provide policies for 16 year olds may also give you premium discounts that can reduce rates by as much as 25% or more if you are eligible to receive them. Large car insurance companies and some of their more popular discounts are detailed below.
- State Farm may have discounts that include anti-theft, good student, multiple policy, accident-free, passive restraint, and good driver.
- American Family offers premium reductions for Steer into Savings, mySafetyValet, multi-vehicle, accident-free, and good student.
- AAA policyholders can earn discounts including anti-theft, pay-in-full, good student, multi-car, AAA membership discount, education and occupation, and multi-policy.
- GEICO offers discounts for five-year accident-free, military active duty, multi-vehicle, seat belt use, and anti-theft.
- Mercury Insurance may include discounts for anti-theft, ease of repair, good student, location of vehicle, type of vehicle, low natural disaster claims, and multi-policy.
- Farmers Insurance may offer discounts for electronic funds transfer, youthful driver, multi-car, business and professional, mature driver, and switch companies.
- Progressive has savings for continuous coverage, online signing, online quote discount, multi-policy, homeowner, good student, and multi-vehicle.
The information below shows the difference between car insurance rates with and without discounts applied to the policy rates. The rates are based on a female driver, no tickets, no at-fault accidents, Wisconsin state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with vehicle safety, good student, passive restraint, anti-theft, paid-in-full, and continuous coverage discounts applied. In this example, theaverage amount saved on car insurance for 16 year olds is 28% or $488.
Comparison of full coverage and liability-only policies
Paying a lower price for car insurance should be important to most drivers, and one of the quickest ways to buy cheap insurance for 16 year olds is to only buy liability coverage. The chart below illustrates the comparison of auto insurance costs when comparing full coverage to liability only. The costs are based on no claims or driving violations, $1,000 deductibles, drivers are single, and no discounts are factored in.
If averaged out across all ages, physical damage insurance costs $974 per year over and above liability coverage. Lot’s of drivers question if buying full coverage is worth the expense. There is no specific rule to stop paying for physical damage coverage, but there is a general school of thought. If the yearly cost of full coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it might be time to buy liability only.
For example, let’s pretend your vehicle’s replacement value is $8,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company will settle for is $7,000 after the policy deductible has been paid. If you are currently paying more than $700 a year for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
There are some scenarios where dropping full coverage is not a good plan. If you still have a loan on your vehicle, you must maintain physical damage coverage to satisfy the loan requirements. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should not remove full coverage.
How to find low-cost car insurance for 16 year olds
The list below shows some of the better thrifty suggestions that can help Wisconsin drivers get lower-cost car insurance.
- Try to pay small claims out-of-pocket
- Avoid preventable accidents
- Increase your comprehensive and collision deductibles
- Clean up your credit
- Do not get traffic citations
- Buying car and homeowners insurance together can save money
- Shop your coverage around for the best deal
The last item on the list is incredibly critical, as we pointed out in this piece. Prices charged by auto insurers vary greatly, so drivers shouldn’t hesitate to switch to a new company if you find a better deal. Having a favorite company is great, but it’s not recommended if that dedication is costing money that could be spent on other things. If you have a few minutes, now is a great time to shop around and find cheaper auto insurance for 16 year olds in Milwaukee.
The insurance agencies listed below can probably provide answers to your questions and help you determine which policy fits your needs best, since many consumers aren’t sure which coverage to buy and prefer to have some advice when trying to find lower insurance rates for new drivers. It can be difficult to find the best coverage yourself, and getting advice from a licensed agent can add satisfaction knowing you have sufficient protection if you have a claim.
To locate a Milwaukee auto insurance agent close to where you live, click the button link following the list or click here to compare price quotes now.
- Santiago Insurance Agency
828 W Historic Mitchell St – Milwaukee, WI 53204 – (414) 727-8284
- American Family Insurance – Adam Altis
6015 W Forest Home Ave – Milwaukee, WI 53220 – (414) 321-9944
- Dern and Company
10335 W Oklahoma Ave #203 – Milwaukee, WI 53227 – (414) 935-5700
- American Family Insurance – Michael L. Voss
332 N 76th St – Milwaukee, WI 53213 – (414) 257-2121