You have probably watched the catchy commercials from car insurance companies like Farmers, Allstate, and State Farm that make claims of huge savings, so drivers just need to pick one at random, right?
Unfortunately, it’s just not that easy, as there are a ton of unknown factors like whether you are a man or a woman, when you were born, your credit rating, and if you have a spouse, that all impact the cost of your policy. In this article, we will cover the types of situations that result in high rates and should give you a good start in finding the cheapest car insurance.
The car, truck, or SUV driven is a large consideration that determines the availability of the cheapest auto insurance for drivers under 21. Vehicles with more horsepower, a lack of safety features, or an increased likelihood of liability claims will cost more to insure than more economical and safe models. The information below estimates car insurance prices for a handful of the most budget-friendly automobiles to insure in Wisconsin.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$5,251|
|Honda Accord LX 4-Dr Sedan||$5,257|
|Honda CR-V EX 4WD||$5,314|
|Ford F-150 XL Regular Cab 2WD||$5,432|
|Chevrolet Impala LS||$6,171|
|Ford Focus S 4-Dr Sedan||$6,178|
|Honda Odyssey EX||$6,171|
|Ford Edge Limited 2WD||$6,180|
|Toyota RAV4 Limited 4WD||$6,234|
|Chevrolet Equinox LT 2WD||$6,244|
|Volkswagen Jetta S 4-Dr Sedan||$6,234|
|Jeep Grand Cherokee Laredo 4WD||$6,242|
|Ford Explorer Limited 4WD||$6,297|
|Dodge Grand Caravan SXT||$6,306|
|Honda Civic LX 4-Dr Sedan||$6,542|
|Nissan Altima 2.5 S 4-Dr Sedan||$6,605|
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Premium data assumes single female driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in specific zip code location which can revise insurance rates substantially.
Based upon these rates, we can presume that cars like the Ford Escape, Honda Accord, Honda CR-V, Ford F-150, and Toyota Prius should be some of the less-costly vehicles to insure for minors. The price of auto insurance will be higher anyway because of the fact that there is more inherent risk for drivers under 21, but generally speaking those models will probably have the least expensive rates compared to all other vehicles.
One of the more important considerations that help determine the amount you pay for auto insurance is where you keep your car in Milwaukee. Larger areas will most likely have higher rates, whereas areas that tend to be more rural benefit from having to pay less for coverage.
The information below sorts the most expensive places in Wisconsin for drivers under 21 to buy auto insurance in. Milwaukee comes in at #1 costing $1,410 for the average policyholder, which is about $118 monthly.
|Rank||City||Average Per Year|
|21||Fond du Lac||$995|
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Prices are comparative as the garaging address in Milwaukee can raise or lower coverage prices significantly.
Discounts on Milwaukee auto insurance rates
Car insurance companies that provide coverage for drivers under 21 may additionally offer special discounts that can lower rates by as much as 30% if you meet the requirements. A list of companies and some of the discounts include:
- State Farm offers discounts for good student, accident-free, anti-theft, passive restraint, Drive Safe & Save, and student away at school.
- Progressive offers premium reductions for homeowner, multi-vehicle, multi-policy, continuous coverage, online quote discount, online signing, and good student.
- Progressive has discounts for online signing, multi-policy, multi-vehicle, homeowner, continuous coverage, good student, and online quote discount.
- MetLife offers discounts including good driver, defensive driver, claim-free, accident-free, good student, and multi-policy.
- Farm Bureau has savings for renewal discount, good student, 55 and retired, multi-vehicle, and multi-policy.
- GEICO may have discounts that include military active duty, membership and employees, defensive driver, anti-theft, daytime running lights, seat belt use, and multi-vehicle.
- SAFECO may include discounts for accident prevention training, teen safety rewards, homeowner, anti-lock brakes, teen safe driver, and multi-car.
The illustration below illustrates the comparison of insurance costs with and without some available policy discounts. The data is based on a female driver, no violations or accidents, Wisconsin state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with multiple policy, multiple vehicle, safe-driver, vehicle safety, defensive driving course, and accident-free discounts applied. When taking advantage of discounts, theamount saved on car insurance for drivers under 21 is 28% or $339.
Responsible drivers pay cheaper Milwaukee car insurance rates
The ideal way to earn cheap car insurance rates in Milwaukee for minors is to drive safe and not receive tickets or have accidents. The example below shows how speeding tickets and fender-benders can raise insurance prices for each age group. The premium estimates are based on a single male driver, full physical damage coverage, $500 deductibles, and no other discounts are factored in.
In the previous chart, the average cost of auto insurance per year with a clean driving record and no accidents is $1,092. Get written up for one speeding ticket and the average cost hikes up to $1,232, an increase of $139 each year. Then throw in one accident along with the one speeding ticket and the yearly cost of car insurance for drivers under 21 goes up to an average of $1,613. That’s an increase of $521, or $43 per month, just for a couple of infractions!
The chart below highlights how deductible choice can affect annual premium costs when getting quotes for cheap insurance for drivers under 21. The price estimates are based on a single female driver, comprehensive and collision coverage, and no discounts are factored in.
The chart above illustrates that a 30-year-old driver could reduce rates by $282 a year by increasing from a $100 deductible to a $500 deductible, or save $422 by selecting a $1,000 deductible. Even younger drivers, like the 20-year-old category, can save as much as $632 or more by using a higher deductible.
When choosing a higher deductible, it will be required to have additional funds squirreled away to satisfy the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Chances are good that you’re overpaying for Milwaukee car insurance
Milwaukee, WI car insurance rates are impacted by many things that control the price of your policy. Improving your credit score, moving to a new city, or having an accident can trigger rate changes that may make certain companies more affordable than the competition.
In addition, insurance companies change rates multiple times each year in order to offset underwriting gains or losses. Heavier than normal losses may cause additional price hikes, while long-term profits can produce lower-cost Milwaukee car insurance rates.
To help illustrate this point, the graph below shows which companies have the cheapest car insurance in Milwaukee, WI for a 35-year-old female driver with a clear driving record, no claims, and a high credit rating. When quoting prices based on her current risk factors, USAA has the most affordable car insurance rates in Milwaukee at $884 per year. This is $277 less than the average policy premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Nationwide also make the list of the best Milwaukee, WI auto insurance companies.
The next chart shows rates after we give the driver in the first chart some claims, a lower credit score, and a speeding citation. Because each insurer has a unique formula to determine rates, comparing insurance quotes may now result in a different set of affordable companies as shown below.
Pekin Insurance now has the best insurance rate in Milwaukee with Western National, Integrity Mutual, Travelers, and Partners Mutual now being in the top five. This example demonstrates why Milwaukee drivers need to compare lots of rates when trying to find the lowest auto insurance rates for drivers under 21.
Auto insurance prices are made up of many different factors and change frequently, so the most economical company the last time you compared rates may now be priced much higher than other options.
If you have questions and prefer to have a little guidance when shopping for the best coverage for minors, the agents below can help you make a decision which policy fits your needs best.
To locate an agency in your neighborhood, click the button following the list or click here to compare rates now.
Schwade Insurance Agency, Inc.
8131 W Capitol Dr – Milwaukee, WI 53222 – (414) 462-5000
American Family Insurance – Adam Altis
6015 W Forest Home Ave – Milwaukee, WI 53220 – (414) 321-9944
American Family Insurance – Baiio Marchan
3647 S Chase Ave – Milwaukee, WI 53207 – (414) 744-2192
Farmers Insurance – Roger Channing
4369 S Howell Ave #201 – Milwaukee, WI 53207 – (414) 482-9400