Finding reliable, reasonably-priced auto insurance is not always easy, and finding out which company has the most affordable car insurance rates for young drivers will take even more rate comparisons.
Each insurance company uses a slightly different approach for establishing rates, so let's take a look at the most affordable car insurance companies in Milwaukee.
Best Cheap Insurance Rates for Teens
|Rank||Company||Cost Per Year|
|9||Rural Mutual Insurance||$779|
|12||West Bend Mutual||$926|
|13||Auto Club Group||$948|
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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 rate paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Pekin Insurance also rank well as some of the cheapest Milwaukee, WI insurance companies.
As shown in the rates above, if you are insured with Rockford Mutual and switched to USAA, you might see a yearly savings of roughly $120. Wisconsin drivers with Pekin Insurance might save as much as $148 a year, and Integrity Mutual insureds might lower prices by up to $166 a year.
Remember that these estimates are averaged across all ages of drivers and types of vehicles and do not factor in an exact zip code location for young drivers. So the company that has the lowest price for you may not even be in the top 30 companies shown above. That illustrates why you need to get auto insurance quotes using your own driver data and vehicle information.
The make and model of vehicle requiring insurance is probably the largest consideration when comparing low-priced coverage for young drivers. Vehicles with lots of horsepower, poor safety features, or a high likelihood of having liability claims will cost substantially more to insure than safer, lower-performance models. The list below shows car insurance premiums for the most cost-effective vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$6,182|
|Ford Escape Limited 2WD||$6,190|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$6,820|
|Ford F-150 XL Super Cab 2WD||$6,829|
|Ford Explorer Eddie Bauer 2WD||$6,881|
|Toyota Tacoma 2WD||$7,208|
|Ford Focus SE 4-Dr Sedan||$7,215|
|Ford Edge SE AWD||$7,208|
|Chevrolet Impala LS||$7,216|
|Jeep Grand Cherokee Laredo 4WD||$7,270|
|Toyota RAV4 Limited 4WD||$7,279|
|Chevrolet Equinox LT 2WD||$7,270|
|Dodge Grand Caravan Hero||$7,279|
|Ford Fusion S 4-Dr Sedan||$7,270|
|Hyundai Elantra Blue 4-Dr Sedan||$7,594|
|Toyota Camry XLE||$7,656|
|Honda Odyssey EX-L W/Rear Entertainment||$7,661|
|Toyota Corolla XLE||$7,656|
|Nissan Altima 3.5 SR 4-Dr Sedan||$7,714|
|Volkswagen Jetta SEL 4-Dr Sedan||$7,720|
|GMC Sierra 2500HD SLE Extended Cab 4WD||$7,714|
|Chevrolet Malibu LTZ||$7,721|
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Data variables include single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in zip code location which can decrease or increase premiums noticeably.
Looking at the rates, you can infer that cars like the Honda CR-V, Ford Escape, Toyota Prius, and Jeep Wrangler are going to be the cheaper vehicles to insure for youthful drivers. The price for car insurance will be higher anyway just because there is more exposure for young drivers, but generally speaking those makes and models will probably have the best rates compared to other vehicles.
For youthful drivers, one of the more important factors that are looked at to help calculate the cost of insurance is where you keep your vehicle. Areas with more people or higher crime rates likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims tend to receive slightly lower rates.
The illustration below rates the highest-priced areas in Wisconsin for young drivers to purchase auto insurance in. Milwaukee is ranked #1 with an annual premium of $1,396 for the average policyholder, which is about $116 per month.
|Rank||City||Premium Per Year|
|22||Fond du Lac||$965|
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Annual rates are comparative as specific Milwaukee zip code can influence coverage rates substantially.
The diagram below illustrates how your deductible choice can influence premium costs when quoting cheap insurance for young drivers. Data assumes a married male driver, full physical damage coverage, and no discounts are taken into consideration.
As shown above, a 30-year-old driver could cut expenses by $210 a year by increasing from a $100 deductible up to a $500 deductible, or save $322 by selecting a $1,000 deductible. Young drivers, like the 20-year-old example, could potentially save as much as $640 or more by choosing larger deductibles on their policy.
When using a larger deductible, it will be necessary to have plenty of discretionary funds to enable you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Get discounts on Milwaukee car insurance
Insurance providers that sell policies for young drivers may also give you rate discounts that could potentially reduce rates by 40% or more if you are eligible. A list of car insurance companies and a summarized list of policyholder discounts can be found below.
- State Farm offers discounts for safe vehicle, Drive Safe & Save, driver's education, passive restraint, and multiple policy.
- American Family may offer discounts for air bags, early bird, good driver, good student, defensive driver, and TimeAway discount.
- AAA policyholders can earn discounts including anti-theft, good student, multi-car, pay-in-full, and multi-policy.
- GEICO discounts include five-year accident-free, emergency military deployment, multi-policy, defensive driver, multi-vehicle, and air bags.
- Mercury Insurance may have discounts that include multi-car, low natural disaster claims, multi-policy, good student, location of vehicle, type of vehicle, and professional/association.
- Farmers Insurance has savings for teen driver, homeowner, youthful driver, switch companies, multi-car, and pay in full.
- Progressive has discounts for homeowner, good student, online quote discount, multi-vehicle, and online signing.
The chart below shows the difference between car insurance rates with and without discounts applied to the rates. The price estimates are based on a male driver, no tickets, no at-fault accidents, Wisconsin state minimum liability limits, full physical damage 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 anti-theft, paid-in-full, continuous coverage, good student, passive restraint, and vehicle safety discounts applied. When these discounts are applied to the policy premium, theaverage amount saved on car insurance for young drivers is 28% or $637.
Difference between full coverage and liability only rates
Lowering the price of car insurance is probably important to the majority of drivers, and an easy way to pay less for insurance for young drivers is to not buy comprehensive and collision coverage. The chart below shows the difference between car insurance costs with full coverage and liability only. The information is based on no claims or driving violations, $1,000 deductibles, single marital status, and no discounts are applied to the premium.
If all age groups are averaged, full coverage costs an extra $1,296 per year more than carrying just liability coverage. That is a large expense which might make you wonder when is it safe to stop buying full coverage. There is no exact formula that works best for making the decision to drop physical damage insurance, but there is a broad guideline. If the yearly cost for physical damage coverage is 10% or more of the replacement cost minus the deductible, then it could be time to drop full coverage.
For example, let's assume your vehicle's replacement cost is $7,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, you would only receive $6,000 after you pay the deductible. If it's costing you more than $600 annually for comprehensive and collision coverage, then it's probably a good time to buy liability coverage only.
How to find budget-friendly insurance for young drivers
The list below summarizes some of the recommended penny-pinching ideas that can help drivers locate cheap auto insurance.
- Improve your credit
- Do not get traffic tickets
- Try to not file small claims
- Buy a vehicle with excellent safety ratings
- Maintain a safe distance and avoid accidents
- Compare rate quotes often
The last tip is remarkably necessary, as we pointed out in the article above. Prices charged by companies can be modified anytime, so don't be hesitant to switch to a new company if you find a cheaper price. Staying with the same company for years is fine, but it's not recommended if that inflexibility results in costing you big bucks every year. Now is a great time to compare rates and find cheaper insurance for young drivers in Milwaukee.
If you like to have a professional recommendation when comparing insurance rates for young drivers, the insurance agencies listed below can most likely provide answers to your questions and help you determine which coverage meets your needs best.
To find a Milwaukee insurance agency close to where you live, click the button at the bottom of the list or click here to compare prices now.
Reilly Insurance Services
3075 S Howell Ave - Milwaukee, WI 53207 - (414) 482-4461
American Family Insurance - Michael L. Voss
332 N 76th St - Milwaukee, WI 53213 - (414) 257-2121
Brew City Insurance
2937 S Chicago Ave - South Milwaukee, WI 53172 - (414) 762-6600