You have most likely seen the commercials from insurers like State Farm, GEICO, and Progressive that claim the cheapest price. So you just need to pick one randomly, right?
That is not the case, however, as there are a lot of unknown elements such as what deductibles to use for physical damage coverage, if you are married or single, the level of liability coverage you want, and if you own a home. This article delves into the best ways to avoid overpriced car insurance and will give you a good start to your coverage search.
The type of vehicle that needs insurance is probably the most important factor when shopping for low-priced auto insurance for inexperienced drivers. Vehicles with higher performance characteristics, a lack of modern safety features, or an increased likelihood of liability claims will cost much more to insure than more modest models.
The list below features auto insurance premiums for some of the most affordable vehicles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$820|
|Ford Escape Limited 2WD||$839|
|Hyundai Elantra GLS Touring Station Wagon||$894|
|Chevrolet Silverado LS Regular Cab 2WD||$969|
|Chevrolet Equinox LT AWD||$971|
|Nissan Altima 2.5 4-Dr Sedan||$976|
|Dodge Grand Caravan Crew||$989|
|Nissan Rogue S AWD||$1,040|
|Jeep Wrangler Rubicon 4WD 2-Dr||$1,043|
|Toyota Tacoma Double Cab 4WD||$1,063|
|Honda Odyssey EX W/Rear Entertainment||$1,069|
|Chevrolet Impala LT||$1,094|
|Chevrolet Malibu Hybrid||$1,102|
|Toyota RAV4 Limited 4WD||$1,094|
|Hyundai Sonata Limited 4-Dr Sedan||$1,110|
|GMC Sierra SLT Crew Cab 4WD||$1,112|
|Ford F-150 FX4 Super Cab 4WD||$1,118|
|Ford Explorer Limited AWD||$1,123|
|Honda Civic EX 4-Dr Sedan||$1,120|
|Ford Focus SES 4-Dr Sedan||$1,129|
|Kia Optima LX||$1,138|
|Volkswagen Jetta 2.0T 4-Dr Sedan||$1,140|
|Find Cheaper Rates Go|
Price data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Hawaii minimum liability limits. Discounts applied include claim-free, safe-driver, homeowner, multi-policy, and multi-vehicle. Price estimates do not factor in specific Honolulu, HI garaging location which can modify rates significantly.
Looking at the numbers, models like the Honda CR-V, Ford Escape, Hyundai Elantra, Chevrolet Silverado, and Chevrolet Equinox are most likely going to be the most economical vehicles to insure for new drivers.
One of the more important factors that are looked at to determine the amount you pay for auto insurance is where you choose to live in Honolulu. Regions with larger populations or more claims will most likely pay more, whereas areas with less crime or weather claims have the gratification of cheaper auto insurance rates.
The following table lists the highest-priced places in Hawaii for inexperienced drivers to purchase car insurance in. Honolulu is listed at #20 with an annual premium of $1,005 for the average policyholder, which is about $84 per month.
|Rank||City||Average Per Year|
|Find Cheaper Rates Go|
Information shown are estimated as the vehicle garaging location can influence coverage prices considerably.
Poor driving habits will raise your car insurance rates
One of the best ways to maintain good car insurance premiums in Honolulu for new drivers is to be a careful driver and avoid getting tickets or having accidents. The illustration below demonstrates how speeding tickets and accidents raise insurance rates for each age group. The data is based on a married female driver, full physical damage coverage, $250 deductibles, and no discounts are taken into consideration.
The data charted above shows the average cost of a car insurance policy in Honolulu per year with no accidents and a clean driving record is $1,080. Receive two speeding tickets and the average cost swells to $1,530, an increase of $450 each year. Then throw in one accident along with the two speeding tickets and the 12-month cost of car insurance for inexperienced drivers jumps again to an average of $1,979. That’s an increase of $898, or $75 per month, just for not paying attention while driving!
Discount Honolulu car insurance rates
Auto insurance companies that provide policies for inexperienced drivers may also give you premium discounts that may potentially lower prices by 30% or more if you qualify. Larger car insurance companies and their possible discounts include:
- The Hartford offers premium reductions for air bag, defensive driver, good student, anti-theft, and driver training.
- American Family policyholders can earn discounts including defensive driver, early bird, accident-free, good student, multi-vehicle, good driver, and Steer into Savings.
- Progressive offers discounts including online signing, homeowner, good student, online quote discount, continuous coverage, multi-policy, and multi-vehicle.
- Travelers has discounts for payment discounts, multi-policy, good student, student away at school, and new car.
- Farmers Insurance may offer discounts for early shopping, multi-car, pay in full, youthful driver, good student, homeowner, and electronic funds transfer.
- USAA may include discounts for annual mileage, driver training, vehicle storage, safe driver, loyalty savings, good student, and multi-vehicle.
- Liberty Mutual may have discounts that include new vehicle discount, newly retired, good student, exclusive group savings, preferred payment discount, teen driver discount, and new graduate.
The information below illustrates the comparison of annual premium costs with and without discounts applied to the rates. The costs are based on a male driver, no violations or claims, Hawaii state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with multiple policy, homeowner, defensive driving course, marriage, anti-theft, and safe-driver discounts applied. When discounts are factored in, theaverage yearly reduction on car insurance for inexperienced drivers is 28% or $524.
Why are you paying too much for Honolulu car insurance?
Honolulu car insurance rates are impacted by many things that may substantially change the cost of coverage. Turning one year older, buying another vehicle, or getting a reckless driving citation can cause premium changes that can cause some rates to be affordable when they were higher priced. In addition to those changes, companies modify pricing without warning in order to maintain liquidity for claims. Heavier than normal losses may cause more expensive prices, while a lower level of claims may cause lower-priced Honolulu car insurance rates.
The graph below analyzes the cheapest car insurance in Honolulu, HI for a 35-year-old male driver with no prior claims, no tickets, and a good credit rating. Based on his personal risk profile, USAA quotes the most affordable car insurance rates in Honolulu at $983 per year. This is $613 less than the average policy premium paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive are the remainder of the most affordable Honolulu, HI auto insurance companies.
In this next rate comparison, we will give the driver from the first example some claims, a lower credit rating, and a few blemishes on his driving record. Since every insurance provider has their own process to set premium rates, getting updated rate quotes could result in a significantly different list of the cheapest companies as shown below.
State Farm now has the best auto insurance rate in Honolulu, HI with GEICO, USAA, Liberty Mutual, and First of Hawaii also having competitive pricing. This example illustrates why Hawaii drivers need to perform an extensive rate comparison when trying to find the most budget-friendly auto insurance rates for inexperienced drivers. Auto insurance prices are made up of many factors and can change without notice, so the most economical company when you bought your policy may now be an over-priced policy.
The agents listed below are a good start to aid you in deciding which car insurance policy is best, since many people would rather have a consultation when shopping for the best coverage for inexperienced drivers. It can be challenging to find the best rates on your own, and a professional agent can give you peace of mind knowing your policy gives you sufficient coverage at claim time. To find an agent close to you, click the link at the bottom.
Tina Tay – State Farm Insurance Agent
3615 Harding Ave Ste 303 – Honolulu, HI 96816 – (808) 394-5433
Insurance Associates, Inc.
800 Bethel St # 200 – Honolulu, HI 96813 – (808) 538-6938
Cynthia Leiko Frost – State Farm Insurance Agent
2038 S King St – Honolulu, HI 96826 – (808) 952-5353
Jef Saragena – State Farm Insurance Agent
677 Ala Moana Blvd Ste 310 – Honolulu, HI 96813 – (808) 951-0866