Finding good, reasonably-priced car insurance is not the easiest thing to accomplish, and determining which company offers the cheapest insurance rates for drivers under 21 will take even more diligence. Each insurer has their own guidelines to determine rates, so let’s begin by examining the lowest cost insurance companies in Honolulu.
Best Car Insurance Prices for Minors
|Rank||Company||Cost Per Year|
|7||First of Hawaii||$1,928|
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USAA normally has some of the lowest car insurance rates in Honolulu at around $954 a year. State Farm, GEICO, Liberty Mutual, and Progressive also rank well as some of the best Honolulu, HI insurance companies.
In the above rates, if you are a policyholder with State Farm and switched to USAA, you might achieve savings of in the vicinity of $133. Policyholders with GEICO could save as much as $381 a year, and Liberty Mutual insureds might realize rate reductions of up to $495 a year.
Remember that these rates are averaged for all insureds and vehicles and are not factoring in an exact location for drivers under 21. So the auto insurance company that has the cheapest price for you may not even be in the list above. That illustrates why you need to get auto insurance quotes using your own specific driver and vehicle information.
The make and model of vehicle requiring insurance is one of the main factors when trying to find low-priced coverage for drivers under 21. Vehicles with average performance, a plethora of safety features, or a track record of few liability claims will cost much less to insure than fast, unsafe models.
The next list estimates car insurance premiums for the cheaper vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Honda Accord LX-P 4-Dr Sedan||$2,636|
|Ford Escape XLS 2WD||$2,646|
|Honda CR-V LX 4WD||$2,636|
|Volkswagen Jetta S 2.5 Station Wagon||$2,844|
|Honda Odyssey LX||$2,923|
|Dodge Grand Caravan SE||$2,954|
|Ford F-150 STX Super Cab 4WD||$2,982|
|Toyota Tacoma 2WD||$3,101|
|Ford Focus S 4-Dr Sedan||$3,111|
|Toyota RAV4 Sport 4WD||$3,131|
|Chevrolet Malibu Hybrid||$3,141|
|Ford Fusion S 4-Dr Sedan||$3,131|
|Chevrolet Impala LT||$3,136|
|Ford Explorer Limited 2WD||$3,160|
|Chevrolet Silverado LS Regular Cab 2WD||$3,170|
|Jeep Wrangler Unlimited Sport 4WD 4-Dr||$3,254|
|Honda Civic VP 4-Dr Sedan||$3,280|
|Toyota Corolla LE||$3,311|
|Hyundai Elantra SE 4-Dr Sedan||$3,318|
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Data based on single female driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Hawaii minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in garaging location in Honolulu, HI which can lower or raise coverage prices considerably.
Looking at the numbers, we can conclude that makes and models like the Honda Accord, Ford Escape, and Honda CR-V will definitely be some of the cheapest vehicles to insure for minors. The cost of auto insurance will be more expensive because there is more inherent risk for drivers under 21, but generally speaking those specific models will tend to have the lowest prices possible.
The diagram below highlights how deductible choice can raise or lower insurance premiums when researching cheap insurance for drivers under 21. The data assumes a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
The data above shows that a 40-year-old driver could save $304 a year by increasing from a $100 deductible to a $500 deductible, or save $458 by changing to a $1,000 deductible. Youthful drivers, like the 20-year-old category, have the ability to save $1,004 or more by choosing larger deductibles on their policy.
When raising deductibles, it is a good idea to have emergency funds available to satisfy the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
Types of discounts on Honolulu insurance rates
Insurance providers that offer coverage for drivers under 21 may also offer price discounts that could reduce prices by as much as 35% or more if you meet certain criteria. Companies and a selection of discounts can be found below.
- State Farm offers premium reductions for Drive Safe & Save, passive restraint, multiple autos, safe vehicle, driver’s education, good student, and anti-theft.
- Liberty Mutual may offer discounts for newly retired, newly married, safety features, exclusive group savings, multi-policy, new move discount, and hybrid vehicle.
- American Family has savings for air bags, early bird, Steer into Savings, good student, accident-free, good driver, and defensive driver.
- Progressive includes discounts for continuous coverage, homeowner, online signing, multi-vehicle, and good student.
- Farmers Insurance offers discounts for mature driver, homeowner, teen driver, multi-car, alternative fuel, electronic funds transfer, and early shopping.
- Auto-Owners Insurance policyholders can earn discounts including group or association, good student, multi-policy, mature driver, air bags, and safe vehicle.
- SAFECO offers discounts including anti-lock brakes, teen safety rewards, homeowner, accident prevention training, drive less, teen safe driver, and bundle discounts.
The example below compares car insurance rates with and without discounts being applied to the rates. The rate quotes are based on a male driver, no claims or violations, Hawaii state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with continuous coverage, paid-in-full, paperless filing, passive restraint, good student, and vehicle safety discounts applied. When drivers qualify for the discounts, theamount saved on insurance for drivers under 21 is 28% or $706.
Should you buy full coverage?
Saving money when shopping for insurance is important to most vehicle owners, and a good way to buy cheap insurance for drivers under 21 is to buy only liability coverage. The example below shows the comparison of insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The prices are based on a clean driving record, no at-fault accidents, $100 deductibles, drivers are single, and no policy discounts are applied.
As an overall average, comp and collision coverage costs an extra $1,523 per year more than carrying just liability coverage. That proposes the question when is it a good idea to stop buying full coverage. There is no clear-cut formula of when to stop paying for physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is more than 10% of the vehicle’s replacement cost less your deductible, then you might consider buying liability only.
How to find more affordable car insurance for drivers under 21
The list below shows some of the better penny-pinching ideas that can help Hawaii drivers quote cheap coverage.
- Avoid getting citations and tickets
- Raise physical damage deductibles
- Buy a safer vehicle
- Do not pay for comprehensive and collision coverage on older vehicles
- Increase your credit score
- Staying accident-free helps keep rates low
- Check for cheaper rates once a year
The last item on the list is particularly valuable, as was stressed in the prior article. Car insurance prices vary considerably, so don’t be hesitant to buy a policy from a new company if a cheaper rate is available. We understand brand loyalty, but we do not recommend it if your bullheadedness ends up costing you hundreds every year. It only take a few minutes to compare rates and find cheaper car insurance for drivers under 21 in Honolulu.
If you prefer to have some advice when trying to find the best insurance rates for drivers under 21, the agents shown below are willing to help you make a decision which coverages and limits you need.
To locate a Honolulu auto insurance agent using an interactive map, click the button after the list.
- Jef Saragena – State Farm Insurance Agent
677 Ala Moana Blvd Ste 310 – Honolulu, HI 96813 – (808) 951-0866
- Larry Welsch – State Farm Insurance Agent
1575 S Beretania St Ste 203 – Honolulu, HI 96826 – (808) 944-3450
- Gary Nakamura – State Farm Insurance Agent
1016 Kapahulu Ave #250 – Honolulu, HI 96816 – (808) 734-3265