The type of vehicle requiring coverage is probably the biggest factor that determines if you can find the most affordable auto insurance for good students. Vehicles with average performance, modern passenger safety features, or a track record of few liability claims will cost significantly less to insure than higher performance models. The next list presents insurance costs for a selection of the cheaper vehicles to insure in Hawaii.
|Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$3,437|
|Honda Accord LX-P 4-Dr Sedan||$3,444|
|Volkswagen Jetta S 2.5 Station Wagon||$3,697|
|Ford Escape Limited 4WD||$3,703|
|Honda Odyssey LX||$3,817|
|Jeep Wrangler Sahara 4WD 2-Dr||$3,853|
|Ford Focus S 4-Dr Sedan||$4,042|
|Chevrolet Equinox LS AWD||$4,077|
|Chevrolet Impala LT||$4,087|
|Toyota RAV4 2WD||$4,077|
|Toyota Tacoma Double Cab 4WD||$4,083|
|Dodge Grand Caravan Hero||$4,077|
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Data rating is based on single male driver age 17, 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 specific location which can increase or decrease rates greatly.
Looking at the data, models like the Honda CR-V, Honda Accord, and Volkswagen Jetta are most likely to be some of the more affordable vehicles to insure for student drivers.
For student drivers, one of the more important criteria that determine insurance cost is where you normally keep your vehicle. Areas with more people or higher crime rates tend to pay more, whereas less populated areas receive better rates.
The following table shows the most expensive cities in Hawaii for good students to purchase car insurance in. Honolulu comes in at #10 with an annual cost of $1,036 for car insurance, which is about $86 monthly.
|Rank||City||Average Per Year|
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Rates are comparative as the specific Honolulu residence address can impact premiums considerably.
Discounts on Honolulu car insurance rates
Auto insurance companies that provide policies for good students may additionally offer premium discounts that may potentially lower prices by as much as 35% or more if you meet specific eligibility requirements. A few popular companies and some of the discounts are included below.
- Farm Bureau has discounts for multi-policy, renewal discount, safe driver, good student, multi-vehicle, youthful driver, and 55 and retired.
- Liberty Mutual may offer discounts for new move discount, multi-policy, good student, teen driver discount, hybrid vehicle, newly married, and exclusive group savings.
- State Farm may include discounts for multiple policy, accident-free, good student, good driver, multiple autos, and Drive Safe & Save.
- Auto-Owners Insurance offers premium reductions for mature driver, multi-policy, student away at school, air bags, safe vehicle, and paid in full.
- GEICO policyholders can earn discounts including five-year accident-free, military active duty, anti-lock brakes, anti-theft, and defensive driver.
- SAFECO may have discounts that include teen safety rewards, homeowner, teen safe driver, bundle discounts, and drive less.
The chart below compares auto insurance rates with and without discounts being applied to the rates. The prices are based on a female driver, no driving violations, no at-fault accidents, Hawaii state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with passive restraint, good student, vehicle safety, paperless filing, paid-in-full, and continuous coverage discounts applied. When discounts are factored in, theamount saved on insurance for good students is 28% or $560.
Cost of full coverage in Honolulu
Paying a lower price for insurance is important to most vehicle owners, and one good way to find cheap insurance for good students is to not buy full coverage. The diagram below shows the difference between car insurance costs when comparing full coverage to liability only. The rate quotes are based on no accidents or driving violations, $250 deductibles, marital status is single, and no additional discounts are factored in.
Averaged for all ages 20 through 70, full coverage on your policy costs an additional $1,396 per year more than insuring for liability only. At some point, about every driver wonders if it’s a good idea to buy full coverage. There is no set guideline of when to eliminate physical damage coverage on your policy, but there is a general guideline. If the yearly cost of comp and collision coverage is about 10% or more of any settlement you would receive from your insurance company, then it’s probably a good time to buy liability coverage only.
For example, let’s assume your vehicle’s claim settlement value is $7,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $6,500 after paying the physical damage deductible. If it’s costing in excess of $650 annually for your policy with full coverage, then it’s probably a good time to buy liability coverage only.
There are some circumstances where dropping full coverage is not in your best interest. If you still have a lienholder on your title, you have to keep full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should not consider dropping full coverage.
Reckless driving habits raise Honolulu insurance rates
The common sense way to get the best insurance premiums for student drivers is to drive safely and avoid accidents and violations. The chart below highlights how speeding tickets and at-fault collisions can drive up car insurance costs for different ages of insureds. The information is based on a single female driver, full coverage, $1,000 deductibles, and no discounts are applied.
In the example above, the average cost of a car insurance policy in Hawaii per year with no accidents and a clean driving record is $1,154. Add in two speeding tickets and the average cost increases to $1,538, an increase of $384 each year. Now add two accidents along with the two speeding tickets and the annual cost of insurance for good students jumps again to an average of $3,074. That’s an increase of $1,920, or $160 per month, just for being a careless driver!
Don’t stick with an overpriced policy
Hawaii insurance rates are calculated based on many things that control the cost of a policy. Improving your credit rating, becoming a homeowner, or having an accident may cause policy rate changes resulting in some rates now being cheaper than competitors.
In addition, auto insurance companies modify rates multiple times each year in order to protect their financial rating. Higher than normal claim frequency or severity can cause increased policy costs, while a lower level of claims may cause lower-priced Honolulu car insurance rates.
As an example, the bar chart below shows which company has the cheapest car insurance in Honolulu, HI for a 30-year-old male driver with a clean driving record, no accidents, and a decent credit rating. If we compare prices based on his current risk factors, USAA quotes the lowest car insurance rates in Honolulu at $973 annually. This is $623 less than the average price paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive are the remaining cheapest Honolulu, HI auto insurance companies.
The chart below compares rates after we give the driver in the first chart a chargeable claim, slightly worse credit, and a couple of points charged on his driving record. Since every car insurance company uses their own formula for setting rates, analyzing rates may result in a different list of the cheapest Honolulu car insurance companies as shown below.
State Farm now has the cheapest auto insurance in Honolulu, HI with USAA, Liberty Mutual, Allstate, and GEICO also being competitive. This example demonstrates why it is crucial to compare rates when trying to find affordable auto insurance quotes for good students. Rates are influenced by many risk factors and can change substantially, so the most affordable company three years ago may now be quite expensive.