The words “low-cost” and “auto insurance” really shouldn’t be used together, specifically when shopping around for the cheapest auto insurance for 16 year olds. Because of the high cost, let’s open your eyes to a few of the things that have an impact on car insurance prices, and come up with some ways to lower the cost of the next policy you buy.
The type of vehicle requiring coverage is a large factor that determines whether or not you find the best insurance for 16 year olds. Vehicles with limited top-end speed, advanced safety features, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models. The information below presents insurance premiums for a selection of the cheaper automobiles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$3,481|
|Honda CR-V LX 2WD||$3,486|
|Hyundai Elantra GLS Touring Station Wagon||$3,481|
|Honda Accord EX-L 4-Dr Sedan||$3,723|
|Honda Odyssey LX||$3,884|
|Ford Edge SE 2WD||$3,890|
|Ford F-150 STX Regular Cab 2WD||$3,884|
|Dodge Grand Caravan SE||$3,916|
|Toyota Tacoma 4WD||$3,925|
|Ford Focus S 4-Dr Sedan||$4,095|
|Toyota RAV4 4WD||$4,126|
|Jeep Grand Cherokee Laredo 4WD||$4,135|
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Data based on single female driver age 16, 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 zip code location which can decrease or increase coverage prices significantly.
By looking at the data, you can assume that cars like the Ford Escape, Honda CR-V, and Hyundai Elantra are going to be some of the cheapest vehicles to insure for new drivers. Prices will tend to be more expensive anyway because of the fact that there is more risk for 16 year olds, but generally speaking those vehicles will most likely have the cheapest rates available.
Figuring out which companies offer the most affordable auto insurance rates for 16 year olds may require a tad more effort in order to find the best price. Each insurance company uses their own calculation for determining prices, so we will examine the auto insurance companies that tend to have lower prices in Hawaii.
Keep in mind that Honolulu, HI auto insurance rates are calculated based on many things that will increase or decrease the cost of your policy. Turning one year older, increasing deductibles, or getting a reckless driving citation may generate price changes that can cause some rates to be cheaper than competitors.
Best Car Insurance Prices for Teens
|Rank||Company||Cost Per Year|
|7||First of Hawaii||$2,006|
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USAA may have some of the best car insurance rates in Honolulu at around $954 annually. State Farm, GEICO, Liberty Mutual, and Progressive also qualify as some of the best Honolulu, HI car insurance companies.
In this example, if you currently buy coverage from Liberty Mutual and switched to USAA, you might see a yearly price reduction of in the neighborhood of $495. Policyholders with Progressive could save as much as $606 a year, and Allstate insureds might lower prices by up to $1,030 a year.
These policy rates are averaged for all types of insureds and vehicles and do not factor in an exact zip code location for 16 year olds. So the car insurance company that has the cheapest rates for you may not even be in the list above. That helps illustrate why you need to compare prices as often as possible using your own personal information and vehicle type.
For new drivers, one of the largest criteria that determine the cost of insurance is where you live in Honolulu. More populated areas are more likely to pay higher prices, whereas areas with fewer weather claims and lower vehicle theft rates have the luxury of cheap car insurance rates.
The table below ranks the priciest cities in Hawaii for 16 year olds to purchase car insurance in. Honolulu comes in at #5 with the annual price of $1,047 for the average policyholder, which is around $87 monthly.
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Rates are comparative as the specific garaging location can revise insurance rates greatly.
Picking a good quality car insurance company can be a challenge considering how many companies sell coverage in Honolulu. The rank data in the lists below can help you decide which companies you want to consider when looking for cheaper rates. These rankings are only comprised of large, nationwide insurance companies, so companies that focus mainly on Hawaii business are not factored into these rankings.
Top 10 Major Auto Insurers in Honolulu Ranked by A.M. Best Rating
- USAA – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Nationwide – A+
- Allstate – A+
- Progressive – A+
- The Hartford – A+
- AAA Insurance – A
- Liberty Mutual – A
Top 10 Major Auto Insurers Overall in Honolulu
- American Family
- State Farm
- The Hartford
- AAA Insurance
- Liberty Mutual
Insurance rate increases from tickets or accidents
A great way to receive low auto insurance rates in Honolulu for new drivers is to be a careful driver and not receive tickets or have accidents. The illustration below illustrates how traffic citations and at-fault accidents influence car insurance rates for each age group. The prices are based on a single female driver, comp and collision included, $100 deductibles, and no discounts are factored in.
The chart shows that the average cost of an auto insurance policy in Honolulu per year with a clean driving record and no accidents is $1,445. Get written up for two speeding tickets and the average cost surges to $1,941, an increase of $496 each year. Then include one accident along with the two speeding tickets and the 12-month cost of auto insurance for 16 year olds goes up to an average of $2,437. That’s an increase of $992, or $83 per month, just for not paying attention while driving!
Should you buy full coverage?
Paying a lower price for auto insurance is probably important to the majority of drivers, and one easy way to pay lower rates for insurance for 16 year olds is to only pay for liability coverage. The chart below shows the comparison of car insurance rates with and without physical damage coverage. The price estimates are based on a clean driving record, no at-fault accidents, $100 deductibles, drivers are not married, and no additional discounts are factored in.
If we average all the age groups together, full coverage on your policy costs $2,038 per year more than just insuring for liability. At some point, every insured wonders when is the right time to remove full coverage. There is no exact rule for excluding comp and collision coverage, but there is a guideline you can consider. If the annual cost of your full coverage insurance is more than 10% of the vehicle’s replacement cost less your deductible, then it might be time to consider dropping full coverage.
For example, let’s pretend your vehicle’s settlement value is $5,500 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, you would only receive $4,500 after paying the physical damage deductible. If premium cost is more than $450 annually for your policy with full coverage, then you might consider buying liability only.
There are a few cases where removing full coverage is not recommended. If you haven’t satisfied your loan, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should keep full coverage.
Shop around and save
Honolulu auto insurance rates are influenced by many factors that may substantially change the policy price. Improving your credit rating, having a teenage driver, or getting a DUI can cause premium changes that can now make some companies cheaper in comparison to the competition. In addition to those changes, insurers modify rates as needed to adjust for heavy claims or excess profits. Heavy losses can result in additional premium costs, while profitable underwriting can produce cheaper Honolulu car insurance rates.
To help illustrate this point, the chart below shows rates for the cheapest car insurance in Honolulu, HI for a 35-year-old female driver with no accidents or violations, and a high credit rating. When comparing rates based on her personal risk profile, USAA has the most affordable car insurance rates in Honolulu at $983 annually. This is $613 less than the average premium paid by Hawaii drivers of $1,596. State Farm, GEICO, Liberty Mutual, and Progressive round out the rest of the cheapest Honolulu, HI auto insurance companies.
The next chart shows rates after we give the driver from above a claim or two, a lower credit rating, and a traffic ticket or two. Since each auto insurer has their own guidelines for determining rates in each state, analyzing rate quotes could now result in a different ranking of the cheapest Honolulu car insurance companies as shown below.
State Farm now has the best price on car insurance in Honolulu, HI with USAA, GEICO, First of Hawaii, and Liberty Mutual now rounding out the top five. This example shows why it is important to compare rates when trying to find the best auto insurance rates for 16 year olds.
Rates are made up of many factors and can increase or decrease at any time, so the cheapest company the last time you compared rates may now not even be in the top five.