The words “bargain” and “insurance” really should not be used together, especially when you are searching for the cheapest coverage for drivers under 25. Because it’s so expensive, let’s teach you some of the factors that have an effect on insurance prices, and come up with some ways to cut the cost of the next policy you buy.
The car, truck, or SUV driven is one of the main factors when looking for cheaper auto insurance for drivers under 25. Vehicles with higher performance, a lack of modern safety features, or an increased likelihood of liability claims will cost quite a bit more to insure than safer models. The next list ranks auto insurance premiums for a handful of the cheapest vehicles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord LX 4-Dr Sedan||$2,551|
|Honda CR-V EX-L 4WD||$2,590|
|Ford Escape XLT 4WD||$2,599|
|Ford F-150 XL Regular Cab 2WD||$2,658|
|Chevrolet Silverado LS Regular Cab 4WD||$2,822|
|Toyota Tacoma 4WD||$2,861|
|Dodge Grand Caravan SE||$2,869|
|Ford Edge SEL 2WD||$2,983|
|Honda Odyssey EX||$2,990|
|Chevrolet Impala LT||$3,023|
|Chevrolet Equinox LT AWD||$3,028|
|Toyota RAV4 Limited 2WD||$3,023|
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Data based on single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in the specific area where the vehicle is garaged which can influence insurance rates greatly.
Looking at the rates, you can figure that models like the Honda Accord, Honda CR-V, and Ford Escape are the most affordable vehicles to insure for drivers age 25 and younger. The price for an auto insurance policy will tend to be higher just due to the fact that there is more inherent risk for drivers under 25, but in general those makes and models will tend to have the lowest insurance prices possible.
Deciphering which companies quote the lowest-priced car insurance rates for drivers under 25 takes a tad more effort than just comparing rates from one or two companies.
Every insurance provider uses a slightly different approach for establishing rates, so let’s take a look at the car insurance companies that tend to be cheaper in North Carolina. It’s important that you understand North Carolina car insurance rates are impacted by many factors which can significantly increase or decrease the cost of a policy. Simply turning a year older, buying a different vehicle, or getting a ticket for running a stop sign can produce rate changes that can now make some companies affordable when they were higher priced.
Best Cheap Insurance Rates for Young Drivers
|Rank||Company||Cost Per Year|
|7||NC Farm Bureau||$737|
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Progressive offers some of the best car insurance rates in Charlotte at around $658 each year. Utica National, Penn National, GEICO, and Liberty Mutual also rank well as some of the best Charlotte, NC insurance companies.
As the rates illustrate above, if you currently buy coverage from Liberty Mutual and switched to Utica National, you could realize a yearly price reduction of in the vicinity of $66. Policyholders with Titan might save as much as $67 a year, and NC Farm Bureau insureds might reduce rates by $75 a year.
If you would like to find cheaper car insurance rates, click here to get a free quote or feel free to get quotes from the companies below.
Be aware that those premium estimates are averages across all types of insureds and vehicles and and are not calculated with an exact location for drivers under 25. So the insurer that can offer the best rates for your situation may not even be in the top 20 companies in the list above. That emphasizes why you need to quote rates from many companies using your own specific driver and vehicle information.
For drivers age 25 and younger, one of the more important things that are looked at to determine the annual cost of car insurance is where you normally keep your vehicle in Charlotte. Areas with increased crime or more people likely pay more, whereas areas with fewer weather claims and lower vehicle theft rates have the luxury of cheap car insurance rates.
The table below shows the most expensive cities in North Carolina for drivers under 25 to buy an auto insurance policy in. Charlotte is listed at #3 with a yearly cost of $832 for coverage, which is around $69 each month.
|Rank||City||Premium Per Year|
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Price information shown is approximated as the specific geographic location can revise premiums noticeably.
Illustration showing the impact of accidents and violations
One of the best ways to maintain low car insurance rates for drivers age 25 and younger is to be a safe driver and avoid accidents and traffic violations. The illustration below shows how speeding tickets and at-fault accidents can affect premium costs for different insured age categories. The rate quotes are based on a single male driver, full physical damage coverage, $500 deductibles, and no discounts are factored in.
In the previous example, the average cost of auto insurance in Charlotte per year with no accidents or violations is $1,181. Factor in one speeding ticket and the average cost increases to $1,331, an increase of $150 each year. Now add two accidents along with the one speeding ticket and the 12-month cost of car insurance for drivers under 25 jumps again to an average of $2,674. That’s an increase of $1,493, or $124 per month, just for being a careless driver!
Discounts on Charlotte insurance
Car insurance companies that offer quotes for drivers under 25 may provide policy discounts that could potentially reduce rates by as much as 30% if you qualify. Large car insurance companies and a selection of discounts are included below.
- Progressive offers discounts including multi-vehicle, good student, online signing, homeowner, continuous coverage, multi-policy, and online quote discount.
- SAFECO discounts include teen safety rewards, drive less, anti-lock brakes, multi-car, teen safe driver, anti-theft, and bundle discounts.
- American Family has savings for accident-free, TimeAway discount, multi-vehicle, early bird, bundled insurance, and good driver.
- MetLife includes discounts for defensive driver, good driver, multi-policy, good student, and claim-free.
- GEICO may have discounts that include anti-theft, five-year accident-free, air bags, anti-lock brakes, multi-vehicle, and daytime running lights.
- The Hartford has discounts for vehicle fuel type, driver training, anti-theft, bundle, defensive driver, good student, and air bag.
The chart below shows the difference between auto insurance rates with and without discounts applied to the rates. The costs are based on a male driver, no claims, a clean driving record, North Carolina state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with paperless filing, vehicle safety, paid-in-full, passive restraint, good student, and continuous coverage discounts applied. When discounts are applied, theamount saved on car insurance for drivers under 25 is 19% or $296.
The diagram below illustrates how your choice of deductibles can impact yearly insurance costs when searching for cheap insurance for drivers under 25. The premiums are based on a single male driver, full physical damage coverage, and no policy discounts are applied.
As shown above, a 30-year-old driver could cut expenses by $230 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $348 by changing to a $1,000 deductible. Even younger drivers, such as the Age 20 example, could drop their prices up to $670 or even more just by choosing higher deductibles when buying full coverage. If you do raise deductibles, it is essential to have emergency funds available to pay the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Why are you paying too much for car insurance?
North Carolina car insurance rates are determined by lots of factors that control the cost of your policy. Simply turning a year older, buying a different vehicle, or getting a few speeding tickets can cause premium changes that can now make some companies more affordable than the competition.
Also, companies modify rates every year or even multiple times each year to reflect underwriting profits or losses. A period of higher than normal claims can cause increased rates, while profitable underwriting may produce more affordable Charlotte car insurance rates.
For instance, the data below compares the cheapest car insurance in Charlotte, NC for a 35-year-old male driver with no prior accidents, a clean driving record, and good financial standing. If we look at prices based on his current risk profile, Utica National offers the lowest car insurance rates in Charlotte at $777 annually. This is $95 less than the average rate paid by North Carolina drivers of $872. Progressive, Liberty Mutual, GEICO, and NC Farm Bureau are the remaining most affordable Charlotte, NC auto insurance companies.
The example below compares rates after we give the driver in the first chart a claim surcharge, less-than-perfect credit, and a traffic citation. Because every insurance company has a different formula to establish rates, getting updated rate quotes may now result in a different set of the cheapest car insurance companies in Charlotte as shown below.
State Farm now has the lowest car insurance rate in Charlotte with Titan, Auto-Owners, Allied, and Progressive now rounding out the top five. This illustrates why Charlotte drivers need to shop around with many companies to get affordable car insurance quotes for drivers under 25. Prices can be determined by many different factors and can change substantially, so the best price the last time you shopped around may now not even be in the top five.
The agents shown below can probably help you make a decision which insurance coverage you need, as lots of people like to have a little guidance when comparing insurance rates for drivers age 25 and younger. It can be challenging to find the best rates on your own, so getting advice from a licensed agent can provide satisfaction knowing your policy gives you adequate asset protection.
To find an auto insurance agency near you, click the button link following the list or click here to compare prices now.
- Charlotte Insurance
5113 Piper Station Dr #207 – Charlotte, NC 28277 – (704) 536-0995
- Nationwide Insurance: Michael Bare Agency
2300 Sardis Rd N a – Charlotte, NC 28227 – (704) 248-8000
- The Tillman Agency – Nationwide Insurance
8440 Rea Rd STE P – Charlotte, NC 28277 – (704) 960-1860
- Michael Pritchard – State Farm Insurance Agent
8633 Monroe Rd d – Charlotte, NC 28212 – (704) 535-2292
- Matt “Woody” Woodford – State Farm Insurance Agent
501 S Sharon Amity Rd #200 – Charlotte, NC 28211 – (704) 971-3030