It’s hard to avoid all the catchy commercials from companies like Allstate, Nationwide, and GEICO guaranteeing big savings, so drivers just need to choose any one of them, right?
It’s just not that easy, however, as there are many unknown factors like if you are currently insured, the deductible level you need, the safety ratings of your vehicle, and the likelihood of vehicle theft where you live. The information below will cover some of these topics and educate you enough to have a good start to your coverage search.
Finding out which companies offer the lowest-priced auto insurance rates for first-time drivers calls for a bit more work than just quoting one company’s rates. Every car insurance company uses their own method for filing rates in each state, so let’s take a look at the most budget-friendly auto insurance companies in Henderson, NV.
Keep in mind that Nevada auto insurance rates are impacted by many things that will increase or decrease the price you pay. Getting older, having a teen driver, or getting a ticket for running a stop sign may cause policy rate changes that may make certain companies much cheaper than others.
Find the Cheapest Auto Insurance for Inexperienced Drivers
Travelers normally has some of the cheapest car insurance rates in Henderson at around $930 per year. Allied, Capital, Oregon Mutual, and American Family also are some of the cheapest Henderson, NV car insurance companies.
As the example above demonstrates, if you currently have a policy with Capital and switched to Travelers, you might realize a yearly price reduction of in the neighborhood of $48. Insureds with Oregon Mutual might save as much as $252 a year, and American Family customers might cut rates by $264 a year.
Be aware that those policy prices are averaged across all insureds and vehicles and do not take into consideration a specific location for first-time drivers. So the car insurance company that fits you best may not even be in the top 20 companies in the list above. That point stresses why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
The vehicle model on the policy is probably the largest consideration when shopping for low-priced insurance for first-time drivers. Vehicles with limited top-end speed, good crash test ratings, or low incidents of liability claims will cost substantially less to insure than adrenaline junky models.
The list below estimates auto insurance costs for a selection of the cheapest automobiles to insure in Nevada.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $7,834 |
| Honda CR-V EX-L 4WD | $7,915 |
| Honda Accord EX-L 4-Dr Sedan | $8,427 |
| Hyundai Elantra SE Touring Station Wagon | $8,436 |
| Toyota Prius | $8,509 |
| Dodge Grand Caravan CV | $8,785 |
| Toyota Tacoma 4WD | $8,790 |
| Chevrolet Impala LS | $9,216 |
| Ford Fusion S 4-Dr Sedan | $9,297 |
| Chevrolet Malibu LS | $9,304 |
| Toyota RAV4 Sport 2WD | $9,297 |
| Chevrolet Equinox LS AWD | $9,306 |
| Nissan Altima 2.5 4-Dr Sedan | $9,297 |
| Ford F-150 XLT Crew Cab 4WD | $9,379 |
| Ford Explorer Limited 4WD | $9,388 |
| Ford F-350 XL Super Cab 2WD | $9,461 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $9,721 |
| Ford Focus SES 4-Dr Sedan | $9,728 |
| Honda Odyssey EX-L | $9,809 |
| Toyota Camry SE | $9,819 |
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nevada minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in the specific area where the vehicle is garaged which can decrease or increase insurance rates noticeably.
Looking at the numbers, you can conclude that models like the Ford Escape, Honda CR-V, Honda Accord, and Hyundai Elantra are most likely going to be the most budget-friendly vehicles to insure for new drivers. The price for car insurance will be more costly because of the fact that there is more exposure for first-time drivers, but in general those particular models will most likely have the cheapest auto insurance rates possible.
One of the more important considerations that are used to help calculate insurance cost is where you live in Henderson. Areas with more people or even just a higher incidence of claims will most likely have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper auto insurance prices.
The next table lists the priciest cities in Nevada for first-time drivers in which to purchase auto insurance. Henderson is ranked #8 with a yearly premium of $1,749 for the average insurance policy, which is around $146 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Winchester | $2,116 |
| 2 | Sunrise Manor | $2,008 |
| 3 | Paradise | $1,981 |
| 4 | Spring Valley | $1,980 |
| 5 | Enterprise | $1,927 |
| 6 | Las Vegas | $1,892 |
| 7 | North Las Vegas | $1,826 |
| 8 | Henderson | $1,749 |
| 9 | Boulder City | $1,557 |
| 10 | Mesquite | $1,351 |
| 11 | Pahrump | $1,337 |
| 12 | Sparks | $1,304 |
| 13 | Reno | $1,282 |
| 14 | Sun Valley | $1,266 |
| 15 | Spanish Springs | $1,253 |
| 16 | Fernley | $1,149 |
| 17 | Carson City | $1,136 |
| 18 | Spring Creek | $1,125 |
| 19 | Gardnerville Ranchos | $1,104 |
| 20 | Dayton | $1,097 |
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Annual rates are estimated as specific Henderson zip code can influence coverage prices noticeably.
Does full coverage make sense?
Lowering the price of auto insurance is the goal of the majority of drivers, and one easy way to pay less for insurance for first-time drivers is to only buy liability coverage. The chart below shows the comparison of annual premium costs with full physical damage coverage and with liability coverage only. The information is based on no accidents or driving violations, $250 deductibles, single status, and no additional discounts are factored in.
If we average the cost for all age groups, comp and collision coverage costs $2,165 per year more than insuring for liability only. Many drivers may wonder when is the right time to remove full coverage. There is no exact formula of when to eliminate physical damage insurance, but there is a general school of thought. If the yearly cost of full coverage is more than 10% of the vehicle’s replacement cost less your deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s book value is $7,000 and you have $1,000 policy deductibles. If your vehicle is destroyed, the most you would get paid by your company is $6,000 after the policy deductible has been paid. If it’s costing in excess of $600 annually to have full coverage, then it may be the right time to buy liability only.
There are some scenarios where dropping full coverage is not a good plan. If you still owe a portion of the original loan, you are required to maintain full coverage in order to satisfy the requirements of the loan. Also, if your emergency fund is not enough to purchase a different vehicle in the even your car is totaled, you should not remove full coverage.
Driving violations and accidents
In a perfect world, the best way to score cheap auto insurance premiums in Henderson for new drivers is to drive cautiously and not get tickets or have accidents. The information below shows how violations and at-fault fender-benders drive up insurance premiums for different age groups of insureds. The costs are based on a married female driver, full coverage, $250 deductibles, and no discounts are applied to the premium.
In the chart above, the average cost of an auto insurance policy in Henderson per year with a clean driving record and no accidents is $1,252. Get one speeding ticket and the average cost rises to $1,456, an increase of $205 each year. Now add in two accidents along with the one speeding ticket and the yearly cost of auto insurance for first-time drivers goes up to an average of $3,225. That’s an increase of $1,974, or $164 per month, just for not paying attention while driving!
Last year’s bargain might be this year’s rip off
Henderson, NV auto insurance rates are determined by lots of factors which can significantly increase or decrease the policy premium. Simply having another birthday, buying a different home, or getting a ticket for careless driving can trigger changes in premium resulting in some companies being much cheaper than others. Not only may things change on your end, but insurance companies modify rates at least once a year in order to maintain liquidity for claims. Higher than normal claims can result in price increases, while profitable underwriting may produce more affordable Henderson car insurance rates.
The chart below shows the company with the cheapest car insurance in Henderson, NV for a 45-year-old male driver with a clean driving record, no accidents, and a good credit history. If we estimate rates based on his personal profile, Travelers offers the most affordable car insurance rates in Henderson at $1,461 a year. This is $113 less than the average price paid by Nevada drivers of $1,574. Allied, Capital, American Family, and Oregon Mutual are also on the list of the top five cheapest Henderson, NV auto insurance companies.
The chart below compares rates after we give the driver from the first set of rates an at-fault accident, a lower credit rating, and a couple of points charged on his driving record. Since each auto insurance company uses their own calculation to set premium rates, comparing prices most likely will result in a new list of the cheapest car insurance companies in Henderson as shown below.
GEICO now has the cheapest car insurance in Henderson with Nationwide, Allied, USAA, and Safeco now rounding out the top five. This shows why it is important to spend some time comparing rates when trying to find the most economical car insurance rates for first-time drivers.
Car insurance prices can be altered by many different factors and can change substantially, so the lowest-price company two years ago may now be priced much higher than other options.
How to find more affordable car insurance for first-time drivers
It is possible to find better rates, and here are some of the better penny-pinching ideas that can help Nevada drivers locate cheap coverage.
- Good credit scores may make rates cheaper
- Bundle home or renters insurance to earn a discount on car insurance
- Save money by only buying liability coverage for older vehicles
- Avoid having at-fault accidents
- Vehicles with good safety ratings have lower liability rates
- Shop around for lower rates once a year
The last tip in the list is incredibly crucial, as we discussed in the article above. Prices charged by companies can be modified anytime, so don’t be hesitant to change to a new company if a lower price can be found.
Many drivers prefer to stick with one company, but we do not recommend it if that inflexibility results in costing you a wad of cash every year. It only takes a couple minutes to compare rates to find cheaper car insurance for first-time drivers in Henderson.