The words “economical” and “insurance” really shouldn’t be used in the same sentence, especially when you are searching for the best insurance rates for drivers under 25. Let’s start the ball rolling by going over some of the factors that determine car insurance prices, and find out if we can help you take a little off your next policy.
The make and model of vehicle requiring coverage is one of the biggest factors that determines whether or not you find the lowest-priced car insurance for drivers under 25. Vehicles with limited speed and performance, a plethora of safety features, or a low likelihood of liability claims will cost less to insure than high performance models. The next list shows insurance prices for a number of the cheapest vehicles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $4,349 |
| Honda CR-V LX 4WD | $4,356 |
| Hyundai Elantra GLS Touring Station Wagon | $4,349 |
| Honda Accord EX-L 4-Dr Sedan | $4,694 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,700 |
| Toyota Prius | $4,757 |
| Honda Odyssey LX | $4,812 |
| Ford Explorer XLT 4WD | $4,879 |
| Jeep Grand Cherokee Laredo 2WD | $5,156 |
| Toyota RAV4 Limited 4WD | $5,162 |
| Ford Fusion S 4-Dr Sedan | $5,156 |
| Chevrolet Equinox LT 2WD | $5,164 |
| Chevrolet Malibu LS | $5,156 |
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Data variables include single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nevada minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in zip code location which can modify price quotes greatly.
Looking at the data, we can conclude that vehicles like the Ford Escape, Honda CR-V, and Hyundai Elantra are most likely to be the less-costly vehicles to insure for drivers age 25 and younger. The cost of a car insurance policy will be more costly just due to the fact that there is more claim exposure for drivers under 25, but overall those particular models will have the best insurance prices available.
Deciphering which companies have the cheapest auto insurance rates for drivers under 25 involves a little more work in order to find the lowest price quote. Every car insurance company has a unique formula to determine premium rates, so let’s take a look at the most budget-friendly auto insurance companies in Henderson.
It’s a good idea to know that Henderson auto insurance rates are based on many factors that can increase the price you have to pay for coverage. Simply improving your credit, moving across town, or getting a ticket for careless driving may prompt premium changes that can cause some rates to be cheaper than competitors.
Cheap Insurance Rates for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $903 |
| 2 | Allied | $949 |
| 3 | Capital | $1,008 |
| 4 | Oregon Mutual | $1,158 |
| 5 | Progressive | $1,190 |
| 6 | American Family | $1,230 |
| 7 | GEICO | $1,269 |
| 8 | Nationwide | $1,282 |
| 9 | USAA | $1,336 |
| 10 | Safeco | $1,360 |
| 11 | Farmers | $1,438 |
| 12 | MetLife | $1,567 |
| 13 | Country | $1,619 |
| 14 | State Farm | $1,749 |
| 15 | Mercury | $1,825 |
| 16 | Victoria | $2,031 |
| 17 | Liberty Mutual | $2,249 |
| 18 | Bristol West | $2,384 |
| 19 | Allstate | $2,408 |
| 20 | Encompass | $2,684 |
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Travelers offers some of the most affordable car insurance rates in Henderson at around $903 per year. Allied, Capital, Oregon Mutual, and Progressive also qualify as some of the cheapest Henderson, NV auto insurance companies.
In the above example, if you are a policyholder with Progressive and switched to Allied, you may realize an annual premium reduction of around $241. Drivers with American Family may save as much as $281 a year, and GEICO policyholders might cut rates by $320 a year.
It’s important to note that these policy rates are averages for all types of drivers and the different vehicles they drive and and are not calculated with a vehicle location for drivers under 25. So the insurer that is most affordable for your situation may not even be in the top 20 companies shown above. That point stresses why you need to get rate quotes using your own personal information and vehicle type.
One of the many things that are looked at to determine the cost of insurance is your address. More densely populated places tend to have higher auto insurance costs, whereas areas with lower vehicle theft rates and fewer weather claims benefit from having to pay less for coverage.
The illustration below rates the most expensive cities in Nevada for drivers under 25 to purchase a policy in. Henderson is listed at #8 with an annual rate of $1,715 for the average insured, which is about $143 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Winchester | $2,094 |
| 2 | Sunrise Manor | $2,090 |
| 3 | Spring Valley | $2,040 |
| 4 | Paradise | $2,001 |
| 5 | Enterprise | $1,908 |
| 6 | North Las Vegas | $1,900 |
| 7 | Las Vegas | $1,892 |
| 8 | Henderson | $1,715 |
| 9 | Boulder City | $1,511 |
| 10 | Pahrump | $1,364 |
| 11 | Mesquite | $1,351 |
| 12 | Sparks | $1,304 |
| 13 | Reno | $1,294 |
| 14 | Sun Valley | $1,253 |
| 15 | Spanish Springs | $1,216 |
| 16 | Carson City | $1,170 |
| 17 | Dayton | $1,130 |
| 18 | Spring Creek | $1,125 |
| 19 | Elko | $1,114 |
| 20 | Gardnerville Ranchos | $1,104 |
| Compare Rates Now Go | ||
Premium amounts are estimated as the specific geographic location can modify premium rates noticeably.
The example below illustrates how your deductible choice can raise or lower insurance costs when researching cheap insurance for drivers under 25. The prices are based on a single male driver, comp and collision included, and no discounts are applied to the premium.
A 30-year-old driver could reduce rates by $286 a year by switching from a $100 deductible up to a $500 deductible, or save $430 by choosing a $1,000 deductible. Even younger insureds, like the age 20 example, could reduce their rates up to $830 or even more by using a higher deductible. When insureds make the decision to increase the deductibles on their policy, it will be necessary to have plenty of money set aside to enable you to pay the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Cost comparison with and without full coverage
Reducing the cost of auto insurance is the goal of most people, and an easy way to reduce the cost of insurance for drivers under 25 is to not buy comprehensive and collision coverage. The chart below visualizes the comparison of insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in Nevada. The premiums assume no claims, a clean driving record, $250 deductibles, marital status is single, and no additional discounts are factored in.
If averaged out across all ages, comp and collision coverage costs an extra $2,165 per year over having just liability coverage. Many drivers may wonder if you should buy full coverage at all. There is no exact formula that works best for making the decision to drop full coverage on your policy, but there is a general convention. If the yearly cost of full coverage is more than about 10% of the replacement cost minus the deductible, then it could be time to drop full coverage.
Why you should shop around
Henderson auto insurance rates are impacted by many factors that can increase the price you have to pay for coverage. Simply having another birthday, having a claim, or getting a ticket for running a stop sign can trigger rate changes that can make some companies cheaper than others. In addition to those changes, car insurance companies change prices without warning as an adjustment for underwriting gains or losses. An extended period of higher than normal claims may cause price increases, while a better claims history may cause lower-priced Henderson car insurance rates.
To illustrate this example, the graph below demonstrates which company has the cheapest car insurance in Henderson, NV for a 35-year-old female driver with no accidents or violations, and a high credit rating. If we estimate prices based on her current rating profile, Travelers may offer the lowest car insurance rates in Henderson at $1,455 each year. This is $119 less than the average premium paid by Nevada drivers of $1,574. Allied, Capital, Oregon Mutual, and Progressive are also on the list of the best Henderson, NV auto insurance companies.
The example below compares rates after we give the driver from the first example a chargeable claim, slightly worse credit, and a speeding ticket. Due to the fact that every insurance company has a different formula to determining premium rates, comparing rates will most likely result in a different list of companies as shown below.
GEICO now has the best price on car insurance in Henderson with Nationwide, Safeco, USAA, and Allied now rounding out the top five. This example illustrates why consumers need to shop around to get the best insurance quotes for drivers under 25. Insurance prices are impacted by many factors and change dramatically, so the most affordable company six months ago may now not even be in the top five.