The words “economical” and “insurance” really don’t belong together, specifically when looking for the cheapest car insurance for 16 year olds. To save some money, let’s take a look at some of the factors that determine auto insurance prices, and see if you can take the sting out of your next policy.
For new drivers, one of the big considerations that are used to help calculate car insurance rates is where you keep your car. Areas with increased crime or more people tend to have more expensive auto insurance rates, whereas areas with lower crime rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The information below ranks the most expensive cities in California for 16 year olds in which to purchase auto insurance. Long Beach is ranked at #7 with an annual rate of $1,626 for the average insurance policy, which is approximately $136 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Glendale | $2,142 |
| 2 | Los Angeles | $2,083 |
| 3 | San Francisco | $1,763 |
| 4 | Oakland | $1,738 |
| 5 | Sacramento | $1,652 |
| 6 | San Bernardino | $1,644 |
| 7 | Long Beach | $1,626 |
| 8 | Stockton | $1,588 |
| 9 | Fontana | $1,535 |
| 10 | Santa Clarita | $1,533 |
| 11 | Garden Grove | $1,508 |
| 12 | Modesto | $1,502 |
| 13 | Moreno Valley | $1,491 |
| 14 | Riverside | $1,482 |
| 15 | Anaheim | $1,474 |
| 16 | Fresno | $1,457 |
| 17 | Santa Ana | $1,453 |
| 18 | San Jose | $1,423 |
| 19 | Huntington Beach | $1,416 |
| 20 | Fremont | $1,389 |
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Rate information is comparative as specific Long Beach garaging address can influence prices substantially.
Figuring out which company quotes the cheapest insurance rates for 16 year olds will involve a little more sweat than just quoting one company’s rates. Each auto insurer has a proprietary method to establish rates, so we’ll take a look at the lowest cost insurance companies in Long Beach, CA.
It’s important that you understand Long Beach, CA insurance rates are impacted by many things which can substantially decrease or increase the price you have to pay. Getting older, having a teen driver, or getting a driving violation can trigger changes in premium that may make certain companies affordable when they were higher priced.
Cheapest Insurance Rates for Teens
USAA offers some of the lowest car insurance rates in Long Beach at around $1,121 per year. This is $530 less than the average rate paid by California drivers of $1,651. Wawanesa, Century National, Nationwide, and CSAA also make the cut as some of the cheaper Long Beach, CA auto insurance companies.
In this example, if you currently have coverage with Nationwide and switched to USAA, you may see a yearly price reduction of around $92. Policyholders with CSAA may save as much as $101 a year, and 21st Century policyholders might cut rates by $204 a year.
To find out how your current rates compare, click here to get quotes or visit several of the following companies.
Remember that these policy rates are averages for all types of insureds and vehicles and and are not calculated with an exact zip code location for 16 year olds. So the car insurance company that fits your age and vehicle best may not even be in the top 24 companies in the list above. That helps illustrate why you need to compare as many prices as possible using your own specific driver and vehicle information.
The car, truck, or SUV that is being insured is probably the biggest factor that determines the availability of low-priced coverage for 16 year olds. Vehicles with lots of horsepower, a lack of modern safety features, or a track record of large liability claims will cost substantially more to insure than more economical and safe models. The list below showcases insurance premiums for a handful of the most economical automobiles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $4,843 |
| Ford Escape XLS 4WD | $4,851 |
| Honda CR-V LX 2WD | $4,843 |
| Jeep Wrangler Sport 4WD 2-Dr | $5,111 |
| Volkswagen Jetta S 2.5 Station Wagon | $5,184 |
| Toyota Prius | $5,226 |
| Ford F-150 STX Super Cab 2WD | $5,404 |
| Dodge Grand Caravan SE | $5,449 |
| Ford Focus SE 4-Dr Sedan | $5,700 |
| Toyota Tacoma 2WD | $5,708 |
| Chevrolet Impala LS | $5,700 |
| Ford Edge Limited 2WD | $5,705 |
| Jeep Grand Cherokee Laredo 4WD | $5,745 |
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Price data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in Long Beach, CA location which can raise or lower premium rates noticeably.
Based upon the table data, we can presume that models like the Hyundai Elantra, Ford Escape, Honda CR-V, Jeep Wrangler, and Volkswagen Jetta are most likely to be the less-costly vehicles to insure for new drivers. The price of auto insurance will trend higher because of the fact that there is a higher risk for 16 year olds, but generally speaking those vehicles will probably have the lowest insurance prices possible.
Cost comparison with and without full coverage
Lowering the price of insurance is important to most vehicle owners, and an easy way to find cheaper insurance for 16 year olds is to not pay for full coverage. The illustration below visualizes the comparison of insurance premiums with full physical damage coverage compared to only buying the minimum liability limits required in California. The costs are based on no claims, a clean driving record, $100 deductibles, single status, and no discounts are applied.
If we average the cost for ages 20 through 70, full coverage costs $3,385 per year over and above liability only. At some point, every insured wonders if buying full coverage is a waste of money. There isn’t a written rule that is best for determining when to drop comp and collision coverage, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of any settlement you would receive from your insurance company, then it could be time to drop full coverage.
For example, let’s say your vehicle’s replacement value is $7,500 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most your company would pay you is $6,500 after the policy deductible has been paid. If premiums are more than $650 a year for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
There are a few cases where eliminating full coverage is not advised. If you haven’t paid off your loan, you have to keep full coverage to satisfy the loan requirements. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should keep full coverage on your policy.
Impact of speeding/accidents on Long Beach insurance rates
The ideal way to maintain good insurance rates in California for new drivers is to drive cautiously and avoid at-fault accidents and violations. The chart below shows how traffic citations and accidents can increase insurance prices for each age group. The premium estimates are based on a single female driver, full coverage, $1,000 deductibles, and no other discounts are factored in.
The data above shows the average cost of a car insurance policy in California per year with no accidents and a clean driving record is $1,767. Factor in one speeding ticket and the average cost surges to $2,006, an increase of $239 each year. Now include one accident along with the one speeding ticket and the 12-month cost of insurance for 16 year olds increases to an average of $2,662. That’s an increase of $895, or $75 per month, just for not being a responsible driver!
The diagram below demonstrates how deductible levels can influence annual premium costs when researching cheap insurance for 16 year olds. The premium estimates are based on a married female driver, full physical damage coverage, and no discounts are applied.
A 30-year-old driver could save $350 a year by increasing from a $100 deductible to a $500 deductible, or save $530 by using a $1,000 deductible. Even younger drivers, like the Age 20 chart data, have the ability to save $750 or even more just by choosing larger deductibles. When using a larger deductible, it’s a good idea to have plenty of money set aside to offset the extra out-of-pocket expense that comes with higher deductibles.
The insurance agencies below are a good start to provide answers to your questions and help you determine which car insurance company is the best fit, since many consumers aren’t sure which coverage to buy and prefer to get some professional advice when comparing insurance rates for new drivers. It can be hard to do it yourself, so using a licensed agent can bring satisfaction knowing your policy gives you suitable coverage if you have an accident. To locate an agency near you, click the link after the list.
- Lara Insurance
6689 Downey Ave – Long Beach, CA 90805 – (562) 408-2800 - Priscilla Vallejos Insurance Agency
2725 Candlewood St – Lakewood, CA 90712 – (562) 552-3259 - Farmers Insurance – Troy Kelly
5353 E 2nd St #207 – Long Beach, CA 90803 – (562) 434-0301 - Allstate Insurance: Brenda Soto Bryan
4202 Atlantic Ave Ste 201 – Long Beach, CA 90807 – (562) 426-1752
View more Long Beach, CA insurance agencies
How to find more affordable car insurance for 16 year olds
It is possible to find better rates, and here are some of the recommended penny-pinching ideas that can help drivers find cheap coverage.
- Don’t have frequent claims
- Having at-fault accidents will increase rates
- Be a cautious driver
- Increase the comprehensive and collision deductibles on your policy
- Older vehicles may not need full coverage
- Shop around for cheaper rates regularly
That last idea is notably important, as we emphasized in this write-up. Insurance rates fluctuate constantly, so don’t be hesitant to change to a new company if you find a better deal. Having a favorite company is fine, but is isn’t recommended if that loyalty results in overpaying money that could be going to better use. If you have a few minutes, compare prices and find cheaper car insurance for 16 year olds in Long Beach.