The words “economical” and “insurance” probably shouldn’t be used together, especially when you are shopping around for the best insurance rates for 16 year olds. Because it’s not cheap, let’s go over some of the things that have a considerable impact on insurance rates, and come up with some ways to take a little off your next policy.
The make and model of vehicle requiring coverage is probably the biggest factor when comparing quotes for economical coverage for 16 year olds. Vehicles with lots of speed or power, poor crash test ratings, or a track record of large liability claims will cost much more to insure than safer models. The data below estimates car insurance costs for some of the most affordable vehicles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $6,980 |
| Honda CR-V EX-L 2WD | $7,043 |
| Honda Accord EX-L 4-Dr Sedan | $7,467 |
| Toyota Prius | $7,530 |
| Honda Odyssey LX | $7,789 |
| Dodge Grand Caravan CV | $7,852 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $7,857 |
| Ford Explorer Eddie Bauer 2WD | $7,852 |
| Ford Edge SEL AWD | $8,213 |
| Volkswagen Jetta LE 4-Dr Sedan | $8,276 |
| Toyota RAV4 4WD | $8,282 |
| Chevrolet Malibu LS | $8,276 |
| Nissan Altima 2.5 4-Dr Sedan | $8,286 |
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Prices above based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in your specific Louisville, KY location which can impact coverage rates significantly.
By looking at the data, we can infer that vehicles like the Ford Escape, Honda CR-V, Honda Accord, Toyota Prius, and Honda Odyssey should be some of the most economical vehicles to insure for new drivers. The price of auto insurance will trend higher just due to the fact that there is more liability exposure for 16 year olds, but generally speaking those particular models will most likely have the best rates available.
Deciding which companies quote the lowest-priced car insurance rates for 16 year olds may require a little more work than just comparing a company or two. Every insurance company has a proprietary method to establish rates, so we will examine the most competitive car insurance companies in Louisville, KY.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,115 |
| 2 | Kentucky Farm Bureau | $1,128 |
| 3 | USAA | $1,211 |
| 4 | Auto-Owners | $1,357 |
| 5 | Grange Mutual | $1,609 |
| 6 | Motorists Mutual | $1,617 |
| 7 | Travelers | $1,631 |
| 8 | State Farm | $1,848 |
| 9 | Westfield | $1,870 |
| 10 | Safe Auto | $1,932 |
| 11 | Nationwide | $2,003 |
| 12 | Progressive | $2,119 |
| 13 | Electric | $2,160 |
| 14 | State Auto | $2,188 |
| 15 | Encompass | $2,312 |
| 16 | GEICO | $2,437 |
| 17 | Safeco | $2,681 |
| 18 | Shelter | $3,135 |
| 19 | MetLife | $3,177 |
| 20 | Allstate | $3,712 |
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Cincinnati Insurance may have some of the most affordable car insurance rates in Louisville at around $1,115 each year. This is $1,028 less than the average rate paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual also rank well as some of the cheapest Louisville, KY car insurance companies.
In this example, if you are a policyholder with Auto-Owners and switched to Cincinnati Insurance, you may see annual savings of upwards of $242. Customers with Grange Mutual might save as much as $494 a year, and Motorists Mutual insureds might reduce rates by $502 a year.
To find out how your current rates compare, click here to get quotes or click through to the companies below.
Be aware that those premium estimates are averaged for all ages of drivers and types of vehicles and do not take into consideration an exact location for 16 year olds. So the auto insurance company that fits your needs best may not even be in the list above. That emphasizes why you need to get quotes using your own personalized driver profile and vehicle information.
For new drivers, one of the more important things that aid in calculating car insurance rates is where you keep your vehicle. Cities with larger populations tend to have higher rates, whereas areas that tend to be more rural have the luxury of lower rates.
The next table sorts the most expensive areas in Kentucky for 16 year olds in which to buy car insurance. Louisville is listed at #1 having an annual price of $2,112 for the average policyholder, which is approximately $176 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Louisville | $2,112 |
| 2 | Frankfort | $1,778 |
| 3 | Jeffersontown | $1,685 |
| 4 | Ashland | $1,673 |
| 5 | Saint Matthews | $1,660 |
| 6 | Paducah | $1,631 |
| 7 | Radcliff | $1,590 |
| 8 | Danville | $1,581 |
| 9 | Madisonville | $1,568 |
| 10 | Murray | $1,549 |
| 11 | Elizabethtown | $1,547 |
| 12 | Henderson | $1,541 |
| 13 | Hopkinsville | $1,523 |
| 14 | Winchester | $1,517 |
| 15 | Covington | $1,517 |
| 16 | Georgetown | $1,506 |
| 17 | Nicholasville | $1,504 |
| 18 | Lexington | $1,499 |
| 19 | Richmond | $1,490 |
| 20 | Florence | $1,471 |
| 21 | Bowling Green | $1,461 |
| 22 | Fort Thomas | $1,455 |
| 23 | Independence | $1,436 |
| 24 | Erlanger | $1,420 |
| 25 | Owensboro | $1,390 |
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Rate quotes are approximated as zip code location can raise or lower coverage rates significantly.
How accidents and tickets impact rates
The easiest way to earn good car insurance premiums for new drivers is to drive safely and have a clean driving record. The diagram below illustrates how speeding tickets and at-fault claims increase car insurance rates for each age group. The rate quotes are based on a single male driver, comp and collision included, $500 deductibles, and no policy discounts are applied.
The data above shows the average cost of car insurance in Louisville per year with no accidents or violations is $2,088. Get written up for two speeding tickets and the average cost jumps to $2,761, an increase of $673 each year. Now throw in one accident along with the two speeding tickets and the annual cost of car insurance for 16 year olds jumps again to an average of $3,441. That’s an increase of $1,353, or $113 per month, just for being a little careless behind the wheel!
Selecting the best insurer can be rather challenging considering how many choices there are in Kentucky. The rank data below can help you pick which companies to look at when comparing rates. The ratings below are only comprised of the companies with a significant amount of written premium nationwide, so smaller companies will not be included in this list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
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Data Source: Insure.com Best Car Insurance Companies
Your cheap policy may actually be overpriced
Louisville car insurance rates are influenced by many factors that will increase or decrease the cost of having a policy. Simply turning a year older, filing a claim, or getting caught speeding can trigger price changes resulting in some companies being more affordable than others. Not only may your situation change, but insurers change the rates they charge in Kentucky as often as every three months in order to protect their financial rating. A period of higher than normal claims can result in additional premium costs, while lower claim expenses may cause lower-cost Louisville car insurance rates.
To illustrate this point, the data below shows rates for the cheapest car insurance in Louisville, KY for a 30-year-old female driver with no accidents, a clean driving record, and great credit. If we compare prices based on her personal profile, Cincinnati Insurance offers the best car insurance rates in Louisville at $1,643 each year. This is $500 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are also on the list of the most affordable Louisville, KY auto insurance companies.
The example below compares rates after we give the driver from above a claim surcharge, a lower credit rating, and a traffic ticket or two. Since every car insurance company has their own process for filing rates in each state, comparing prices may now present a different list of the cheapest companies as shown below.
Kentucky Farm Bureau now has the cheapest car insurance in Louisville with USAA, Travelers, State Farm, and Westfield completing the list. This example demonstrates why it is crucial to shop around with many companies when trying to get the most budget-friendly car insurance rates for 16 year olds. Car insurance prices can be altered by many things and change substantially, so the most economical option the last time you shopped your coverage around may now not even be in the top five.