The words “cheap” and “insurance” really shouldn’t be used in the same sentence, in particular when shopping around for the cheapest car insurance for young drivers. Because it’s so expensive, let’s start off by going over a few of the factors that help determine car insurance premiums, and find out if you can reduce the cost of your next policy.
One of the more important things that are looked at to determine auto insurance rates is where your residence is. Areas with high crime rates or more dense population tend to have higher auto insurance costs, whereas more rural areas receive better rates.
The following table lists the most expensive places in California for young drivers to buy car insurance in. San Jose ranks #18 having an annual price of $1,423 for the average policyholder, which is around $119 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,104 |
| 2 | Glendale | $2,058 |
| 3 | San Francisco | $1,745 |
| 4 | Sacramento | $1,720 |
| 5 | Oakland | $1,704 |
| 6 | San Bernardino | $1,644 |
| 7 | Stockton | $1,603 |
| 8 | Santa Clarita | $1,580 |
| 9 | Long Beach | $1,578 |
| 10 | Moreno Valley | $1,551 |
| 11 | Modesto | $1,547 |
| 12 | Fontana | $1,535 |
| 13 | Garden Grove | $1,508 |
| 14 | Riverside | $1,497 |
| 15 | Santa Ana | $1,483 |
| 16 | Fresno | $1,472 |
| 17 | Anaheim | $1,444 |
| 18 | San Jose | $1,423 |
| 19 | Fremont | $1,403 |
| 20 | Huntington Beach | $1,402 |
| 21 | Bakersfield | $1,394 |
| 22 | San Diego | $1,381 |
| 23 | Chula Vista | $1,350 |
| 24 | Irvine | $1,343 |
| 25 | Oxnard | $1,318 |
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Price information shown is estimated as the garaging address in San Jose can increase or decrease coverage rates noticeably.
The vehicle model that is being insured is one of the largest considerations in finding economical insurance for young drivers. Vehicles with high performance features, poor safety features, or an increased likelihood of liability claims will cost substantially more to insure than safer, lower-performance models. The next list estimates coverage prices for a handful of the more affordable automobiles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $3,895 |
| Honda Accord LX 4-Dr Sedan | $3,903 |
| Ford Escape XLS 2WD | $3,895 |
| Hyundai Elantra SE Touring Station Wagon | $4,189 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,195 |
| Toyota Prius | $4,231 |
| Ford Explorer XLT AWD | $4,364 |
| Ford F-150 STX Regular Cab 4WD | $4,374 |
| Chevrolet Impala LS | $4,579 |
| Ford Edge SE AWD | $4,585 |
| Chevrolet Malibu LS | $4,619 |
| Chevrolet Equinox LS AWD | $4,628 |
| Toyota RAV4 Limited 4WD | $4,619 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $4,661 |
| Dodge Grand Caravan SXT | $4,669 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $4,829 |
| Toyota Tacoma X-Runner 2WD | $4,873 |
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in vehicle garaging location which can change auto insurance rates greatly.
Based upon the table data, you can figure that models like the Honda CR-V, Honda Accord, Ford Escape, Hyundai Elantra, and Volkswagen Jetta are most likely to be a few of the less-costly vehicles to insure for youthful drivers. Auto insurance rates will tend to be more expensive because of the fact that there is a higher risk for young drivers, but in general those specific models will probably have the cheapest auto insurance rates that you are likely to find.
Responsible drivers pay cheaper auto insurance rates
The obvious way to enjoy the most affordable auto insurance prices in San Jose for youthful drivers is to drive carefully and avoid accidents and violations. The information below demonstrates how speeding tickets and fender-benders raise car insurance rates for different age groups of insureds. The premiums assume a single female driver, full coverage, $500 deductibles, and no other discounts are factored in.
In the previous chart, the average cost of auto insurance in San Jose per year with a clean driving record and no accidents is $1,978. Get written up for two speeding tickets and the average cost swells to $2,645, an increase of $667 each year. Now add in one accident along with the two speeding tickets and the yearly cost of auto insurance for young drivers jumps again to an average of $3,314. That’s an increase of $1,336, or $111 per month, just for not paying attention while driving!
Choosing a good quality auto insurance company can be difficult considering how many different companies sell coverage in San Jose. The company ratings in the lists below could help you select which auto insurers you want to consider purchasing from.
The rankings below are for large, nationwide insurance companies, so companies that only write business in California or surrounding areas will not be included in this list. To view rates and find the cheapest rates for young drivers, click this link.
Top 10 Major Car Insurance Companies in San Jose Ranked by Customer Service
- AAA of Southern California
- GEICO
- State Farm
- The Hartford
- Mercury Insurance
- The General
- Progressive
- Allstate
- AAA Insurance
- American Family
The information below shows how choosing a deductible can raise or lower insurance costs when quoting cheap insurance for young drivers. Data assumes a married female driver, full physical damage coverage, and no policy discounts are applied.
The data above shows that a 30-year-old driver could pocket $350 a year by increasing from a $100 deductible up to a $500 deductible, or save $530 by switching to a $1,000 deductible. Youthful drivers, like the Age 20 category, could drop their prices $750 or more by using a higher deductible.
If you do make the decision to raise your deductibles, it is necessary to have emergency funds available to offset the extra out-of-pocket expense that comes with higher deductibles.
Can you find cheaper San Jose car insurance?
San Jose, CA auto insurance rates are impacted by many things which can substantially change the cost of coverage. Turning one year older, having a teen driver, or getting into an accident can trigger rate changes that can make some companies more affordable than competitors.
And not only may your rating factors change, but companies change rates at least once a year in order to offset underwriting gains or losses. Unexpectedly high claims can result in additional price hikes, while less frequent claims may result in cheaper San Jose car insurance rates.
As an example, the graph below shows which companies have the cheapest car insurance in San Jose, CA for a 30-year-old male driver with a good driving record, no prior claims, and a decent credit rating. If we estimate prices based on his personal risk profile, USAA might offer the cheapest car insurance rates in San Jose at $1,266 per year. This is $385 less than the average rate paid by California drivers of $1,651. CSAA, Wawanesa, Nationwide, and Century National are also on the list of the best San Jose, CA auto insurance companies.
Let’s now give the driver from the first rate comparison an accident surcharge, bad credit, and a couple of points charged on his driving record. Since every car insurance company has a unique formula for determining prices, comparing quotes may result in a substantially altered list of affordable San Jose car insurance companies as shown below.
Grange now has the lowest price in San Jose with Mercury, GEICO, Progressive, and Allstate also being competitive. This example proves why it is important to compare rates when trying to get the lowest car insurance rates for young drivers.
Insurance rates are impacted by many risk factors and can increase or decrease at any time, so the cheapest company two years ago may now be quite expensive.