You’ve seen the catchy advertisements from car insurance companies like The General and Nationwide that guarantee enormous savings. So drivers just need to choose any one of them, right?
It’s not that easy, however, as there are a whole slew of unknown factors like whether you just want liability only, if you are a man or woman, if you have a spouse, and your date of birth, that all help calculate your car insurance rates. We will touch on the best ways to maintain low rates and hopefully give you enough understanding to have a good start in finding the cheapest car insurance in San Jose.
One of the more important factors that aid in calculating auto insurance rates is where you keep your vehicle. Cities with more crime and/or more people are more likely to pay higher prices, whereas areas with less crime or weather claims have the luxury of cheap car insurance rates.
The following table rates the priciest cities in California for welfare recipients in which to buy car insurance. San Jose is listed at #20 with an annual premium of $1,381 on average, which is approximately $115 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,168 |
| 2 | Glendale | $2,058 |
| 3 | Oakland | $1,755 |
| 4 | San Francisco | $1,711 |
| 5 | Sacramento | $1,652 |
| 6 | Long Beach | $1,610 |
| 7 | Stockton | $1,603 |
| 8 | San Bernardino | $1,580 |
| 9 | Fontana | $1,535 |
| 10 | Santa Clarita | $1,533 |
| 11 | Garden Grove | $1,508 |
| 12 | Moreno Valley | $1,506 |
| 13 | Fresno | $1,502 |
| 14 | Santa Ana | $1,497 |
| 15 | Modesto | $1,487 |
| 16 | Riverside | $1,482 |
| 17 | Anaheim | $1,430 |
| 18 | Irvine | $1,384 |
| 19 | Bakersfield | $1,381 |
| 20 | San Jose | $1,381 |
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Premium costs are approximated as specific location information can increase or decrease rates substantially.
The vehicle needing coverage is one of the primary factors when shopping for cheap car insurance for welfare recipients. Vehicles with more horsepower, poor crash test ratings, or a track record of large liability claims will cost significantly more to insure than more modest models.
The next table showcases coverage costs for a number of the most economical vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $977 |
| Toyota Prius | $987 |
| Ford Escape XLT 4WD | $1,034 |
| Dodge Grand Caravan CV | $1,092 |
| Toyota Tacoma 2WD | $1,130 |
| Honda Odyssey Touring | $1,132 |
| Chevrolet Silverado LS Regular Cab 2WD | $1,149 |
| Toyota RAV4 2WD | $1,153 |
| Chevrolet Impala LS | $1,164 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $1,185 |
| Honda Accord EX 2-Dr Coupe | $1,187 |
| Ford Focus SES 2-Dr Coupe | $1,197 |
| Chevrolet Equinox LS AWD | $1,192 |
| Ford Fusion S 4-Dr Sedan | $1,202 |
| Honda Civic EX 4-Dr Sedan | $1,194 |
| Hyundai Elantra Blue 4-Dr Sedan | $1,203 |
| Chevrolet Malibu LT | $1,217 |
| Ford Explorer Limited AWD | $1,227 |
| Toyota Camry XLE | $1,217 |
| Ford F-150 SVT Raptor Super Cab 4WD | $1,227 |
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Data based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, safe-driver, multi-vehicle, homeowner, and multi-policy. Rates do not factor in specific garaging location which can raise or lower rates considerably.
Based on these rates, models like the Honda CR-V, Toyota Prius, Ford Escape, and Dodge Grand Caravan should be a few of the most affordable vehicles to insure for drivers on welfare.
Trying to buy reasonably-priced insurance is not most people’s favorite thing to do, and figuring out which companies have the most affordable auto insurance rates for welfare recipients takes even more work.
Each auto insurer has their own process for filing rates in each state, so to begin we’ll rank the most budget-friendly auto insurance companies in San Jose.
Find the Cheapest Car Insurance in California
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,121 |
| 2 | Wawanesa | $1,146 |
| 3 | Century National | $1,178 |
| 4 | Nationwide | $1,226 |
| 5 | CSAA | $1,234 |
| 6 | 21st Century | $1,325 |
| 7 | Grange | $1,477 |
| 8 | Allstate | $1,497 |
| 9 | Allied | $1,541 |
| 10 | Progressive | $1,542 |
| 11 | Mercury | $1,548 |
| 12 | GEICO | $1,575 |
| 13 | The Hartford | $1,639 |
| 14 | MetLife | $1,654 |
| 15 | State Farm | $1,682 |
| 16 | Unitrin | $1,750 |
| 17 | Esurance | $1,756 |
| 18 | Bristol West | $1,777 |
| 19 | Travelers | $1,788 |
| 20 | Farmers | $2,026 |
| Get a Custom Quote Go | ||
USAA quotes some of the cheapest car insurance rates in San Jose at around $1,121 a year. Wawanesa, Century National, Nationwide, and CSAA also qualify as some of the most economical San Jose, CA auto insurance companies.
As depicted above, if you currently buy coverage from Nationwide and switched to USAA, you could see savings of around $105. Insureds with CSAA might save as much as $113 a year, and 21st Century insureds might realize rate reductions of up to $204 a year.
To get a fast rate comparison, click here to start your custom quote or click through to the companies below.
Be aware that those estimates are averages for all types of insureds and vehicles and do not take into consideration an exact zip code location for welfare recipients. So the company that is best suited for you may not even be in the top 24 companies shown above. That point stresses why you need to get quotes using your own personalized driver profile and vehicle information.
Cost of full coverage
Finding the cheapest auto insurance is the goal of the majority of vehicle owners, and one way to lower the cost of insurance for welfare recipients is to not buy comprehensive and collision coverage. The chart below compares car insurance costs with liability coverage only compared to full coverage. The information is based on no accidents or driving violations, $250 deductibles, drivers are not married, and no discounts are applied to the premium.
If the expense is averaged for all age categories, physical damage insurance costs an extra $2,558 per year more than just insuring for liability. That is a significant amount which raises the question when is the right time to remove full coverage. There isn’t a written rule of when to stop paying for full coverage, but there is a general guideline you can use. If the annual cost of your full coverage insurance is more than 10% of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
There are some circumstances where only buying liability is not a good idea. If you still owe a portion of the original loan, you are required to maintain full coverage in order to prevent your loan from defaulting. Also, if your finances do not allow you to purchase a different vehicle in the even your car is totaled, you should not eliminate full coverage.
Discounts on San Jose car insurance
Insurers that offer cheap quotes for welfare recipients may provide price discounts that can lower rates by 40% or more if you meet eligibility requirements. Large auto insurance companies and a summarized list of policyholder discounts are:
- State Farm may have discounts that include Steer Clear safe driver discount, anti-theft, student away at school, multiple policy, good student, and accident-free.
- GEICO policyholders can earn discounts including anti-lock brakes, federal employee, military active duty, five-year accident-free, and air bags.
- Allstate discounts include passive restraint, farm vehicle, premier discount, early signing, good payer, premier plus, and eSmart discount.
- SAFECO offers discounts including teen safe driver, anti-lock brakes, homeowner, accident prevention training, and safe driver.
- Farm Bureau has discounts for youthful driver, 55 and retired, multi-vehicle, good student, multi-policy, renewal discount, and driver training.
- Progressive may include discounts for multi-policy, multi-vehicle, homeowner, good student, online quote discount, continuous coverage, and online signing.
- AAA offers discounts for AAA membership discount, good student, multi-car, education and occupation, good driver, and multi-policy.
The example below compares premium costs with and without discounts being applied to the rates. The rates are based on a female driver, no claims or violations, California state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with multiple vehicle, marriage, passive restraint, accident-free, multiple policy, and homeowner discounts applied. When taking advantage of discounts, the average savings per year on auto insurance for welfare recipients is 28% or $893.
Ending up with the best auto insurance company can be rather challenging considering how many choices you have in California. The information displayed below may help you select which auto insurance companies you want to consider when shopping your coverage around.
The ratings below are for the largest auto insurers in America, so smaller companies that only insure vehicles in California are not included in these rankings. To check rates from these and other top-rated companies, click this link.
Top 10 Large Auto Insurance Companies in San Jose Ranked by Value
- USAA
- American Family
- The Hartford
- AAA of Southern California
- Titan Insurance
- The General
- AAA Insurance
- State Farm
- Mercury Insurance
- Nationwide
Top 10 Large Auto Insurance Companies in San Jose Ranked by A.M. Best Rating
- USAA – A++
- Travelers – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Nationwide – A+
- Allstate – A+
- Mercury Insurance – A+
- Progressive – A+
- Titan Insurance – A+
Why it’s important to shop around
California auto insurance rates are impacted by many things which can significantly increase or decrease the cost of coverage. Simply having a birthday, marrying your spouse, or getting a reckless driving citation can cause premium changes resulting in some rates now being more affordable than others.
In addition, auto insurance companies amend pricing as often as every quarter to adjust for unexpected claims or profits. A period of increased losses may result in increased rates, while better underwriting may result in lower-cost San Jose car insurance rates.
The data below shows rates for the cheapest car insurance in San Jose, CA for a 40-year-old male driver with no prior accidents, a clean driving record, and a good credit history. If we estimate rates based on his current rating profile, USAA has the most affordable car insurance rates in San Jose at $1,180 annually. This is $471 less than the average price paid by California drivers of $1,651. Wawanesa, CSAA, Century National, and Nationwide are also on the list of the top five cheapest San Jose, CA auto insurance companies.
Now let’s give the driver in the first chart a claim, less-than-perfect credit, and an imperfect driving record. Because every insurance company uses their own formula to determine rates, comparing quotes may result in a different list of affordable companies as shown below.
Grange now has the lowest car insurance rate in San Jose with Mercury, Progressive, Allstate, and GEICO now being in the top five. This shows why it is so important to perform a complete rate comparison to get the cheapest insurance rates for welfare recipients. Insurance rates are influenced by many risk factors and change frequently, so the most affordable company when you bought your policy may now be costing you a lot of money.