The words “bargain” and “insurance” really don’t belong together, in particular when you are trying to find the cheapest coverage for safe drivers. Because of the high cost, let’s go over a few of the things that have an effect on auto insurance prices, and find a few ways to take the bite out of the next policy you buy.
The make and model of vehicle needing coverage is probably the biggest factor when comparison shopping for the lowest-priced coverage for safe drivers. Vehicles with lots of horsepower, poor safety features, or a history of substantial liability claims will cost substantially more to insure than more modest models. The table below illustrates insurance costs for some of the most affordable automobiles to insure in California.
|Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 2WD||$904|
|Ford Escape XLT 4WD||$989|
|GMC Sierra SL Extended Cab 2WD||$1,046|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,097|
|Honda Odyssey EX-L W/Rear Entertainment||$1,104|
|Ford F-250 XL 2WD||$1,120|
|Toyota Tacoma 4WD||$1,123|
|Chevrolet Silverado LS Regular Cab 2WD||$1,137|
|Dodge Ram Quad Cab TRX4 Off Road 2WD||$1,140|
|GMC Sierra 3500HD SLE Extended Cab 2WD||$1,142|
|Chevrolet Malibu LS||$1,146|
|Chevrolet Impala LS||$1,152|
|Ford F-350 XL Super Cab Turbo Diesel 2WD||$1,163|
|Toyota Camry LE||$1,178|
|Chevrolet Equinox LS AWD||$1,183|
|Jeep Grand Cherokee Laredo 4WD||$1,178|
|Nissan Rogue SL AWD||$1,186|
|Toyota RAV4 Limited 2WD||$1,178|
|Toyota Camry Hybrid||$1,197|
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Above prices assume single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include homeowner, safe-driver, multi-policy, claim-free, and multi-vehicle. Information does not factor in zip code location which can influence coverage prices significantly.
Based upon the table data, we can presume that models like the Honda CR-V, Toyota Prius, Ford Escape, and GMC Sierra will definitely be a few of the cheapest vehicles to insure for good drivers.
For good drivers, one of the big components that help determine insurance cost is where your residence is. Cities with more crime and/or more people are more likely to have higher rates, whereas areas with less people or fewer weather incidents can boast about having cheaper rates.
The table below sorts the most expensive areas in California for safe drivers in which to buy car insurance. San Jose is ranked at #19 with an annual cost of $1,395 for the average insured, which is about $116 per month.
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Rate information is comparative as the specific garaging location can change coverage prices significantly.
Locating cost effective insurance is not easy, and finding out which companies have the most affordable car insurance rates for safe drivers may require a bit more work. Each auto insurance company has a different process to set premium rates, so let’s begin by taking a look at the car insurance companies with the most affordable rates in San Jose.
Find Cheaper Auto Insurance for Safe Drivers
|Rank||Company||Cost Per Year|
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USAA offers some of the most affordable car insurance rates in San Jose at around $1,143 a year. CSAA, Wawanesa, Century National, and Nationwide also qualify as some of the most economical San Jose, CA insurance companies.
As illustrated above, if you currently buy coverage from CSAA and switched to USAA, you might see annual savings of in the neighborhood of $43. Drivers with Wawanesa may save as much as $49 a year, and Century National insureds might see rate reductions of $83 a year.
Understand that those rates are averaged for all drivers and vehicles and are not factoring in a specific zip code for safe drivers. So the company that has the cheapest rates for you may not even be in the list above. That points out the importance of why you need to compare as many prices as possible using your own driver data and vehicle information.
Discounts on San Jose auto insurance rates
Car insurance companies that offer cheap quotes for safe drivers may also give you discounts that could reduce prices by as much as 35% or more if you qualify for them. A few of the larger companies and a selection of discounts are included below.
- AAA includes discounts for good student, multi-car, AAA membership discount, good driver, multi-policy, and education and occupation.
- Progressive has discounts for multi-vehicle, good student, homeowner, online quote discount, multi-policy, continuous coverage, and online signing.
- State Farm offers discounts including accident-free, anti-theft, driver’s education, passive restraint, and safe vehicle.
- Esurance may offer discounts for good driver, anti-theft, online shopper, multi-policy, and claim free.
- Nationwide has savings for family plan, defensive driving, Farm Bureau membership, accident-free, and anti-theft.
The chart below illustrates the comparison of insurance costs with and without discounts being applied to the rates. The data is based on a male driver, no violations or claims, California state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with safe-driver, passive restraint, marriage, multiple policy, multiple vehicle, and vehicle safety discounts applied. When drivers take advantage of discounts, theaverage yearly reduction on car insurance for safe drivers is 28% or $863.
Full coverage rates compared to liability only
Paying a lower price for car insurance is probably important to the majority of drivers, and a great way to find cheaper insurance for safe drivers is to not insure for full coverage. The information below compares yearly insurance costs with full coverage and liability only. The rate quotes are based on a clean driving record, no claims, $250 deductibles, drivers are single, and no policy discounts are applied.
As an average for all age groups, comprehensive and collision coverage on your policy costs $2,314 per year over and above liability only. At some point, almost every driver questions if physical damage coverage is worth the money. There is no definitive rule to delete physical damage coverage, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is more than around 10% of the replacement cost minus the deductible, then you may need to consider dropping full coverage.
Your cheap policy may actually be overpriced
California car insurance rates are influenced by many factors that can increase your annual premium. Simply having another birthday, filing a claim, or getting a couple of tickets can produce rate changes resulting in some rates now being cheaper than others. Also, car insurance companies change prices as needed in order to protect their financial rating. Higher than usual claims may result in a rate increase, while lower claim expenses can result in lower-priced San Jose car insurance rates.
To illustrate this example, the bar chart below shows a variety of companies that have the cheapest car insurance in San Jose, CA for a 35-year-old female driver with a good driving record, no prior claims, and a good credit rating. If we look at prices based on her current risk profile, USAA may offer the lowest car insurance rates in San Jose at $1,175 each year. This is $476 less than the average rate paid by California drivers of $1,651. Century National, Wawanesa, Nationwide, and CSAA are the rest of the most affordable San Jose, CA auto insurance companies.
In this next rate comparison, we will give the driver from above a couple of claims, poor credit, and a speeding ticket. Since each insurance company uses their own calculation for setting prices, analyzing rate quotes may result in a slightly different list of the cheapest car insurance companies in San Jose as shown below.
Grange now has the lowest price on auto insurance in San Jose, CA with Allstate, Mercury, Progressive, and GEICO now rounding out the top five. This illustrates why consumers need to take the time to compare rates to find affordable car insurance quotes for safe drivers.
Rates are impacted by many different factors and can decrease or increase without notice, so the lowest-price company the last time you compared rates may now be one of the more expensive options.
Ideas for finding economical car insurance for safe drivers
It is possible to find better rates, and here are some of the recommended penny-pinching suggestions that can help drivers get more affordable car insurance.
- Avoid having at-fault accidents
- Try to not file small claims
- Avoid getting citations and tickets
- Bundle car and home insurance and save money
- Buy vehicles with five-star safety ratings
- Ensure you have the best deal by shopping around regularly
The last suggestion is particularly important, as we hit on in this piece. Car insurance rates in San Jose can be modified anytime, so don’t be tentative to buy from a new company if a lower price can be found.
Sticking with a specific company is fine, but is isn’t recommended if it’s costing you hundreds every year. It only takes a couple minutes to compare prices and find cheaper insurance for safe drivers.