The words “low-priced” and “insurance” probably shouldn’t be used together, especially when you are looking for the best car insurance for a learners permit. In an attempt to save some money, let’s lead off by showing you some of the things that determine car insurance rates, and figure out some ways to lower the price of your next policy.
For new drivers, one of the largest factors that are looked at to determine the amount you pay each year for auto insurance is where you live. Areas with more people or even just a higher incidence of claims are more likely to pay higher prices, whereas areas that tend to be more rural tend to receive cheaper rates.
The next table rates the highest-priced areas in California for a learners permit to buy an auto insurance policy in. San Jose ranks #18 with an annual premium of $1,423 for car insurance, which is about $119 each month.
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Annual rates are approximated as the specific geographic location can increase or decrease prices significantly.
Deciphering which company quotes the cheapest car insurance rates for a learners permit will involve a bit more effort in order to find the lowest price. Every insurance provider has a different process to establish rates, so let’s take a look at the lowest cost car insurance companies in San Jose, CA.
We do need to point out that San Jose car insurance rates are influenced by many factors which can substantially change the cost of coverage. Getting older, filing a claim, or getting into an accident may generate price changes resulting in some rates now being cheaper than competitors.
Cheapest Insurance Rates in California
|Rank||Company||Cost Per Year|
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USAA generally has some of the best car insurance rates in San Jose at around $1,121 a year. This is $530 less than the average premium paid by California drivers of $1,651. Century National, Wawanesa, CSAA, and Nationwide also are some of the most economical San Jose, CA insurance companies.
In the rate table above, if you are a policyholder with Wawanesa and switched to USAA, you may see annual savings of about $60. Policyholders with CSAA might save as much as $101 a year, and Nationwide insureds might reduce rates by $105 a year.
These policy rates are averaged across all insureds and vehicles and do not take into consideration an exact vehicle garaging location for a learners permit. So the auto insurance company that fits you best may not even be in the list above. That emphasizes why you need to get rate quotes using your own personal information and vehicle type.
The vehicle you are seeking coverage for is one of the largest factors in finding the lowest-priced coverage for a learners permit. Vehicles with average performance, excellent safety ratings, or low incidents of liability claims will cost much less to insure than high performance models.
The table below presents coverage costs for some of the most cost-effective vehicles to insure.
|Vehicle||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$4,189|
|Honda CR-V LX 4WD||$4,198|
|Jeep Wrangler Sport 4WD 2-Dr||$4,417|
|Ford Escape Limited 4WD||$4,487|
|Ford Edge SE 2WD||$4,674|
|Ford Explorer XLT AWD||$4,715|
|Ford F-150 XL Super Cab 4WD||$4,725|
|Honda Odyssey EX||$4,930|
|Toyota RAV4 Sport 2WD||$4,972|
|Dodge Grand Caravan Hero||$4,980|
|Volkswagen Jetta S 4-Dr Sedan||$4,972|
|Chevrolet Equinox LS AWD||$4,979|
|Toyota Tacoma Double Cab 4WD||$5,011|
|Chevrolet Malibu LT||$5,017|
|Dodge Ram Quad Cab ST 2WD||$5,132|
|Ford Focus SES 4-Dr Sedan||$5,187|
|Honda Civic LX 4-Dr Sedan||$5,196|
|Toyota Corolla XLE||$5,228|
|Toyota Camry XLE||$5,237|
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in specific garaging location which can alter premiums substantially.
Looking at the numbers, we can tell that makes and models like the Hyundai Elantra, Honda CR-V, Jeep Wrangler, Ford Escape, and Toyota Prius are most likely going to be some of the more affordable vehicles to insure for new drivers. The price for an auto insurance policy will be more costly because there is more exposure for a learners permit, but in general those particular models will probably have the lowest insurance rates compared to all other vehicles.
Accidents and violations increase rates
The obvious way to snag low car insurance premiums for new drivers is to be an attentive driver and not receive tickets or have accidents. The illustration below demonstrates how traffic citations and fender-benders can increase insurance premiums for different insured age categories. The premiums are based on a single female driver, full coverage, $1,000 deductibles, and no other discounts are factored in.
In the previous chart, the average cost of a car insurance policy in San Jose per year with no accidents or violations is $2,386. Receive one speeding ticket and the average cost increases to $2,709, an increase of $323 each year. Now add one accident along with the one speeding ticket and the 12-month cost of car insurance for a learners permit increases to an average of $3,606. That’s an increase of $1,219, or $102 per month, just for not maintaining a clean driving record!
How to get discounts on San Jose auto insurance
Insurance companies that offer cheap quotes for a learners permit may provide policy discounts that may potentially lower prices by 25% or more if you are eligible to receive them. A list of companies and their possible discounts are included below.
- The Hartford has discounts for defensive driver, bundle, air bag, driver training, and vehicle fuel type.
- American Family may have discounts that include early bird, air bags, good driver, defensive driver, Steer into Savings, and bundled insurance.
- Progressive includes discounts for continuous coverage, online signing, online quote discount, homeowner, multi-vehicle, and good student.
- Travelers may offer discounts for early quote, student away at school, hybrid/electric vehicle, IntelliDrive, multi-policy, and driver training.
- Farmers Insurance offers discounts for bundle discounts, alternative fuel, youthful driver, early shopping, electronic funds transfer, and good student.
- USAA offers premium reductions for new vehicle, safe driver, vehicle storage, multi-policy, and family discount.
- Liberty Mutual discounts include new graduate, newly married, safety features, new move discount, newly retired, and new vehicle discount.
The illustration below visualizes the comparison of insurance rates with and without discounts applied to the policy premium. Data assumes a female driver, no accidents, no driving violations, California state minimum liability limits, comp and collision included, and $250 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with paid-in-full, vehicle safety, passive restraint, anti-theft, good student, and paperless filing discounts applied. When drivers take advantage of discounts, theamount saved on car insurance for a learners permit is 28% or $1,058.
Shop around and save
San Jose car insurance rates are based on many factors that can increase your annual premium. Improving your credit score, getting divorced, or having an at-fault accident can trigger price changes that can cause some rates to be cheaper than others.
Also, car insurance companies change prices every year or even multiple times each year in order to protect their financial rating. Significantly higher losses can cause higher rates, while less frequent claims can result in more affordable San Jose car insurance rates.
As an example, the graph below analyzes the cheapest car insurance in San Jose, CA for a 35-year-old male driver with a good driving record, no prior claims, and good financial standing. If we compare prices based on his current risk profile, USAA has the lowest car insurance rates in San Jose at $1,266 a year. This is $385 less than the average rate paid by California drivers of $1,651. Wawanesa, CSAA, Century National, and Nationwide are the remaining cheapest San Jose, CA auto insurance companies.
In this example, we will give the driver from the above example a claim, slightly worse credit, and a couple of points charged on his driving record. Due to the fact that each insurance company uses their own formula for determining prices, comparing prices may now show a significantly different list of the cheapest San Jose car insurance companies as shown below.
Grange now has the lowest price on auto insurance in San Jose, CA with Mercury, Allstate, GEICO, and Progressive also being competitive. This example shows why it is critical to compare rates to get the most economical insurance rates for a learners permit. Auto insurance prices consist of many things and change dramatically, so the best company the last time you checked may now be quite expensive.