The words “affordable” and “insurance” really should not be used together, in particular when trying to find the best price on coverage for 17 year olds. In an attempt to save some money, let’s take a look at some of the factors that can significantly affect auto insurance prices, and see if you can reduce the price of the next policy you buy.
The vehicle model you are trying to insure is one of the main factors when comparison shopping for the most affordable auto insurance for 17 year olds. Vehicles with high performance engines, poor passenger safety features, or an increased likelihood of liability claims will cost significantly more to insure than safer models.
The information below features coverage premiums for a number of the most economical vehicles to buy coverage for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $4,206 |
| Ford Escape Limited 4WD | $4,478 |
| Toyota Prius | $4,522 |
| Toyota Tacoma Double Cab 4WD | $4,938 |
| Jeep Grand Cherokee Laredo 4WD | $4,948 |
| GMC Sierra SL Extended Cab 2WD | $4,938 |
| Toyota RAV4 Limited 2WD | $4,945 |
| Chevrolet Malibu Hybrid | $4,938 |
| Chevrolet Impala LT | $4,945 |
| Ford Explorer Limited 4WD | $4,982 |
| Dodge Grand Caravan Crew | $4,990 |
| Dodge Ram Quad Cab ST 2WD | $5,064 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $5,165 |
| Honda Civic EX 4-Dr Sedan | $5,167 |
| Hyundai Elantra Blue 4-Dr Sedan | $5,175 |
| Ford Focus SEL 4-Dr Sedan | $5,167 |
| Toyota Corolla LE | $5,211 |
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in the specific area where the vehicle is garaged which can revise rates considerably.
Looking at the rates, cars like the Honda CR-V, Ford Escape, Toyota Prius, and Toyota Tacoma are likely to be the cheaper vehicles to insure for teen drivers. Car insurance rates will trend higher because of the fact that there is more inherent risk for 17 year olds, but generally speaking those specific models will tend to have the lowest prices possible.
For teen drivers, one of the big components that aid in calculating the amount you pay for auto insurance is where you normally keep your vehicle in Indianapolis. Cities with more crime and/or more people are more likely to have higher rates, whereas less populated areas have the gratification of cheaper auto insurance rates.
The table below lists the most expensive cities in Indiana for 17 year olds to buy car insurance in. Indianapolis shows up at #6 costing $1,082 for the average policy, which is about $90 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Gary | $1,347 |
| 2 | Hammond | $1,288 |
| 3 | Lawrence | $1,099 |
| 4 | Merrillville | $1,095 |
| 5 | Portage | $1,093 |
| 6 | Indianapolis | $1,082 |
| 7 | New Albany | $1,070 |
| 8 | Evansville | $1,055 |
| 9 | Jeffersonville | $1,038 |
| 10 | Terre Haute | $1,035 |
| 11 | Anderson | $1,031 |
| 12 | Kokomo | $1,011 |
| 13 | Bloomington | $988 |
| 14 | Fort Wayne | $985 |
| 15 | South Bend | $976 |
| 16 | Fishers | $974 |
| 17 | Mishawaka | $965 |
| 18 | Elkhart | $965 |
| 19 | Muncie | $955 |
| 20 | Columbus | $946 |
| 21 | Richmond | $944 |
| 22 | Greenwood | $931 |
| 23 | Lafayette | $926 |
| 24 | Noblesville | $920 |
| 25 | Carmel | $919 |
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Table data uses estimated as the specific Indianapolis residence address can impact prices noticeably.
Ending up with the highest-rated insurer can be rather challenging considering how many companies are available to choose from in Indianapolis. The information in the lists below can help you analyze which companies you want to consider comparing prices from.
These rankings include the largest companies in America, so companies that focus mainly on Indiana business will not be included in this list. If you wish to compare rates from the insurers below and more, follow this link.
Top 10 Major Auto Insurance Companies in Indianapolis Ranked by Customer Service
- Nationwide
- State Farm
- Safeco Insurance
- American Family
- Titan Insurance
- Travelers
- Liberty Mutual
- GEICO
- Erie Insurance
- Allstate
Top 10 Major Auto Insurance Companies in Indianapolis Ranked by A.M. Best Rating
- USAA – A++
- GEICO – A++
- Travelers – A++
- State Farm – A++
- Allstate – A+
- Progressive – A+
- Erie Insurance – A+
- The Hartford – A+
- Nationwide – A+
- Esurance – A+
Bad driving habits will cost you more
The easiest way to snag cheap insurance rates for teen drivers is to be a cautious driver and not get tickets or have accidents. The diagram below shows how violations and at-fault claims can influence insurance costs for different insured age categories. The price estimates are based on a married male driver, full coverage, $250 deductibles, and no discounts are taken into consideration.
The data above shows the average cost of car insurance per year with a clean driving record and no accidents is $1,715. Factor in two speeding tickets and the average cost increases to $2,368, an increase of $653 each year. Then throw in two accidents along with the two speeding tickets and the 12-month cost of insurance for 17 year olds jumps again to an average of $4,763. That’s an increase of $3,048, or $254 per month, just for not being attentive to the road!
Full coverage versus liability only rates
Reducing the cost of insurance is the goal of the majority of drivers, and an effective way to reduce the cost of insurance for 17 year olds is to only buy liability coverage. The illustration below shows the difference between car insurance rates with full physical damage coverage and with liability coverage only. The price estimates are based on a clean driving record, no claims, $1,000 deductibles, drivers are not married, and no additional discounts are factored in.
If we average the cost for all age groups, full coverage costs an additional $1,184 per year more than insuring for liability only. That is a significant amount which raises the question when is it safe to stop buying full coverage. There is no set guideline of when to eliminate physical damage insurance, but there is a guideline you can consider. If the annual cost of your full coverage insurance is about 10% or more of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s book value is $10,500 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $9,500 after the deductible is paid. If you are paying more than $950 a year to have full coverage, then you might want to think about dropping full coverage.
How to find budget-friendly auto insurance for 17 year olds
The list below details some of the better penny-pinching suggestions that can help you get more affordable car insurance.
- Drive vehicles with five-star safety ratings
- Avoid price increases by not filing claims
- Being accident-free can lower rates significantly
- Drive safely
- Save money by bundling your home and auto policies
- Keep rates low by comparing prices once a year
The last idea is highly necessary, as was noted in the article above. Coverage prices can be adjusted at any time, so drivers shouldn’t hesitate to buy from a new company if a more affordable rate is found. Being loyal to a particular company is commendable, but it’s not a great idea if that devotion results in you overpaying a wad of cash every year. Take a couple minutes and shop around and find cheaper insurance for 17 year olds in Indianapolis.