The words “economical” and “insurance” probably shouldn’t be used in the same sentence, specifically when looking for the best insurance rates for low income drivers. Let’s take a look at some things that have an effect on insurance prices, and figure out some ways to cut the cost of the next policy you buy.
Trying to buy cheap car insurance is confusing at best, and figuring out which companies have the best auto insurance rates for low income drivers involves more quotes for comparison.
Every insurance company uses a different method to determine premium rates, so we’ll go over the auto insurance companies that tend to be cheaper in California.
Cheapest Insurance Rates in California
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,143 |
| 2 | Wawanesa | $1,146 |
| 3 | Century National | $1,178 |
| 4 | CSAA | $1,222 |
| 5 | Nationwide | $1,250 |
| 6 | 21st Century | $1,338 |
| 7 | Grange | $1,477 |
| 8 | Progressive | $1,512 |
| 9 | Mercury | $1,533 |
| 10 | Allstate | $1,543 |
| 11 | GEICO | $1,559 |
| 12 | Allied | $1,603 |
| 13 | The Hartford | $1,623 |
| 14 | MetLife | $1,654 |
| 15 | Unitrin | $1,733 |
| 16 | Esurance | $1,739 |
| 17 | State Farm | $1,750 |
| 18 | Travelers | $1,806 |
| 19 | Bristol West | $1,831 |
| 20 | Farmers | $1,966 |
| Compare Rates Now Go | ||
USAA may have some of the lowest car insurance rates in San Jose at around $1,143 each year. This is $508 less than the average price paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide also are some of the cheaper San Jose, CA insurance companies.
In the above rates, if you currently buy coverage from Century National and switched to USAA, you could realize an annual savings of in the neighborhood of $35. Customers with CSAA might save as much as $79 a year, and Nationwide policyholders might cut rates by $107 a year.
Bear in mind that those policy prices are averaged across all drivers and vehicles and are not factoring in a vehicle location for low income drivers. So the car insurance company that can offer you the best price may not even be in the top 24 companies shown above. That underscores the importance of why you need to compare rates from multiple companies using your own specific driver information and vehicle.
The vehicle model you are seeking coverage for is probably the most important factor when comparing quotes for the best cheap coverage for low income drivers. Vehicles with more horsepower, a lack of modern safety features, or a history of substantial liability claims will cost quite a bit more to insure than safer models. The table below estimates insurance costs for a selection of the more affordable automobiles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $933 |
| Ford Escape XLT 4WD | $1,086 |
| Honda CR-V EX-L 2WD | $1,092 |
| Ford Edge SEL 2WD | $1,088 |
| Chevrolet Impala LS | $1,095 |
| Jeep Grand Cherokee Laredo 2WD | $1,110 |
| Honda Accord EX-L 4-Dr Sedan | $1,143 |
| Toyota Camry SE | $1,169 |
| Toyota Prius | $1,171 |
| Jeep Wrangler Unlimited Sahara 4WD 4-Dr | $1,199 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,230 |
| Chevrolet Silverado 3500HD LTZ Crew Cab 2WD | $1,232 |
| Ford Explorer Eddie Bauer AWD | $1,236 |
| Dodge Grand Caravan SXT | $1,241 |
| Toyota RAV4 Sport 4WD | $1,247 |
| Chevrolet Silverado LS Extended Cab 4WD | $1,256 |
| Hyundai Sonata SE 4-Dr Sedan | $1,249 |
| Toyota Corolla LE | $1,278 |
| Toyota Tacoma X-Runner 2WD | $1,284 |
| Nissan Altima 2.5 S 4-Dr Sedan | $1,278 |
| Compare Cheap Rates Go | |
Table data represents single male driver age 30, 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. Prices do not factor in specific San Jose, CA garaging location which can alter premiums substantially.
Looking at the rates, we can assume that vehicles like the Hyundai Elantra, Ford Escape, Honda CR-V, Ford Edge, and Chevrolet Impala are most likely going to be the most budget-friendly vehicles to insure for poor drivers.
Insuring your vehicle with a high-quality car insurance company is hard considering how many different insurance companies sell coverage in San Jose. The company rank data shown below could help you decide which insurers to look at when comparing rates. These rankings only include companies who write in the majority of U.S. states, so smaller regional companies are not included in the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 98 | 100 | 100 | 94% | A++ | 98.6 |
| American Family | 98 | 89 | 100 | 86% | A | 95.4 |
| AAA of Southern California | 91 | 94 | 97 | 92% | A+ | 94.1 |
| State Farm | 88 | 93 | 96 | 90% | A++ | 92.4 |
| The Hartford | 94 | 92 | 90 | 89% | A+ | 91.7 |
| AAA Insurance | 88 | 89 | 95 | 91% | A | 91.2 |
| GEICO | 84 | 93 | 93 | 89% | A++ | 90.3 |
| The General | 89 | 91 | 89 | 88% | A- | 90 |
| Titan Insurance | 90 | 87 | 91 | 95% | A+ | 89.6 |
| Progressive | 84 | 91 | 93 | 87% | A+ | 89.5 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Impact of careless driving on San Jose auto insurance rates
The ideal way to earn the cheapest auto insurance rates for poor drivers is to be a good driver and have a clean driving record. The chart below demonstrates how speeding tickets and accident claims impact insurance premiums for different age groups. The premiums are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are applied to the premium.
In the chart above, the average cost of auto insurance in California per year with no accidents and a clean driving record is $2,426. Add in one speeding ticket and the average cost jumps to $2,748, an increase of $322 each year. Next add two accidents along with the one speeding ticket and the yearly cost of auto insurance for low income drivers goes up to an average of $5,447. That’s an increase of $3,022, or $252 per month, just for not paying attention while driving!
Are you paying too much for car insurance in San Jose?
San Jose auto insurance rates are based on many factors which can significantly increase or decrease the cost of your policy. Simply having a birthday, having a teen driver, or getting a ticket for running a stop sign may generate price changes that can cause some rates to be much cheaper than others.
Not only may things change on your end, but insurers modify rates as often as every quarter in order to protect their financial rating. Significantly higher claims can result in more expensive premiums, while long-term profits can cause cheaper San Jose car insurance rates.
To illustrate this point, the data below shows rates for the cheapest car insurance in San Jose, CA for a 35-year-old male driver with no prior accidents, a clean driving record, and great credit. If we compare prices based on his current rating profile, USAA offers the lowest car insurance rates in San Jose at $1,210 annually. This is $441 less than the average premium paid by California drivers of $1,651. Wawanesa, Century National, CSAA, and Nationwide are also included in the most affordable San Jose, CA auto insurance companies.
In this example, we will give the driver in the first chart a chargeable accident, poor credit, and a speeding ticket. Since every car insurance company has a different process to establish rates, getting updated rate quotes may result in a different ranking of the cheapest companies as shown below.
Grange now has the cheapest rate in San Jose, CA with Allstate, GEICO, Mercury, and Allied now being in the top five. This shows why it is critical to take the time to shop around when trying to get affordable car insurance rates for low income drivers.
Rates can be determined by many things and can change substantially, so the most affordable company the last time you shopped your coverage around may now cost much more than other companies.