The words “cheap” and “insurance” really don’t belong together, specifically when you are looking for the cheapest coverage for 17 year olds. To help control this cost, let’s start off by going over some of the factors the can have a considerable influence on car insurance premiums, and see if we can help you take the bite out of your next policy.
Finding out which companies have the lowest-priced insurance rates for 17 year olds involves a bit more work than just comparing rates from one or two companies.
Every car insurance company has a unique formula for determining prices, so let’s take a look at the insurance companies that tend to have lower prices in California. Keep in mind that San Jose insurance rates are based on many factors which can substantially change the price you pay for coverage. Turning one year older, buying another vehicle, or getting a DUI can trigger changes in premium resulting in some rates now being more affordable than competitors.
Best Cheap Insurance Rates for Teens
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USAA may offer some of the lowest car insurance rates in San Jose at around $1,155 each year. Wawanesa, CSAA, Century National, and Nationwide also are some of the lowest-priced San Jose, CA auto insurance companies.
In the rate table above, if you are insured with Century National and switched to Wawanesa, you may see a yearly price reduction of around $45. California drivers with Nationwide may save as much as $82 a year, and 21st Century customers might reduce prices by as much as $185 a year.
Be aware that those policy prices are averaged for all insureds and vehicles and are not factoring in an exact vehicle garaging location for 17 year olds. So the auto insurance company that is best for you may not even be in the top 24 companies shown above. That emphasizes why you need to compare rates from multiple companies using your own personalized driver profile and vehicle information.
One of the many components that help determine the annual cost of car insurance is the neighborhood you call home in San Jose. Regions with more people or even just more weather-related claims will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims receive better rates.
The next table lists the most expensive places in California for 17 year olds to purchase a policy in. San Jose shows up at #18 with a yearly premium of $1,423 for car insurance, which is about $119 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Los Angeles | $2,168 |
| 2 | Glendale | $2,121 |
| 3 | San Francisco | $1,763 |
| 4 | Oakland | $1,738 |
| 5 | Sacramento | $1,669 |
| 6 | San Bernardino | $1,644 |
| 7 | Stockton | $1,603 |
| 8 | Fontana | $1,581 |
| 9 | Long Beach | $1,562 |
| 10 | Santa Clarita | $1,548 |
| 11 | Riverside | $1,527 |
| 12 | Fresno | $1,517 |
| 13 | Garden Grove | $1,508 |
| 14 | Moreno Valley | $1,506 |
| 15 | Santa Ana | $1,497 |
| 16 | Anaheim | $1,488 |
| 17 | Modesto | $1,487 |
| 18 | San Jose | $1,423 |
| 19 | Fremont | $1,403 |
| 20 | Irvine | $1,384 |
| 21 | Huntington Beach | $1,360 |
| 22 | Bakersfield | $1,353 |
| 23 | Chula Vista | $1,350 |
| 24 | Oxnard | $1,344 |
| 25 | San Diego | $1,340 |
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Rate quotes are approximated as vehicle location can influence auto insurance rates significantly.
The car, truck, or SUV requiring insurance is one of the primary factors when comparison shopping for low-cost car insurance for 17 year olds. Vehicles with higher performance characteristics, a lack of safety features, or a high likelihood of having liability claims will cost significantly more to insure than safer, lower-performance models.
The data below estimates car insurance costs for some of the cheaper vehicles to buy insurance for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $3,563 |
| Hyundai Elantra GLS Touring Station Wagon | $3,568 |
| Ford Escape XLS 2WD | $3,563 |
| Honda CR-V EX-L 2WD | $3,601 |
| Toyota Prius | $3,872 |
| Ford F-150 XLT Regular Cab 2WD | $3,959 |
| Ford Explorer XLT 4WD | $3,997 |
| Jeep Wrangler Sahara 4WD 2-Dr | $4,006 |
| Ford Edge Limited 2WD | $4,192 |
| Honda Odyssey EX | $4,198 |
| Chevrolet Equinox LT AWD | $4,230 |
| Dodge Grand Caravan Hero | $4,237 |
| Chevrolet Malibu Hybrid | $4,230 |
| Toyota Camry LE | $4,236 |
| Ford Fusion S 4-Dr Sedan | $4,230 |
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Price data assumes single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and California minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in vehicle location which can lower or raise coverage prices greatly.
Looking at the data, we can conclude that models like the Honda Accord, Hyundai Elantra, and Ford Escape are the less-costly vehicles to insure for teen drivers. Prices will tend to be more expensive because there is more inherent risk for 17 year olds, but in general those particular models will most likely have the least expensive rates compared to other vehicles.
How to get discounts on San Jose car insurance
Auto insurance companies that offer cheap quotes for 17 year olds could also offer policy discounts that could potentially reduce rates by 30% or more if you meet specific eligibility requirements. A few of the larger companies and their offered discounts can be read below.
- Farmers Insurance may offer discounts for good student, homeowner, electronic funds transfer, pay in full, teen driver, distant student, and youthful driver.
- Esurance may have discounts that include multi-policy, safety device, anti-lock brakes, anti-theft, emergency road assistance, and good student.
- State Farm offers premium reductions for defensive driving training, Steer Clear safe driver discount, anti-theft, multiple autos, student away at school, good student, and multiple policy.
- GEICO offers discounts for good student, anti-theft, seat belt use, daytime running lights, membership and employees, and federal employee.
- Allstate may include discounts for eSmart discount, resident student, passive restraint, anti-theft, safe driver, multi-policy, and defensive driver.
The information below illustrates the difference between insurance rates with and without some available policy discounts. The premium estimates are based on a male driver, no claims or driving violations, California state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with paperless filing, good student, vehicle safety, passive restraint, anti-theft, and continuous coverage discounts applied. When these discounts are applied to the policy premium, the average savings per year on insurance for 17 year olds is 28% or $903.
How accidents and violations affect rates
The easiest method to earn low insurance rates in California for teen drivers is to pay attention while driving and avoid accidents and traffic violations. The example below illustrates how speeding tickets and at-fault accidents can impact insurance premiums for different insured age categories. The rate quotes are based on a single male driver, full coverage, $250 deductibles, and no discounts are applied.
In the example above, the average cost of a car insurance policy in California per year with no accidents or violations is $3,093. Get written up for two speeding tickets and the average cost rises to $4,103, an increase of $1,010 each year. Then include two accidents along with the two speeding tickets and the yearly cost of insurance for 17 year olds increases to an average of $7,860. That’s an increase of $4,767, or $397 per month, just for not driving responsibly!
The information below illustrates how your deductible choice can impact insurance rates when searching for cheap insurance for 17 year olds. The premiums assume a married male driver, full physical damage coverage, and no additional discounts are factored in.
In the chart above, a 50-year-old driver could reduce rates by $416 a year by changing from a $100 deductible up to a $500 deductible, or save $626 by selecting a $1,000 deductible. Youthful drivers, such as the 20-year-old example, could shave up to $1,398 or even more by choosing a higher deductible.
When increasing deductibles, it will be required to have additional savings on hand to allow you to cover the extra out-of-pocket expense that comes with higher deductibles.
How to find budget-friendly auto insurance for 17 year olds
It is possible to find better rates, and here are a few thrifty solutions that can help drivers find cheaper car insurance.
- Avoid accidents
- Full coverage may not be needed on older vehicles
- Home or renters coverage can save on auto insurance
- Get cheaper liability coverage by choosing a safer vehicle
- Do not get traffic violations
- Avoid filing small claims
- Shop around once a year for cheaper rates
That last idea is certainly critical, as we hit on in this article. Auto insurance prices in San Jose change frequently, so don’t be afraid to switch to a new company if a lower price can be found. Loyalty to a specific company is fine, but we do not recommend it if that inflexibility results in costing you money that could be spent on other things. Take a couple minutes and shop around and find cheaper insurance for 17 year olds.