- Car Insurance For Teens & Young Drivers: Cheapest and Best Companies in 2021
- What Is the Average Cost of Car Insurance for Teens?
- Cost of Insuring Teen Males vs. Females
- Cost of Insuring a Teen With a Camry vs. a Mustang
- Cheapest Car Insurance for Teens and Young Drivers
- Cheapest Companies for Teen Car Insurance
- Four Best Car Insurance Companies for Teens and Young Drivers
- Best Teen Car Insurance for Affordability: Allstate
- Best Teen Car insurance for Student Discounts: State Farm
- Best Teen Car insurance for Student Away from Home: Allstate
- Best Teen Car insurance for Military Students: USAA
- Best Car Insurance for Teens by State
- Car Insurance Discounts for Teens
- How to Get Cheaper Car Insurance for Teens and More Advice for Parents
- Best car insurance companies in Louisiana | Coverage.com
- Best car insurance companies in Louisiana 2021
- GEICO: Best for cheap rates
- Southern Farm Bureau: best for customer service
- State Farm: Best for young drivers
- Allstate: Best for add-on coverages
- USAA: Best for military members
- Average cost of car insurance in Louisiana
- Cost of car insurance in Louisiana by city
- New Orleans
- Baton Rouge
- Lake Charles
- Louisiana car insurance considerations
- Louisiana minimum liability requirements
- How we chose the best car insurance providers in Louisiana
- Other car insurance providers in Louisiana to consider
- Factors That Affect the Price of Car Insurance
- How does age affect insurance rates?
- How does gender affect insurance rates?
- Does marital status affect auto insurance premiums?
- What about education level and career?
- How do accident history and tickets affect auto insurance?
- Do family members affect your insurance?
- How important are where you live, the type of vehicle, and average mileage?
- Does credit history affect insurance costs?
- State Farm Steer Clear Review
- How does State Farm Steer Clear work?
- Who is qualified for State Farm Steer Clear?
- The State Farm Steer Clear App
- Is the State Farm Steer Clear program worth it?
- How long is the State Farm Steer Clear program?
- Who can sign up for State Farm Steer Clear?
Car Insurance For Teens & Young Drivers: Cheapest and Best Companies in 2021
One of the most important things to consider when getting cheap car insurance for teens is adding them to your existing family policy. But as with policies for adults, the costs vary several factors. Getting personalized quotes is the best way to understand your options and make the best decision for you and your family.
Here’s what else you should know about getting car insurance for teens and young drivers.
Ensure you are getting the best rate for your car insurance. Compare quotes from the top insurance companies.
What Is the Average Cost of Car Insurance for Teens?
It depends on how you look at it. For example, you could either consider the cost of an individual policy for a teen driver — this tends to be the more expensive option. Or you could consider the cost of adding that driver to a family policy. Here are the averages for those two segments:
- Average cost for an individual teen policy: $4,866
- Average cost to add a teen to a family policy: $3,048
Keep in mind that the above figures are calculated an 18-year-old driver. The average cost to add car insurance for a 16-year-old or an older teen to a parent’s policy includes only the teen driver’s coverage cost. It does not represent the combined costs.
Cost of Insuring Teen Males vs. Females
On average, it costs more to add a male teen driver to your family policy than a female teen driver. In fact, the cost is a nearly $500 difference per year, according to MoneyGeek’s analysis.
During these critical teen years, insurance companies have to go by average statistics, rather than an earned driving record to calculate the costs. According to that data, male drivers are more ly to be involved in fatal accidents than female drivers.
This makes them a higher risk and therefore more expensive to insure.
Cost of Insuring a Teen With a Camry vs. a Mustang
The type of car your teen drives will also impact the premium cost. For example, a vehicle that’s rated high for safety can help lower the costs while an expensive, fast car might increase the costs.
The type of vehicle is an important consideration when adding a teen and a second or third vehicle to your family policy.
For reference, here’s how that scenario might play out with two different cars:
The Insurance Institute for Highway Safety is a great place to start looking at safety ratings for specific vehicles.
Cheapest Car Insurance for Teens and Young Drivers
Teen drivers may have the luxury of a clean driving record, but they also lack experience. According to the National Safety Council, inexperience is the most common reason that teen drivers get into car accidents.
Overall, young people ages 15 to 24 incur about 30% of the costs for accident-related injuries, despite representing just 14% of the population.
Because car insurance companies are taking a more significant risk, the cost of insuring these drivers is higher than for more experienced drivers.
That’s why it’s crucial to comparison shop for teen insurance to get the best rate and find out how to reduce your car insurance costs. To help you get started, here are the cheapest options across the board:
Cheapest Companies for Teen Car Insurance
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The companies listed here are available in at least 30 states, but the options may vary depending on where you live.
Four Best Car Insurance Companies for Teens and Young Drivers
Car insurance for teen drivers still depends on many factors, and your goals will figure into that equation. For example, you may be looking for the cheapest option for the average teen or looking for good student or military discounts. Those will impact your best car insurance option, though rates will still vary from person to person.
With that in mind, consider the best options for four different situations.
Best Teen Car Insurance for Affordability: Allstate
Allstate stands out in the teen driver category because it offers a wide array of money-saving options for policyholders with a teen driver on their family policy.
For example, the company has a program called Drivewise, which gives teen drivers feedback and can translate to savings for safe drivers.
And there are other options for saving in the form of “smart student” discounts for good grades, which can help lower costs.
Best Teen Car insurance for Student Discounts: State Farm
State Farm offers four primary student-related discounts that can help lower costs. These include good student, student away at school, driver training and discounts safe driving habits.
Their Steer Clear and Drive Safe and Save programs fit into that last discount category, and the latter can save you up to 30% on your car insurance costs. Both programs can be completed via an app, and Drive Safe and Save can be completed via OnStar.
These factors help make it the cheapest option for those with student drivers.
Best Teen Car insurance for Student Away from Home: Allstate
Allstate offers a discount for those whose teen drivers are under 21 and attend school at least 100 miles away from where their car is garaged.
That’s just one of three ways to access the company’s smart student discount. If your young driver fits that description, this can decrease the cost of insuring them while attending college.
According to our analysis, this is generally the cheapest option for policyholders in that situation.
Best Teen Car insurance for Military Students: USAA
USAA specializes in insuring drivers in the military, which comes in handy for military students who want to save on their car insurance. And according to MoneyGeek’s analysis, it’s the cheapest option for this segment.
The company offers a robust array of discounts for these young drivers, including safe driving and good student discounts and a driver training discount.
Plus, it sets up that teen driver for success, giving qualifying drivers a 10% family legacy discount once they get their own policy.
Best Car Insurance for Teens by State
Both premium costs and the best overall option for teens will vary by state. For example, while adding a teen driver to a policy in Hawaii is $995 on average, the cost to add a teen in New York is $9,190.
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Car Insurance Discounts for Teens
For those who have a policy with the company for at least a year, there is a new teen reward discount, which can save up to 27% when a teen is added to a policy.
Students with at least a B average or who have landed on the dean’s list or achieved similar accolades may access a discount of up to 15% off.
This company offers young volunteers an option to earn a discount on their auto insurance. You’d have to be under 25 and complete at least 40 hours of volunteer work per year to qualify.
Those who turn 18 and have an existing policy can earn an average of a 10% drop in rates and another 16% drop at age 21. The Snapshot program can also help young drivers save.
For those who have been with the company for at least three years (in some cases, though, this is waived), the company will forgive the first at-fault accident. Erie Insurance offers a rate-lock, which would freeze your rates year after year unless you alter the policies by adding another car or driver.
Many car insurance companies offer discounts specifically tailored to teen drivers. These can include things good student discounts and distance college students. Here are some specific examples worth noting:
How to Get Cheaper Car Insurance for Teens and More Advice for Parents
There are other ways to get affordable car insurance for teens and lower your rates. For example:
- Limit their driving distances. Some companies will offer discounts to drivers who drive a relatively low amount per year. Limited driving to daylight hours can also help decrease their chances of getting in a car accident, which would increase the costs.
- Keep the car title in your name. In some cases, putting your child’s name on the title will mean they need to get their own insurance, which tends to be more expensive.
- Ask your insurance agent to assign your teen to the cheapest car. Some companies may automatically assign the highest-cost driver (typically a teen) to the most expensive vehicle, which can further inflate costs. So it’s always worth specifying which car should be assigned to them.
- Have your teen take a driving course. Some companies will offer discounts for those who complete such courses driver’s education.
The costs for insuring a teen driver vary greatly depending on factors such as what they drive, how well they drive and where they live. Thankfully, there are many discounts available that reward teens for being good drivers and citizens and getting good grades. It’s important to get several quotes so you can compare policies and keep your costs down.
Ensure you are getting the best rate for your car insurance. Compare quotes from the top insurance companies.
Average teen car insurance premiums are calculated rates for 100/300/100 comprehensive collision coverage with a $1,000 deductible for an 18-year-old male driver. Unless otherwise stated, the average teen driver profiled has no tickets or accidents and drives a 2010 Toyota Camry LE.
- Allstate Insurance. “Auto Insurance for Teen Drivers.” Accessed July 28, 2020.
- American Family Insurance. “Good Student Car Insurance Discounts.” Accessed July 28, 2020.
- Centers for Disease Control and Prevention. “Graduated Driver Licensing.” Accessed July 27, 2020.
- Erie Insurance. “Insurance Discounts.” Accessed July 28, 2020.
- Geico. “Helping Cut Costs for Teen And New Drivers.” Accessed July 28, 2020.
- Insurance Information Institute. “Auto insurance for teen drivers.” Accessed July 27, 2020.
- Insurance Information Institute. “Background On: Teen drivers.” Accessed July 27, 2020.
- Insurance Information Institute. “Nine ways to lower your auto insurance costs.” Accessed July 27, 2020.
- National Safety Council. “Teens' Biggest Safety Threat is Sitting on the Driveway.” Accessed July 27, 2020.
- Nationwide. “Do you need insurance with a Learner's Permit?.” Accessed July 27, 2020.
- Progressive. “Car Insurance for Teens.” Accessed July 28, 2020.
- PubMed.gov. “Responsibility of drivers, by age and gender, for motor-vehicle crash deaths.” Accessed July 27, 2020.
- Safeco. “Teen Safety Rewards.” Accessed July 28, 2020.
- State Farm Insurance. “Car Insurance for Teens and New Drivers.” Accessed July 28, 2020.
- USAA. “Auto Insurance for Teen Drivers.” Accessed July 28, 2020.
Best car insurance companies in Louisiana | Coverage.com
As of 2015, there were an estimated 3,357,091 licensed drivers in the state of Louisiana. Every driver in Louisiana must carry a minimum amount of car insurance in order to legally operate their vehicle in the state.
For drivers looking for the best car insurance in Louisiana, we have provided an overview of the top providers by market share. Below, you can see what the average rates are for Louisiana, and understand how these rates are affected by your driving record. You can also compare rates by provider and across major metropolitan areas within Louisiana.
Best car insurance companies in Louisiana 2021
|Allstate||3/5||A+ (Superior)||Responsible payer, safe driving club||$2,340|
|GEICO||3/5||A++ (Superior)||Federal employee, emergency deployment||$1,824|
|State Farm||3/5||A++ (Superior)||Drive Safe & Save program, Steer Clear program||$2,508|
|USAA||5/5||A++ (Superior)||Vehicle storage, annual mileage||$2,406|
|Southern Farm Bureau||N/A||A+ (Superior)||Good student, continuous coverage||$2,320|
GEICO: Best for cheap rates
Drivers who are looking for cheap car insurance in Louisiana should check out GEICO. The average GEICO driver pays $1,824 annually for a full coverage policy, making it the most affordable provider on our list for Louisiana. GEICO also offers a wide variety of discounts for even more savings.
Southern Farm Bureau: best for customer service
Southern Farm Bureau is a local car insurance company in Louisiana that offers excellent customer service. Although the local provider has not been rated by J.D. Power, Southern Farm Bureau has an A+ rating from the Better Business Bureau (BBB) and fewer than average complaints according to the NAIC Company Complaint Index.
State Farm: Best for young drivers
Young drivers tend to pay the highest insurance premiums, especially in Louisiana. But State Farm gives young drivers several ways to save money on their policy. Drivers under 25 can enroll in the Steer Clear® safe driver rewards program to save money, plus take advantage of good student discounts.
Allstate: Best for add-on coverages
Allstate is our recommendation for Louisiana drivers who want highly customizable coverage. Allstate offers an impressive list of endorsements, including roadside assistance, accident forgiveness, sound system insurance and new car replacement coverage.
USAA: Best for military members
USAA is widely considered to be one of the top insurance companies on the market. The catch is that you must be an active-duty military member or veteran in order to get coverage. But if you meet USAA’s requirements, you’ll get affordable rates, great customer service and good coverage options.
Average cost of car insurance in Louisiana
On average, Louisiana drivers pay $2,330 per year for full coverage insurance, which breaks down to about $194 each month for 12 months of coverage. In comparison, the national average car insurance rate in the United States is $1,555 per year for a 12 month, full coverage policy. The average minimum coverage rate across the U.S. is $545 for a 12 month premium.
While these rates may be useful in your comparison-shopping, please keep in mind that the following rates represent averages for Louisiana and may not reflect your actual premium quote.
Driving record is one of the biggest factors that impacts car insurance rates. The table below includes the average minimum and full coverage insurance premium for Louisiana drivers with a clean record, one speeding ticket and one accident:
Quadrant data services, 2020
Cost of car insurance in Louisiana by city
In Louisiana, car insurance rates vary many factors, including ZIP code. Here is the average cost of full coverage and minimum coverage car insurance by city:
Quadrant data services, 2020
The average driver in New Orleans pays $2,864 for full coverage insurance, which is significantly higher than the statewide average of $2,330. New Orleans is the largest city in Louisiana with a high population density, which increases risk of accidents and therefore, increases car insurance rates. In general, however, cheap car insurance in New Orleans is harder to find.
In Louisiana’s capital city, the average driver pays $2,465 annually for full coverage car insurance, which is only about $135 more than the statewide average. In 2017, for example, there were almost 1,000 car thefts in Baton Rouge. Crime rate is one of the factors that contributes to car insurance prices in this area.
The average cost of car insurance in Shreveport is $2,267 per year, which is cheaper than the Louisiana state-wide average. Shreveport’s population is much lower than that of New Orleans and Baton Rouge, and its lower population density means car insurance rates are more affordable.
In Lafayette, the average driver pays $2,244 a year for full coverage car insurance, which is below the state-wide average. Lafayette has a relatively high crime rate, but because the city only has about 126,200 residents, car insurance rates are usually cheaper.
Car insurance premiums in Lake Charles are above average for the state. The average driver pays $2,404 annually for full coverage car insurance, which is slightly higher than the state-wide average rate of $2,330 a year. Lake Charles has a low crime rate compared to other cities in Louisiana, which helps keep insurance rates low.
Louisiana car insurance considerations
When shopping for a car insurance policy, Louisiana drivers should be mindful of the state’s severe weather. Louisiana is seasonally affected by major hurricanes, wind storms, flooding and even tornadoes.
These weather events can damage and destroy vehicles, even when they’re just parked in the driveway. Fortunately, certain car insurance policies can protect vehicles from weather-related damage. Car insurance is legally required in Louisiana, but drivers have several options for coverage.
Louisiana minimum liability requirements
Drivers must carry a minimum amount of liability insurance, according to Louisiana car insurance laws. Louisiana’s minimum insurance requirements are abbreviated as 15/30/25, which includes:
- $15,000 in bodily injury liability coverage per person
- $30,000 in bodily injury liability coverage per accident
- $25,000 in property damage liability coverage per accident
How we chose the best car insurance providers in Louisiana
To find the best Louisiana insurance companies, we looked at the biggest carriers and evaluated each one by its average premiums for full and minimum coverage, discounts and coverage options offered, customer service reviews, third-party ratings and financial strength scores.
Other car insurance providers in Louisiana to consider
In addition to the top five Louisiana auto insurance providers we recommend, here are some other Louisiana car insurance companies to include in your comparison-shopping:
|Progressive||3/5||A+ (Superior)||Snapshot program, distant student||$2,607|
|AAA||3/5||A+ (Superior)||Vehicle safety features, AAA member||$3,236|
Progressive’s car insurance policies are pricey, with an average annual full coverage rate of $2,607. However, the company offers lots of coverage options and discounts, including the Snapshot safe driver program.
Safeway Insurance is also on the more expensive end, on average, and the company offers fairly basic coverage. But because Safeway is a local provider, the customer service is personalized, which is something you won’t find with most national providers.
our research, AAA is the most expensive insurance provider in Louisiana, with an average rate of $3,236 per year for full coverage. However, AAA offers amazing coverage options and discounts that some drivers may find worth the comparison.
Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of ZIP codes across all 50 states and Washington, D.C, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-old male and female with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.
Factors That Affect the Price of Car Insurance
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance related. We update our site regularly, and all content is reviewed by car insurance experts.
It can be easy to assume that insurance premiums are profit alone. The reality is that all auto insurance companies use formulas to evaluate how much of a risk it will be to insure certain types of people.
If you’ve racked up a bunch of tickets in recent years, you probably already know that moving violations lead to higher insurance premiums, but you may not be aware that other factors that are largely your control, your age, gender, and marital status, also play a role in your auto insurance rate. First, consider how your age comes into play.
How does age affect insurance rates?
Younger drivers pay more for insurance than older drivers because of their inexperience behind the wheel. While this might seem unfair, insurance companies do base this decision on hard facts, as statistics show that younger drivers cause more accidents than older drivers. Teenagers pay the highest insurance rates of all, and for good reason.
Not only are car crashes the leading cause of death in teens across the nation, but teen drivers are also three times more ly than those 20 and older to be in a fatal crash, according to the Centers for Disease Control and Prevention (CDC).
The CDC also points out that young people between the ages of 15-25 only make up 14% of the nation’s population, yet account for 30% of the total cost for car crash injuries for men and 28% of such injuries for females.
These unfortunate statistics make it clear that insurers aren’t picking on young drivers for no good reason.
Many states recognize the high rate of teen accidents and attempt to reduce them through graduated driver’s licensing laws. These state driver’s license requirements for new drivers slowly increase a teen driver’s road privileges as they gain experience and prove they can steer clear of tickets and wrecks.
Insurers, on the other hand, respond to these statistics by charging more for coverage because teen drivers are more ly to file a claim.
While this can mean high rates for parents of teen drivers, it’s good news for good drivers who are about to turn 25, as they are ly to see a significant insurance rate reduction.
Tip: To save money on auto insurance for young drivers, ask insurers if they offer good-student discounts.
Since students who earn good grades are deemed more responsible, some insurers may reward them with discounts if they send in a copy of their report card.
Taking a defensive driving course or driving safety course may also reduce the rates charged to young drivers. (Read More on Saving Money on Teen Car Insurance.)
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How does gender affect insurance rates?
Statistics also point to men being involved in more accidents than women, particularly among younger drivers.
Research shows that men tend to exhibit riskier driving behaviors than women, partially because they are wired to express aggression in a more direct way than women, according to the Social Issues Research Center.
This can lead to more competitive and hostile behavior on the road, such as road rage and racing, which in turn leads to a greater number of traffic violations and accidents. Men also more frequently demonstrate more rule-breaking behavior and higher levels of risk-taking than do women, the same research suggests.
While these higher rates can be a downer for males who drive responsibly, the good news is rates for men tend to more or less equal to that of female drivers after age 30, according to the Texas Department of Insurance. And as we’ll see below, men can anticipate reduced auto insurance rates should they ever decide to get married.
Does marital status affect auto insurance premiums?
Couples have more than a lifetime of loving companionship to get excited about once they get married. Many insurers will offer lower insurance rates to married people because statistics have shown they are less ly to get into car accidents than single people. While newlywed discounts may not be as exciting as your honeymoon destination, they are most certainly easier on your wallet.
Tip: One word of caution: If you intend to combine auto insurance with your spouse, be aware that your rates could actually go up if you have a clean driving record but your spouse has a bad driving record since all licensed drivers that are covered under a single policy will be factored into the rating process.
What about education level and career?
Insurers also look at your education level and mode of employment when tallying your rates. Generally speaking, better-educated drivers pose less of a risk on the road than do high school dropouts, and insurers also assume that higher-earning drivers are more responsible than drivers with low incomes.
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How do accident history and tickets affect auto insurance?
It’s no secret that having a laundry list of speeding tickets and car accidents to your name drives up your insurance rates. Insurance companies believe that drivers who have caused accidents in the past are more ly to cause them in the future, and may raise rates accordingly.
While you may not see a rate increase for a minor accident or fender-bender if you have an otherwise good driving history, being found at-fault for a major accident or getting ticketed for reckless driving will ly lead to a rate increase and the loss of any good driver discounts.
There’s a bright side for those who have caused a wreck: you should see a slight rate decrease for every year you are accident-free until the accident goes off your driving record entirely.
Tip: Certain auto insurers offer a perk called accident forgiveness, where the insurer agrees to not raise the rates of an insured driver with a good driving history just because they got into a single accident.
If you are concerned about your rates going up after an accident, you may want to consider insurers who offer this perk.
Just be aware that the accident will still remain on your state driving record and may be reflected in future premiums should you switch insurers down the road.
Similarly, moving violations running red lights and speeding can also lead to higher rates but expect rates to go through the roof for serious violations being caught driving under the influence of alcohol or drugs.
In fact, if you have too many accidents and tickets, you may be refused a standard auto insurance policy entirely and be forced to seek out a high-risk insurance policy in your state, which will offer less coverage at a significantly higher price.
Many states use a point system as a means of keeping track of drivers who might be dangerous on the road.
Drivers accumulate points every time they violate a traffic law, and different numbers of points are assigned the severity of the violation.
For example, in Virginia, a driver would receive three demerits for making an illegal U-turn but six demerits for getting caught driving 20 miles over the speed limit, according to the Virginia DMV.
Once a driver gathers a specified number of points or demerits, they could have their driver’s license suspended or eventually revoked.
While this is bad news for those who make risky driving decisions, there’s also some good news: certain states, Virginia, may also award safe driving points for every year you go without a traffic violation.
Since your driving record has a direct impact on your insurance rates, you may be able to use safe driving points to your advantage to cancel out the negative points that could otherwise lead to higher insurance rates.
Do family members affect your insurance?
Another factor that impacts your auto insurance rates is named members of your household who are covered under your policy. For example, family rates will go up when a teenager starts driving. However, it also comes into play in other situations, such as if your adult child moves back in with you to get back on his feet or if you take in an elderly parent.
If these family members have access to your vehicle, you may need to list them as named drivers on your insurance, particularly if they will be using one of your vehicles on a regular basis.
If any of these family members have a poor driving record, this could negatively impact your rates.
On the other hand, adding on a family member with a good driving record could actually improve your rates.
You can ask your insurance company ahead of time how adding certain family members will impact your rates.
Tip: To save money, you can ask your insurance company to exclude a family member from your insurance policy if you don’t want their negative driving history to impact your rates. However, you must be willing to certify that the excluded driver will not drive your vehicle and agree that they will not be covered by your insurance if they do wreck your car.
How important are where you live, the type of vehicle, and average mileage?
Where you live and what kind of car you drive are also factors for your insurance rates. For example, urban areas typically have higher rates of vehicle vandalism, theft, and accidents than rural areas and insurance companies take this into consideration when setting your rate.
Similarly, if you upgrade from an economy car to a luxury vehicle, you will pay more for insurance because it costs more to repair or replace an expensive vehicle should it be damaged or stolen.
If you are planning on moving to a different city or state, you may want to ask your insurer ahead of time how much your rate could be impacted.
Another important factor that impacts your insurance rates is the number of miles you put on your car in a typical year.
A car that is used for commuting to work five days a week will cost more to insure than a vehicle that is used only for leisure because the frequency it is on the road increases its risk of being in an accident.
In that same vein, a 10-minute commute to work probably won’t impact your rates as much as an hour-long commute to work.
Tip: Some drivers may be able to save money by taking advantage of pay-as-you-drive insurance, or usage-based insurance.
By allowing insurers to track how much you actually drive, insurers can accurately conclude how often you are actually on the road and may be able to charge you a lower rate. This may be especially advantageous to people who work from home.
You may also be able to cut your insurance rates by taking advantage of public transportation, vanpools/carpools, or by cycling to work if possible so that your vehicle logs fewer miles.
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Does credit history affect insurance costs?
Last but not least, your credit history can also have an impact on your car insurance rates.
In most states, it is legal for an insurer to take your credit into consideration when assigning risk since research has shown that those with poor credit scores have higher claims rates and higher claims payouts than those with good credit.
For example, researchers at the University of Texas concluded in 2003 that “lower credit scores were associated with larger incurred losses,” and the Federal Trade Commission concluded in 2007 that credit-based insurance scores are an effective means of predicting risk for an auto insurance policy.
While this is good news for people who have excellent credit, it’s certainly discouraging to people who have bad credit, which can result from a variety of issues such as high debt, accounts that have fallen into collections, or bankruptcy. However, you do have some options to evaluate how much of an impact your credit has on the cost of insurance.
The FTC recommends that people ask their insurance company questions when they are not getting the rates they want, such as if a credit system was used in the first place, what factors were taken into consideration, and if there’s anything they can do to mitigate those factors.
By making payments on time and reducing your debt, you may be able to improve your credit and qualify for better insurance rates.
Tip: It’s a good idea to get a free copy of your credit score each year and dispute any errors you happen to find. This is important because a savvy identity thief can singlehandedly put your credit through the wringer, and a mistake by the credit bureaus can be costly.
As you can see, a variety of factors outside of your control, such as your age and gender, can have a significant impact on your insurance rates. Other factors, such as your driving record, the type of car you drive, and the people you name on your policy, are largely under your control. Drivers must keep these key factors in mind when evaluating how to get the cheapest car insurance.
State Farm Steer Clear Review
Teen drivers need extensive training before they can safely get behind the wheel. With experience, young drivers become more confident and develop safer driving habits. With State Farm Steer Clear, teen and young adult drivers can learn the rules of the road while qualifying for a discount on their car insurance.
If you have or are about to have a teen driver, you may be aware that the costs to add a new young driver to your auto insurance premium can be pricey. It’s enough that your new driver will need to learn the rules of the road and gain experience. Steer Clear will help you save while supporting young adult drivers to learn the rules quickly and safely.
State Farm Steer Clear is a program that is designed to help young drivers improve their skills behind the wheel, and save up to 15 percent on their car insurance. This is significant because young drivers usually face the highest insurance premiums of any age group. The program includes an online course, on-road training and mentorship from other licensed drivers.
While the program teaches safe driving habits, it’s not a replacement for a traditional driver’s education course. To be eligible for State Farm Steer Clear, participants must already have a valid driver’s license and be under 25 years old in most states.
How does State Farm Steer Clear work?
Drivers who are interested in enrolling in State Farm Steer Clear should call their State Farm agent to ensure they are eligible for the program. Then, interested drivers should download the State Farm Steer Clear mobile app to take the online course and log driving hours.
The State Farm Steer Clear in-app training course consists of five modules that focus on a variety of important topics such as:
- Blind spots
- Car safety basic
- Changing lanes
- Communicating with other drivers
- Driving in bad weather
- Entering parking lots
- Handling emergencies
- Texting and driving
The second part of the program is driving practice. The on-road requirements are slightly different for every age group. Here are the guidelines:
- Drivers under 19: Complete 20 driving trips with a licensed driver over 25 supervising
- Drivers age 19-24: Complete 5 driving trips with or without another licensed driver
Driving hours can be recorded for every trip in the State Farm Steer Clear mobile app. Family members or other supervising drivers are encouraged to provide feedback on the driver’s progress in the app.
Once the driver completes the course, earns their on-road hours and finishes a post-assessment test, they will receive a certificate of completion.
That certificate is then submitted to their State Farm agent, who will apply the Steer Clear Safe Driver Discount to the insurance premium.
The only contingency is that the program requirements must be completed within a six-month time frame to qualify.
Who is qualified for State Farm Steer Clear?
Many young drivers can take advantage of the State Farm Steer Clear program, although there are a handful of prerequisites, which include:
- Be under 25 years old with fewer than three years of driving experience
- Hold a valid driver’s license
- Have no at-fault accidents or traffic violations within the last three years
- Complete the in-app course and on-road hours within six months
The most important qualification is surprisingly missing from most of State Farm’s online information about the Steer Clear program. To be eligible, all vehicles in a driver’s household must be insured with State Farm.
If the teen has their own car, they must get a State Farm policy before enrolling in the program. However, they can also claim the discount if they are going to be added to a parent or family member’s existing State Farm auto policy.
The State Farm Steer Clear App
The State Farm Steer Clear app is highly rated by users. In the Apple App Store, it has over 13,000 ratings with an average of 4.7 stars. In the Google Play Store, the app has more than 750 reviews with an average of 4 stars. The Steer Clear app is available for download on iOS and Android, or users can text STEER to 78836 to get a link.
Overall, the State Farm Steer Clear app is easy to use. It has a simple user interface and dashboards to track progress toward module completions and driving goals. In reviews, most users say that the course modules were easy to follow, but the learning material wasn’t more advanced than what’s included on a permit exam.
The State Farm Steer Clear app also tracks real-time driving and gives drivers a score after they complete a trip. The app senses the car’s movements to calculate speed, turning and other maneuvers. It also tracks the length of the trip, which makes it easy to record in the on-road hours log.
However, many users said that the accuracy of the driving scores is faulty or inaccurate. They expressed frustration over getting the app to record their trip in full without resetting half way through.
There also seem to be some problems with the way the app records breaking.
For instance, one reviewer said the app deducted points for breaking too hard, but they had simply pulled over for an emergency vehicle to pass.
Is the State Farm Steer Clear program worth it?
State Farm’s Steer Clear program makes it easy for drivers under the age of 25 to learn the rules of driving and gain experience behind the wheel, while saving on car insurance.
The advantages of State Farm’s Steer Clear program is that you can save up to 15% on your car insurance premium.
The Steer Clear program offers course training which includes videos, modules, and quizzes, practice driving sessions, mentoring and a program certificate.
However, along with any program, there are disadvantages to State Farm’s Steer Clear. Various states have different laws. In some states, drivers must be under 24 with less than three years of driving experience to be eligible for the discount.
Other disadvantages include that the discount is applied after program completion and the program must be completed within six months.
Drivers who have been in an at-fault accident or moving violation with the past three years are not eligible for State Farm’s Steer Clear program.
According to State Farm’s website, young drivers who enroll in the Steer Clear program can save up to 15 percent on their car insurance premium.
How long is the State Farm Steer Clear program?
The State Farm Steer Clear program must be completed within six months for drivers to claim the discount. Because drivers go through the course at their own pace, it can ly be completed much faster.
Who can sign up for State Farm Steer Clear?
To be eligible for State Farm Steer Clear, drivers must be under 25 with less than three years of driving experience, have a valid driver’s license and have had no at-fault accidents or tickets within the last three years.