Locating cost effective insurance is hard enough, and finding out which companies offer the best car insurance rates for drivers under 25 calls for even more perseverance.
Each company has their own unique process to set policy rates, so we’ll take a look at the overall cheapest car insurance companies in Raleigh, NC.
Best Cheap Insurance Rates for Young Drivers
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Utica National | $655 |
| 2 | Progressive | $658 |
| 3 | Liberty Mutual | $721 |
| 4 | NC Farm Bureau | $737 |
| 5 | Penn National | $739 |
| 6 | GEICO | $750 |
| 7 | Titan | $751 |
| 8 | State Farm | $756 |
| 9 | Auto-Owners | $870 |
| 10 | Erie | $904 |
| 11 | National General | $908 |
| 12 | Travelers | $927 |
| 13 | Allied | $928 |
| 14 | Peerless | $972 |
| 15 | Nationwide | $1,001 |
| 16 | Unitrin | $1,002 |
| 17 | Safeco | $1,034 |
| 18 | MetLife | $1,038 |
| 19 | Encompass | $1,073 |
| 20 | Allstate | $1,097 |
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Utica National normally has some of the cheapest car insurance rates in Raleigh at around $655 annually. This is $217 less than the average price paid by North Carolina drivers of $872. Progressive, Liberty Mutual, NC Farm Bureau, and Penn National also make the cut as some of the more affordable Raleigh, NC car insurance companies.
As the example above demonstrates, if you currently buy coverage from NC Farm Bureau and switched to Utica National, you could see annual savings of upwards of $82. Customers with Penn National may save as much as $84 a year, and GEICO insureds might reduce prices by as much as $95 a year.
Understand that those premiums are averages for all ages of drivers and types of vehicles and are not factoring in a specific vehicle garaging location for drivers under 25. So the company that has the lowest price for you may not even be in the top 20 companies in the list above. That point stresses why you need to quote rates from many companies using your own personal information and vehicle type.
The type of vehicle you are seeking coverage for is one of the largest factors that determines the availability of the best car insurance for drivers under 25. Vehicles with high performance features, a lack of modern safety features, or a track record of large liability claims will cost substantially more to insure than more modest models.
The next list shows car insurance premiums for a selection of the most affordable vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $2,631 |
| Honda CR-V EX-L 4WD | $2,672 |
| Honda Accord EX-L 4-Dr Sedan | $2,867 |
| Ford F-150 XL Super Cab 2WD | $2,890 |
| Toyota Prius | $2,906 |
| Ford Explorer Eddie Bauer 2WD | $2,931 |
| Ford Edge SEL AWD | $3,085 |
| Toyota RAV4 Sport 2WD | $3,126 |
| Chevrolet Equinox LT AWD | $3,134 |
| GMC Sierra SLE Regular Cab 2WD | $3,126 |
| Chevrolet Silverado LT Extended Cab 4WD | $3,134 |
| Chevrolet Malibu LT | $3,165 |
| Dodge Grand Caravan Crew | $3,171 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $3,167 |
| Hyundai Elantra SE 4-Dr Sedan | $3,324 |
| Toyota Tacoma X-Runner 2WD | $3,332 |
| Chevrolet Impala LTZ | $3,324 |
| Honda Odyssey EX-L W/Rear Entertainment | $3,333 |
| Toyota Camry XLE | $3,324 |
| Toyota Corolla XLE | $3,331 |
| Hyundai Sonata GLS 4-Dr Sedan | $3,349 |
| Kia Optima LX | $3,357 |
| Volkswagen Jetta SEL 4-Dr Sedan | $3,363 |
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Data based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and North Carolina minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific location information which can lower or raise premium rates greatly.
Based upon these rates, you can figure that cars like the Ford Escape, Honda CR-V, Honda Accord, Ford F-150, and Toyota Prius are likely to be a few of the most affordable vehicles to insure for drivers age 25 and younger. Prices will trend higher because there is more liability exposure for drivers under 25, but overall those particular models will most likely have the lowest insurance prices available.
Discounts on Raleigh auto insurance rates
Car insurance companies that sell policies for drivers under 25 may have discounts that can reduce rates by as much as 25% or more if you meet the requirements. A list of car insurance companies and a partial list of their discounts are included below.
- State Farm discounts include student away at school, multiple policy, Steer Clear safe driver discount, defensive driving training, multiple autos, passive restraint, and Drive Safe & Save.
- American Family policyholders can earn discounts including defensive driver, multi-vehicle, good driver, good student, and mySafetyValet.
- GEICO offers premium reductions for anti-theft, daytime running lights, multi-vehicle, driver training, defensive driver, membership and employees, and anti-lock brakes.
- 21st Century may offer discounts for 55 and older, homeowners, theft prevention, driver training, student driver, and defensive driver.
- Progressive offers discounts for online quote discount, multi-policy, online signing, homeowner, and multi-vehicle.
The illustration below visualizes the comparison of auto insurance costs with and without discounts applied to the policy rates. The rates are based on a male driver, no accidents or driving violations, North Carolina state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with paperless filing, good student, paid-in-full, passive restraint, continuous coverage, and anti-theft discounts applied. In this example, the average savings per year on car insurance for drivers under 25 is 18% or $261.
Cost comparison with and without full coverage
Paying less for car insurance should be important to the majority of drivers, and one of the fastest ways to reduce the cost of insurance for drivers under 25 is to only pay for liability coverage. The information below illustrates the difference between auto insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premium estimates are based on a clean driving record, no at-fault accidents, $250 deductibles, single status, and no other discounts are factored in.
As an average, full coverage on your policy costs $1,785 per year more than just buying liability insurance. That raises the question when is the right time to remove full coverage. There is no definitive formula that is best for determining when to drop full coverage, but there is a general guideline. If the annual cost of comprehensive and collision coverage is about 10% or more of the settlement you would receive from your company, then it could be time to drop full coverage.
The information below highlights how deductible choice can influence insurance rates when trying to find cheap insurance for drivers under 25. The data assumes a single male driver, comprehensive and collision coverage, and no discounts are factored in.
The chart above illustrates that a 40-year-old driver could lower their car insurance rates by $244 a year by changing from a $100 deductible up to a $500 deductible, or save $368 by selecting a $1,000 deductible. Younger drivers, such as the 20-year-old example, could reduce their rates up to $808 annually by choosing a higher deductible.
If you do decide to increase your deductibles, it will be required to have additional funds in a savings account to cover the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.