This would be a much shorter article if we could simply give you the name of the single best car insurance company that has the most affordable coverage in Wisconsin. Unfortunately, it’s just not that easy, as there are a whole bunch of unknown elements like if you are a homeowner or renter, your credit rating, and the safety features built into your vehicle, that all impact the cost of your policy. This article delves into these things and will hopefully give the reader a good beginning to your search for cheaper coverage.
The car, truck, or SUV requiring insurance is one of the largest considerations when consumers are trying to find the lowest-priced coverage for 16 year olds. Vehicles with limited top-end speed, good safety features, or a low likelihood of liability claims will cost substantially less to insure than high performance models.
The next table ranks insurance rates for a number of the cheapest automobiles to insure in Wisconsin.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $3,901 |
| Honda CR-V EX-L 4WD | $3,937 |
| Ford Escape Limited 4WD | $4,173 |
| Toyota Prius | $4,209 |
| Honda Odyssey LX | $4,356 |
| Toyota Tacoma 4WD | $4,392 |
| Ford F-150 XL Super Cab 4WD | $4,399 |
| Dodge Grand Caravan SE | $4,392 |
| Ford Explorer XLT 4WD | $4,399 |
| Volkswagen Jetta SE 2.5 Station Wagon | $4,448 |
| Ford Edge SEL AWD | $4,592 |
| Toyota RAV4 Sport 4WD | $4,628 |
| Jeep Grand Cherokee Laredo 4WD | $4,635 |
| Ford Fusion S 4-Dr Sedan | $4,628 |
| Chevrolet Equinox LS 2WD | $4,636 |
| Nissan Altima 2.5 4-Dr Sedan | $4,628 |
| GMC Sierra SL Extended Cab 2WD | $4,633 |
| Chevrolet Impala LT | $4,628 |
| Chevrolet Malibu LT | $4,664 |
| Ford Focus SES 4-Dr Sedan | $4,830 |
| Toyota Camry XLE | $4,866 |
| Toyota Corolla LE | $4,875 |
| Hyundai Elantra GLS 4-Dr Sedan | $4,866 |
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Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Wisconsin minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in vehicle location which can increase or decrease rates noticeably.
By looking at the data, models like the Honda Accord, Honda CR-V, Ford Escape, and Toyota Prius are most likely to be the most affordable vehicles to insure for new drivers. The cost of a car insurance policy will be more costly just due to the fact that there is more claim exposure for 16 year olds, but in general those specific models will probably have the best rates compared to all other vehicles.
For new drivers, one of the more important criteria that aid in calculating the price you pay for insurance is where you call home in Madison. Larger areas will most likely have higher rates, whereas more rural areas have the luxury of lower rates.
The table below ranks the most expensive places in Wisconsin for 16 year olds to purchase car insurance in. Madison is ranked #17 costing $1,030 for the average policy, which is approximately $86 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Milwaukee | $1,396 |
| 2 | Wauwatosa | $1,359 |
| 3 | West Allis | $1,246 |
| 4 | Racine | $1,193 |
| 5 | Greenfield | $1,192 |
| 6 | Kenosha | $1,182 |
| 7 | Oak Creek | $1,154 |
| 8 | Franklin | $1,151 |
| 9 | Beloit | $1,130 |
| 10 | Eau Claire | $1,081 |
| 11 | Menomonee Falls | $1,057 |
| 12 | Waukesha | $1,054 |
| 13 | La Crosse | $1,053 |
| 14 | Janesville | $1,053 |
| 15 | Brookfield | $1,045 |
| 16 | Wausau | $1,037 |
| 17 | Madison | $1,030 |
| 18 | New Berlin | $1,029 |
| 19 | West Bend | $1,007 |
| 20 | Fond du Lac | $995 |
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Table data uses estimated as the specific Madison residence address can increase or decrease rates greatly.
Finding decent, reasonably-priced auto insurance is confusing at best, and figuring out which company offers the most affordable car insurance rates for 16 year olds will take even more perseverance. Every insurance company has a different process to determine premium rates, so to begin we’ll rank the car insurance companies with the overall best prices in Madison, WI.
We do need to point out that Wisconsin car insurance rates are influenced by many factors that will increase or decrease the price you pay for coverage. This price variability is why consumers need to spend some time comparing rates when trying to get the most affordable insurance quotes for 16 year olds. Insurance rates can be determined by many factors and change dramatically, so the most affordable company the last time you shopped around may now be priced much higher than other options.
Best Cheap Insurance Rates for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $586 |
| 2 | Partners Mutual | $632 |
| 3 | Erie | $724 |
| 4 | Rockford Mutual | $732 |
| 5 | Nationwide | $745 |
| 6 | Pekin Insurance | $775 |
| 7 | Western National | $777 |
| 8 | Rural Mutual Insurance | $779 |
| 9 | Integrity Mutual | $794 |
| 10 | Travelers | $820 |
| 11 | West Bend Mutual | $890 |
| 12 | The Hartford | $912 |
| 13 | State Farm | $923 |
| 14 | General Casualty | $926 |
| 15 | Auto Club Group | $948 |
| 16 | American Family | $1,125 |
| 17 | Farmers | $1,141 |
| 18 | Auto-Owners | $1,148 |
| 19 | Progressive | $1,164 |
| 20 | GEICO | $1,202 |
| Get Personalized Rates Go | ||
USAA quotes some of the cheapest car insurance rates in Madison at around $586 a year. This is $575 less than the average rate paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Nationwide would also be considered some of the most economical Madison, WI insurance companies.
In the above example, if you buy coverage from Rockford Mutual and switched to Partners Mutual, you may realize a yearly savings of around $100. Policyholders with Nationwide could save as much as $113 a year, and Pekin Insurance customers might lower prices by up to $143 a year.
Remember that these prices are averaged for all types of insureds and vehicles and and are not calculated with a specific vehicle garaging location for 16 year olds. So the insurer that fits your age and vehicle best may not even be in the top 30 companies shown above. That’s why you need to compare rates from multiple companies using your own individual information.
Full coverage rates compared to liability only
Reducing premiums for car insurance is the goal of the majority of vehicle owners, and a great way to buy cheap insurance for 16 year olds is to buy only liability coverage. The chart below visualizes the comparison of insurance premiums with and without physical damage coverage. The premiums are based on no driving violations, no at-fault accidents, $100 deductibles, drivers are single, and no policy discounts are applied.
If we average all the age groups together, comp and collision coverage costs $1,327 per year over liability only. At some point, almost every driver questions if paying for full coverage is a waste of money. There is no clear-cut rule for phasing out comp and collision coverage, but there is a guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
For example, let’s assume your vehicle’s replacement cost is $5,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $4,500 after paying your deductible. If you are paying in excess of $450 annually for physical damage coverage, then you might consider buying liability only.
There are some situations where only buying liability is not in your best interest. If you still owe money on your vehicle, you have to maintain full coverage in order to keep the loan. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should maintain full coverage.
Careless driving habits raise car insurance rates
The obvious way to snag the most affordable car insurance premiums in Madison for new drivers is to drive safe and have a clean driving record. The chart below shows how traffic citations and at-fault claims increase annual premium costs for different categories of driver ages. The data assumes a married female driver, full physical damage coverage, $250 deductibles, and no discounts are taken into consideration.
The data charted above shows the average cost of car insurance in Wisconsin per year with no accidents or violations is $942. Add in one speeding ticket and the average cost surges to $1,093, an increase of $151 each year. Now get one accident along with the one speeding ticket and the annual cost of car insurance for 16 year olds goes up to an average of $1,520. That’s an increase of $578, or $48 per month, just for not keeping your driving record clean!
Madison car insurance rates
Madison car insurance rates are impacted by many factors which can significantly increase or decrease the price you have to pay. Turning one year older, having a claim, or getting a reckless driving citation may prompt premium changes that can make some companies more affordable than competitors. Not only may your situation change, but insurance companies change prices every year to help ensure profitability. Higher than normal claims may cause higher priced premiums, while profitable underwriting can result in more affordable Madison car insurance rates.
To help illustrate this point, the bar chart below analyzes the cheapest car insurance in Madison, WI for a 40-year-old female driver with no violations or accidents, and a high credit rating. When comparing rates based on her personal profile, USAA might quote the most affordable car insurance rates in Madison at $679 each year. This is $482 less than the average premium paid by Wisconsin drivers of $1,161. Partners Mutual, Erie, Rockford Mutual, and Rural Mutual Insurance also make the list of the top five cheapest Madison, WI auto insurance companies.
The next chart shows rates after we give the driver from the first set of rates some claims, less-than-perfect credit, and a couple of points charged on her driving record. Due to the fact that each insurance company has a proprietary method to establish rates, analyzing rate quotes will most likely result in a different ranking of companies as shown below.
Pekin Insurance now has the lowest price in Madison with Integrity Mutual, Western National, Travelers, and West Bend Mutual also being competitive. This demonstrates why consumers need to take the time to shop around to find the most economical car insurance rates for 16 year olds. Insurance prices can be determined by many factors and change frequently, so the most economical option a year ago may now be an over-priced policy.
If you prefer to have a consultation when shopping for the best coverage for new drivers, the agents shown below can most likely help you determine which coverages and limits you need.
To locate a Madison car insurance agency close to where you live, click the button at the bottom or click here to compare price quotes.
- Dawn Goplin – State Farm Insurance Agent
515 Junction Rd #2400 – Madison, WI 53717 – (608) 662-9900 - Farmers Insurance – The Arttus Agency
624A Struck St – Madison, WI 53719 – (608) 271-9395 - Red Barn Insurance Agency
6666 Odana Rd – Madison, WI 53719 – (608) 467-6804 - American Family Insurance – Josh Erickson Agency LLC
5530 Eastpark Blvd – Madison, WI 53718 – (608) 241-8444 - American Family Insurance – Brad Bodden
3821 Nakoma Rd – Madison, WI 53711 – (608) 231-2453