The words “low-cost” and “insurance” probably shouldn’t be used together, especially when searching for the cheapest car insurance for 18 year olds. Because it’s so expensive, let’s get started by showing you some things that influence auto insurance rates, and see how we can help you take the sting out of the next policy you buy.
For teen drivers, one of the largest criteria that determine auto insurance rates is your zip code. Areas with increased crime or more people tend to have more expensive auto insurance rates, whereas areas that tend to be more rural benefit from lower rates.
The table below rates the most expensive places in Ohio for 18 year olds to purchase a policy in. Cleveland ranks #2 costing $1,259 for the average insured, which is around $105 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Youngstown | $1,273 |
| 2 | Cleveland | $1,259 |
| 3 | Toledo | $1,241 |
| 4 | Cleveland Heights | $1,214 |
| 5 | Columbus | $1,211 |
| 6 | Cincinnati | $1,210 |
| 7 | Euclid | $1,164 |
| 8 | Akron | $1,157 |
| 9 | Hamilton | $1,135 |
| 10 | Dayton | $1,120 |
| 11 | Canton | $1,102 |
| 12 | Newark | $1,095 |
| 13 | Middletown | $1,066 |
| 14 | Lakewood | $1,063 |
| 15 | Fairfield | $1,063 |
| 16 | Springfield | $1,061 |
| 17 | Beavercreek | $1,047 |
| 18 | Kettering | $1,040 |
| 19 | Parma | $1,037 |
| 20 | Strongsville | $1,031 |
| 21 | Lorain | $1,015 |
| 22 | Cuyahoga Falls | $1,007 |
| 23 | Elyria | $1,005 |
| 24 | Mansfield | $1,002 |
| 25 | Mentor | $978 |
| Find Cheaper Rates Go | ||
Rates are estimated as zip code location can influence price quotes considerably.
Finding out which company has the cheapest car insurance rates for 18 year olds takes more work in order to find the most economical policy. Every auto insurer has a proprietary method for determining prices, so let’s take a look at the most budget-friendly car insurance companies in Cleveland, OH.
It’s a good idea to know that Cleveland car insurance rates are based on many factors that can increase the cost of your policy. Simply having a birthday, increasing liability limits, or getting caught speeding may cause policy rate changes that can make some companies much cheaper than others.
Find the Best Cheap Insurance for Teens
Utica National has some of the best car insurance rates in Cleveland at around $647 annually. Frankenmuth, Erie, Allied, and Travelers also make the cut as some of the best Cleveland, OH car insurance companies.
As shown in the table above, if you are insured with Frankenmuth and switched to Utica National, you might see a yearly price reduction of about $33. Drivers with Erie might save as much as $40 a year, and Allied customers might reduce rates by $50 a year.
To find out how your current rates compare, click here or click several companies below for low rates.
These policy rates are averaged across all insureds and vehicles and do not factor in an exact location for 18 year olds. So the insurer that has the cheapest rates for you may not even be in the top 33 companies in the list above. That point stresses why you need to quote rates from as many companies as possible using your own driver and vehicle profiles.
Rate difference between full and liability-only coverage
Paying a lower price for car insurance is the goal of the majority of vehicle owners, and one way to find cheap insurance for 18 year olds is to not buy comprehensive and collision coverage. The illustration below compares car insurance rates with liability coverage only compared to full coverage. The rate quotes are based on a clean driving record, no claims, $1,000 deductibles, drivers are not married, and no discounts are applied.
If averaged out across all ages, physical damage coverage costs $1,297 per year more than insuring for liability only. That brings up the question when is it a good idea to stop buying full coverage. There isn’t a steadfast formula of when to eliminate physical damage insurance, but there is a guideline you can consider. If the yearly cost of comp and collision coverage is more than 10% of any settlement you would receive from your insurance company, then it’s probably a good time to buy liability coverage only.
For example, let’s say your vehicle’s book value is $10,500 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most you would receive is $9,500 after paying your policy deductible. If you are paying in excess of $950 a year for full coverage, then you may need to consider dropping full coverage.
Discount Cleveland car insurance
Insurance providers that offer cheap quotes for 18 year olds may also provide discounts that can reduce rates by as much as 35% if you qualify. Companies and their possible discounts are:
- American Family includes discounts for mySafetyValet, accident-free, TimeAway discount, early bird, bundled insurance, and defensive driver.
- State Farm may have discounts that include multiple policy, driver’s education, multiple autos, safe vehicle, and passive restraint.
- 21st Century may include discounts for air bags, early bird, theft prevention, teen driver, and 55 and older.
- Travelers discounts include driver training, good student, hybrid/electric vehicle, IntelliDrive, payment discounts, multi-policy, and early quote.
- GEICO has discounts for seat belt use, good student, defensive driver, multi-policy, federal employee, emergency military deployment, and air bags.
The diagram below illustrates the comparison of yearly insurance costs with and without discounts applied to the policy rates. The rates are based on a male driver, no claims or driving citations, Ohio state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with passive restraint, vehicle safety, anti-theft, good student, paperless filing, and paid-in-full discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on car insurance for 18 year olds is 28% or $370.
Why you should compare rates
Cleveland car insurance rates are based on many factors which can substantially change the price you have to pay. Improving your credit score, moving to a different location, or getting into an accident can trigger changes in premium that can now make some companies much cheaper than others. In addition to those changes, insurers change the rates they charge in Ohio without warning as an adjustment for underwriting gains or losses. An extended period of higher than normal claims may cause increased policy costs, while better underwriting may result in lower-priced Cleveland car insurance rates.
The graph below shows the company with the cheapest car insurance in Cleveland, OH for a 45-year-old female driver with no accidents, a clean driving record, and a good credit history. When comparing rates based on her personal profile, Utica National has the best car insurance rates in Cleveland at $795 annually. This is $245 less than the average price paid by Ohio drivers of $1,040. Erie, Allied, Frankenmuth, and Travelers are also on the list of the cheapest Cleveland, OH auto insurance companies.
The chart below compares rates after we give the driver from the first set of rates a claim, bad credit, and a traffic ticket or two. Since every insurance provider has their own formula to set premium rates, comparing rates will most likely result in a significantly different list of the cheapest companies as shown below.
Cincinnati Insurance now has the best price on car insurance in Cleveland with Merchants Insurance Group, Motorists Mutual, Grange Mutual, and General Casualty now being in the top five. This example proves why it is so important to take the time to shop around when trying to get the best auto insurance rates for 18 year olds.
Car insurance prices can be determined by many risk factors and change dramatically, so the best option two years ago may now be wasting a lot of money.