The make and model of vehicle you are trying to insure is probably the largest consideration in finding low-cost auto insurance for 18 year olds. Vehicles with higher performance characteristics, a lack of advanced safety features, or high incidents of liability claims will cost significantly more to insure than safer, lower-performance models. The information below illustrates coverage premiums for a handful of the cheaper vehicles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $8,765 |
| Ford Escape Limited 2WD | $8,865 |
| Toyota Prius | $9,547 |
| Ford Explorer XLT 4WD | $9,816 |
| Ford F-150 XL Super Cab 4WD | $9,824 |
| Volkswagen Jetta 2.0T Station Wagon | $10,131 |
| Chevrolet Impala LS | $10,300 |
| Ford Edge SEL 2WD | $10,308 |
| Honda Odyssey EX W/Rear Entertainment | $10,300 |
| Toyota RAV4 4WD | $10,401 |
| Chevrolet Equinox LT AWD | $10,409 |
| Chevrolet Malibu LS | $10,401 |
| GMC Sierra SLE Regular Cab 2WD | $10,406 |
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Data based on single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Estimates do not factor in specific location which can impact prices substantially.
Based upon the table data, we can assume that cars like the Honda CR-V, Ford Escape, Toyota Prius, and Ford Explorer are the cheaper vehicles to insure for teen drivers. The price for an auto insurance policy will tend to be more expensive anyway just due to the fact that there is more inherent risk for 18 year olds, but overall those specific models will tend to have the cheapest auto insurance rates that you’ll find.
One of the more important factors that are used to help calculate the price you pay for insurance is where you live in New Orleans. Areas with a lot of weather claims or more people tend to have higher rates, whereas less populated areas have the benefit of cheaper car insurance.
The information below ranks the highest-priced places in Louisiana for 18 year olds to purchase auto insurance in. New Orleans is ranked #1 with a yearly premium of $2,914 on average, which is about $243 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | New Orleans | $2,914 |
| 2 | Harvey | $2,589 |
| 3 | Marrero | $2,544 |
| 4 | Terrytown | $2,455 |
| 5 | Baton Rouge | $2,231 |
| 6 | Central | $2,223 |
| 7 | Shenandoah | $2,183 |
| 8 | Kenner | $2,181 |
| 9 | Prairieville | $2,169 |
| 10 | Metairie | $2,166 |
| 11 | Hammond | $2,107 |
| 12 | Alexandria | $2,096 |
| 13 | Slidell | $1,977 |
| 14 | Laplace | $1,971 |
| 15 | Monroe | $1,970 |
| 16 | Lafayette | $1,917 |
| 17 | Sulphur | $1,916 |
| 18 | Lake Charles | $1,915 |
| 19 | Shreveport | $1,876 |
| 20 | New Iberia | $1,852 |
| 21 | Bayou Cane | $1,818 |
| 22 | Bossier City | $1,797 |
| 23 | Houma | $1,791 |
| 24 | Natchitoches | $1,781 |
| 25 | Ruston | $1,703 |
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Premium costs are approximated as specific location information can change premiums greatly.
Finding low-cost car insurance is not the easiest thing to accomplish, and deciding which company offers the cheapest car insurance rates for 18 year olds involves even more diligence. Every auto insurer has a different process for setting prices, so first let’s look at the rankings for the most competitive car insurance companies in New Orleans, LA.
It’s important that you understand Louisiana car insurance rates are influenced by many factors that can increase the price you have to pay. Events like a birthday, buying a new vehicle, or getting caught speeding may prompt premium changes that can cause some rates to be much cheaper than others.
Lowest Insurance Price Quotes for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,626 |
| 2 | GEICO | $1,907 |
| 3 | MetLife | $1,910 |
| 4 | Progressive | $1,927 |
| 5 | Southern Farm Bureau | $2,181 |
| 6 | Safeway | $2,198 |
| 7 | California Casualty | $2,246 |
| 8 | State Farm | $2,431 |
| 9 | Safe Auto | $2,627 |
| 10 | Allstate | $2,945 |
| 11 | Encompass | $3,170 |
| 12 | Liberty Mutual | $3,645 |
| Compare Rates Now Go | ||
USAA has some of the best car insurance rates in New Orleans at around $1,626 a year. This is $788 less than the average premium paid by Louisiana drivers of $2,414. GEICO, MetLife, Progressive, and Southern Farm Bureau also rank well as some of the most economical New Orleans, LA auto insurance companies.
In the above rates, if you buy coverage from GEICO and switched to USAA, you may realize an annual premium reduction of about $281. Customers with MetLife could save as much as $284 a year, and Progressive customers might reduce prices by as much as $301 a year.
It’s important to note that these estimates are averages across all types of insureds and vehicles and do not take into consideration an exact zip code location for 18 year olds. So the company that is best for you may not even be in the top 12 companies in the list above. That emphasizes why you need to get rate quotes from many companies using your own specific driver information and vehicle.
Insuring your vehicle with a good quality car insurance provider is hard considering how many different insurance companies sell coverage in Louisiana. The ranking information in the lists below can help you choose which auto insurance companies you want to consider when trying find the best insurance for 18 year olds.
The rankings below are only made up of the largest auto insurers in America, so smaller companies are not factored into the list. If you’d like to compare prices from these top insurers and more, simply click here.
Top 10 Major Auto Insurers in New Orleans Ranked by A.M. Best Rating
- USAA – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Allstate – A+
- The Hartford – A+
- Progressive – A+
- The General – A-
- Liberty Mutual – A
- 21st Century – A
Top 10 Major Auto Insurers in New Orleans Ranked by Value
- American Family
- AAA Insurance
- Safeco Insurance
- The Hartford
- Progressive
- 21st Century
- The General
- Esurance
- USAA
- State Farm
Types of discounts on New Orleans auto insurance
Auto insurance companies that offer cheap quotes for 18 year olds may also give you price discounts that can lower rates by 40% or more if you qualify. Popular car insurance companies and a partial list of their discounts are detailed below.
- Farm Bureau may offer discounts for youthful driver, 55 and retired, renewal discount, good student, safe driver, multi-vehicle, and multi-policy.
- Liberty Mutual includes discounts for preferred payment discount, good student, hybrid vehicle, new vehicle discount, teen driver discount, and new move discount.
- State Farm may include discounts for passive restraint, multiple autos, accident-free, good driver, driver’s education, good student, and defensive driving training.
- Auto-Owners Insurance policyholders can earn discounts including group or association, mature driver, company car, anti-lock brakes, good student, multiple vehicles, and teen driver.
- GEICO offers discounts including anti-lock brakes, driver training, good student, defensive driver, air bags, and emergency military deployment.
- SAFECO offers discounts for homeowner, anti-lock brakes, anti-theft, bundle discounts, drive less, and multi-car.
The diagram below illustrates the comparison of insurance rates with and without some available policy discounts. The premium estimates are based on a female driver, no claims or driving violations, Louisiana state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with passive restraint, anti-theft, paid-in-full, continuous coverage, paperless filing, and good student discounts applied. When drivers take advantage of discounts, theaverage yearly reduction on car insurance for 18 year olds is 28% or $1,143.
Should you buy full coverage?
Reducing premiums for car insurance is important to most drivers, and one good way to reduce the cost of insurance for 18 year olds is to buy liability only. The illustration below shows the comparison of yearly insurance costs with and without full coverage. The premium estimates are based on no violations or claims, $1,000 deductibles, single marital status, and no discounts are factored in.
As an overall average, comp and collision coverage costs $2,626 per year more than just insuring for liability. Many drivers will wonder if you should buy full coverage at all. There isn’t a written rule that works best for making the decision to drop comprehensive and collision coverage on your policy, but there is a guideline you can use. If the yearly cost of comp and collision coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then you might consider buying liability only.
For example, let’s pretend your vehicle’s settlement value is $10,500 and you have $1,000 deductibles. If your vehicle is destroyed, you would only receive $9,500 after the deductible is paid. If premium cost is more than $950 a year for full coverage, then you might want to consider buying only liability coverage.
There are some circumstances where dropping physical damage coverage is not recommended. If you still have a loan on your vehicle, you have to carry full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle in the event your current vehicle is totaled, you should not eliminate full coverage.
Your low-price policy may be costing you money
New Orleans car insurance rates are impacted by many things which can substantially decrease or increase the price of your policy. Simply having another birthday, having a teen driver, or getting a couple of tickets may generate price changes that may make certain companies more affordable than others.
Additionally, auto insurance companies file new rates multiple times each year in order to be able to pay unexpected claims. A period of increased losses can result in additional premium costs, while lower claim expenses may cause lower-cost New Orleans car insurance rates.
To illustrate this point, the bar chart below shows the companies that have the cheapest car insurance in New Orleans, LA for a 40-year-old male driver with a clear driving record, no claims, and good credit. When comparing rates based on his personal risk profile, USAA may offer the best car insurance rates in New Orleans at $2,811 per year. This is $397 more than the average premium paid by Louisiana drivers of $2,414. GEICO, MetLife, Progressive, and Safeway are the remainder of the top five cheapest New Orleans, LA auto insurance companies.
In this example, we will give the driver from the first set of rates a claim or two, a lower credit score, and a traffic ticket or two. Due to the fact that every insurance company has a proprietary method to determine rates, getting updated rate quotes could now result in a different ranking of the cheapest New Orleans car insurance companies as shown below.
California Casualty now has the best auto insurance rate in New Orleans, LA with State Farm, USAA, GEICO, and MetLife also having competitive pricing. This illustrates why it is critical to do a thorough rate comparison when trying to find the most economical insurance quotes for 18 year olds.
Insurance prices consist of many different factors and change frequently, so the cheapest company three years ago may now not even be in the top five.
If you aren’t clear which coverage you need and would like to get some guidance when shopping for cheaper insurance for 18 year olds, the agents listed below can most likely help you determine which insurance coverage will be best for you. To find a New Orleans insurance agent close to you, click the button link following the list or click here to compare price quotes.
- Whitney Insurance Agency
650 Poydras St Suite 1500 – New Orleans, LA 70130 – (504) 581-5353 - Murphy Insurance LLC
2107 Soniat St – New Orleans, LA 70115 – (504) 899-8010 - State Farm: Chris Nolan
Place St. Charles, 201 St Charles Ave #224 – New Orleans, LA 70170 – (504) 522-9560 - Olympus Insurance Agency
101 W Robert E Lee Blvd #405 – New Orleans, LA 70124 – (504) 535-7755