The words “affordable” and “auto insurance” probably shouldn’t be used in the same sentence, especially when you are trying to find the lowest insurance prices for a school permit. In an attempt to save some money, let’s introduce you to some of the factors that help determine insurance rates, and find some ways to reduce the price of your next policy.
The vehicle model you are seeking coverage for is one of the primary factors when comparing quotes for the best auto insurance for a school permit. Vehicles with more horsepower, a lack of advanced safety features, or a history of substantial liability claims will cost more to insure than safer, lower-performance models.
The table below features coverage prices for some of the more affordable automobiles to insure in Louisiana.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $9,113 |
| Ford Escape XLT 4WD | $9,208 |
| Honda CR-V EX-L 2WD | $9,218 |
| Toyota Prius | $9,899 |
| Ford Explorer Eddie Bauer 2WD | $10,221 |
| Ford F-150 XL Crew Cab 2WD | $10,229 |
| Volkswagen Jetta 2.0T Station Wagon | $10,492 |
| Chevrolet Impala LS | $10,722 |
| Ford Focus S 4-Dr Sedan | $10,728 |
| Honda Odyssey EX W/Rear Entertainment | $10,722 |
| Dodge Grand Caravan Hero | $10,817 |
| Jeep Grand Cherokee Laredo 2WD | $10,823 |
| Toyota Camry LE | $10,817 |
| Toyota RAV4 Sport 4WD | $10,825 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $10,912 |
| Chevrolet Malibu LT | $10,917 |
| Honda Civic LX 4-Dr Sedan | $11,315 |
| Toyota Corolla LE | $11,410 |
| Hyundai Elantra GLS 4-Dr Sedan | $11,418 |
| Ford Edge Sport AWD | $11,410 |
| Chevrolet Equinox LTZ AWD | $11,504 |
| Nissan Altima 3.5 SR 4-Dr Sedan | $11,511 |
| Chevrolet Silverado LTZ Crew Cab 4WD | $11,504 |
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Table data represents single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in zip code location which can revise prices greatly.
Based on these rates, we can conclude that makes and models like the Honda Accord, Ford Escape, Honda CR-V, Toyota Prius, and Ford Explorer will definitely be the cheapest vehicles to insure for a learners permit. The cost of auto insurance will be more expensive just because there is more liability risk for a school permit, but in general those particular vehicles will probably have the best insurance prices available.
Buying low-cost car insurance is not the easiest thing to do, and finding out which insurers offer the cheapest car insurance rates for a school permit requires even more work. Each auto insurer uses slightly different criteria for filing rates in each state, so to begin we’ll rank the most competitive car insurance companies in Louisiana.
It’s important that readers know that Louisiana car insurance rates are impacted by many things that will increase or decrease the policy price. Simply improving your credit, marrying your spouse, or getting into an accident may generate price changes that can now make some companies higher when they were quite affordable.
Best Insurance Companies for Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | USAA | $1,594 |
| 2 | MetLife | $1,854 |
| 3 | GEICO | $1,887 |
| 4 | Progressive | $1,927 |
| 5 | Safeway | $2,132 |
| 6 | Southern Farm Bureau | $2,181 |
| 7 | California Casualty | $2,338 |
| 8 | State Farm | $2,431 |
| 9 | Safe Auto | $2,549 |
| 10 | Allstate | $3,065 |
| 11 | Encompass | $3,266 |
| 12 | Liberty Mutual | $3,645 |
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USAA normally has some of the lowest car insurance rates in New Orleans at around $1,594 per year. MetLife, GEICO, Progressive, and Safeway also qualify as some of the best New Orleans, LA insurance companies.
As shown above, if you currently have a policy with MetLife and switched to USAA, you might see annual savings of approximately $260. Insureds with GEICO may save as much as $293 a year, and Progressive customers might reduce rates by $333 a year.
To find cheaper insurance rates for your vehicle, click here to begin a quote or quote prices from the following companies.
Bear in mind that those prices are averages across all types of insureds and vehicles and do not take into consideration a specific vehicle garaging location for a school permit. So the car insurance company that can offer you the best price may not even be in the top 12 companies shown above. That’s why you need to compare rates from as many companies as possible using your own driver and vehicle profiles.
For a learners permit, one of the big factors that are looked at to help calculate auto insurance rates is your address. Regions with larger populations or more claims tend to have more expensive auto insurance rates, whereas areas that tend to be more rural get the luxury of paying less.
The next table sorts the most costly cities in Louisiana for a school permit to purchase a policy in. New Orleans ranks #1 with an annual cost of $2,943 for the average policyholder, which is about $245 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | New Orleans | $2,943 |
| 2 | Harvey | $2,563 |
| 3 | Terrytown | $2,555 |
| 4 | Marrero | $2,494 |
| 5 | Metairie | $2,254 |
| 6 | Shenandoah | $2,204 |
| 7 | Prairieville | $2,169 |
| 8 | Kenner | $2,159 |
| 9 | Baton Rouge | $2,143 |
| 10 | Central | $2,135 |
| 11 | Alexandria | $2,096 |
| 12 | Hammond | $2,065 |
| 13 | Laplace | $2,051 |
| 14 | Lake Charles | $1,993 |
| 15 | Monroe | $1,970 |
| 16 | Slidell | $1,919 |
| 17 | Lafayette | $1,917 |
| 18 | Sulphur | $1,916 |
| 19 | Shreveport | $1,894 |
| 20 | New Iberia | $1,871 |
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Premium costs are approximated as the vehicle garaging location can lower or raise insurance rates noticeably.
Full coverage versus liability-only
Lowering the price of car insurance is important to most vehicle owners, and one of the fastest ways to reduce the cost of insurance for a school permit is to not buy full coverage. The diagram below shows the difference between premium costs with full physical damage coverage compared to only buying the minimum liability limits required in Louisiana. The prices are based on no violations or accidents, $100 deductibles, drivers are not married, and no discounts are applied.
As an overall average, comp and collision coverage costs an extra $2,655 per year more than buying just liability insurance. Many drivers will wonder when is the right time to remove full coverage. There is no clear-cut formula of when to drop comp and collision coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is more than 10% of the replacement cost minus the deductible, the it may be a good time to stop paying for full coverage.
There are a few cases where only buying liability is not in your best interest. If you still owe a portion of the original loan, you must maintain physical damage coverage as part of the loan requirements. Also, if your finances do not allow you to purchase a different vehicle in the even your car is totaled, you should keep full coverage on your policy.
The illustration below highlights how deductible choice can affect insurance prices when researching cheap insurance for a school permit. The price estimates are based on a married female driver, comp and collision included, and no discounts are applied.
As shown above, a 50-year-old driver could lower their car insurance rates by $430 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $644 by selecting a $1,000 deductible. Younger drivers, like the 20-year-old, could lower their rates up to $1,062 annually just by using higher deductibles.
When raising deductibles, it will be necessary to have additional savings on hand to be able to pay the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Here’s why price comparisons are so important
Louisiana car insurance rates are determined by lots of factors that will increase or decrease the price of your policy. Improving your credit score, moving to a new city, or getting a couple of tickets can trigger rate changes that can now make some companies more affordable than others. Not only may things change on your end, but insurers modify pricing as needed to adjust for gains or losses. An unexpected high level of claims can result in rate hikes, while profitable underwriting may produce lower-cost New Orleans car insurance rates.
For instance, the chart below compares the cheapest car insurance in New Orleans, LA for a 35-year-old female driver with no prior claims, no tickets, and a decent credit rating. If we look at prices based on her current rating profile, USAA has the lowest car insurance rates in New Orleans at $2,782 per year. This is $368 more than the average policy premium paid by Louisiana drivers of $2,414. MetLife, Progressive, GEICO, and Safeway are also on the list of the cheapest New Orleans, LA auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates a claim surcharge, slightly worse credit, and a blemish on her driving record. Due to the fact that every insurance company has their own process to determine rates, comparing rates could result in a different list of the cheapest car insurance companies in New Orleans as shown below.
Southern Farm Bureau now has the best car insurance rate in New Orleans, LA with State Farm, USAA, MetLife, and Safe Auto completing the list. This demonstrates why consumers need to take the time to do a thorough rate comparison when trying to get affordable auto insurance rates for a school permit.
Prices are influenced by many things and can increase or decrease at any time, so the cheapest option when you bought your policy may now be one of the higher cost companies.