Finding reasonably-priced insurance is not the easiest thing to accomplish, and figuring out which company quotes the lowest-priced auto insurance rates for good students will require even more rate comparisons.
Each auto insurance company has their own guidelines for establishing rates, so first let’s look at the rankings for the lowest cost auto insurance companies in Ohio.
Lowest Insurance Price Quotes for Students
|Rank||Company||Cost Per Year|
|8||Merchants Insurance Group||$771|
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Utica National may offer some of the best car insurance rates in Toledo at around $654 annually. Erie, Allied, Frankenmuth, and Travelers are also some of the cheapest Toledo, OH auto insurance companies.
As the example above demonstrates, if you currently have coverage with Travelers and switched to Erie, you might realize a yearly price reduction of upwards of $72. Ohio drivers with USAA could save as much as $80 a year, and Cincinnati Insurance customers might cut rates by $95 a year.
Remember that these policy rates are averaged for all types of insureds and vehicles and do not factor in a vehicle location for good students. So the insurer that has the cheapest price for you may not even be in the top 33 companies in the list above. That points out the importance of why you need to compare rates from multiple companies using your own driver and vehicle profiles.
One of the more important factors that determine the annual cost of car insurance is the neighborhood you call home. Areas with a lot of weather claims or more people tend to pay slightly more, whereas areas with less congestion tend to receive cheaper rates.
The table below sorts the most costly cities in Ohio for good students to purchase a policy in. Toledo is ranked at #4 with an annual premium of $1,229 for coverage, which is about $102 each month.
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Annual rates are comparative as the specific area where the vehicle is garaged can increase or decrease rates greatly.
The make and model of vehicle that needs insurance is probably the most important factor when shopping around for affordable insurance for good students. Vehicles with lower acceleration and performance, advanced safety features, or low incidents of liability claims will cost less to insure than higher performance models. The next table ranks coverage premiums for a selection of the most economical vehicles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$5,255|
|Honda CR-V EX-L 4WD||$5,309|
|Honda Accord EX-L 4-Dr Sedan||$5,651|
|Ford F-150 XLT Crew Cab 2WD||$5,890|
|Ford Explorer XLT 2WD||$5,899|
|Volkswagen Jetta SE 2.5 Station Wagon||$6,052|
|Honda Odyssey EX W/Rear Entertainment||$6,178|
|Dodge Grand Caravan Hero||$6,232|
|Chevrolet Impala LT||$6,237|
|Jeep Grand Cherokee Laredo 4WD||$6,232|
|Toyota RAV4 2WD||$6,238|
|Chevrolet Equinox LS AWD||$6,232|
|Toyota Tacoma Double Cab 4WD||$6,289|
|Chevrolet Malibu LT||$6,298|
|Chevrolet Silverado LS Regular Cab 2WD||$6,340|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$6,518|
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Ohio minimum liability limits. Discounts applied include claim-free, and safe-driver. Price information does not factor in zip code location which can alter premiums noticeably.
Based upon the rates shown, we can expect models like the Ford Escape, Honda CR-V, Honda Accord, Toyota Prius, and Ford F-150 are most likely to be a few of the cheaper vehicles to insure for student drivers.
The chart below shows how choosing a deductible can raise or lower annual premium costs when getting quotes for cheap insurance for good students. Data assumes a married female driver, full physical damage coverage, and no other discounts are factored in.
As shown above, a 30-year-old driver could lower their car insurance rates by $178 a year by changing from a $100 deductible up to a $500 deductible, or save $272 by changing to a $1,000 deductible. Youthful drivers, such as the 20-year-old example, could drop their prices $384 each year by selecting a higher deductible.
When choosing a higher deductible, it is important to have enough spare savings to pay the extra out-of-pocket expense that is associated with using high deductibles.
Cost of full coverage
Lowering the price of auto insurance should be important to the majority of drivers, and one of the fastest ways to lower the cost of insurance for good students is to not insure for full coverage. The chart below compares auto insurance costs with full physical damage coverage and with liability coverage only. The premiums assume a clean driving record, no at-fault accidents, $250 deductibles, single marital status, and no additional discounts are factored in.
If all age groups are averaged, physical damage insurance costs an additional $1,200 per year more than insuring for liability only. At some point, every insured wonders if buying full coverage is a good investment. There is no clear-cut rule for phasing out full coverage on your policy, but there is a general convention. If the annual cost of comprehensive and collision coverage is more than 10% of replacement cost minus your deductible, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s replacement cost is $4,000 and you have $1,000 deductibles. If your vehicle is severely damaged, the most you would receive is $3,000 after the policy deductible has been paid. If it’s costing you more than $300 a year for physical damage coverage, then you might consider buying liability only.
Selecting the best insurance company is hard considering how many companies sell insurance in Ohio. The information in the lists below could help you pick which car insurance companies to look at comparing rate quotes with.
The rankings below are for companies who write in the majority of U.S. states, so smaller companies that only insure vehicles in Ohio are not factored into this list. If you wish to compare rates from these top-rated insurers and more, click here.
Top 10 Large Auto Insurance Providers Overall in Toledo
- 21st Century
- AAA Insurance
- Liberty Mutual
- Safeco Insurance
- State Farm
- American Family
Why you should be shopping around
Ohio auto insurance rates are influenced by many factors which can substantially change the cost of a policy. Simply getting older, increasing liability limits, or getting into an accident can trigger rate changes that can now make some companies cheaper than competitors.
Also, auto insurance companies amend pricing multiple times each year to help ensure profitability. An extended period of higher than normal claims may result in increased policy costs, while lower claim expenses may produce lower-cost Toledo car insurance rates.
The graph below compares the cheapest car insurance in Toledo, OH for a 35-year-old male driver with a good driving record, no prior claims, and good financial standing. If we compare prices based on his current rating profile, Utica National has the cheapest car insurance rates in Toledo at $841 a year. This is $199 less than the average price paid by Ohio drivers of $1,040. Erie, Frankenmuth, Allied, and USAA round out the rest of the top five cheapest Toledo, OH auto insurance companies.
Now let’s give the driver in the first chart an accident surcharge, a little lower credit rating, and a speeding ticket. Since each insurance company has a unique formula to establish rates, comparing prices may result in a significantly different list of affordable Toledo car insurance companies as shown below.
Cincinnati Insurance now has the cheapest car insurance in Toledo with Merchants Insurance Group, Grange Mutual, Motorists Mutual, and General Casualty also having competitive pricing. This example shows why Toledo drivers need to take the time to shop around when trying to find the most affordable insurance rates for good students. Insurance rates can be determined by many factors and can change substantially, so the most economical option the last time you shopped around may now be quite expensive.