It’s hard to avoid all the catchy commercials from car insurance companies like Nationwide and Farmers that claim huge savings. So drivers should just choose one randomly, right?
Unfortunately, it’s not that simple as there are a ton of unknowns such as the safety ratings of your vehicle, how many years you have been driving, if you own or rent your home, and if you have ever had a gap in coverage, that all go into determining the rate you pay. If you keep reading, we will teach you about some of these topics and should give you a good beginning to your quest for cheaper car insurance.
Finding out which insurers offer the lowest-priced insurance rates for low mileage drivers involves more time than just picking a company at random. Each company used slightly different criteria for determining rates, so to begin we’ll rank the lowest cost insurance companies in Lincoln.
It’s important to understand that Lincoln insurance rates are based on many factors that control the price you pay for coverage. Simply improving your credit, marrying your spouse, or having an accident can trigger price changes that may make certain companies more affordable than before.
Cheap Insurance Rates in Nebraska
Safeco normally has some of the most affordable car insurance rates in Lincoln at around $804 each year. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual also are some of the most economical Lincoln, NE car insurance companies.
As shown in the table above, if you are a policyholder with The Hartford and switched to Safeco, you could realize a yearly price reduction of approximately $69. Insureds with Auto-Owners could save as much as $128 a year, and Allied customers might see rate reductions of $145 a year.
Understand that those rates are averages across all ages of drivers and types of vehicles and and are not calculated with a vehicle location for low mileage drivers. So the insurer that can offer the best rates for your situation may not even be in the top 24 companies in the list above. That emphasizes why you need to quote rates from many companies using your own individual information.
The make and model of vehicle driven is one of the largest factors when comparing cheaper auto insurance for low mileage drivers. Vehicles with high performance engines, poor crash test ratings, or a history of substantial liability claims will cost substantially more to insure than safer, lower-performance models. The data below ranks coverage prices for a selection of the most cost-effective automobiles to buy insurance for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $776 |
| Honda Accord EX 4-Dr Sedan | $781 |
| Honda CR-V LX 4WD | $776 |
| Ford Explorer XLT AWD | $872 |
| Hyundai Elantra GLS Touring Station Wagon | $890 |
| Ford Edge SEL AWD | $902 |
| Chevrolet Malibu LS | $920 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $952 |
| Toyota Prius | $984 |
| Ford Fusion SEL 4-Dr Sedan | $991 |
| Toyota Corolla XRS | $984 |
| Kia Optima LX | $986 |
| Honda Odyssey EX | $1,034 |
| Compare Cheap Rates Go | |
Prices based on single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, claim-free, multi-vehicle, multi-policy, and homeowner. Premium costs do not factor in specific location which can lower or raise prices significantly.
Based on these rates, you can infer that makes and models like the Ford Escape, Honda Accord, Honda CR-V, and Ford Explorer are going to be some of the cheapest vehicles to insure for infrequent drivers.
The chart below demonstrates how deductible levels can increase or decrease premium costs when searching for cheap insurance for low mileage drivers. The rates are based on a married female driver, comp and collision included, and no additional discounts are factored in.
The data above shows that a 30-year-old driver could pocket $330 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $500 by changing to a $1,000 deductible. Young drivers, like the 20-year-old category, can cut as much as $708 annually by choosing a larger deductible amount.
When raising deductibles, it is a good idea to have enough savings to enable you to pay the extra out-of-pocket expense that comes with higher deductibles.
Does full coverage make sense?
Paying a lower price for insurance is important to the majority of drivers, and one way to find cheaper insurance for low mileage drivers is to buy only liability coverage. The diagram below shows the difference between insurance prices with and without full coverage. The data assumes no claims, a clean driving record, $100 deductibles, single status, and no policy discounts are applied.
If the expense is averaged for all age categories, physical damage insurance costs an additional $1,917 per year more than buying just liability insurance. At some point, almost every driver questions when is the right time to remove full coverage. There isn’t a written rule to stop buying comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is 10% or more of the vehicle’s replacement cost less your deductible, then it could be time to drop full coverage.
For example, let’s say your vehicle’s book value is $7,000 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most you would receive is $6,000 after you pay the deductible. If it’s costing in excess of $600 a year for comprehensive and collision coverage, then you might consider buying liability only.
Low rates today, overpriced tomorrow
Lincoln insurance rates are calculated based on many things that can increase the price you have to pay for coverage. Improving your credit score, buying a new vehicle, or getting a speeding ticket may generate price changes resulting in some companies being more affordable than before. In addition to those changes, insurance companies amend premium rates as often as every quarter to adjust for gains or losses. An extended period of higher than normal claims may result in increased rates, while a better loss history may result in cheaper Lincoln car insurance rates.
The data below analyzes the cheapest car insurance in Lincoln, NE for a 35-year-old male driver with a clean driving record, no accidents, and a decent credit rating. Based on his current risk profile, Safeco may offer the most affordable car insurance rates in Lincoln at $788 per year. This is $528 less than the average premium paid by Nebraska drivers of $1,316. The Hartford, Allied, Auto-Owners, and Farmers Mutual of Nebraska round out the rest of the best Lincoln, NE auto insurance companies.
Let’s now give the driver in the first chart an accident claim, a little lower credit rating, and a few traffic violations. Because every insurance company has a unique formula for setting prices, comparing insurance quotes could now result in a new list of the cheapest car insurance companies in Lincoln as shown below.
Farm Bureau Mutual now has the lowest car insurance rate in Lincoln with State Farm, American National, General Casualty, and USAA now being in the top five. This example shows why it is important to perform an extensive rate comparison to get cheap auto insurance quotes for low mileage drivers.
Car insurance prices can be altered by many risk factors and can increase or decrease at any time, so the cheapest company a year ago may now be costing you a lot of money.
How to find low-cost auto insurance for low mileage drivers
It’s not impossible to find cheaper rates, and here are some of the recommended thrifty solutions that can help you find low-cost coverage.
- Full coverage is expensive so only insure older vehicles for liability only
- Clean up your credit rating
- Avoid accidents
- Higher physical damage deductibles lower rates
- Vehicles with good safety ratings are usually cheaper to insure
- Avoid getting tickets or violations
- Ensure you have the best deal by shopping around regularly
The last tip in the list is very vital, as was stressed in this article. Car insurance prices in Lincoln can change considerably based on profitability, so don’t be unwilling to change to a new company if you can find a cheaper rate. Being loyal to a particular company is commendable, but it’s not recommended if that dedication is costing lots of hard earned cash every month. Spend a few minutes and shop around and find cheaper insurance for low mileage drivers.
The agencies below can help you decide which insurance coverage will be best for you, since lots of drivers aren’t clear which coverage they need and would like to have a consultation when trying to find the best insurance rates for infrequent drivers. It can be complicated to find the cheapest car insurance policy, so insurance agents can provide comfort knowing your coverage gives you enough coverage when you need it.
To find a Lincoln insurance agency by location nearest to you, click the button below the list or click here to get price quotes now.
- Solomon Halim – State Farm Insurance Agent
4007 S 48th St – Lincoln, NE 68506 – (402) 486-3839 - Gale Breed – State Farm Insurance Agent
8421 Amber Hill Ct #1 – Lincoln, NE 68526 – (402) 483-2802 - Allstate Insurance: Erik Brooks
1600 Normandy Ct #110 – Lincoln, NE 68512 – (402) 261-3959 - State Farm: Vinnie Krikac
935 Plum St – Lincoln, NE 68502 – (402) 474-1173 - UNICO Group
1128 Lincoln Mall #200 – Lincoln, NE 68508 – (402) 434-7200