One of the many components that are looked at to help calculate auto insurance rates is where you keep your vehicle in Lincoln. Areas with more people or higher crime rates tend to pay more, whereas areas with less congestion tend to receive slightly lower rates.
The information below shows the most expensive cities in Nebraska for drivers under 21 to purchase auto insurance in. Lincoln shows up at #24 with the yearly price of $1,073 for the average insured, which is about $89 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Scottsbluff | $1,360 |
| 2 | Gering | $1,357 |
| 3 | Alliance | $1,300 |
| 4 | North Platte | $1,288 |
| 5 | McCook | $1,279 |
| 6 | Beatrice | $1,272 |
| 7 | Lexington | $1,264 |
| 8 | Omaha | $1,257 |
| 9 | South Sioux City | $1,251 |
| 10 | Kearney | $1,236 |
| 11 | Crete | $1,210 |
| 12 | Blair | $1,188 |
| 13 | Columbus | $1,185 |
| 14 | Seward | $1,179 |
| 15 | Fremont | $1,177 |
| 16 | Nebraska City | $1,176 |
| 17 | Grand Island | $1,170 |
| 18 | Hastings | $1,147 |
| 19 | York | $1,145 |
| 20 | Bellevue | $1,144 |
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Premium costs are estimated as the specific geographic location can change auto insurance rates significantly.
Comparing rates for low-priced car insurance is tough enough, and figuring out which companies have the best auto insurance rates for drivers under 21 will take even more work. Every car insurance company uses a little different formula for determining rates in each state, so let’s begin by examining the auto insurance companies that tend to have lower prices in Lincoln, NE.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Safeco | $780 |
| 2 | The Hartford | $839 |
| 3 | Auto-Owners | $905 |
| 4 | Allied | $921 |
| 5 | Nationwide | $1,007 |
| 6 | Farmers Mutual of Nebraska | $1,009 |
| 7 | Farm Bureau Mutual | $1,020 |
| 8 | State Farm | $1,033 |
| 9 | American National | $1,065 |
| 10 | General Casualty | $1,114 |
| 11 | USAA | $1,162 |
| 12 | American Family | $1,258 |
| 13 | California Casualty | $1,270 |
| 14 | EMC | $1,300 |
| 15 | MetLife | $1,319 |
| 16 | GEICO | $1,322 |
| 17 | Iowa Mutual | $1,347 |
| 18 | Progressive | $1,417 |
| 19 | Farmers | $1,602 |
| 20 | North Star | $1,659 |
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Safeco generally has some of the best car insurance rates in Lincoln at around $780 annually. This is $536 less than the average premium paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Nationwide also make the cut as some of the cheaper Lincoln, NE auto insurance companies.
As depicted above, if you have coverage with Nationwide and switched to The Hartford, you could earn savings of approximately $168. Drivers with Farmers Mutual of Nebraska could save as much as $170 a year, and Farm Bureau Mutual insureds might see rate reductions of $181 a year.
These rates are averaged across all insureds and vehicles and and are not calculated with a vehicle location for drivers under 21. So the auto insurance company that can offer you the best rate may not even be in the top 24 companies in the list above. That illustrates why you need to compare as many prices as possible using your own personal information and vehicle type.
The vehicle to be insured is a significant factor that determines whether or not you find the most affordable coverage for drivers under 21. Vehicles with limited speed and performance, a plethora of safety features, or a positive history of liability claims will cost less to insure than adrenaline junky models. The list below ranks coverage prices for the most budget-friendly vehicles to insure in Nebraska.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $2,592 |
| Honda Accord LX-P 4-Dr Sedan | $2,602 |
| Honda CR-V EX-L 4WD | $2,624 |
| Toyota Prius | $2,840 |
| Ford Explorer XLT AWD | $2,898 |
| Dodge Grand Caravan CV | $2,907 |
| Honda Odyssey EX W/Rear Entertainment | $3,048 |
| Ford Edge SEL 2WD | $3,053 |
| Toyota RAV4 4WD | $3,080 |
| Chevrolet Silverado LS Extended Cab 4WD | $3,087 |
| Volkswagen Jetta LE 4-Dr Sedan | $3,080 |
| Chevrolet Malibu LT | $3,114 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $3,119 |
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Above prices assume single male driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in the specific area where the vehicle is garaged which can change prices considerably.
Looking at the rates, you can conclude that makes and models like the Ford Escape, Honda Accord, and Honda CR-V will definitely be the more affordable vehicles to insure for minors. The price for an auto insurance policy will be more expensive because there is more claim risk for drivers under 21, but generally speaking those vehicles will probably have the cheapest rates possible.
Discounts on Lincoln car insurance rates
Insurance providers that offer coverage for drivers under 21 could also offer special discounts that could reduce prices by 30% or more if you meet eligibility requirements. A list of companies and the discounts they provide can be read below.
- GEICO has savings for membership and employees, seat belt use, defensive driver, multi-vehicle, and good student.
- SAFECO includes discounts for drive less, homeowner, multi-car, bundle discounts, anti-lock brakes, safe driver, and anti-theft.
- State Farm offers discounts including defensive driving training, multiple autos, passive restraint, Drive Safe & Save, and accident-free.
- MetLife has discounts for good driver, good student, accident-free, defensive driver, multi-policy, and claim-free.
- 21st Century may have discounts that include 55 and older, homeowners, good student, early bird, and automatic seat belts.
- Progressive policyholders can earn discounts including good student, multi-policy, online quote discount, homeowner, and multi-vehicle.
The illustration below illustrates the comparison of car insurance costs with and without discounts. The price estimates are based on a male driver, no claims or driving violations, Nebraska state minimum liability limits, full physical damage coverage, and $1,000 deductibles. The first bar for each age group shows premium with no discounts. The second bar shows the rates with passive restraint, marriage, homeowner, safe-driver, anti-theft, and multiple vehicle discounts applied. When these discounts are applied, the average savings per year on auto insurance for drivers under 21 is 28% or $568.
Full coverage versus liability only rates
Reducing premiums for auto insurance should be important to the majority of drivers, and one good way to buy cheaper insurance for drivers under 21 is to buy only liability coverage. The example below illustrates the difference between annual premium costs with full coverage compared to only the Nebraska minimum liability coverage. The premiums are based on no claims or driving violations, $500 deductibles, single status, and no discounts are factored in.
Averaged out for all age groups, full coverage costs an additional $1,417 per year more than just buying liability only. That touches on the question if it’s a good idea to buy full coverage. There is no written rule of when to eliminate physical damage coverage, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than about 10% of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s assume your vehicle’s replacement cost is $4,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most you would receive is $3,500 after paying the physical damage deductible. If you are paying more than $350 annually to have full coverage, then it could be time to drop full coverage.
There are a few situations where removing full coverage is not a good plan. If you still have a loan on your vehicle, you have to carry full coverage to satisfy 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 not remove full coverage.
Low rates today, overpriced tomorrow
Lincoln auto insurance rates are calculated based on many things that may substantially change your annual premium. Simply having another birthday, having a claim, or having an at-fault accident can produce rate changes resulting in some companies being more affordable than competitors.
In addition, insurers change their prices as often as every quarter to reflect underwriting profits or losses. Higher than usual claims may cause additional price hikes, while less frequent claims may cause lower-cost Lincoln car insurance rates.
The graph below shows a variety of companies that have the cheapest car insurance in Lincoln, NE for a 40-year-old male driver with no accidents or violations, and solid credit. When quoting prices based on his current risk profile, Safeco has the best car insurance rates in Lincoln at $804 annually. This is $512 less than the average price paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farmers Mutual of Nebraska are also on the list of the cheapest Lincoln, NE auto insurance companies.
In this example, we will give the driver in the first example some claims, a lower credit score, and a traffic ticket or two. Because every insurance company has their own formula to determine rates, comparing rates may result in a different list of affordable Lincoln car insurance companies as shown below.
State Farm now has the lowest price in Lincoln with Nationwide, American National, General Casualty, and USAA completing the list. This example demonstrates why consumers need to perform a complete rate comparison to get the cheapest auto insurance rates for drivers under 21.
Rates are impacted by many things and can decrease or increase without notice, so the most economical option two years ago may now be an over-priced policy.
If you wish to get some help when comparing insurance rates for drivers under 21, the agents below can help you decide which coverage fits your budget.
To find an agent in your neighborhood, click the button after the list.
American Family Insurance – Linde Matthiesen
245 S 84th St #117 – Lincoln, NE 68510 – (402) 489-7799
Allstate Insurance: Erik Brooks
1600 Normandy Ct #110 – Lincoln, NE 68512 – (402) 261-3959
Barney Insurance-Lincoln
701 N 48th St – Lincoln, NE 68504 – (402) 467-4633
Shelter Insurance – Richard Diers
4242 Cornhusker Hwy – Lincoln, NE 68504 – (402) 464-9511
View map of Lincoln, NE insurance agents
How to find more affordable insurance for drivers under 21
Below you’ll find some penny-pinching solutions that can help you quote low-cost car insurance.
- Buy a vehicle with excellent safety ratings
- Save money by staying claim-free
- Bundle home and auto and earn a discount
- Maintain a clean driving record
- At-fault accidents can raise rates significantly
- Compare quotes from other companies often
The last tip is very critical, as was affirmed in this piece. Coverage rates can change considerably based on profitability, so don’t be tentative to switch carriers if a cheaper rate is available.
Many drivers prefer to stick with one company, but it’s not recommended if that loyalty ends up costing hundreds of dollars year after year. Take a couple minutes and compare prices and find cheaper car insurance for drivers under 21 in Lincoln.