The words “economical” and “auto insurance” probably shouldn’t be used together, in particular when you are trying to find the best car insurance for a learners permit. Because it’s not cheap, let’s introduce you to a few of the factors that have a considerable impact on auto insurance premiums, and find some ways to take a little off the next policy you buy.
Trying to buy low-cost insurance is difficult, and figuring out which insurers offer the lowest-priced insurance rates for a learners permit involves a little more work. Every insurance company has a proprietary formula for filing rates in each state, so let’s rank the insurance companies with the overall best prices in Nebraska.
We do need to point out that Nebraska insurance rates are calculated based on many things that can increase the price of coverage. Getting older, buying a home, or getting a ticket for running a stop sign may generate price changes that can cause some rates to be less affordable than competitors.
Find the Best Cheap Insurance in Nebraska
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Safeco | $804 |
| 2 | The Hartford | $865 |
| 3 | Auto-Owners | $896 |
| 4 | Allied | $949 |
| 5 | Farm Bureau Mutual | $980 |
| 6 | Farmers Mutual of Nebraska | $1,009 |
| 7 | Nationwide | $1,037 |
| 8 | American National | $1,054 |
| 9 | State Farm | $1,065 |
| 10 | General Casualty | $1,092 |
| 11 | USAA | $1,116 |
| 12 | California Casualty | $1,257 |
| 13 | MetLife | $1,293 |
| 14 | American Family | $1,296 |
| 15 | EMC | $1,300 |
| 16 | Iowa Mutual | $1,334 |
| 17 | GEICO | $1,348 |
| 18 | Progressive | $1,445 |
| 19 | Farmers | $1,586 |
| 20 | North Star | $1,642 |
| Get Personalized Rates Go | ||
Safeco quotes some of the lowest car insurance rates in Lincoln at around $804 annually. This is $512 less than the average price paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farm Bureau Mutual also qualify as some of the best Lincoln, NE insurance companies.
As illustrated above, if you are currently insured with The Hartford and switched to Safeco, you might realize savings of about $61. Customers with Auto-Owners could save as much as $92 a year, and Allied customers might realize rate reductions of up to $145 a year.
These premium estimates are averaged across all drivers and vehicles and do not factor in a vehicle location for a learners permit. So the insurer that is most affordable for your situation may not even be in the top 24 companies in the list above. That affirms the importance of why you need to compare prices as often as possible using your own driver information and specific vehicle type.
The car, truck, or SUV on the policy is a large consideration when trying to find the best cheap car insurance for a learners permit. Vehicles with high performance, a lack of safety features, or high incidents of liability claims will cost substantially more to insure than safer, lower-performance models.
The data below shows coverage rates for the cheapest vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $3,180 |
| Honda CR-V EX-L 2WD | $3,212 |
| Toyota Prius | $3,452 |
| Dodge Grand Caravan CV | $3,562 |
| Ford F-150 FX2 Super Cab 2WD | $3,567 |
| Ford Edge SE AWD | $3,736 |
| Jeep Grand Cherokee Laredo 4WD | $3,768 |
| Chevrolet Silverado LS Extended Cab 4WD | $3,773 |
| Toyota Camry LE | $3,768 |
| Chevrolet Malibu LS | $3,775 |
| Chevrolet Equinox LT AWD | $3,768 |
| Toyota RAV4 Sport 2WD | $3,774 |
| Ford Explorer Eddie Bauer 4WD | $3,802 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $3,940 |
| Ford Focus SES 4-Dr Sedan | $3,944 |
| Start a Quote Go | |
Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in specific location which can affect insurance rates noticeably.
Looking at the data, makes and models like the Ford Escape, Honda CR-V, and Toyota Prius are going to be some of the cheaper vehicles to insure for new drivers. Prices will be more expensive because there is more exposure for a learners permit, but in general those specific models will have the best rates compared to all other vehicles.
One of the many factors that determine the cost of insurance is your zip code in Lincoln. Cities with more crime and/or more people are more likely to have higher rates, whereas less populated areas benefit from lower coverage costs.
The information below ranks the most expensive areas in Nebraska for a learners permit to purchase auto insurance in. Lincoln shows up at #24 with an annual cost of $1,062 for car insurance, which is about $89 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Scottsbluff | $1,374 |
| 2 | Lexington | $1,316 |
| 3 | Gering | $1,303 |
| 4 | Alliance | $1,300 |
| 5 | McCook | $1,292 |
| 6 | Beatrice | $1,272 |
| 7 | Omaha | $1,270 |
| 8 | South Sioux City | $1,264 |
| 9 | North Platte | $1,262 |
| 10 | Seward | $1,227 |
| 11 | Nebraska City | $1,212 |
| 12 | Crete | $1,210 |
| 13 | Blair | $1,200 |
| 14 | Kearney | $1,188 |
| 15 | Fremont | $1,177 |
| 16 | Columbus | $1,174 |
| 17 | Grand Island | $1,158 |
| 18 | York | $1,156 |
| 19 | La Vista | $1,150 |
| 20 | Hastings | $1,147 |
| Find the Best Rates Go | ||
Premium amounts are comparative as the specific garaging location can modify price quotes substantially.
How to find a good Nebraska insurance company
Finding the best car insurance provider is hard considering how many different companies sell coverage in Lincoln. The rank data in the next section may help you analyze which car insurance companies you want to consider when comparing rate quotes. These ratings are for large nationwide companies, so smaller companies will not be included in the list.
Top 10 Major Car Insurance Companies in Lincoln Ranked by Value
- USAA
- GEICO
- AAA Insurance
- Liberty Mutual
- State Farm
- Allstate
- Safeco Insurance
- Travelers
- 21st Century
- Nationwide
Driving violations and accidents
The easiest way to enjoy the cheapest insurance rates in Nebraska for new drivers is to drive cautiously and avoid accidents and traffic citations. The example below highlights how traffic violations and fender-benders increase car insurance costs for each different age category. The premiums are based on a single male driver, comprehensive and collision coverage, $100 deductibles, and no discounts are factored in.
The data above shows the average cost of an auto insurance policy per year with a clean driving record and no accidents is $2,305. Add in two speeding tickets and the average cost jumps to $3,060, an increase of $756 each year. Now throw in two accidents along with the two speeding tickets and the annual cost of insurance for a learners permit increases to an average of $5,767. That’s an increase of $3,462, or $289 per month, just for not being more responsible behind the wheel!
Rate difference between full and liability-only coverage
Paying a lower price for insurance should be important to most people, and one way to reduce the cost of insurance for a learners permit is to only buy liability insurance. The illustration below illustrates the difference between insurance prices when comparing full coverage to liability only. The premium estimates are based on no claims, a clean driving record, $250 deductibles, single marital status, and no other discounts are factored in.
If averaged out across all ages, comp and collision coverage costs $2,107 per year more than just insuring for liability. That brings up the question if full coverage is worth the money. There is no specific rule to stop paying for full coverage on your policy, but there is a general guideline you can use. If the yearly cost of full coverage is more than about 10% of replacement cost minus your deductible, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s settlement value is $4,000 and you have $1,000 deductibles. If your vehicle is totaled, you would only receive $3,000 after you pay the deductible. If you are paying in excess of $300 annually to have full coverage, the it may be a good time to stop paying for full coverage.
There are some conditions where only buying liability is not recommended. If you still have a lienholder on your title, you have to keep full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle if your current one is in an accident, you should keep full coverage in place.
You may be paying too much for car insurance
Lincoln, NE insurance rates are determined by lots of factors which can substantially change the price you have to pay for coverage. Simply turning a year older, filing a claim, or having an at-fault accident can trigger rate changes resulting in some rates now being more affordable than the competition. Not only may your situation change, but insurance companies change the rates they charge in Nebraska multiple times each year to help ensure profitability. Larger than normal claims may cause rate hikes, while profitable underwriting may produce lower-priced Lincoln car insurance rates.
To illustrate this point, the bar chart below shows a variety of companies that have the cheapest car insurance in Lincoln, NE for a 40-year-old female driver with no violations or accidents, and a good credit rating. When comparing rates based on her current risk profile, Safeco offers the cheapest car insurance rates in Lincoln at $812 per year. This is $504 less than the average premium paid by Nebraska drivers of $1,316. The Hartford, Allied, Auto-Owners, and Farm Bureau Mutual are also on the list of the cheapest Lincoln, NE auto insurance companies.
Let’s now give the driver from the above example a chargeable accident, a lower credit rating, and a couple of points charged on her driving record. Since every car insurance company has a proprietary method to determine rates, analyzing rates may now present a significantly different list of affordable Lincoln car insurance companies as shown below.
Farmers Mutual of Nebraska now has the best price on car insurance in Lincoln with State Farm, American National, General Casualty, and USAA also having competitive pricing. This demonstrates why it is critical to take the time to shop around to find the most affordable car insurance rates for a learners permit. Auto insurance prices are impacted by many factors and change substantially, so the cheapest option three years ago may now cost much more than other companies.