The words “affordable” and “insurance” really shouldn’t be used in the same sentence, specifically when you are searching for the best price on coverage for 4×4 vehicles. Let’s go over some of the factors that influence car insurance rates, and figure out some ideas to take the sting out of the next policy you buy.
For off-road vehicles, one of the largest considerations that are looked at to determine the price you pay for insurance is the neighborhood you call home. Areas with high crime rates or more dense population likely pay more, whereas areas with less crime or weather claims have the gratification of cheaper auto insurance rates.
The illustration below ranks the most costly cities in Louisiana for 4×4 vehicles to buy an auto insurance policy in. New Orleans is ranked #1 having an annual price of $2,943 on average, which is around $245 per month.
|Rank||City||Average Per Year|
|Find Cheaper Rates Go|
Premium costs are approximated as specific New Orleans zip code can revise prices substantially.
Figuring out which company quotes the most affordable insurance rates for 4×4 vehicles may require more time in order to find the best policy. Each insurance company has a proprietary formula for establishing rates, so let’s examine the insurance companies that tend to have lower prices in New Orleans.
It’s important to understand that New Orleans, LA insurance rates are based on many factors that control the price you pay for coverage. Improving your credit rating, moving to a new city, or having a fender bender can trigger price changes resulting in some companies being cheaper than competitors.
Find Cheaper Auto Insurance for 4×4’s
USAA generally has some of the best car insurance rates in New Orleans at around $1,642 annually. This is $772 less than the average rate paid by Louisiana drivers of $2,414. MetLife, GEICO, Progressive, and Southern Farm Bureau also qualify as some of the cheaper New Orleans, LA auto insurance companies.
In the rate table above, if you currently have a policy with Progressive and switched to USAA, you may realize yearly savings of approximately $285. Customers with Southern Farm Bureau could save as much as $539 a year, and Safeway insureds might reduce prices by as much as $556 a year.
If you want to find out if you’re overpaying, click here to start your custom quote or visit several of the following companies.
Bear in mind that those rates are averages across all insureds and vehicles and do not take into consideration a specific location for 4×4 vehicles. So the insurer that has the cheapest price for you may not even be in the top 12 companies shown above. That point stresses why you need to get rate quotes using your own individual information.
The car, truck, or SUV driven is a large consideration when comparison shopping for the lowest-priced car insurance for 4×4 vehicles. Vehicles with economical engines, an excellent safety record, or a low likelihood of liability claims will cost substantially less to insure than high performance models.
The list below shows car insurance prices for a number of the cheaper vehicles to insure.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord EX 4-Dr Sedan||$2,168|
|Honda CR-V LX 2WD||$2,374|
|Chevrolet Silverado LS Regular Cab 4WD||$2,380|
|Jeep Wrangler Sport 4WD 2-Dr||$2,447|
|Hyundai Elantra GLS Touring Station Wagon||$2,450|
|Ford Escape XLT 4WD||$2,513|
|Toyota Tacoma 4WD||$2,659|
|Hyundai Sonata GLS 4-Dr Sedan||$2,752|
|GMC Sierra SL Crew Cab 2WD||$2,759|
|Jeep Grand Cherokee Limited 2WD||$2,769|
|Ford F-150 FX2 Super Cab 2WD||$2,762|
|Ford Explorer XLT 2WD||$2,772|
|Toyota RAV4 2WD||$2,812|
|Honda Odyssey EX||$2,832|
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Prices above based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Louisiana minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, multi-vehicle, and claim-free. Rate information does not factor in specific zip code location which can increase or decrease premium rates significantly.
Based on these rates, you can assume that cars like the Honda Accord, Honda CR-V, and Chevrolet Silverado are likely to be some of the cheapest vehicles to insure for off-road vehicles.
Full coverage rates compared to liability only
Saving money on insurance is important to most people, and one of the easiest ways to reduce the cost of insurance for 4×4 vehicles is to not buy full coverage. The diagram below shows the difference between auto insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on no claims, a clean driving record, $100 deductibles, drivers are not married, and no discounts are taken into consideration.
If all age groups are averaged, full coverage costs $2,655 per year more than just insuring for liability. Many of you may wonder when is it safe to stop buying full coverage. There is no definitive formula for eliminating physical damage coverage on your policy, but there is a general guideline. If the annual cost of comprehensive and collision coverage is more than 10% of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
For example, let’s pretend your vehicle’s claim settlement value is $11,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would get paid by your company is $10,500 after you pay the deductible. If you are currently paying more than $1,050 annually for full coverage, then it could be time to drop full coverage.
There are some cases where dropping full coverage is not advised. If you haven’t satisfied your loan, you have to maintain full coverage as part of the loan requirements. Also, if you can’t afford to buy a different vehicle if your current one is in an accident, you should keep full coverage in place.
The example below illustrates how your deductible choice can change annual premium costs when getting quotes for cheap insurance for 4×4 vehicles. The costs are based on a single male driver, full physical damage coverage, and no discounts are factored in.
In the chart above, a 30-year-old driver could lower rates by $514 a year by increasing from a $100 deductible up to a $500 deductible, or save $774 by selecting a $1,000 deductible. Younger drivers, such as the 20-year-old chart data, could lower their rates as much as $1,506 every year just by using higher deductibles.
When raising deductibles, it is important to have enough funds in savings to enable you to pay the extra out-of-pocket expense associated with higher deductibles.
Safe drivers pay less for insurance
The obvious way to get the most affordable insurance premiums in Louisiana for off-road vehicles is to be a safe driver and have a clean driving record. The example below demonstrates how speeding tickets and at-fault claims raise insurance prices for different ages of insureds. The price estimates are based on a married female driver, comprehensive and collision coverage, $100 deductibles, and no policy discounts are applied.
In the previous chart, the average cost of car insurance per year with no accidents and a clean driving record is $2,728. Factor in one speeding ticket and the average cost increases to $3,178, an increase of $451 each year. Then include two accidents along with the one speeding ticket and the 12-month cost of insurance for 4×4 vehicles goes up to an average of $6,997. That’s an increase of $4,269, or $356 per month, just for not paying attention while driving!
You may be paying too much for car insurance
Louisiana insurance rates are impacted by many factors that will increase or decrease your annual premium. Simply turning a year older, buying a new vehicle, or getting a driving violation can produce rate changes that may make certain companies cheaper in comparison to the competition.
Additionally, auto insurance companies amend premium rates without warning to ensure their profitability. Unexpectedly high claims can result in high rates, while profitable underwriting can produce cheaper New Orleans car insurance rates.
To help illustrate this point, the data below shows which companies have the cheapest car insurance in New Orleans, LA for a 30-year-old female driver with a clean driving record, no accidents, and a good credit rating. If we look at prices based on her current rating profile, USAA may offer the lowest car insurance rates in New Orleans at $2,699 per year. This is $285 more than the average rate paid by Louisiana drivers of $2,414. GEICO, MetLife, Progressive, and Safeway are also on the list of the cheapest New Orleans, LA auto insurance companies.
Now let’s give the driver in the first example a claim surcharge, a lower credit score, and a couple of points charged on her driving record. Since each company uses a different method for establishing rates, getting updated rate quotes most likely will result in a completely different list of affordable companies as shown below.
California Casualty now has the best price on car insurance in New Orleans with State Farm, GEICO, MetLife, and Safe Auto also being competitive. This example illustrates why Louisiana drivers need to take the time to shop around when trying to find the most budget-friendly auto insurance quotes for 4×4 vehicles.
Insurance prices are impacted by many things and can decrease or increase without notice, so the lowest-price company the last time you checked may now be priced much higher than other options.