You’ve seen the commercials from car insurance companies like Farmers and State Farm that say if you switch you’ll get the cheapest rates, so you should just choose the one with the flashiest ad, right?
It’s not quite that easy, unfortunately, as there are a whole bunch of unknown aspects such as what liability limits you need, your date of birth, and if you have a tendency to get into accidents. We will try to teach you about the best ways to save money and will hopefully give you a jump start in finding the best auto insurance in Nashville.
One of the more important factors that are looked at to determine the cost of insurance is where you keep your vehicle. Areas with a lot of weather claims or more people tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The next table sorts the most expensive areas in Tennessee for welfare recipients in which to purchase auto insurance. Nashville shows up at #7 with an annual cost of $1,201 for the average insured, which is approximately $100 per month.
|Rank||City||Average Per Year|
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Annual rates are approximated as specific Nashville garaging address can decrease or increase premium rates noticeably.
The make and model of vehicle to be insured is one of the largest factors when shopping around for low-priced auto insurance for welfare recipients. Vehicles with lower acceleration and performance, good safety features, or a low likelihood of having liability claims will cost much less to insure than fast, unsafe models. The information below features coverage rates for a number of the most economical automobiles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$1,133|
|Honda Accord EX 4-Dr Sedan||$1,138|
|Ford Escape Limited 2WD||$1,200|
|Ford Edge SEL AWD||$1,207|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,216|
|Toyota RAV4 Limited 4WD||$1,230|
|Toyota Camry LE||$1,238|
|Chevrolet Malibu LS||$1,230|
|Toyota Tacoma Double Cab 4WD||$1,253|
|Ford Focus SEL 4-Dr Sedan||$1,273|
|Hyundai Elantra GLS 4-Dr Sedan||$1,296|
|Toyota Corolla XLE||$1,303|
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Data based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Tennessee minimum liability limits. Discounts applied include homeowner, safe-driver, claim-free, multi-policy, and multi-vehicle. Premium costs do not factor in specific location information which can lower or raise coverage rates substantially.
Looking at the data, you can assume that cars like the Honda CR-V, Honda Accord, and Ford Escape are some of the most economical vehicles to insure for drivers on welfare.
Comparing rates for budget car insurance is confusing at best, and finding out which companies offer the cheapest auto insurance rates for welfare recipients takes additional perseverance.
Each insurance company has their own unique process to establish rates, so let’s take a look at the auto insurance companies with the overall best prices in Nashville.
Best Car Insurance Prices in Tennessee
|Rank||Company||Cost Per Year|
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Utica National offers some of the lowest car insurance rates in Nashville at around $744 annually. This is $584 less than the average premium paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA also qualify as some of the more affordable Nashville, TN auto insurance companies.
As the example above demonstrates, if you are currently insured with Penn National and switched to Utica National, you could earn a yearly savings of upwards of $155. Drivers with USAA may save as much as $175 a year, and Tennessee Farmers insureds might realize rate reductions of up to $207 a year.
These prices are averaged across all drivers and vehicles and are not factoring in a specific zip code for welfare recipients. So the insurer that can offer the best rates for your situation may not even be in the top 30 companies shown above. That points out the importance of why you need to quote rates from as many companies as possible using your own specific driver information and vehicle.
The information below shows how choosing a deductible can change yearly insurance costs when quoting cheap insurance for welfare recipients. The information is based on a single female driver, full physical damage coverage, and no discounts are applied.
A 50-year-old driver could lower their car insurance rates by $310 a year by switching from a $100 deductible to a $500 deductible, or save $466 by choosing a $1,000 deductible. Even younger drivers, like the 20-year-old, could lower their rates $794 every year just by using higher deductibles. When increasing deductibles, it is essential to have enough spare savings to offset the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Rate comparison of full coverage and liability-only
Paying a lower price for auto insurance is probably important to most drivers, and an easy way to lower the cost of insurance for welfare recipients is to buy only liability coverage. The information below illustrates the difference between insurance costs when comparing full coverage to liability only. The rates are based on no accidents, no driving violations, $100 deductibles, marital status is single, and no discounts are applied.
As an average, physical damage coverage costs $1,659 per year over liability only. That proposes the question if it’s a good idea to buy full coverage. There is no definitive formula to delete physical damage coverage, but there is a general convention. If the yearly cost for physical damage coverage is more than about 10% of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s assume your vehicle’s replacement value is $9,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most you would receive is $8,000 after the policy deductible has been paid. If you are paying in excess of $800 annually for full coverage, then you might consider buying liability only.
There are a few situations where dropping physical damage coverage is not in your best interest. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage to satisfy the loan requirements. Also, if you can’t afford to buy a different vehicle if your current one is in an accident, you should not opt for liability only.
Low rates can quickly become overpriced
Nashville, TN auto insurance rates are influenced by many factors that can increase the cost of your policy. Simply getting older, adding a teenager to your policy, or getting into an accident may generate price changes resulting in some rates now being more affordable than others.
Not only that, but insurance companies file new Tennessee car insurance rates as often as every quarter to adjust for unexpected claims or profits. Higher than normal claim frequency or severity may cause additional premium costs, while profitable underwriting can cause cheaper Nashville car insurance rates.
To help illustrate this point, the graph below shows the cheapest car insurance in Nashville, TN for a 40-year-old male driver with no accidents, a clean driving record, and solid credit. Based on his current rating profile, Utica National quotes the best car insurance rates in Nashville at $871 per year. This is $457 less than the average price paid by Tennessee drivers of $1,328. Auto-Owners, Cincinnati Insurance, Penn National, and USAA round out the rest of the top five cheapest Nashville, TN auto insurance companies.
The example below compares rates after we give the driver from the above example a claim surcharge, slightly worse credit, and a speeding citation. Since each auto insurance company uses their own formula for determining rates in each state, comparing quotes most likely will result in a new list of the cheapest companies as shown below.
Erie now has the best price on car insurance in Nashville with Nationwide, Allied, Westfield, and GEICO now rounding out the top five. This example shows why it is critical to compare as many rates as possible to find cheap car insurance rates for welfare recipients.
Insurance rates can be altered by many factors and change substantially, so the lowest-price company when you bought your policy may now cost much more than other companies.
How to find more affordable car insurance for welfare recipients
Below you’ll find many penny-pinching ideas that can help drivers buy lower-cost coverage.
- Get cheaper liability coverage by choosing a safer vehicle
- Improve your credit rating
- Bundle home and auto and save
- Do not pay for full coverage on older vehicles
- Do not get into accidents
- Shop around for cheaper rates regularly
That final tip is extraordinarily crucial, as we stressed in the prior information. Rates vary considerably, so don’t be afraid to change to a new company if a cheaper price is available. Staying with the same car insurance company is fine, but it’s not a great idea if it’s costing you money that could be spent on other things. In less than five minutes you could shop around and find cheaper auto insurance for welfare recipients in Nashville.
The Nashville car insurance agencies listed below can most likely aid you in deciding which car insurance company is the best fit, as many consumers aren’t sure which coverage to buy and prefer to get some help when comparing insurance rates for drivers on welfare. It can be difficult to find the cheapest rate yourself, so getting advice from a licensed agent can provide you satisfaction knowing your coverage gives you suitable coverage if you have an accident.
To find a Nashville insurance agency in your neighborhood, click the link after the list.
Affordable Insurance Agency
3225 Gallatin Pike – Nashville, TN 37216 – (615) 645-1900
Jeff Summers – State Farm Insurance Agent
336 21st Ave N – Nashville, TN 37203 – (615) 320-3016
Nationwide Insurance: Gaffney Insurance Agency and Financial Services LLC
946 Jefferson St #103 – Nashville, TN 37208 – (615) 733-3133