What Car Insurance is Cheapest for First-time Drivers in Portland?

Finding good, low-cost car insurance is hard enough, and figuring out which companies have the cheapest auto insurance rates for first-time drivers involves even more rate comparisons. Every car insurance company has a unique formula to establish rates, so let’s begin by taking a look at the auto insurance companies with the overall best prices in Portland.

It’s a good idea to know that Portland auto insurance rates are impacted by many things which can substantially change the cost of your policy. This price variation is why it is so important to perform an extensive rate comparison to get the most economical insurance quotes for first-time drivers. Car insurance prices are made up of many different factors and can increase or decrease at any time, so the cheapest rate when you bought your policy may now be wasting a lot of money.

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What’s the cheapest car insurance in Oregon?
Rank Company Cost Per Year
1 Grange $715
2 Country $847
3 Oregon Mutual $853
4 Travelers $914
5 USAA $970
6 State Farm $1,029
7 GEICO $1,155
8 Amica $1,171
9 Allied $1,179
10 Mutual Enumclaw $1,212
11 Progressive $1,222
12 California Casualty $1,230
13 MetLife $1,340
14 21st Century $1,364
15 American Family $1,431
16 Encompass $1,606
17 Allstate $1,671
18 Farmers $1,935
19 Safeco $2,238
20 Liberty Mutual $2,508
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Grange normally has some of the cheapest car insurance rates in Portland at around $715 per year. Country, Oregon Mutual, Travelers, and USAA would also be considered some of the lowest-priced Portland, OR car insurance companies.

As illustrated above, if you are a customer of Country and switched to Grange, you may see an annual premium reduction of about $132. Oregon drivers with Oregon Mutual might save as much as $138 a year, and Travelers insureds might reduce rates by $199 a year.

These policy rates are averaged across all insureds and vehicles and and are not figured with a specific location for first-time drivers. So the insurer that has the cheapest price for you may not even be in the top 22 companies in the list above. That is why you need to compare as many prices as possible using your own specific driver information and vehicle.

The type of vehicle to be insured is one of the largest considerations that determines whether or not you can buy the most affordable insurance for first-time drivers. Vehicles with limited speed and performance, a great safety record, or a positive history of liability claims will cost less to insure than higher performance models. The data below presents coverage rates for a number of the cheaper automobiles to insure in Oregon.

Cheapest Vehicles to Insure in Portland, OR
Make, Model, and Trim Level Estimated Cost for Full Coverage
Honda CR-V LX 2WD $5,660
Ford Escape XLT 4WD $5,721
Honda Accord EX-L 4-Dr Sedan $6,092
Volkswagen Jetta S 2.5 Station Wagon $6,098
Hyundai Elantra SE Touring Station Wagon $6,092
Toyota Prius $6,151
Ford F-150 FX2 Super Cab 2WD $6,346
Ford Edge SE AWD $6,655
Honda Odyssey EX W/Rear Entertainment $6,663
Ford Focus SE 4-Dr Sedan $6,655
Chevrolet Impala LS $6,660
Chevrolet Equinox LT 2WD $6,717
Jeep Grand Cherokee Laredo 4WD $6,722
Chevrolet Malibu LS $6,717
Dodge Grand Caravan Hero $6,723
Toyota RAV4 2WD $6,717
Toyota Tacoma Double Cab 4WD $6,776
Ford Explorer Limited AWD $6,784
Toyota Camry SE $7,085
Toyota Corolla XRS $7,144
GMC Sierra SLE Regular Cab 4WD $7,151
Ford F-350 Super Cab Cabela Package 2WD $7,203
Kia Optima LX $7,261
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Data rating is based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Oregon minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in the specific area where the vehicle is garaged which can alter coverage rates substantially.

Based upon the table data, we can assume that models like the Honda CR-V, Ford Escape, Honda Accord, Volkswagen Jetta, and Hyundai Elantra are the most affordable vehicles to insure for new drivers. The cost of a car insurance policy will tend to be more expensive anyway because of the fact that there is more exposure for first-time drivers, but overall those specific models will have the cheapest car insurance rates compared to all other vehicles.

Safe drivers Portland pay cheaper rates

The obvious way to find the best auto insurance premiums for new drivers is to drive carefully and avoid accidents and violations. The chart below demonstrates how citations and at-fault fender-benders can drive up car insurance rates for each different age group. The prices are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are taken into consideration.

In the chart above, the average cost of a car insurance policy in Oregon per year with no accidents and a clean driving record is $1,598. Receive two speeding tickets and the average cost surges to $2,142, an increase of $544 each year. Now include one accident along with the two speeding tickets and the annual cost of auto insurance for first-time drivers increases to an average of $2,684. That’s an increase of $1,086, or $91 per month, just for not driving attentively!

Does it make sense to buy full coverage?

Reducing premiums for auto insurance is important to the majority of vehicle owners, and one good way to save on the cost of insurance for first-time drivers is to buy only liability coverage. The information below visualizes the comparison of yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Oregon. The information is based on no tickets, no at-fault accidents, $100 deductibles, drivers are not married, and no policy discounts are applied.

If averaged for all ages, full coverage costs $1,834 per year over liability only. Many drivers may wonder if buying full coverage is worth the money. There is no clear-cut rule to exclude comprehensive and collision coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is more than 10% of replacement cost minus your deductible, then it could be time to drop full coverage.

For example, let’s assume your vehicle’s replacement cost is $12,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $11,000 after you pay the deductible. If premiums are more than $1,100 annually for full coverage, then it might be time to buy liability only.

Discounts on Portland car insurance

Save on auto insurance for new drivers in PortlandAuto insurance companies that provide coverage for first-time drivers may have special discounts that can reduce rates by 40% or more if you meet eligibility requirements. Large auto insurance companies and some of their more popular discounts are outlined below.

The information below visualizes the comparison of insurance rates with and without discounts. The costs are based on a female driver, no violations or accidents, Oregon state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.

The first bar for each age group shows the price with no discounts. The second bar shows the rates with good student, anti-theft, passive restraint, paid-in-full, vehicle safety, and paperless filing discounts applied. With discounts applied, theaverage amount saved on auto insurance for first-time drivers is 28% or $452.

Comparing rates can save you money

Portland, OR auto insurance rates are based on many factors which can significantly increase or decrease your annual premium. Improving your credit score, moving to a different location, or getting caught speeding can trigger price changes resulting in some companies being much cheaper than others.

Not only may your situation change, but auto insurance companies modify pricing as needed to adjust for heavy claims or excess profits. An extended period of higher than normal claims can cause additional price hikes, while a better loss history may cause lower-cost Portland car insurance rates.

The bar chart below demonstrates which company has the cheapest car insurance in Portland, OR for a 35-year-old female driver with no accidents or violations, and a high credit rating. If we estimate rates based on her personal profile, Grange may offer the best car insurance rates in Portland at $945 a year. This is $533 less than the average premium paid by Oregon drivers of $1,478. Oregon Mutual, Country, Travelers, and USAA also make the list of the cheapest Portland, OR auto insurance companies.

In this example, we will give the driver from the above example a claim surcharge, bad credit, and a speeding ticket. Since every car insurance company has their own guidelines for determining rates in each state, comparing rates most likely will result in a completely different list of companies as shown below.

Oregon Mutual now has the best insurance rate in Portland with Amica, Allied, Mutual Enumclaw, and GEICO now rounding out the top five. This example demonstrates why Oregon drivers need to compare as many rates as possible when trying to find the lowest auto insurance quotes for first-time drivers. Insurance prices are made up of many things and can increase or decrease at any time, so the best company when you bought your policy may now not even be in the top five.