What Insurance is Cheapest for 16 Year Olds in Portland?

Wouldn’t this article be short if we could magically tell you the exact company that has the best deal on coverage for 16 year olds? It’s just not that easy, however, as there are many unknowns like whether you are male or female, how safe your vehicle is, citations or tickets, and where you live in Portland. If you keep reading, we will teach you about the best ways to compare rates and will give you a good start to your coverage search.

Finding dependable, affordable car insurance is not most people’s favorite thing to do, and deciding which companies offer the cheapest car insurance rates for 16 year olds takes a little more work. Each auto insurance company has their own guidelines for determining rates, so let’s take a look at the car insurance companies with the overall best prices in Portland.

Best Car Insurance Prices for Teens

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Rankings for the cheapest Oregon auto insurance companies
Rank Company Cost Per Year
1 Grange $708
2 Country $831
3 Oregon Mutual $853
4 Travelers $942
5 USAA $950
6 State Farm $1,071
7 Amica $1,125
8 Mutual Enumclaw $1,176
9 California Casualty $1,182
10 GEICO $1,190
11 Allied $1,203
12 Progressive $1,272
13 21st Century $1,310
14 MetLife $1,340
15 American Family $1,431
16 Encompass $1,558
17 Allstate $1,705
18 Farmers $1,954
19 Safeco $2,150
20 Liberty Mutual $2,433
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Grange may have some of the cheapest car insurance rates in Portland at around $708 per year. This is $770 less than the average rate paid by Oregon drivers of $1,478. Country, Oregon Mutual, Travelers, and USAA also qualify as some of the best Portland, OR insurance companies.

In the rate table above, if you currently have coverage with Travelers and switched to Grange, you could realize annual savings of about $234. Drivers with USAA may save as much as $242 a year, and State Farm insureds might lower prices by $363 a year.

Be aware that those premium estimates are averages across all types of drivers and the different vehicles they drive and and are not calculated with an exact location for 16 year olds. So the company that has the lowest price for you may not even be in the list above. That point stresses why you need to compare rates from multiple companies using your own driver and vehicle profiles.

For new drivers, one of the largest criteria that are used to help calculate the annual cost of car insurance is where you live in Portland. More populated areas likely pay more, whereas areas that tend to be more rural tend to receive slightly lower rates.

The following table ranks the most costly cities in Oregon for 16 year olds to buy auto insurance in. Portland is listed at #2 with an annual rate of $1,544 for the average policy, which is about $129 each month.

How much is auto insurance in Portland, OR?
Rank City Average Per Year
1 Gresham $1,558
2 Portland $1,544
3 Oregon City $1,444
4 Lake Oswego $1,420
5 Beaverton $1,398
6 Hillsboro $1,393
7 Newberg $1,377
8 Tigard $1,362
9 Salem $1,360
10 Forest Grove $1,360
11 Woodburn $1,359
12 Keizer $1,351
13 Aloha $1,349
14 Tualatin $1,338
15 McMinnville $1,338
16 West Linn $1,308
17 Bend $1,224
18 Redmond $1,210
19 Grants Pass $1,191
20 Albany $1,188
21 Roseburg $1,185
22 Medford $1,169
23 Corvallis $1,167
24 Springfield $1,124
25 Eugene $1,123
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Prices are approximated as the specific garaging location can alter coverage rates considerably.

Bad driving habits will cost you more

The obvious way to receive the cheapest car insurance rates for new drivers is to pay attention while driving and avoid accidents and keep your driving record clean. The illustration below shows how speeding tickets and at-fault claims drive up insurance premiums for different insured age categories. The rate quotes are based on a married female driver, full physical damage coverage, $250 deductibles, and no discounts are applied to the premium.

In the prior example, the average cost of auto insurance in Oregon per year with no accidents and a clean driving record is $1,297. Get one speeding ticket and the average cost hikes up to $1,510, an increase of $213 each year. Now add two accidents along with the one speeding ticket and the yearly cost of car insurance for 16 year olds jumps again to an average of $3,342. That’s an increase of $2,045, or $170 per month, just for not keeping your driving record clean!

Price comparison of only insuring for liability

Saving on car insurance is probably important to the majority of vehicle owners, and one good way to lower the cost of insurance for 16 year olds is to buy only liability coverage. The illustration below shows the difference between yearly insurance costs with and without physical damage coverage. The costs are based on no claims, a clean driving record, $1,000 deductibles, single marital status, and no discounts are factored in.

As an average, physical damage coverage on your policy costs $1,345 per year more than insuring for liability only. That may make you wonder if physical damage coverage is worth the money. There is no specific rule that is best for determining when to drop full coverage on your policy, but there is a general convention. If the yearly cost of comp and collision coverage is more than around 10% of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.

There are some scenarios where removing full coverage is not financially feasible. If you haven’t paid off your loan, you have to keep full coverage in order to prevent your loan from defaulting. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should not consider dropping full coverage.

Compare quotes and save

Portland car insurance rates are impacted by many things which can significantly increase or decrease the cost of a policy. Simply improving your credit, moving to a new city, or getting a driving violation can cause premium changes that can make some companies cheaper than competitors.

Not only that, but companies change premium rates as needed to adjust for unexpected claims or profits. Heavier than normal losses can cause more expensive premiums, while a better loss history may cause cheaper Portland car insurance rates.

The bar chart below analyzes the cheapest car insurance in Portland, OR for a 35-year-old female driver with no accidents, a clean driving record, and a good credit rating. If we estimate prices based on her current situation, Grange might quote the most affordable car insurance rates in Portland at $956 per year. This is $522 less than the average price paid by Oregon drivers of $1,478. Country, Oregon Mutual, Travelers, and USAA also make the list of the best Portland, OR auto insurance companies.

Now we will pretend the driver from the first rate comparison a claim, a lower credit rating, and a speeding ticket. Since each auto insurance company has their own unique process to set their prices, comparing prices could now result in a new list of the cheapest companies as shown below.

Amica now has the lowest car insurance rate in Portland with Mutual Enumclaw, Allied, California Casualty, and GEICO completing the list. This example illustrates why Oregon drivers need to compare many different companies when trying to get the cheapest insurance quotes for 16 year olds.

Car insurance prices are calculated by many things and change dramatically, so the best option the last time you checked may now be quite expensive.

The agents listed below can aid you in deciding which coverages you need, since many people would rather have some advice when shopping for the best coverage for new drivers. It can be challenging to do it yourself, so professional agents can provide you comfort knowing you have sufficient coverage for your assets. To locate a Portland insurance agent closest to you, click the button below the list.

American Family Insurance – Lee Cannon
8085 SE 16th AvePortland, OR 97202(503) 235-1545

Fox Insurance Agency
1819 SW 5th AvePortland, OR 97201(503) 277-2300

Dan Lucich – State Farm Insurance Agent
1516 NE 15th AvePortland, OR 97232(503) 287-3757

View more Portland, OR insurance agencies

How to find cheaper insurance for 16 year olds

It’s not impossible to find cheaper rates, and here are many penny-pinching suggestions that can help Portland drivers locate cheap car insurance.

The last suggestion is certainly valuable, as was affirmed in this piece. Insurance prices in Portland vary considerably, so don’t hesitate to change to a new company if you find a better deal. Sticking with a specific company is fine, but it’s not recommended if that inflexibility results in costing you a small fortune year after year. If you have a few minutes, shop around to find cheaper auto insurance for 16 year olds.