One of the more important components that determine the annual cost of car insurance is where your residence is in Omaha. Cities with larger populations or higher claim trends tend to pay more, whereas areas with less people or fewer weather incidents benefit from lower coverage costs.
The following table ranks the highest-priced places in Nebraska for drivers under 25 to buy an auto insurance policy in. Omaha comes in at #10 having an annual price of $1,220 for coverage, which is around $102 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Scottsbluff | $1,374 |
| 2 | Alliance | $1,340 |
| 3 | Gering | $1,317 |
| 4 | McCook | $1,292 |
| 5 | Lexington | $1,277 |
| 6 | North Platte | $1,262 |
| 7 | Beatrice | $1,259 |
| 8 | South Sioux City | $1,251 |
| 9 | Crete | $1,246 |
| 10 | Omaha | $1,220 |
| 11 | Seward | $1,215 |
| 12 | Kearney | $1,200 |
| 13 | Blair | $1,200 |
| 14 | Nebraska City | $1,188 |
| 15 | Columbus | $1,185 |
| 16 | Bellevue | $1,179 |
| 17 | Grand Island | $1,170 |
| 18 | Fremont | $1,166 |
| 19 | Hastings | $1,158 |
| 20 | York | $1,145 |
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Price information shown is approximated as zip code location can raise or lower prices substantially.
Deciphering which companies have the best insurance rates for drivers under 25 will require a little more sweat in order to find coverage that fits your budget. Each insurance company has a different formula to determine rates, so to begin we’ll rank the lowest cost insurance companies in Omaha.
It’s important to understand that Omaha insurance rates are determined by lots of factors that will increase or decrease the price you pay. Simply improving your credit, marrying your spouse, or getting into an accident may prompt premium changes that may make certain companies cheaper in comparison to the competition.
Best Insurance Companies for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Safeco | $788 |
| 2 | The Hartford | $865 |
| 3 | Auto-Owners | $896 |
| 4 | Allied | $939 |
| 5 | Nationwide | $1,007 |
| 6 | Farmers Mutual of Nebraska | $1,009 |
| 7 | Farm Bureau Mutual | $1,020 |
| 8 | State Farm | $1,075 |
| 9 | General Casualty | $1,081 |
| 10 | American National | $1,098 |
| 11 | USAA | $1,162 |
| 12 | American Family | $1,246 |
| 13 | MetLife | $1,293 |
| 14 | California Casualty | $1,309 |
| 15 | EMC | $1,314 |
| 16 | Iowa Mutual | $1,334 |
| 17 | GEICO | $1,348 |
| 18 | Progressive | $1,417 |
| 19 | North Star | $1,642 |
| 20 | Farmers | $1,650 |
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Safeco normally has some of the most affordable car insurance rates in Omaha at around $788 a year. This is $528 less than the average premium paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Nationwide are also some of the best Omaha, NE car insurance companies.
In the rate table above, if you are insured with Auto-Owners and switched to Safeco, you could earn a yearly price reduction of in the vicinity of $108. Drivers with Allied might save as much as $151 a year, and Nationwide policyholders might reduce rates by $219 a year.
These premiums are averaged for all drivers and vehicles in Nebraska and do not take into consideration a specific location for drivers under 25. So the company that can offer you the lowest price may not even be in the top 24 companies in the list above. That underscores the importance of why you need to get rate quotes using your own personalized driver profile and vehicle information.
The type of vehicle requiring coverage is a large factor that determines if you can find the cheapest insurance for drivers under 25. Vehicles with high performance engines, poor safety features, or high incidents of liability claims will cost substantially more to insure than more economical and safe models. The list below ranks insurance premiums for a handful of the most affordable vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 2WD | $2,624 |
| Ford Escape Limited 2WD | $2,633 |
| Toyota Prius | $2,856 |
| Ford Edge SE AWD | $3,031 |
| Chevrolet Impala LS | $3,036 |
| Volkswagen Jetta SE 2.5 Station Wagon | $3,049 |
| Chevrolet Malibu Hybrid | $3,070 |
| Jeep Grand Cherokee Laredo 2WD | $3,078 |
| Toyota RAV4 Limited 4WD | $3,070 |
| Chevrolet Equinox LT 2WD | $3,075 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $3,108 |
| Ford F-150 Lariat Super Cab 4WD | $3,110 |
| Dodge Grand Caravan SXT | $3,115 |
| Ford Explorer Limited AWD | $3,110 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $3,116 |
| Honda Civic LX 4-Dr Sedan | $3,225 |
| Ford Focus SEL 4-Dr Sedan | $3,231 |
| Hyundai Elantra Blue 4-Dr Sedan | $3,225 |
| Honda Odyssey EX-L W/Rear Entertainment | $3,263 |
| Toyota Corolla S | $3,272 |
| Nissan Rogue SL 2WD | $3,288 |
| GMC Sierra SL Crew Cab 2WD | $3,304 |
| GMC Sierra 2500HD SLE Crew Cab 4WD | $3,309 |
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Data based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Nebraska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate information does not factor in specific zip code location which can affect price quotes noticeably.
Based on these rates, we can tell that models like the Honda CR-V, Ford Escape, Toyota Prius, Ford Edge, and Chevrolet Impala are most likely going to be the less-costly vehicles to insure for drivers age 25 and younger. Auto insurance rates will be more expensive just due to the fact that there is a higher risk for drivers under 25, but in general those models will probably have the cheapest auto insurance rates compared to all other vehicles.
The illustration below demonstrates how deductibles can increase or decrease insurance prices when quoting cheap insurance for drivers under 25. The price estimates are based on a married male driver, full coverage, and no other discounts are factored in.
A 40-year-old driver could lower rates by $210 a year by increasing from a $100 deductible up to a $500 deductible, or save $316 by selecting a $1,000 deductible. Even younger insureds, such as the Age 20 example, could reduce their rates $694 every year by selecting a higher deductible.
When insureds make the decision to increase the deductibles on their policy, it will be required to have additional savings on hand to enable you to pay the extra out-of-pocket expense, which deters some drivers from choosing higher deductibles.
Rate comparison of full coverage and liability-only
Buying cheaper insurance is the goal of most vehicle owners, and one good way to save on the cost of insurance for drivers under 25 is to not insure for full coverage. The example below illustrates the difference between insurance rates when comparing full coverage to liability only. The premium estimates are based on no accidents or driving violations, $100 deductibles, single status, and no discounts are taken into consideration.
As an average, full coverage costs $1,722 per year more than just buying liability insurance. Many drivers may wonder when is it a good idea to stop buying full coverage. There isn’t a steadfast formula of when to exclude 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 of your vehicle minus the policy deductible, then it may be the right time to buy liability only.
Finding the right auto insurance provider is hard considering how many different insurance companies sell coverage in Omaha. The information in the lists below could help you select which providers to look at when comparing rate quotes. These rankings only include insurance companies that insure vehicles in the majority of U.S. states, so smaller regional companies are not factored into the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 99 | 100 | 90 | 92% | A++ | 97.4 |
| 21st Century | 89 | 86 | 100 | 88% | A | 92.7 |
| GEICO | 97 | 91 | 88 | 85% | A++ | 92.5 |
| Nationwide | 88 | 94 | 91 | 88% | A+ | 91.3 |
| AAA Insurance | 93 | 87 | 88 | 87% | A | 90.8 |
| Liberty Mutual | 91 | 91 | 92 | 87% | A | 90.7 |
| Safeco Insurance | 90 | 93 | 88 | 86% | A | 90.2 |
| State Farm | 91 | 94 | 80 | 88% | A++ | 90.2 |
| Travelers | 89 | 91 | 94 | 79% | A++ | 90.1 |
| American Family | 88 | 92 | 83 | 88% | A | 89.4 |
| Allstate | 90 | 90 | 84 | 85% | A+ | 89.1 |
| Progressive | 83 | 85 | 99 | 87% | A+ | 88.7 |
| The Hartford | 87 | 89 | 84 | 87% | A+ | 88 |
| Esurance | 84 | 88 | 85 | 83% | A+ | 86 |
| Farmers Insurance | 79 | 88 | 84 | 87% | A | 84.7 |
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Data Source: Insure.com Best Car Insurance Companies
Why are you paying too much for Omaha car insurance?
Omaha, NE insurance rates are impacted by many things which can substantially change the policy price. Getting older, becoming a homeowner, or getting a few speeding tickets can trigger price changes that may make certain companies more affordable than competitors.
Not only may things change on your end, but insurers change the rates they charge in Nebraska multiple times each year to reflect underwriting profits or losses. Higher than normal claims can result in increased policy costs, while a better claims history can cause more affordable Omaha car insurance rates.
The bar chart below shows rates for the cheapest car insurance in Omaha, NE for a 35-year-old male driver with no prior claims, no tickets, and good credit. If we estimate rates based on his current risk profile, Safeco quotes the lowest car insurance rates in Omaha at $914 annually. This is $402 less than the average rate paid by Nebraska drivers of $1,316. The Hartford, Auto-Owners, Allied, and Farmers Mutual of Nebraska are the remaining cheapest Omaha, NE auto insurance companies.
Now we will give the driver from the first set of rates a chargeable claim, a lower credit rating, and a few blemishes on his driving record. Because every insurance company has a different process for setting prices, comparing rates could result in a different list of the cheapest car insurance companies in Omaha as shown below.
Nationwide now has the best price in Omaha, NE with American National, State Farm, General Casualty, and USAA also having competitive pricing. This example shows why it is critical to shop around with many companies when trying to get the most economical insurance rates for drivers under 25.
Car insurance prices can be determined by many different factors and can increase or decrease at any time, so the lowest-price company three years ago may now be quite expensive.