The words “affordable” and “auto insurance” really should not be used together, in particular when you are searching for the lowest insurance rates for welfare recipients. Because of the high cost, let’s familiarize you with some of the things that have an effect on auto insurance premiums, and come up with some ways to cut the cost of your next policy.
Determining which insurers offer the best insurance rates for welfare recipients involves a little more effort in order to find the best policy. Each auto insurer uses their own method to set premium rates, so we need to take a look at the insurance companies with the most affordable rates in Seattle.
It’s a good idea to be aware that Seattle, WA insurance rates are impacted by many factors that will increase or decrease the price of your policy. Improving your credit score, becoming a homeowner, or getting caught speeding may prompt premium changes that can now make some companies cheaper in comparison to the competition.
Cheapest Insurance Rates in Washington
Capital normally has some of the best car insurance rates in Seattle at around $777 per year. This is $635 less than the average policy premium paid by Washington drivers of $1,412. Grange, PEMCO, Nationwide, and Mutual Enumclaw would also make the list of some of the cheaper Seattle, WA insurance companies.
As shown above, if you currently have coverage with Nationwide and switched to Grange, you may see a yearly savings of in the neighborhood of $159. Policyholders with Mutual Enumclaw may save as much as $212 a year, and Travelers insureds might reduce prices by as much as $216 a year.
Be aware that those rates are averaged for all types of drivers and the different vehicles they drive and are not factoring in an exact zip code location for welfare recipients. So the car insurance company that has the cheapest price for you may not even be in the list above. That underscores the importance of why you need to get auto insurance quotes using your own driver and vehicle profiles.
The vehicle model you are insuring is probably the most important factor when comparing cheap auto insurance for welfare recipients. Vehicles with high performance features, a lack of safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than more economical and safe models. The next table showcases coverage costs for the most cost-effective vehicles to insure.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$1,406|
|Honda CR-V EX-L 2WD||$1,442|
|Jeep Wrangler Sport 4WD 2-Dr||$1,453|
|Ford Focus S 4-Dr Sedan||$1,492|
|Dodge Grand Caravan Hero||$1,522|
|Toyota RAV4 Sport 4WD||$1,529|
|Toyota Tacoma 4WD||$1,575|
|Ford F-150 FX2 Super Cab 2WD||$1,583|
|Nissan Rogue S 2WD||$1,631|
|Chevrolet Silverado LS Extended Cab 2WD||$1,637|
|Nissan Altima Hybrid 4-Dr Sedan||$1,633|
|Chevrolet Malibu LS||$1,664|
|GMC Sierra 3500HD SLT Extended Cab 2WD||$1,671|
|Ford Fusion S 4-Dr Sedan||$1,664|
|Jeep Grand Cherokee Laredo 2WD||$1,670|
|Ford F-350 XL Super Cab Turbo Diesel 2WD||$1,697|
|Ford Explorer Eddie Bauer 4WD||$1,700|
|GMC Sierra Denali Crew Cab 2WD||$1,744|
|Honda Odyssey EX-L W/Rear Entertainment||$1,750|
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Data based on married male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Washington minimum liability limits. Discounts applied include safe-driver, homeowner, multi-policy, claim-free, and multi-vehicle. Rate information does not factor in your specific Seattle, WA location which can increase or decrease rates substantially.
Looking at the data, we can assume that vehicles like the Ford Escape, Honda CR-V, and Jeep Wrangler are the most affordable vehicles to insure for drivers on welfare.
One of the more important things that are looked at to determine the price you pay for insurance is where you call home in Seattle. Areas with increased crime or more people tend to have more expensive car insurance rates, whereas areas with less crime or weather claims get the luxury of paying less.
The following table rates the most expensive areas in Washington for welfare recipients in which to buy car insurance. Seattle makes the list at #4 with the annual price of $1,391 for coverage, which is around $116 per month.
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Annual rates are approximated as zip code location can lower or raise price quotes significantly.
Liability rates compared to full coverage
Saving on insurance is important to the majority of drivers, and one common way to buy cheap insurance for welfare recipients is to only pay for liability coverage. The example below compares auto insurance costs with liability coverage only compared to full coverage. The rates are based on a clean driving record, no at-fault accidents, $100 deductibles, single marital status, and no policy discounts are applied.
If averaged for all ages, physical damage insurance costs $2,266 per year more than carrying just liability coverage. That is a significant amount which raises the question if paying for full coverage is worth it. There isn’t a steadfast formula of when to phase out physical damage coverage on your policy, but there is a guideline you can use. If the annual cost of coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s book value is $4,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $3,500 after paying the physical damage deductible. If you are paying over $350 annually for physical damage coverage, then you may need to consider dropping full coverage.
There are some situations where dropping physical damage coverage is not financially feasible. If you haven’t satisfied your loan, you must maintain physical damage coverage to satisfy the loan requirements. 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.
Get discount Seattle car insurance
Insurance companies that sell policies for welfare recipients may additionally offer rate discounts that could lower prices by as much as 40% or more if you qualify. Large insurance companies and some of the premium reductions they offer are detailed below.
- State Farm offers discounts for good student, Steer Clear safe driver discount, accident-free, passive restraint, multiple policy, defensive driving training, and anti-theft.
- Nationwide has savings for business or organization, accident-free, defensive driving, anti-theft, and family plan.
- GEICO may offer discounts for seat belt use, defensive driver, driver training, good student, and multi-policy.
- AAA may have discounts that include education and occupation, good student, good driver, multi-policy, anti-theft, and AAA membership discount.
- 21st Century discounts include 55 and older, homeowners, student driver, air bags, anti-lock brakes, and theft prevention.
- The Hartford policyholders can earn discounts including driver training, bundle, good student, vehicle fuel type, and air bag.
The example below shows the comparison of car insurance costs with and without some available policy discounts. The information is based on a male driver, a clean driving record, no claims, Washington state minimum liability limits, full physical damage coverage, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with safe-driver, passive restraint, homeowner, anti-theft, multiple policy, and claim-free discounts applied. When these discounts are applied to the policy premium, theaverage yearly reduction on insurance for welfare recipients is 28% or $639.
Why it’s important to shop around
Seattle, WA insurance rates are impacted by many things that may substantially change the cost of a policy. Turning one year older, buying a home, or having an accident may generate price changes that can make some companies cheaper than competitors.
In addition to those changes, companies change rates multiple times each year to adjust for heavy claims or excess profits. A period of higher than normal claims may cause additional price hikes, while lower claim levels can cause more affordable Seattle car insurance rates.
To illustrate this point, the graph below demonstrates which company has the cheapest car insurance in Seattle, WA for a 40-year-old female driver with a clear driving record, no claims, and good credit. If we look at prices based on her current situation, Capital may have the most affordable car insurance rates in Seattle at $1,077 annually. This is $335 less than the average policy premium paid by Washington drivers of $1,412. Grange, Nationwide, PEMCO, and Mutual Enumclaw are the remaining cheapest Seattle, WA auto insurance companies.
Now let’s give the driver from the first set of rates some claims, a lower credit score, and a stop sign violation. Due to the fact that each insurance company has a unique formula for setting rates, comparing prices most likely will result in a different list of cheap Seattle auto insurance companies as shown below.
The Hartford now has the best price in Seattle, WA with USAA, California Casualty, Chubb, and Allied also having competitive pricing. This shows why Seattle drivers need to perform an extensive rate comparison when trying to find the lowest auto insurance rates for welfare recipients. Car insurance prices are calculated by many factors and can change substantially, so the best option the last time you shopped around may now be an over-priced policy.
If you prefer to have the advice of a professional agent when comparing insurance rates for welfare recipients, the agents listed below can most likely aid you in deciding which coverages you need.
To locate a Seattle insurance agent nearest to you, click the button at the bottom.
- Sheila Burrus – State Farm Insurance Agent
1115 N Northgate Way – Seattle, WA 98133 – (206) 364-2210
- State Farm: Karrie Dubose
1530 Westlake Ave N Suite 100 – Seattle, WA 98109 – (206) 971-5400
- Allstate Insurance: Jeremy Olson
7 Denny Way – Seattle, WA 98109 – (206) 956-0580
- Luan Vu – State Farm Insurance Agent
6951 Martin Luther King Jr Way S #224 – Seattle, WA 98118 – (206) 243-3041
- Seattle Insurance
2414 SW Andover St – Seattle, WA 98106 – (206) 937-4613