Who Has Affordable Car Insurance Rates for Low Income Drivers in Dallas?

The words “affordable” and “insurance” probably shouldn’t be used in the same sentence, especially when looking for the cheapest auto insurance for low income drivers. To save some money, let’s lead off by showing you a few of the things that have a considerable impact on car insurance prices, and figure out some ideas to take a little off your next policy.

Deciding which company quotes the most affordable insurance rates for low income drivers will require a little more sweat in order to find the lowest price quote. Every insurance provider uses a slightly different approach for determining rates, so we’ll take a look at the insurance companies with the overall best prices in Texas.

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Rankings for the cheapest car insurance companies in Texas
Rank Company Cost Per Year
1 Travelers $1,010
2 USAA $1,095
3 Texas Farm Bureau $1,235
4 Germania Mutual $1,282
5 Esurance $1,379
6 California Casualty $1,396
7 Mercury $1,476
8 State Farm $1,510
9 Nationwide $1,538
10 Safe Auto $1,613
11 Progressive $1,715
12 Allstate $1,718
13 Amica $1,757
14 GEICO $2,072
15 Home State $2,092
16 MetLife $2,249
17 Unitrin $2,264
18 Encompass $2,301
19 21st Century $2,469
20 Titan $2,594
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Travelers normally has some of the cheapest car insurance rates in Dallas at around $1,010 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the cheapest Dallas, TX auto insurance companies.

As depicted above, if you buy coverage from Esurance and switched to USAA, you could see an annual savings of around $284. Policyholders with California Casualty might save as much as $301 a year, and Mercury policyholders might realize rate reductions of up to $381 a year.

To find out how your current rates compare, click here to get a free quote or visit any of the low-priced companies below.

Be aware that those premiums are averaged across all ages of drivers and types of vehicles and do not take into consideration an exact zip code location for low income drivers. So the car insurance company that is best for you may not even be in the top 23 companies in the list above. That helps illustrate why you need to get quotes using your own personalized driver profile and vehicle information.

For poor drivers, one of the more important criteria that are used to help calculate insurance cost is where you call home. Regions with larger populations or more claims tend to have higher auto insurance costs, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.

The next table ranks the highest-priced places in Texas for low income drivers to buy auto insurance in. Dallas is listed at #5 with a yearly premium of $1,837 for coverage, which is about $153 monthly.

How much does car insurance cost in Dallas, TX?
Rank City Annual Premium
1 McAllen $2,016
2 Brownsville $1,927
3 Houston $1,909
4 Laredo $1,851
5 Dallas $1,837
6 Garland $1,832
7 Pasadena $1,812
8 Grand Prairie $1,811
9 Amarillo $1,804
10 Irving $1,772
11 Mesquite $1,771
12 Lubbock $1,733
13 Beaumont $1,720
14 Arlington $1,692
15 San Antonio $1,688
16 Austin $1,676
17 Fort Worth $1,653
18 Corpus Christi $1,636
19 Carrollton $1,598
20 Plano $1,576
21 El Paso $1,568
22 McKinney $1,561
23 Waco $1,522
24 Abilene $1,515
25 Killeen $1,473
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Annual rates are approximated as the garaging address in Dallas can revise price quotes greatly.

The make and model of vehicle needing coverage is one of the largest considerations that determines whether or not you can buy cheaper insurance for low income drivers. Vehicles with high performance engines, poor safety ratings, or a history of substantial liability claims will cost significantly more to insure than safer, lower-performance models.

The next table estimates coverage premiums for a selection of the cheaper vehicles to insure in Texas.

Cheapest Vehicles to Insure in Dallas, TX
Make and Model Estimated Cost for Full Coverage
Toyota Prius $1,415
Toyota Tacoma 4WD $1,438
Ford Escape XLS 4WD $1,467
Honda Odyssey EX $1,487
Honda CR-V EX-L 4WD $1,497
Honda Accord LX-P 4-Dr Sedan $1,572
Toyota Corolla S $1,595
Nissan Altima 2.5 S 4-Dr Sedan $1,600
Chevrolet Impala LTZ $1,595
Ford Explorer XLT AWD $1,646
Ford F-150 XLT Regular Cab 4WD $1,652
Dodge Ram Crew Cab ST 4WD $1,652
Volkswagen Jetta SE 2.5 Station Wagon $1,713
Ford Fusion Sport AWD 4-Dr Sedan $1,734
Jeep Grand Cherokee Laredo 2WD $1,739
GMC Sierra SLE Regular Cab 2WD $1,748
Chevrolet Silverado LS Extended Cab 4WD $1,739
Dodge Grand Caravan SXT $1,772
Toyota RAV4 Sport 4WD $1,860
Chevrolet Equinox LT AWD $1,869
Chevrolet Malibu Hybrid $1,860
Dodge Ram 2500 Mega Cab SLT 4WD $1,870
Jeep Wrangler Unlimited Sahara 4WD 4-Dr $1,888
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Table data represents single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, homeowner, safe-driver, multi-policy, and multi-vehicle. Price estimates do not factor in vehicle location which can impact coverage rates considerably.

Looking at the data, you can conclude that vehicles like the Toyota Prius, Toyota Tacoma, Ford Escape, Honda Odyssey, and Honda CR-V are most likely to be some of the less-costly vehicles to insure for poor drivers.

Full coverage rates compared to liability-only

Finding cheaper insurance should be important to the majority of vehicle owners, and an easy way to save on the cost of insurance for low income drivers is to buy liability only. The diagram below shows the comparison of annual premium costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The price estimates are based on no accidents, no driving violations, $1,000 deductibles, single status, and no discounts are taken into consideration.

If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs an additional $1,598 per year over and above liability coverage. At some point, almost every driver questions if it’s worth it to buy full coverage. There is no definitive guideline that is best for determining when to drop physical damage insurance, but there is a general convention. If the yearly cost of comp and collision coverage is 10% or more of replacement cost minus your deductible, then you may need to consider dropping full coverage.

For example, let’s pretend your vehicle’s settlement value is $4,500 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $3,500 after paying your policy deductible. If premiums are more than $350 annually for comprehensive and collision coverage, then it may be the right time to buy liability only.

Texas insurance companies

Insuring your vehicle with the highest-rated auto insurance company is hard considering how many choices there are in Dallas. The ranking information shown below could help you analyze which providers to look at to insure your vehicles.

The rankings below are only made up of companies that insure vehicles nationwide, so companies that have a smaller presence are not taken into consideration for these rankings. To check prices from the insurers below and more, follow this link.

Best Ten Insurance Companies for Low Income Drivers in Dallas
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Travelers 93 98 99 88% A++ 95.1
USAA 83 99 100 91% A++ 94.1
Mercury Insurance 97 96 88 89% A+ 93.4
AAA Insurance 91 95 92 90% A 93.3
Nationwide 85 95 97 89% A+ 92.4
Allstate 77 100 97 88% A+ 90.7
State Farm 80 94 96 88% A++ 90.6
The Hartford 88 93 91 87% A+ 90.4
Safeco Insurance 91 95 85 88% A 90.2
Progressive 88 94 83 88% A+ 90.1
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Data Source: Insure.com Best Car Insurance Companies

Can you find cheaper Dallas car insurance?

Dallas, TX insurance rates are based on many factors which can substantially decrease or increase the cost of coverage. Improving your credit score, getting divorced, or getting a driving violation can trigger changes in premium resulting in some rates now being more affordable than the competition. Not only may your situation change, but insurers file new Texas auto insurance rates without warning in order to maintain liquidity for claims. Higher than usual claims may result in higher prices, while lower claim levels may produce cheaper Dallas car insurance rates.

To illustrate this example, the bar chart below shows rates for the cheapest car insurance in Dallas, TX for a 45-year-old male driver with a good driving record, no prior claims, and good financial standing. If we look at prices based on his current risk factors, Travelers has the most affordable car insurance rates in Dallas at $1,337 annually. This is $567 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the rest of the cheapest Dallas, TX auto insurance companies.

The example below compares rates after we give the driver from the first example a claim, poor credit, and a couple of points charged on his driving record. Because each company uses a different method for determining rates in each state, comparing insurance quotes could result in a different set of cheap Dallas auto insurance companies as shown below.

State Farm now has the cheapest price in Dallas with Mercury, USAA, Nationwide, and Safe Auto completing the list. This shows why Texas drivers need to perform an extensive rate comparison when trying to get the cheapest car insurance rates for low income drivers. Insurance prices consist of many things and can increase or decrease at any time, so the best option the last time you compared rates may now not even be in the top five.