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.
Compare Cheap Insurance Quotes in Texas
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,235|
|Find Your Rate Go|
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.
|Compare Prices Now Go|
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.
|Make and Model||Estimated Cost for Full Coverage|
|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|
|Compare Rates Now Go|
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.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
|Compare Rates Now Go|
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.