The words “economical” and “insurance” probably shouldn’t be used in the same sentence, in particular when you are searching for the best price on coverage for 4×4 vehicles. Let’s open your eyes to some of the things that have an effect on auto insurance rates, and come up with some ideas to take a little off your next policy.
One of the more important considerations that are looked at to help calculate the cost of insurance is your address in Dallas. More densely populated places tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents profit from lower rates.
The information below shows the priciest cities in Texas for 4×4 vehicles in which to purchase auto insurance. Dallas is ranked at #3 with a yearly premium of $1,893 for car insurance, which is about $158 per month.
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Price information shown is comparative as vehicle location can impact insurance rates significantly.
The car, truck, or SUV that needs insurance is one of the primary factors when looking for cheaper auto insurance for 4×4 vehicles. Vehicles with more horsepower, a lack of advanced safety features, or a high likelihood of having liability claims will cost much more to insure than more economical and safe models. The next list illustrates insurance premiums for some of the more affordable vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$1,300|
|Volkswagen Jetta S 2.5 Station Wagon||$1,410|
|Ford Explorer XLT 2WD||$1,456|
|Honda CR-V EX 4WD||$1,505|
|Ford Focus SES 4-Dr Sedan||$1,593|
|Chevrolet Impala LTZ||$1,621|
|Ford Edge Sport 2WD||$1,628|
|GMC Sierra 2500HD SLE Regular Cab 4WD||$1,649|
|Nissan Altima 3.5 SR 4-Dr Sedan||$1,656|
|Chevrolet Equinox LT AWD||$1,682|
|Dodge Grand Caravan Hero||$1,692|
|Ford F-350 XL Crew Cab Turbo Diesel 2WD||$1,708|
|Honda Accord LX-S 2-Dr Coupe||$1,729|
|Nissan Rogue SL AWD||$1,735|
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Price data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, multi-vehicle, multi-policy, claim-free, and safe-driver. Prices do not factor in Dallas, TX location which can alter auto insurance rates substantially.
Based upon the rates shown, you can see that vehicles like the Ford Escape, Volkswagen Jetta, and Ford Explorer are likely to be some of the more affordable vehicles to insure for off-road vehicles.
Finding out which companies quote the lowest-priced car insurance rates for 4×4 vehicles requires a little more effort in order to find the best policy.
Each company has a proprietary formula for determining rates in each state, so we need to take a look at the car insurance companies with the overall best prices in Texas. We do need to point out that Dallas, TX car insurance rates are impacted by many things which can substantially decrease or increase the cost of coverage. Simply turning a year older, getting married, or having an accident may prompt premium changes resulting in some companies being more affordable than before.
Best Auto Insurance Prices for 4×4’s
Travelers offers some of the best car insurance rates in Dallas at around $1,041 per year. This is $863 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty would also be considered some of the most economical Dallas, TX auto insurance companies.
As the rates illustrate above, if you currently have coverage with USAA and switched to Travelers, you might realize an annual premium reduction of roughly $76. Customers with Texas Farm Bureau might save as much as $194 a year, and Germania Mutual insureds might reduce prices by as much as $215 a year.
To compare your rates to other Texas insurance companies, click here or click through to the companies below.
Be aware that those policy prices are averaged across all ages of drivers and types of vehicles and are not factoring in a specific location for 4×4 vehicles. So the auto insurance company that can offer you the lowest price may not even be in the top 23 companies in the list above. That underscores the importance of why you need to get rate quotes from many companies using your own driver information and specific vehicle type.
The illustration below shows how choosing a deductible can increase or decrease yearly insurance costs when trying to find cheap insurance for 4×4 vehicles. The prices are based on a married male driver, full coverage, and no discounts are taken into consideration.
In the chart above, a 30-year-old driver could lower their policy premium by $294 a year by changing from a $100 deductible to a $500 deductible, or save $446 by choosing a $1,000 deductible. Even younger drivers, such as the 20-year-old chart data, could potentially save as much as $884 annually just by choosing higher deductibles when buying full coverage. If you do decide to increase your deductibles, it will be important to have plenty of savings on hand to enable you to cover the extra out-of-pocket expense that comes with higher deductibles.
How much more does full coverage cost?
Reducing the cost of car insurance is important to most drivers, and an effective way to buy cheap insurance for 4×4 vehicles is to not buy full coverage. The information below illustrates the difference between premium costs with full physical damage coverage and with liability coverage only. The data assumes a clean driving record, no at-fault accidents, $500 deductibles, drivers are not married, and no discounts are applied to the premium.
If all age groups are averaged, physical damage insurance costs $1,793 per year more than just insuring for liability. That brings up the question when is the right time to remove full coverage. There is no exact formula to exclude physical damage coverage on your policy, but there is a guideline you can use. If the yearly cost for physical damage coverage is about 10% or more of the settlement you would receive from your company, then you might consider buying liability only.
For example, let’s pretend your vehicle’s claim settlement value is $9,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would receive is $8,500 after paying the physical damage deductible. If you are paying in excess of $850 a year to have full coverage, then it might be time to consider dropping full coverage.
There are some scenarios where eliminating full coverage is not in your best interest. If you still owe a portion of the original loan, you have to carry full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not eliminate full coverage.
Why are you paying too much for car insurance?
Dallas car insurance rates are impacted by many factors which can substantially change your annual premium. Turning one year older, filing a claim, or getting a couple of tickets can trigger rate changes that can cause some rates to be affordable when they were higher priced. In addition, insurers change their prices multiple times each year in order to protect their financial rating. Significantly higher losses may cause additional price hikes, while a lower level of claims may produce cheaper Dallas car insurance rates.
The graph below demonstrates which company has the cheapest car insurance in Dallas, TX for a 35-year-old male driver with a clear driving record, no claims, and a high credit rating. If we estimate prices based on his current rating profile, Travelers may have the cheapest car insurance rates in Dallas at $1,337 per year. This is $567 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance round out the rest of the top five cheapest Dallas, TX auto insurance companies.
Let’s now give the driver from the first set of rates a chargeable claim, less-than-perfect credit, and a speeding citation. Since each auto insurer uses their own formula to set their prices, comparing quotes could now result in a completely different list of the cheapest companies as shown below.
Mercury now has the best auto insurance rate in Dallas, TX with State Farm, Safe Auto, Nationwide, and USAA also having competitive pricing. This example demonstrates why drivers need to shop around with many companies when trying to get the most affordable car insurance rates for 4×4 vehicles. Prices are determined by many things and can increase or decrease at any time, so the best company when you bought your policy may now be quite expensive.