It’s hard to avoid all the catchy commercials from car insurance companies like Allstate, The General, and State Farm guaranteeing huge savings, so drivers should just pick one randomly, right?
It’s not that easy, however, as there are a whole bunch of unknown elements such as if you are a homeowner, how old you are, and how far you drive each year. We will touch on the best ways to avoid high prices and should give you a jump start in finding the best auto insurance in Dallas.
Locating low-cost car insurance is difficult, and figuring out which company offers the cheapest car insurance rates for drivers under 21 calls for a little more work.
Every insurance provider has a proprietary method for filing rates in each state, so let’s begin by examining the most budget-friendly car insurance companies in Texas.
Best Cheap Insurance Rates for Minors
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,211|
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Travelers offers some of the most affordable car insurance rates in Dallas at around $1,041 annually. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also are some of the lowest-priced Dallas, TX car insurance companies.
As depicted above, if you are a policyholder with California Casualty and switched to USAA, you could realize a yearly savings of around $301. Policyholders with Esurance could save as much as $326 a year, and State Farm customers might see rate reductions of $355 a year.
Remember that these policy rates are averages across all insureds and vehicles and and are not calculated with a vehicle location for drivers under 21. So the insurer that is best for you may not even be in the list above. That underscores the importance of why you need to compare rates from as many companies as possible using your own specific driver information and vehicle.
One of the more important criteria that help determine the amount you pay for auto insurance is where you normally keep your vehicle. Regions with more people or even just more weather-related claims tend to pay more, whereas areas that tend to be more rural have the enjoyment of a little cheaper coverage.
The illustration below ranks the priciest cities in Texas for drivers under 21 in which to buy car insurance. Dallas makes the list at #2 with an annual premium of $1,893 for the average policy, which is around $158 monthly.
|Rank||City||Average Per Year|
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Rate information is estimated as the specific area where the vehicle is garaged can alter prices noticeably.
The car, truck, or SUV that needs insurance is one of the primary factors in finding economical auto insurance for drivers under 21. Vehicles with lots of speed or power, a lack of advanced safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than more modest models. The next list ranks auto insurance rates for a handful of the most affordable automobiles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$3,300|
|Honda CR-V EX 4WD||$3,351|
|Volkswagen Jetta S 2.5 Station Wagon||$3,595|
|Honda Accord EX-L 4-Dr Sedan||$3,605|
|Ford Edge SE 2WD||$3,623|
|Ford Explorer XLT AWD||$3,674|
|Dodge Grand Caravan SE||$3,680|
|Toyota Tacoma 4WD||$3,674|
|Jeep Wrangler Rubicon 4WD 2-Dr||$3,683|
|Ford Focus S 4-Dr Sedan||$3,867|
|Honda Civic DX 4-Dr Sedan||$3,872|
|Chevrolet Impala LS||$3,867|
|Chevrolet Malibu Hybrid||$3,918|
|Toyota Camry LE||$3,926|
|Toyota RAV4 4WD||$3,918|
|Hyundai Elantra GLS 4-Dr Sedan||$4,165|
|Toyota Corolla LE||$4,175|
|Honda Odyssey EX-L||$4,165|
|Kia Optima LX||$4,198|
|Nissan Rogue S AWD||$4,207|
|Jeep Grand Cherokee SRT-8 4WD||$4,213|
|Chevrolet Equinox LTZ AWD||$4,219|
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Data based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in Dallas, TX location which can lower or raise coverage rates substantially.
Looking at the numbers, makes and models like the Ford Escape, Honda CR-V, and Volkswagen Jetta are most likely to be the more affordable vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive anyway because there is more claim risk for drivers under 21, but overall those vehicles will tend to have the lowest prices available.
Types of discounts on Dallas car insurance rates
Auto insurance companies that offer coverage for drivers under 21 may have premium discounts that could reduce prices by 30% or more if you meet eligibility requirements. Large car insurance companies and a partial list of their discounts are detailed below.
- American Family may have discounts that include early bird, good student, defensive driver, accident-free, bundled insurance, and good driver.
- Nationwide policyholders can earn discounts including business or organization, multi-policy, Farm Bureau membership, family plan, easy pay, and good student.
- MetLife has discounts for multi-policy, good driver, claim-free, good student, defensive driver, and accident-free.
- 21st Century may offer discounts for good student, homeowners, early bird, anti-lock brakes, 55 and older, and defensive driver.
- Farmers Insurance may include discounts for electronic funds transfer, alternative fuel, mature driver, homeowner, and business and professional.
- Allstate includes discounts for FullPay discount, anti-theft, teenSMART discount, economy car, premier plus, premier discount, and 55 and retired.
The example below illustrates the comparison of insurance costs with and without discounts applied to the policy rates. The rate quotes are based on a female driver, no violations or claims, Texas state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows premium with no discounts. The lower bar shows the rates with paperless filing, vehicle safety, passive restraint, paid-in-full, anti-theft, and good student discounts applied. In this example, the average amount saved on car insurance for drivers under 21 is 21% or $437.
The diagram below illustrates how your choice of deductibles can influence premium costs when searching for cheap insurance for drivers under 21. The price estimates are based on a married female driver, comprehensive and collision coverage, and no discounts are applied.
In the chart above, a 50-year-old driver could cut expenses by $260 a year by increasing from a $100 deductible to a $500 deductible, or save $394 by using a $1,000 deductible. Youthful drivers, like the 20-year-old category, have the ability to save as much as $646 or more by selecting a higher deductible. If you do make the decision to raise your deductibles, it’s a good idea to have enough savings to cover the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
Do you need full coverage?
Finding cheaper car insurance is probably important to most people, and one of the best ways to pay less for insurance for drivers under 21 is to not buy comprehensive and collision coverage. The diagram below visualizes the comparison of insurance costs with liability coverage only compared to full coverage. The premiums are based on a clean driving record, no claims, $1,000 deductibles, drivers are single, and no additional discounts are factored in.
If averaged for all ages, comp and collision coverage costs an additional $1,598 per year over and above liability only. That is a significant amount which raises the question when is the right time to remove full coverage. There isn’t a written rule for excluding full coverage, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement value is $6,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $5,000 after the deductible is paid. If premiums are more than $500 a year to have full coverage, then you might consider buying liability only.
There are some scenarios where only buying liability is not in your best interest. If you haven’t paid off your loan, you must maintain physical damage coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is in an accident, you should not drop full coverage.