It’s impossible to miss the captivating commercials from companies like The General, Nationwide, and State Farm that promise dirt cheap rates. So drivers should just choose the one with the best commercial, right?
Unfortunately, it’s just not that easy, as there are a ton of unknowns such as your credit score, what your desired deductibles are, and whether you just need liability insurance. We will touch on the things that cause high insurance rates and will hopefully give you some help in finding cheaper rates.
Finding out which insurers offer the cheapest car insurance rates for 17 year olds will take a bit more work in order to find the lowest price quote.
Each auto insurance company has their own process to set policy rates, so let’s take a look at the lowest cost car insurance companies in Dallas, TX. It’s a good idea to be aware that Texas car insurance rates are impacted by many things that control the price of your policy. Improving your credit score, buying a new vehicle, or having a fender bender can trigger changes in premium that can now make some companies cheaper than competitors.
Find the Cheapest Car Insurance for Teens
Travelers has some of the cheapest car insurance rates in Dallas at around $1,041 each year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also some of the cheapest Dallas, TX auto insurance companies.
As the rates illustrate above, if you are insured with Germania Mutual and switched to Travelers, you may realize savings of approximately $253. Drivers with California Casualty may save as much as $355 a year, and Esurance customers might lower prices by $380 a year.
To get a quick, customized rate comparison, click here to get a free quote or quote rates from the companies below.
Be aware that those premium estimates are averaged for all insureds and vehicles and do not take into consideration a specific zip code for 17 year olds. So the company that can offer you the lowest price may not even be in the top 23 companies in the list above. That is why you need to get car insurance quotes using your own personalized driver profile and vehicle information.
One of the many things that are used to help calculate the amount you pay for auto insurance is where you choose to live. Areas with more people or more claims tend to have higher rates, whereas more rural areas tend to receive slightly lower rates.
The table below shows the highest-priced areas in Texas for 17 year olds in which to buy car insurance. Dallas ranks #5 with a yearly cost of $1,855 on average, which is approximately $155 monthly.
|Rank||City||Premium Per Year|
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Information shown are estimated as the specific garaging location can increase or decrease auto insurance rates significantly.
The type of vehicle that is being insured is one of the largest considerations that determines the availability of economical auto insurance for 17 year olds. Vehicles with high performance engines, a lack of safety features, or an increased likelihood of liability claims will cost much more to insure than more modest models. The next table outlines auto insurance costs for a number of the cheaper automobiles to buy insurance for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda CR-V EX-L 4WD||$4,323|
|Ford Escape XLT 4WD||$4,333|
|Honda Accord EX-L 4-Dr Sedan||$4,595|
|Ford Edge SE 2WD||$4,766|
|Ford F-150 STX Super Cab 2WD||$4,774|
|Chevrolet Impala LS||$5,037|
|Ford Focus S 4-Dr Sedan||$5,042|
|Toyota RAV4 Sport 2WD||$5,079|
|GMC Sierra SLE Regular Cab 2WD||$5,089|
|Dodge Grand Caravan Hero||$5,079|
|Volkswagen Jetta S 4-Dr Sedan||$5,085|
|Chevrolet Malibu LS||$5,079|
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Cost estimates assume single female driver age 17, 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 the specific area where the vehicle is garaged which can decrease or increase insurance rates greatly.
Looking at the numbers, we can expect makes and models like the Honda CR-V, Ford Escape, and Honda Accord should be some of the cheapest vehicles to insure for teen drivers. The price of auto insurance will trend higher just due to the fact that there is more inherent risk for 17 year olds, but overall those models will have the cheapest car insurance rates available.
Discounts on Dallas insurance rates
Car insurance companies that provide coverage for 17 year olds could also offer price discounts that can reduce rates by as much as 40% or more if you can meet the requirements. A few popular companies and a partial list of their discounts can be found below.
- State Farm has savings for multiple autos, multiple policy, safe vehicle, good driver, and driver’s education.
- Progressive has discounts for online quote discount, multi-policy, online signing, homeowner, multi-vehicle, continuous coverage, and good student.
- Progressive offers discounts for homeowner, continuous coverage, online quote discount, multi-policy, multi-vehicle, and online signing.
- MetLife may offer discounts for multi-policy, accident-free, claim-free, good student, good driver, defensive driver
- Farm Bureau discounts include 55 and retired, renewal discount, safe driver, driver training, multi-vehicle, multi-policy, and good student.
- GEICO may have discounts that include seat belt use, emergency military deployment, defensive driver, good student, federal employee, five-year accident-free, and driver training.
- SAFECO may include discounts for anti-lock brakes, anti-theft, multi-car, teen safe driver, bundle discounts, teen safety rewards, and homeowner.
The diagram below shows the comparison of yearly insurance costs with and without discounts applied to the rates. Data assumes a male driver, no violations or claims, Texas state minimum liability limits, full physical damage coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with continuous coverage, anti-theft, paid-in-full, vehicle safety, good student, and paperless filing discounts applied. When these discounts are applied to the policy premium, the amount saved on car insurance for 17 year olds is 28% or $707.
Cost comparison with and without full coverage
Lowering the price of car insurance should be important to the majority of drivers, and one of the easiest ways to lower the cost of insurance for 17 year olds is to not pay for full coverage. The information below illustrates the comparison of car insurance rates when comparing full coverage to liability only. The data is based on no accidents, no driving violations, $250 deductibles, drivers are single, and no policy discounts are applied.
Averaged for all ages 20 through 70, full coverage on your policy costs an additional $2,210 per year more than just buying liability insurance. That brings up the question if buying full coverage is worth the expense. There is no definitive formula for eliminating comp and collision coverage, but there is a guideline you can use. If the annual cost of comprehensive and collision coverage is more than 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
For example, let’s assume your vehicle’s replacement value is $5,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most your company will settle for is $4,000 after the policy deductible has been paid. If premiums are more than $400 a year for full coverage, then you might want to consider buying only liability coverage.
There are some conditions where buying only liability insurance is not advised. If you still owe money on your vehicle, you must maintain physical damage coverage as part of the loan conditions. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should keep full coverage on your policy.
Irresponsible driving raises your rates
The best way to earn the cheapest car insurance premiums in Texas for teen drivers is to be an attentive driver and avoid at-fault accidents and violations. The example below shows how violations and accidents can increase insurance costs for different insured age categories. The rate quotes are based on a married female driver, full physical damage coverage, $1,000 deductibles, and no policy discounts are applied.
In the chart above, the average cost of car insurance in Texas per year with no accidents and a clean driving record is $1,653. Factor in two speeding tickets and the average cost surges to $2,339, an increase of $686 each year. Now get two accidents along with the two speeding tickets and the annual cost of car insurance for 17 year olds goes up to an average of $5,192. That’s an increase of $3,538, or $295 per month, just for being a little careless behind the wheel!
Why you should be shopping around
Texas car insurance rates are impacted by many factors that control the cost of having a policy. Improving your credit score, buying a different vehicle, or getting a driving violation can produce rate changes that can cause some rates to be more affordable than others. Not only that, but car insurance companies amend pricing every year or even multiple times each year to ensure their profitability. An extended period of higher than normal claims may cause more expensive premiums, while a lower level of claims can cause lower-cost Dallas car insurance rates.
To help illustrate this point, the bar chart below analyzes the cheapest car insurance in Dallas, TX for a 40-year-old male driver with a good driving record, no prior claims, and a good credit rating. Based on his personal profile, Travelers has the cheapest car insurance rates in Dallas at $1,247 a year. This is $657 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are the remaining most affordable Dallas, TX auto insurance companies.
In the next rate comparison, we’ll give the driver from the first example an at-fault accident, a lower credit rating, and a stop sign violation. Due to the fact that each insurance company uses their own calculation for setting rates, comparing quotes will most likely result in a different ranking of affordable companies as shown below.
State Farm now has the cheapest insurance rate in Dallas, TX with Mercury, USAA, Nationwide, and Safe Auto also having competitive pricing. This shows why drivers need to take the time to shop around to find the most budget-friendly auto insurance rates for 17 year olds.
Rates can be altered by many factors and change frequently, so the most affordable company six months ago may now be an over-priced policy.