Wouldn’t it be great if you could just magically know the company that has the best deal on coverage for college graduates? It’s just not that easy, however, as there are a whole bunch of unknowns such as whether you are a man or a woman, when you were born, your credit rating, and if you have a spouse, that all factor into the price you pay. This article delves into the different scenarios that increase car insurance cost and will give you some help in finding cheaper rates.
For college grads, one of the big components that help determine the annual cost of car insurance is the neighborhood you call home in Dallas. Cities with larger populations will most likely have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of lower rates.
The table below rates the most costly cities in Texas for college graduates to purchase car insurance in. Dallas is ranked at #4 with a yearly cost of $1,837 for the average insurance policy, which is about $153 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Brownsville | $1,927 |
| 3 | Laredo | $1,851 |
| 4 | Dallas | $1,837 |
| 5 | Houston | $1,835 |
| 6 | Garland | $1,832 |
| 7 | Pasadena | $1,812 |
| 8 | Amarillo | $1,786 |
| 9 | Beaumont | $1,754 |
| 10 | Mesquite | $1,753 |
| 11 | Grand Prairie | $1,740 |
| 12 | Irving | $1,736 |
| 13 | Lubbock | $1,733 |
| 14 | San Antonio | $1,722 |
| 15 | Arlington | $1,709 |
| 16 | Carrollton | $1,647 |
| 17 | Corpus Christi | $1,620 |
| 18 | Austin | $1,610 |
| 19 | Plano | $1,608 |
| 20 | Fort Worth | $1,604 |
| 21 | El Paso | $1,584 |
| 22 | McKinney | $1,577 |
| 23 | Waco | $1,569 |
| 24 | Abilene | $1,499 |
| 25 | Killeen | $1,473 |
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Price information shown is comparative as specific location information can decrease or increase rates considerably.
Figuring out which companies offer the cheapest car insurance rates for college graduates calls for a little more sweat in order to find the most economical policy.
Every auto insurer uses their own formula for filing rates in each state, so we’ll go over the most budget-friendly car insurance companies in Dallas. It’s important to know that Dallas, TX car insurance rates are based on many factors that will increase or decrease the cost of your policy. Improving your credit score, marrying your spouse, or getting into an accident can trigger changes in premium that can make some companies more affordable than the competition.
Best Auto Insurance Prices for Grads
Travelers quotes some of the lowest car insurance rates in Dallas at around $1,041 a year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also rank well as some of the cheaper Dallas, TX insurance companies.
In the rate table above, if you currently buy coverage from Germania Mutual and switched to USAA, you might realize an annual premium reduction of in the vicinity of $166. Policyholders with Esurance could save as much as $279 a year, and California Casualty customers might see rate reductions of $310 a year.
To find cheaper insurance rates for your vehicle, click here to start your free quote or click several companies below for low rates.
It’s important to note that these policy prices are averages for all ages of drivers and types of vehicles and are not factoring in a specific vehicle garaging location for college graduates. So the company that is most affordable for your situation may not even be in the list above. That illustrates why you need to get rate quotes using your own driver data and vehicle information.
Discount Dallas auto insurance rates
Insurers that sell policies for college graduates may provide special discounts that can reduce rates by as much as 35% if you meet eligibility requirements. A few of the larger companies and their offered discounts are detailed below.
- State Farm has discounts for driver’s education, accident-free, defensive driving training, good student, good driver, and passive restraint.
- GEICO offers discounts for membership and employees, daytime running lights, five-year accident-free, emergency military deployment, and multi-vehicle.
- Liberty Mutual discounts include new move discount, newly retired, teen driver discount, newly married, good student, new vehicle discount, and safety features.
- The Hartford includes discounts for good student, air bag, bundle, defensive driver, vehicle fuel type, and anti-theft.
- MetLife may include discounts for claim-free, good driver, multi-policy, accident-free, defensive driver, good student
- Progressive policyholders can earn discounts including multi-policy, online signing, good student, continuous coverage, online quote discount, multi-vehicle, and homeowner.
The chart below illustrates the difference between car insurance costs with and without some available policy discounts. The premium estimates are based on a male driver, a clean driving record, no at-fault accidents, Texas state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with safe-driver, passive restraint, marriage, defensive driving course, vehicle safety, and accident-free discounts applied. With discounts applied, the average savings per year on car insurance for college graduates is 28% or $445.
The chart below demonstrates how choosing different deductibles can influence insurance costs when trying to find cheap insurance for college graduates. The data is based on a single male driver, comp and collision included, and no discounts are factored in.
In the chart above, a 30-year-old driver could lower their policy premium by $490 a year by increasing from a $100 deductible to a $500 deductible, or save $740 by using a $1,000 deductible. Young drivers, like the Age 20 chart data, can cut $1,446 annually just by choosing higher deductibles when buying full coverage. When choosing a higher deductible, it will be necessary to have plenty of money set aside to satisfy the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
How much more does full coverage cost?
Reducing premiums for car insurance is the goal of most drivers, and an effective way to reduce the cost of insurance for college graduates is to buy liability only. The chart below shows the difference between insurance rates when comparing full coverage to liability only. The prices are based on no violations or accidents, $100 deductibles, single marital status, and no discounts are applied to the premium.
As an average, full coverage costs an extra $2,181 per year more than buying just liability insurance. That proposes the question if it’s a good idea to buy full coverage. There is no exact rule for phasing out comprehensive and collision coverage on your policy, but there is a general guideline you can use. If the annual cost of coverage is about 10% or more of the replacement cost minus the deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s replacement cost is $6,000 and you have $1,000 deductibles. If your vehicle is totaled, you would only receive $5,000 after paying your policy deductible. If it’s costing in excess of $500 a year to have full coverage, then you may want to consider only buying liability coverage.