For new drivers, one of the more important criteria that are used to help calculate insurance cost is where you call home in Dallas. Regions with more people or even just more weather-related claims tend to have more expensive car insurance rates, whereas areas with less crime or weather claims tend to receive cheaper rates.
The table below ranks the most expensive cities in Texas for first-time drivers to purchase auto insurance in. Dallas is listed at #5 with a yearly cost of $1,837 for car insurance, which is approximately $153 monthly.
|Rank||City||Premium Per Year|
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Prices are comparative as the specific area where the vehicle is garaged can alter premiums noticeably.
Determining which companies quote the best auto insurance rates for first-time drivers requires a little more sweat in order to find a policy that fits your budget. Every insurance provider has a proprietary formula to determine rates, so we’ll go over the auto insurance companies with the most affordable rates in Dallas, TX.
It’s important to understand that Dallas, TX auto insurance rates are calculated based on many things that will increase or decrease the cost of coverage. Improving your credit rating, increasing liability limits, or getting caught speeding can trigger price changes that can make some companies much cheaper than others.
Cheapest Insurance Rates for Inexperienced Drivers
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,247|
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Travelers generally has some of the most affordable car insurance rates in Dallas at around $1,010 each year. This is $894 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also rank well as some of the cheapest Dallas, TX car insurance companies.
As depicted above, if you buy coverage from Germania Mutual and switched to USAA, you might see a yearly price reduction of in the vicinity of $198. Insureds with Esurance may save as much as $323 a year, and California Casualty policyholders might reduce rates by $354 a year.
If you want to find out if you’re overpaying, click here to get a free quote or quote prices from the following companies.
It’s important to note that these premiums are averages for all ages of drivers and types of vehicles and do not take into consideration an exact location for first-time drivers. So the auto insurance company that can offer the best rates for your situation may not even be in the top 23 companies shown above. That illustrates why you need to compare rates from as many companies as possible using your own individual information.
Dallas auto insurance companies ranked
Insuring your vehicle with a high-quality car insurance company is difficult considering how many different companies there are to choose from in Texas. The ranking information displayed below can help you analyze which car insurance providers to look at shopping prices with.
These ratings are for companies that insure vehicles across America, so companies that focus mainly on Texas business will not be included in the list. To compare rates from these companies and more, click this link.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies
Get discount Dallas insurance
Insurers that offer quotes for first-time drivers may also give you price discounts that could potentially reduce rates by 25% or more if you meet specific eligibility requirements. Companies and a partial list of their discounts are:
- American Family discounts include air bags, TimeAway discount, good student, early bird, and Steer into Savings.
- Nationwide has savings for easy pay, Farm Bureau membership, anti-theft, accident-free, defensive driving, business or organization, and multi-policy.
- MetLife may have discounts that include multi-policy, good driver, good student, accident-free, defensive driver, claim-free
- 21st Century may include discounts for defensive driver, theft prevention, good student, homeowners, anti-lock brakes, 55 and older, and driver training.
- Farmers Insurance offers premium reductions for mature driver, teen driver, distant student, bundle discounts, and pay in full.
- Allstate offers discounts for safe driver, FullPay discount, early signing, premier discount, good student, premier plus, and auto/life discount.
The example below shows the difference between car insurance rates with and without some available policy discounts. The premiums assume a female driver, a clean driving record, no claims, Texas state minimum liability limits, comprehensive and collision coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with paid-in-full, good student, vehicle safety, passive restraint, continuous coverage, and paperless filing discounts applied. When these discounts are applied, the average amount saved on auto insurance for first-time drivers is 28% or $1,004.
Here’s why you should shop around
Texas auto insurance rates are impacted by many factors that may substantially change the price you have to pay for coverage. Simply having a birthday, buying a new vehicle, or having an at-fault accident can cause premium changes that can cause some rates to be more affordable than competitors.
And not only may your rating factors change, but companies change prices at least once a year to adjust for unexpected claims or profits. Higher than normal claim frequency or severity may result in rate hikes, while a better loss history can produce lower-cost Dallas car insurance rates.
For instance, the chart below demonstrates which company has the cheapest car insurance in Dallas, TX for a 30-year-old male driver with no prior claims, no tickets, and a good credit history. If we look at prices based on his personal risk profile, Travelers offers the most affordable car insurance rates in Dallas at $1,260 each year. This is $644 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remaining best Dallas, TX auto insurance companies.
The chart below compares rates after we give the driver in the first example a claim, a little lower credit rating, and a speeding citation. Due to the fact that each insurance company uses a different method for determining rates in each state, comparing insurance quotes may result in a different set of affordable Dallas car insurance companies as shown below.
Mercury now has the lowest car insurance rate in Dallas with USAA, State Farm, Nationwide, and Safe Auto now being in the top five. This demonstrates why consumers need to perform an extensive rate comparison to get the most budget-friendly auto insurance quotes for first-time drivers.
Car insurance prices can be altered by many factors and can change substantially, so the best price the last time you checked may now be priced much higher than other options.
If you like to have some professional guidance when trying to find the best insurance rates for first-time drivers, the agents listed below are willing to help you decide which coverage fits your budget.
To find an auto insurance agency close to you, click the button at the bottom of the list or click here to compare price quotes.
Steven Graves Insurance
11300 N Central Expy #430 – Dallas, TX 75243 – (214) 599-0808
Frederiksen and Frederiksen Insurance
12900 Preston Rd #500 – Dallas, TX 75230 – (972) 387-8646
Danny Venz – State Farm Insurance Agent
3218 Oak Lawn Ave – Dallas, TX 75219 – (214) 521-1400
Tips for finding economical insurance for first-time drivers
The list below shows many thrifty solutions that can help Dallas drivers locate cheaper auto insurance.
- Get cheaper liability coverage by choosing a safer vehicle
- Don’t waste money on full coverage for older vehicles
- Increase your physical damage deductibles
- Try to not file small claims
- Pay lower rates with good credit
- Buy your homeowners policy from the same company as your auto insurance
- Compare rates often to find the best deal
The last idea is incredibly necessary, as was affirmed in this article. Prices charged by auto insurers change frequently, so don’t be tentative to switch to a new company if a lower price can be found. Many consumers stick with the same company and that’s fine, but it’s not a great idea if that loyalty results in overpaying hundreds of dollars year after year. Spend a few minutes and compare prices to find cheaper insurance for first-time drivers in Dallas.