This article would sure be shorter if we could just tell you the one Texas auto insurance company that has the best car insurance rates in Texas. That is not the case, however, as there are a lot of unknown factors such as if you have ever let your coverage lapse, if you have a tendency to get into accidents, and what level of deductibles you need, that all have an effect on the price of a policy. In this article, we will cover these factors and others that can influence the price of auto insurance and educate you enough to have a good beginning to your search for cheaper coverage.
The car, truck, or SUV you are trying to insure is a large factor when shopping around for economical coverage for teenagers. Vehicles with high performance engines, a lack of modern safety features, or a track record of large liability claims will cost quite a bit more to insure than more economical and safe models.
The table below illustrates insurance rates for a handful of the cheapest automobiles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$4,544|
|Honda CR-V EX-L 4WD||$4,589|
|Hyundai Elantra SE Touring Station Wagon||$4,876|
|Dodge Grand Caravan SE||$5,108|
|Ford Edge SE AWD||$5,350|
|Toyota RAV4 2WD||$5,395|
|Chevrolet Impala LT||$5,403|
|Volkswagen Jetta LE 4-Dr Sedan||$5,395|
|Chevrolet Malibu LS||$5,400|
|Chevrolet Equinox LS AWD||$5,395|
|Ford Explorer Eddie Bauer AWD||$5,438|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$5,448|
|Ford F-150 FX2 2WD||$5,438|
|Honda Civic LX 4-Dr Sedan||$5,637|
|Honda Odyssey EX-L||$5,682|
|Jeep Grand Cherokee SRT-8 4WD||$5,725|
|Nissan Altima Hybrid 4-Dr Sedan||$5,730|
|Toyota Corolla XRS||$5,725|
|Ford F-350 XL Crew Cab Turbo Diesel 2WD||$5,813|
|Chevrolet Silverado LS Extended Cab 2WD||$5,841|
|Kia Optima LX||$5,850|
|Nissan Rogue S 2WD||$5,841|
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Table data assumes single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in specific zip code location which can influence rates considerably.
By looking at the data, you can conclude that vehicles like the Ford Escape, Honda CR-V, and Hyundai Elantra are likely to be a few of the less-costly vehicles to insure for teen drivers. The price of auto insurance will be higher anyway just due to the fact that there is more risk for teenagers, but generally speaking those particular models will have the lowest insurance rates that you are likely to find.
For teen drivers, one of the big components that are looked at to determine the price you pay for insurance is where your residence is. More populated areas tend to have higher auto insurance costs, whereas areas with less people or fewer weather incidents tend to receive slightly lower rates.
The table below lists the highest-priced areas in Texas for teenagers to buy an auto insurance policy in. Dallas is ranked #4 with the yearly price of $1,855 for the average insurance policy, which is around $155 per month.
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Table data uses approximated as the vehicle garaging location can impact premium rates significantly.
Cost comparison with and without full coverage
Saving money on auto insurance is the goal of most drivers, and one way to reduce the cost of insurance for teenagers is to buy only liability coverage. The example below visualizes the comparison of insurance rates with full physical damage coverage compared to only buying liability only. The data is based on no claims or driving citations, $250 deductibles, single status, and no discounts are taken into consideration.
If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs an extra $2,000 per year more than buying just liability insurance. That brings up the question when is the right time to remove full coverage. There is no set guideline that is best for determining when to drop full coverage on your policy, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is more than around 10% 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 $5,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company will settle for is $4,500 after you pay the deductible. If you are paying more than $450 a year for physical damage coverage, then it might be time to buy liability only.
There are some circumstances where dropping physical damage coverage is not a good idea. If you still have a lienholder on your title, you have to maintain full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in the event your current vehicle is totaled, you should not buy liability only.
The example below illustrates how choosing a deductible can increase or decrease insurance rates when trying to find cheap insurance for teenagers. The premium estimates are based on a single male driver, comprehensive and collision coverage, and no policy discounts are applied.
A 40-year-old driver could lower their policy premium by $314 a year by increasing from a $100 deductible up to a $500 deductible, or save $472 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old, could roll back prices as much as $1,026 every year by choosing larger deductibles on their policy. When choosing a higher deductible, it will be necessary to have plenty of money set aside to allow you to cover the extra out-of-pocket expense, which deters some people from using high deductibles.
Don’t make the mistake of not shopping around
Dallas auto insurance rates are based on many factors that will increase or decrease the cost of your policy. Simply getting older, increasing deductibles, or getting a ticket for running a stop sign may prompt premium changes that can cause some rates to be more affordable than competitors.
Also, insurance companies change the rates they charge in Texas every year or even multiple times each year in order to remain profitable. A period of increased losses can cause higher priced premiums, while less frequent claims may result in cheaper Dallas car insurance rates.
For instance, the bar chart below shows rates for the cheapest car insurance in Dallas, TX for a 45-year-old female driver with no accidents, a clean driving record, and a decent credit rating. Based on her current rating profile, Travelers may offer the cheapest car insurance rates in Dallas at $1,324 each year. This is $580 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also make the list of the cheapest Dallas, TX auto insurance companies.
Now we will give the driver in the first chart an at-fault accident, less-than-perfect credit, and a blemish on her driving record. Because every insurance company uses their own formula to set their prices, comparing insurance quotes most likely will result in a different list of affordable Dallas car insurance companies as shown below.
State Farm now has the best auto insurance rate in Dallas with Mercury, USAA, Nationwide, and Safe Auto now being in the top five. This example demonstrates why drivers need to compare many different companies to get affordable auto insurance quotes for teenagers. Rates are impacted by many different factors and can change without notice, so the best company a year ago may now be quite expensive.
Ideas for buying budget-friendly car insurance for teenagers
It’s not impossible to find cheaper rates, and here are some of the better penny-pinching suggestions that can help Texas drivers locate low-cost coverage.
- Insure your home and auto with the same company
- Better credit rating means better rates
- Claim-free drivers earn discounts
- Higher deductibles mean lower rates
- Safe vehicles generally have lower rates
- Full coverage is expensive so only insure older vehicles for liability only
- Compare rates and switch if you can find a better deal
The last tip is extraordinarily valuable, as we hit on in this article. Prices can change significantly in a year, so don’t hesitate to change insurance companies if a better rate can be found.
Being loyal to a particular company is commendable, but it’s not a great idea if that loyalty ends up costing thousands of dollars over the life of your policy. It only take a few minutes to compare prices to find cheaper auto insurance for teenagers in Dallas.
The Dallas, TX, insurance agents below are a good start to provide answers to your questions and help you determine which auto insurance coverages would be the best in your situation, since some drivers aren’t sure which coverage they need and prefer to get some professional advice when trying to find lower insurance rates for teen drivers. It’s not always easy to find coverage yourself, so insurance agents can add peace of mind knowing you have adequate protection in the event of a claim.
To find an agent close to you, click the link at the bottom or click here to compare price quotes now.
Richard Ramirez – State Farm Insurance Agent
9400 N Central Expy #120 – Dallas, TX 75231 – (214) 320-3000
Jon Essary – State Farm Insurance Agent
1214 W Davis St – Dallas, TX 75208 – (214) 948-6000
Steve Barnes – State Farm Insurance Agent
4403 N Central Expy, Ste 100 – Dallas, TX 75205 – (214) 515-9900