I’m sure you’ve seen the captivating commercials from auto insurance companies like GEICO, Farmers, and State Farm that promise dirt cheap rates, so drivers just need to pick the one with the best commercial, right?
It’s not quite that easy, unfortunately, as there are a whole slew of unknown elements like how much you actually drive in a year, the neighborhood you live in, if you own or rent your home, and whether you are female or male, that help determine the price you have to pay. The information below covers the types of situations that result in high rates and will hopefully give you a good start in finding the cheapest insurance in Texas.
Figuring out which companies have the cheapest insurance rates for low credit scores requires a little more effort than just comparing a company or two.
Every insurance company uses their own formula for determining prices, so let’s take a look at the insurance companies with the overall cheapest rates in Texas. It’s important that you understand Arlington, TX insurance rates are influenced by many factors that may substantially change the price of coverage. Simply turning a year older, moving across town, or getting a DUI can trigger price changes that can cause some rates to be much cheaper than others.
Find Cheaper Auto Insurance in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,095 |
| 3 | Texas Farm Bureau | $1,199 |
| 4 | Germania Mutual | $1,244 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,382 |
| 7 | Mercury | $1,461 |
| 8 | State Farm | $1,495 |
| 9 | Safe Auto | $1,597 |
| 10 | Nationwide | $1,600 |
| 11 | Allstate | $1,701 |
| 12 | Progressive | $1,715 |
| 13 | Amica | $1,757 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,093 |
| 16 | MetLife | $2,183 |
| 17 | Unitrin | $2,310 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,594 |
| View More Rates Go | ||
Travelers may have some of the best car insurance rates in Arlington at around $1,021 each year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the more affordable Arlington, TX auto insurance companies.
As shown in the table above, if you are a customer of Germania Mutual and switched to USAA, you could see an annual premium reduction of upwards of $149. Policyholders with Esurance may save as much as $270 a year, and California Casualty insureds might cut rates by $287 a year.
To see how much you can save, click here to get a free quote or quote prices from the following companies.
It’s important to note that these rates are averages across all types of drivers and the different vehicles they drive and do not take into consideration an exact vehicle garaging location for low credit scores. So the car insurance company that can offer you the lowest price may not even be in the top 23 companies shown above. That emphasizes why you need to compare rates from multiple companies using your own specific driver and vehicle information.
For bad credit, one of the largest things that aid in calculating the amount you pay each year for auto insurance is where you live. Cities with larger populations will most likely pay more, whereas areas with less crime or weather claims have the benefit of cheaper auto insurance prices.
The table below rates the priciest cities in Texas for low credit scores to purchase car insurance in. Arlington is listed at #16 with the annual price of $1,642 for the average insured, which is approximately $137 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Dallas | $1,893 |
| 3 | Brownsville | $1,870 |
| 4 | Garland | $1,850 |
| 5 | Houston | $1,835 |
| 6 | Laredo | $1,833 |
| 7 | Amarillo | $1,804 |
| 8 | Pasadena | $1,794 |
| 9 | Irving | $1,789 |
| 10 | Beaumont | $1,772 |
| 11 | Mesquite | $1,771 |
| 12 | Grand Prairie | $1,757 |
| 13 | San Antonio | $1,739 |
| 14 | Lubbock | $1,733 |
| 15 | Carrollton | $1,647 |
| 16 | Arlington | $1,642 |
| 17 | Austin | $1,627 |
| 18 | Corpus Christi | $1,620 |
| 19 | Fort Worth | $1,604 |
| 20 | McKinney | $1,577 |
| 21 | El Paso | $1,568 |
| 22 | Plano | $1,560 |
| 23 | Waco | $1,537 |
| 24 | Killeen | $1,518 |
| 25 | Abilene | $1,499 |
| Compare Rates Now Go | ||
Table data uses estimated as specific location information can alter price quotes greatly.
How violations and accidents impact rates
The common sense way to earn affordable insurance prices in Arlington for bad credit is to be an attentive driver and avoid getting tickets or having accidents. The example below highlights how traffic violations and fender-benders can impact auto insurance costs for each different age category. The rates are based on a married female driver, full physical damage coverage, $1,000 deductibles, and no policy discounts are applied.
The data above shows the average cost of auto insurance in Arlington per year with no accidents and a clean driving record is $1,653. Get written up for one speeding ticket and the average cost swells to $1,932, an increase of $278 each year. Now get one accident along with the one speeding ticket and the annual cost of insurance for low credit scores jumps again to an average of $2,704. That’s an increase of $1,051, or $88 per month, just for not being attentive to the road!
How to get discounts on Arlington auto insurance
Auto insurance companies that offer coverage for low credit scores may also give you policy discounts that may potentially lower prices by as much as 25% or more if you qualify for them. The best insurance companies and the discounts they provide are shown below.
- State Farm includes discounts for multiple policy, driver’s education, Steer Clear safe driver discount, good driver, defensive driving training, anti-theft, and safe vehicle.
- Farmers Insurance discounts include multi-car, pay in full, business and professional, alternative fuel, teen driver, and youthful driver.
- Progressive offers discounts including multi-vehicle, online signing, homeowner, multi-policy, continuous coverage, and online quote discount.
- GEICO may have discounts that include federal employee, membership and employees, defensive driver, multi-vehicle, emergency military deployment, good student, and military active duty.
- Auto-Owners Insurance policyholders can earn discounts including safe vehicle, group or association, multi-policy, multiple vehicles, and student away at school.
- The Hartford has savings for defensive driver, good student, vehicle fuel type, bundle, driver training, and anti-theft.
- Farm Bureau has discounts for safe driver, good student, youthful driver, multi-policy, and 55 and retired.
- USAA may offer discounts for loyalty savings, good student, annual mileage, family discount, and defensive driver.
The chart below shows the difference between auto insurance costs with and without discounts applied to the premium. The premiums assume a female driver, a clean driving record, no claims, Texas state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with defensive driving course, safe-driver, homeowner, claim-free, vehicle safety, and multiple vehicle discounts applied. When drivers take advantage of discounts, theaverage yearly reduction on insurance for low credit scores is 28% or $474.
Price comparison of only insuring for liability
Finding cheaper insurance is important to the majority of people, and an effective way to find cheaper insurance for low credit scores is to only buy liability coverage. The illustration below shows the difference between auto insurance costs with and without full coverage. The prices are based on no claims or driving violations, $250 deductibles, single status, and no discounts are factored in.
If we average all the age groups together, physical damage insurance costs $2,671 per year over having just liability coverage. That amount may make you wonder if you should buy full coverage at all. There is no set rule of when to eliminate full coverage, but there is a general guideline you can use. If the yearly cost of full coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
For example, let’s assume your vehicle’s replacement value is $7,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would receive is $6,500 after paying your deductible. If you are paying in excess of $650 annually for your policy with full coverage, the it may be a good time to stop paying for full coverage.
How to find budget-friendly car insurance for low credit scores
It is possible to find better rates, and here are some of the recommended thrifty solutions that can help you find lower-cost auto insurance.
- Earn a discount by not filing claims
- At-fault accidents can raise rates significantly
- Avoid getting citations and tickets
- Drop full coverage on older vehicles
- Higher comprehensive and collision coverage deductibles will save money
- Shop around for lower rates once a year
That last idea is remarkably valuable, as was affirmed in the prior information. Coverage rates vary greatly, so you should be ready to switch companies if a lower price can be found.
We understand brand loyalty, but it’s not a good idea if that faithfulness ends up costing you major coinage every year. It takes less than five minutes to shop around and find cheaper car insurance for low credit scores in Arlington.