Life would sure be easier if we could just tell you the one auto insurance company that has the most affordable insurance in Texas. Regrettably, it’s not quite that easy, as there are a whole bunch of unknown elements such as if you have points on your license, your age, how well you maintain your credit, and the safety ratings of your vehicle, that all factor into the price you pay. Car insurance is kind of a dry topic, but this article will explain some of these things and will hopefully give you a good start in finding the cheapest car insurance in Texas.
For teen drivers, one of the largest components that are looked at to help calculate car insurance rates is where you live in Arlington. More densely populated places will most likely have higher rates, whereas areas with less congestion can boast about having cheaper rates.
The table below sorts the most costly cities in Texas for teenagers in which to buy car insurance. Arlington is ranked at #18 with a yearly cost of $1,642 for the average insured, which is around $137 per month.
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Premium amounts are comparative as the garaging address in Arlington can revise auto insurance rates substantially.
Locating reasonably-priced auto insurance is easier said than done, and deciding which companies offer the lowest-priced auto insurance rates for teenagers takes even more shopping around.
Every car insurance company has a different formula for determining prices, so we need to take a look at the auto insurance companies with the overall cheapest rates in Arlington. We do need to point out that Texas auto insurance rates are influenced by many factors that control your annual premium. This price variability is why it is important to shop around to find the lowest car insurance quotes for teenagers. Car insurance prices can be altered by many risk factors and can change without notice, so the cheapest option six months ago may now be priced much higher than other options.
Best Car Insurance Prices for Teens
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,211|
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Travelers has some of the cheapest car insurance rates in Arlington at around $1,041 annually. This is $863 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the more affordable Arlington, TX auto insurance companies.
As the rates illustrate above, if you are currently insured with Texas Farm Bureau and switched to Travelers, you might realize annual savings of around $170. Insureds with Germania Mutual might save as much as $215 a year, and Esurance policyholders might lower prices by up to $366 a year.
Remember that these policy rates are averages across all insureds and vehicles and and are not figured with an exact location for teenagers. So the company that has the lowest price for you may not even be in the top 23 companies shown above. That underscores the importance of why you need to compare rates from as many companies as possible using your own specific driver information and vehicle.
The make and model of vehicle you are insuring is a large factor when shopping for the best cheap auto insurance for teenagers. Vehicles with lower acceleration and performance, good safety features, or low incidents of liability claims will cost substantially less to insure than high performance models.
The information below presents coverage costs for a selection of the most budget-friendly vehicles to insure.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$4,510|
|Ford Escape XLT 4WD||$4,553|
|Hyundai Elantra SE Touring Station Wagon||$4,830|
|Jeep Wrangler Sahara 4WD 2-Dr||$5,071|
|Ford Explorer XLT AWD||$5,077|
|Volkswagen Jetta 2.0T Station Wagon||$5,149|
|Chevrolet Malibu LS||$5,349|
|Toyota RAV4 Sport 2WD||$5,359|
|Chevrolet Impala LT||$5,349|
|Chevrolet Equinox LS 2WD||$5,354|
|Dodge Grand Caravan Hero||$5,349|
|Ford F-150 SVT Raptor Super Cab 4WD||$5,392|
|Toyota Camry SE||$5,624|
|Toyota Tacoma X-Runner 2WD||$5,629|
|Honda Odyssey EX-L W/Navigation||$5,624|
|Toyota Corolla XLE||$5,632|
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Prices above based on single male driver age 16, 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 specific zip code location which can influence price quotes substantially.
By looking at the data, you can conclude that cars like the Honda CR-V, Ford Escape, and Hyundai Elantra should be the less-costly vehicles to insure for teen drivers. Car insurance rates will be more costly because of the fact that there is more risk for teenagers, but in general those particular models will most likely have the lowest insurance rates available.
The example below illustrates how your deductible choice can impact insurance prices when quoting cheap insurance for teenagers. The price estimates are based on a single female driver, comprehensive and collision coverage, and no other discounts are factored in.
The data above shows that a 30-year-old driver could lower their policy premium by $344 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $520 by choosing a $1,000 deductible. Young drivers, like the 20-year-old example, have the ability to save up to $766 each year just by choosing larger deductibles.
When choosing a higher deductible, it is essential to have enough funds in savings to be able to cover the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Does full coverage make sense?
Saving money on auto insurance is important to most people, and one easy way to buy cheaper insurance for teenagers is to not insure for full coverage. The diagram below illustrates the comparison of insurance premiums with full physical damage coverage and with liability coverage only. The information is based on no violations or claims, $100 deductibles, marital status is single, and no discounts are applied.
If we average the cost for all age groups, physical damage coverage on your policy costs $2,974 per year more than insuring for liability only. Many drivers may wonder when is it a good idea to stop buying full coverage. There is no clear-cut rule to delete full coverage on your policy, but there is a general guideline you can use. If the annual cost of having full coverage is about 10% or more of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s say your vehicle’s replacement value is $7,000 and you have $1,000 deductibles. If your vehicle is damaged in an accident, the most you would receive is $6,000 after paying your policy deductible. If you are currently paying more than $600 a year for your policy with full coverage, then you may want to consider only buying liability coverage.
There are a few situations where eliminating full coverage is not financially feasible. If you still owe a portion of the original loan, you are required to maintain full coverage in order to prevent your loan from defaulting. Also, if your emergency fund is not enough to purchase a different vehicle in the even your car is totaled, you should not eliminate full coverage.
Get discount Arlington insurance
Insurance providers that offer quotes for teenagers may additionally offer policy discounts that can reduce rates by as much as 30% if you meet the requirements. A list of auto insurance companies and a summarized list of policyholder discounts can be found below.
- State Farm may offer discounts for multiple autos, accident-free, defensive driving training, student away at school, safe vehicle, and good driver.
- Nationwide includes discounts for easy pay, good student, defensive driving, family plan, multi-policy, anti-theft, and accident-free.
- GEICO policyholders can earn discounts including defensive driver, daytime running lights, membership and employees, federal employee, and military active duty.
- AAA may include discounts for education and occupation, good student, good driver, AAA membership discount, anti-theft, and multi-car.
- 21st Century has savings for defensive driver, teen driver, driver training, air bags, 55 and older, and homeowners.
- The Hartford offers discounts including vehicle fuel type, anti-theft, air bag, bundle, and defensive driver.
The example below shows the comparison of car insurance rates with and without discounts applied to the rates. The data is based on a female driver, no violations or claims, Texas state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows insurance cost with no discounts. The second shows the rates with paid-in-full, good student, paperless filing, continuous coverage, vehicle safety, and anti-theft discounts applied. When drivers take advantage of discounts, theamount saved on auto insurance for teenagers is 28% or $923.