The car, truck, or SUV driven is a large consideration when shopping around for the most economical car insurance for inexperienced drivers. Vehicles with higher performance, poor safety ratings, or an increased likelihood of liability claims will cost quite a bit more to insure than more modest models. The list below illustrates coverage prices for a selection of the cheapest vehicles to insure in Texas.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $1,215 |
| Honda Accord LX-P 4-Dr Sedan | $1,222 |
| Honda CR-V EX 2WD | $1,215 |
| Honda Odyssey LX | $1,334 |
| Toyota Prius | $1,344 |
| Toyota RAV4 4WD | $1,437 |
| Chevrolet Malibu Hybrid | $1,445 |
| GMC Sierra SLE Crew Cab 2WD | $1,437 |
| Chevrolet Equinox LS 2WD | $1,446 |
| Ford Focus SES 4-Dr Sedan | $1,482 |
| Hyundai Elantra GLS 4-Dr Sedan | $1,509 |
| Ford Edge Sport AWD | $1,518 |
| Chevrolet Silverado LT Crew Cab 4WD | $1,537 |
| Jeep Grand Cherokee Limited 4WD | $1,547 |
| Ford Fusion SE 4-Dr Sedan | $1,537 |
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Cost estimates assume single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-policy, multi-vehicle, homeowner, safe-driver, and claim-free. Rate information does not factor in Dallas, TX location which can raise or lower premium rates considerably.
Based upon the rates shown, we can presume that makes and models like the Ford Escape, Honda Accord, and Honda CR-V are going to be the less-costly vehicles to insure for new drivers.
For new drivers, one of the largest criteria that help determine insurance cost is your zip code in Dallas. Regions with more people or even just more weather-related claims likely pay more, whereas more rural areas benefit from lower prices.
The following table sorts the highest-priced areas in Texas for inexperienced drivers in which to purchase auto insurance. Dallas is ranked at #2 with an annual premium of $1,911 for coverage, which is around $159 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Dallas | $1,911 |
| 3 | Houston | $1,909 |
| 4 | Brownsville | $1,908 |
| 5 | Laredo | $1,889 |
| 6 | Amarillo | $1,858 |
| 7 | Garland | $1,850 |
| 8 | Mesquite | $1,825 |
| 9 | Grand Prairie | $1,793 |
| 10 | Irving | $1,789 |
| 11 | Pasadena | $1,758 |
| 12 | Beaumont | $1,754 |
| 13 | Lubbock | $1,716 |
| 14 | San Antonio | $1,688 |
| 15 | Arlington | $1,642 |
| 16 | Corpus Christi | $1,636 |
| 17 | Austin | $1,627 |
| 18 | McKinney | $1,625 |
| 19 | Fort Worth | $1,621 |
| 20 | Carrollton | $1,598 |
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Information shown are comparative as zip code location can revise premiums noticeably.
Buying low-cost insurance is difficult, and figuring out which companies quote the cheapest car insurance rates for inexperienced drivers will take even more work.
Each insurance company has their own formula to set policy rates, so let’s begin by examining the car insurance companies that tend to have lower prices in Dallas.
Cheapest Insurance Rates for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,052 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,247 |
| 4 | Germania Mutual | $1,282 |
| 5 | California Casualty | $1,396 |
| 6 | Esurance | $1,407 |
| 7 | State Farm | $1,510 |
| 8 | Mercury | $1,521 |
| 9 | Safe Auto | $1,549 |
| 10 | Nationwide | $1,585 |
| 11 | Progressive | $1,664 |
| 12 | Allstate | $1,701 |
| 13 | Amica | $1,723 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,227 |
| 17 | Encompass | $2,255 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,646 |
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Travelers generally has some of the cheapest car insurance rates in Dallas at around $1,052 a year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty would also make the list of some of the more affordable Dallas, TX car insurance companies.
As the rates illustrate above, if you have coverage with Germania Mutual and switched to USAA, you could see annual savings of in the neighborhood of $165. Policyholders with California Casualty might save as much as $279 a year, and Esurance policyholders might see rate reductions of $290 a year.
To see if your current coverage is too expensive, click here to start your custom quote or click several companies below for low rates.
Understand that those estimates are averaged across all types of drivers and the different vehicles they drive and do not factor in an exact location for inexperienced drivers. So the company that has the cheapest rates for you may not even be in the top 23 companies shown above. That’s why you need to get rate quotes using your own driver and vehicle profiles.
Difference between full coverage and liability only rates
Saving money on car insurance is important to the majority of vehicle owners, and one of the best ways to find cheap insurance for inexperienced drivers is to only pay for liability coverage. The chart below visualizes the comparison of insurance premiums with and without physical damage coverage. The price estimates are based on no violations or claims, $250 deductibles, single status, and no additional discounts are factored in.
If we average all the age groups together, full coverage on your policy costs an extra $2,000 per year more than buying just liability insurance. That amount may make you wonder if buying full coverage is worth the expense. There is no definitive formula that is best for determining when to drop full coverage on your policy, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you might consider buying liability only.
For example, let’s say your vehicle’s replacement cost is $12,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $11,000 after the policy deductible has been paid. If you are paying over $1,100 a year for comprehensive and collision coverage, then it’s probably a good time to buy liability coverage only.
There are a few cases where dropping physical damage coverage is not financially feasible. If you still owe money on your vehicle, you have to carry full coverage to protect the lienholder’s interest. Also, if your savings is not enough to buy a different vehicle if your current one is totaled, you should not buy liability only.
Finding a highly-rated auto insurance company can be rather challenging considering how many choices drivers have in Texas. The information below could help you choose which auto insurance companies you want to consider when shopping insurance around for inexperienced drivers.
These ratings are only made up of the largest companies in the United States, so companies that have a smaller presence are not factored into this list. To compare prices from the most competitive companies in Texas, follow this link.
Top 10 Large Auto Insurance Companies Overall in Dallas
- Travelers
- USAA
- Mercury Insurance
- AAA Insurance
- Nationwide
- Allstate
- State Farm
- The Hartford
- Safeco Insurance
- Progressive
Impact of careless driving on car insurance rates
The easiest way to obtain good car insurance prices in Dallas for new drivers is to pay attention while driving and avoid getting tickets or having accidents. The example below highlights how speeding tickets and at-fault collisions can affect car insurance costs for each different age group. The data is based on a married male driver, comp and collision included, $1,000 deductibles, and no other discounts are factored in.
In the chart above, the average cost of a car insurance policy in Dallas per year with a clean driving record and no accidents is $1,358. Factor in one speeding ticket and the average cost swells to $1,564, an increase of $206 each year. Now add two accidents along with the one speeding ticket and the annual cost of car insurance for inexperienced drivers increases to an average of $3,497. That’s an increase of $2,139, or $178 per month, just for being a less-than-perfect driver!
How to find more affordable car insurance for inexperienced drivers
Here are some of the recommended thrifty solutions that can help you get low-cost coverage.
- Full coverage is expensive so only insure older vehicles for liability only
- Choose a safer vehicle and pay lower rates
- Avoid preventable accidents
- Drive safely
- Good credit can mean cheaper rates
- Increase your deductibles
- Shop around for cheaper prices
The last idea is highly significant, as we discussed in this article. Prices in Dallas can be changed at any time, so don’t be unwilling to buy a policy from a new company if a more affordable rate is found.
Many drivers prefer to stick with one company, but it’s not recommended if that stubbornness costs you major coinage every year. Now is a great time to compare rates to find cheaper car insurance for inexperienced drivers.