You have seen the captivating ads from insurers like GEICO, Allstate, and Farmers that promise enormous savings. So drivers should just select the one with the best jingle, right?
It’s not quite that easy, unfortunately, as there are a whole slew of unknowns like the annual mileage you drive, if you have ever let your coverage lapse, and the amount of liability insurance you need, that all go into determining the rate you pay. This article goes into detail about the best ways to pay less and should give you a good start in finding the cheapest car insurance in Dallas.
One of the many considerations that are looked at to determine auto insurance rates is where you call home. Regions with more people or even just more weather-related claims are more likely to pay higher prices, whereas areas that tend to be more rural benefit from having to pay less for coverage.
The following table sorts the most expensive cities in Texas for drivers under 25 in which to buy car insurance. Dallas comes in at #5 with a yearly premium of $1,837 for coverage, which is around $153 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Brownsville | $1,908 |
| 3 | Houston | $1,853 |
| 4 | Laredo | $1,851 |
| 5 | Dallas | $1,837 |
| 6 | Garland | $1,796 |
| 7 | Pasadena | $1,794 |
| 8 | Amarillo | $1,786 |
| 9 | Mesquite | $1,771 |
| 10 | Grand Prairie | $1,757 |
| 11 | San Antonio | $1,739 |
| 12 | Irving | $1,719 |
| 13 | Lubbock | $1,716 |
| 14 | Beaumont | $1,702 |
| 15 | Arlington | $1,692 |
| 16 | Carrollton | $1,647 |
| 17 | Corpus Christi | $1,620 |
| 18 | Austin | $1,610 |
| 19 | Fort Worth | $1,604 |
| 20 | Waco | $1,584 |
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Rate quotes are approximated as specific Dallas zip code can change rates noticeably.
The vehicle model driven is one of the largest considerations when trying to find the most affordable insurance for drivers under 25. Vehicles with lower acceleration and performance, an excellent safety record, or a track record of few liability claims will cost significantly less to insure than fast, unsafe models. The list below illustrates car insurance rates for a number of the cheapest vehicles to buy coverage for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $2,671 |
| Honda Accord EX-L 4-Dr Sedan | $2,879 |
| Ford Escape Limited 4WD | $2,887 |
| Toyota Prius | $2,919 |
| Honda Odyssey LX | $2,956 |
| Toyota Tacoma 4WD | $2,994 |
| Dodge Grand Caravan CV | $2,999 |
| Ford Explorer XLT 2WD | $2,994 |
| Chevrolet Malibu Hybrid | $3,164 |
| Volkswagen Jetta S 4-Dr Sedan | $3,174 |
| Chevrolet Equinox LT 2WD | $3,164 |
| Ford Fusion S 4-Dr Sedan | $3,172 |
| Toyota RAV4 2WD | $3,164 |
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Price data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in vehicle garaging location which can change prices noticeably.
By looking at the data, vehicles like the Honda CR-V, Honda Accord, Ford Escape, Toyota Prius, and Honda Odyssey should be the most budget-friendly vehicles to insure for drivers age 25 and younger. The cost of a car insurance policy will tend to be more expensive anyway just because there is more exposure for drivers under 25, but generally speaking those particular models will have the lowest prices compared to other vehicles.
Finding out which company has the cheapest car insurance rates for drivers under 25 involves a bit more effort in order to find the best price.
Every insurance company uses a little different formula for setting rates, so we’ll take a look at the lowest cost car insurance companies in Dallas. It’s important to know that Dallas, TX car insurance rates are determined by lots of factors that can increase the price you have to pay for coverage. Simply having a birthday, moving to a new city, or getting a couple of tickets may generate price changes that can make some companies cheaper in comparison to the competition.
Find the Cheapest Car Insurance for Young Drivers
Travelers normally has some of the cheapest car insurance rates in Dallas at around $1,041 annually. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also rank well as some of the best Dallas, TX car insurance companies.
In this example, if you are insured with Germania Mutual and switched to USAA, you could realize a yearly price reduction of about $199. Customers with California Casualty may save as much as $287 a year, and Esurance insureds might lower prices by $312 a year.
Bear in mind that those policy prices are averages for all types of insureds and vehicles and and are not calculated with an exact location for drivers under 25. So the company that has the cheapest price for you may not even be in the list above. That underscores the importance of why you need to get auto insurance quotes using your own individual information.
How to get discounts on Dallas insurance rates
Insurers that provide coverage for drivers under 25 could also offer rate discounts that can reduce rates by as much as 35% if you are eligible. A list of car insurance companies and a selection of discounts include:
- GEICO includes discounts for driver training, federal employee, seat belt use, air bags, multi-policy, and anti-theft.
- Mercury Insurance may offer discounts for type of vehicle, accident-free, low natural disaster claims, good student, and age of vehicle.
- Farmers Insurance may include discounts for good student, electronic funds transfer, early shopping, multi-car, distant student, and business and professional.
- Auto-Owners Insurance offers discounts for company car, teen driver, anti-theft, group or association, and multiple vehicles.
- Liberty Mutual may have discounts that include hybrid vehicle, good student, new move discount, new vehicle discount, newly married, and multi-policy.
- SAFECO has savings for teen safe driver, multi-car, accident prevention training, teen safety rewards, and safe driver.
- Progressive offers premium reductions for online quote discount, good student, online signing, homeowner, continuous coverage, multi-vehicle, and multi-policy.
- USAA discounts include driver training, annual mileage, defensive driver, loyalty savings, new vehicle, good student, and vehicle storage.
The diagram below illustrates the comparison of insurance premiums with and without policy discounts. The rates are based on a male driver, a clean driving record, no at-fault accidents, Texas state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with continuous coverage, good student, anti-theft, paperless filing, passive restraint, and vehicle safety discounts applied. When taking advantage of discounts, the average savings per year on car insurance for drivers under 25 is 19% or $410.
The illustration below demonstrates how deductible levels can impact insurance prices when trying to find cheap insurance for drivers under 25. The premium estimates are based on a single male driver, comp and collision included, and no discounts are applied.
The data above shows that a 50-year-old driver could cut expenses by $374 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $564 by changing to a $1,000 deductible. Youthful drivers, like the 20-year-old, could potentially save as much as $1,236 or even more by using a higher deductible.
When using a larger deductible, it will be required to have additional funds squirreled away to be able to pay the extra out-of-pocket expense that is associated with using high deductibles.
Cautious Dallas drivers save money
The easiest method to receive the best car insurance premiums for drivers age 25 and younger is to pay attention while driving and not have accidents or get tickets. The chart below demonstrates how citations and at-fault fender-benders impact car insurance costs for each different age category. The premium estimates are based on a single female driver, comp and collision included, $250 deductibles, and no discounts are factored in.
In the chart above, the average cost of an auto insurance policy per year with no accidents and a clean driving record is $2,535. Add in one speeding ticket and the average cost jumps to $2,875, an increase of $340 each year. Now add one accident along with the one speeding ticket and the annual cost of car insurance for drivers under 25 jumps again to an average of $3,837. That’s an increase of $1,302, or $108 per month, just for not being more responsible behind the wheel!
How to find the cheapest insurance for drivers under 25
It is possible to find better rates, and here are some money-saving solutions that can help drivers locate low-cost car insurance.
- Higher credit scores can equal lower rates
- Buy a vehicle with excellent safety ratings
- Increase the comprehensive and collision deductibles on your policy
- If your vehicles are older, consider dropping full coverage
- Avoid getting citations and tickets
- Avoid preventable accidents
- Check for cheaper rates once a year
That last tip is certainly significant, as was affirmed in the prior article. Prices charged by car insurance companies can be modified anytime, so don’t be tentative to buy a policy from a new company if a more affordable price is available. Many drivers have brand loyalty and that’s fine, but it’s not recommended if that devotion results in you overpaying hundreds every year. Take a few minutes and compare rates and find cheaper auto insurance for drivers under 25 in Dallas.