Wouldn’t it be great if we could just tell you the one company that has the best rates for homeowners? It’s not quite that easy, unfortunately, as there are a whole bunch of unknown factors like if you have a tendency to get into accidents, if full coverage is needed, and the miles you drive each year. Car insurance is kind of a dry topic, but this article will explain the causes of high insurance rates and educate you enough to have a good start to your coverage search.
For people who own their homes, one of the more important factors that aid in calculating the amount you pay each year for auto insurance is your zip code in Dallas. Cities with larger populations or higher claim trends will most likely have higher rates, whereas areas with less crime or weather claims have the benefit of cheaper car insurance.
The table below shows the highest-priced places in Texas for homeowners to purchase a policy in. Dallas makes the list at #4 with the yearly price of $1,837 for coverage, which is approximately $153 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Laredo | $1,907 |
| 3 | Brownsville | $1,870 |
| 4 | Dallas | $1,837 |
| 5 | Houston | $1,835 |
| 6 | Mesquite | $1,825 |
| 7 | Amarillo | $1,786 |
| 8 | Garland | $1,778 |
| 9 | Beaumont | $1,772 |
| 10 | Pasadena | $1,758 |
| 11 | Grand Prairie | $1,757 |
| 12 | Irving | $1,736 |
| 13 | Lubbock | $1,716 |
| 14 | Arlington | $1,709 |
| 15 | San Antonio | $1,688 |
| 16 | Austin | $1,627 |
| 17 | Carrollton | $1,615 |
| 18 | Fort Worth | $1,604 |
| 19 | Corpus Christi | $1,588 |
| 20 | El Paso | $1,584 |
| Compare Prices Now Go | ||
Price information shown is comparative as specific Dallas zip code can impact prices significantly.
The type of vehicle you are buying coverage for is a large factor that determines the availability of cheap car insurance for homeowners. Vehicles with high performance, poor crash test ratings, or a track record of large liability claims will cost substantially more to insure than more economical and safe models. The list below ranks insurance costs for the most affordable vehicles to insure in Texas.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Chevrolet Silverado LS Regular Cab 4WD | $1,343 |
| Honda CR-V LX 2WD | $1,404 |
| Honda Accord EX 4-Dr Sedan | $1,410 |
| Jeep Grand Cherokee Laredo 4WD | $1,446 |
| Chevrolet Equinox LT AWD | $1,454 |
| Chevrolet Impala LT | $1,446 |
| Jeep Wrangler Sport 4WD 2-Dr | $1,456 |
| Dodge Grand Caravan Crew | $1,474 |
| Hyundai Elantra GLS Touring Station Wagon | $1,502 |
| Honda Odyssey Touring | $1,549 |
| Toyota Prius | $1,552 |
| Ford Explorer XLT 4WD | $1,575 |
| Ford F-150 FX2 Super Cab 2WD | $1,581 |
| GMC Sierra 3500HD SLT Extended Cab 2WD | $1,577 |
| Ford Escape Limited 4WD | $1,630 |
| Ford Edge SE AWD | $1,638 |
| GMC Sierra Denali Crew Cab 4WD | $1,652 |
| Toyota Camry Hybrid | $1,655 |
| Honda Civic LX-S 4-Dr Sedan | $1,718 |
| Ford Focus SE 4-Dr Sedan | $1,740 |
| Start a Quote Go | |
Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, homeowner, multi-vehicle, multi-policy, and claim-free. Estimates do not factor in Dallas, TX location which can decrease or increase coverage prices substantially.
By looking at the data, we can conclude that models like the Chevrolet Silverado, Honda CR-V, Honda Accord, Jeep Grand Cherokee, and Chevrolet Equinox are going to be a few of the more affordable vehicles to insure for people who own their homes.
Buying low-cost car insurance is confusing at best, and deciding which company offers the most affordable insurance rates for homeowners requires even more perseverance. Every auto insurer has a different process for establishing rates, so first we will examine the insurance companies that tend to have lower prices in Dallas.
Best Auto Insurance Prices for Homeowners
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,052 |
| 2 | USAA | $1,095 |
| 3 | Texas Farm Bureau | $1,211 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,438 |
| 7 | State Farm | $1,450 |
| 8 | Mercury | $1,506 |
| 9 | Safe Auto | $1,549 |
| 10 | Nationwide | $1,553 |
| 11 | Progressive | $1,664 |
| 12 | Allstate | $1,667 |
| 13 | Amica | $1,705 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,135 |
| 16 | MetLife | $2,183 |
| 17 | Encompass | $2,232 |
| 18 | Unitrin | $2,310 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,646 |
| Compare Rates Now Go | ||
Travelers may offer some of the cheapest car insurance rates in Dallas at around $1,052 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the lowest-priced Dallas, TX insurance companies.
In the rate table above, if you are a customer of Germania Mutual and switched to Travelers, you might achieve yearly savings of in the neighborhood of $230. Drivers with Esurance might save as much as $369 a year, and California Casualty insureds might realize rate reductions of up to $386 a year.
It’s important to note that these estimates are averaged for all types of insureds and vehicles and do not factor in an exact vehicle garaging location for homeowners. So the car insurance company that fits you best may not even be in the top 23 companies shown above. That affirms the importance of why you need to get rate quotes from many companies using your own specific driver information and vehicle.
Choosing a high-quality auto insurance provider can be challenging considering how many choices there are in Texas. The company ratings shown below could help you choose which auto insurers you want to consider comparing rates with. The ratings below are for companies that insure vehicles nationwide, so smaller companies are not factored into the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
How much more does full coverage cost?
Finding the cheapest insurance should be important to the majority of vehicle owners, and one way to buy cheaper insurance for homeowners is to only buy liability insurance. The diagram below illustrates the comparison of yearly insurance costs with and without physical damage coverage. The prices are based on no violations or accidents, $100 deductibles, marital status is single, and no policy discounts are applied.
If we average the cost for all age groups, comprehensive and collision coverage on your policy costs $2,922 per year more than insuring for liability only. That is a large expense which might make you wonder when is the right time to remove full coverage. There is no definitive rule that is best for determining when to drop physical damage coverage, but there is a general convention. If the annual cost of coverage is more than 10% of the vehicle’s replacement cost less your deductible, then you might want to consider buying only liability coverage.
For example, let’s assume your vehicle’s book value is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $4,000 after paying the physical damage deductible. If premium cost is more than $400 annually for full coverage, then you may need to consider dropping full coverage.
There are some scenarios where removing full coverage is not in your best interest. If you haven’t satisfied your loan, you are required to maintain full coverage to satisfy the loan requirements. Also, if you can’t afford to buy a different vehicle if your current one is in an accident, you should not opt for liability only.
Get discount Dallas car insurance
Auto insurance companies that offer coverage for homeowners may also provide special discounts that could potentially reduce rates by 25% or more if you are eligible. Larger insurance companies and some of the discounts are included below.
- State Farm has savings for multiple autos, passive restraint, defensive driving training, good driver, safe vehicle, and anti-theft.
- GEICO offers premium reductions for driver training, daytime running lights, five-year accident-free, good student, federal employee, defensive driver, and air bags.
- Allstate offers discounts for auto/life discount, teenSMART discount, resident student, eSmart discount, safe driver, new car, and utility vehicle.
- SAFECO may offer discounts for bundle discounts, drive less, teen safe driver, anti-lock brakes, and safe driver.
- Farm Bureau offers discounts including multi-vehicle, youthful driver, safe driver, good student, renewal discount, and driver training.
- Progressive may include discounts for continuous coverage, homeowner, multi-policy, good student, online signing, multi-vehicle, and online quote discount.
- AAA policyholders can earn discounts including AAA membership discount, good student, education and occupation, multi-car, anti-theft, multi-policy, and good driver.
The chart below visualizes the comparison of insurance prices with and without discounts applied to the policy premium. The rates are based on a male driver, no accidents or driving violations, Texas state minimum liability limits, full coverage, and $100 deductibles.
The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with marriage, safe-driver, accident-free, anti-theft, defensive driving course, and multiple vehicle discounts applied. In this example, the average yearly reduction on insurance for homeowners is 28% or $601.
The importance of shopping around
Dallas insurance rates are based on many factors which can substantially decrease or increase the price you pay. Simply getting older, moving across town, or having an at-fault accident may cause policy rate changes that may make certain companies more affordable than others. Not only may things change on your end, but insurers file new Texas car insurance rates as needed in order to be able to pay unexpected claims. An unexpected high level of claims may cause increased policy costs, while a better claims history may cause lower-priced Dallas car insurance rates.
For example, the data below shows the company with the cheapest car insurance in Dallas, TX for a 30-year-old female driver with a clean driving record, no accidents, and excellent credit. If we estimate prices based on her current rating profile, Travelers quotes the best car insurance rates in Dallas at $1,282 annually. This is $622 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also included in the cheapest Dallas, TX auto insurance companies.
The example below compares rates after we give the driver in the first chart some claims, slightly worse credit, and an imperfect driving record. Because each insurer has their own guidelines for determining prices, analyzing rates could result in a new list of companies as shown below.
State Farm now has the best car insurance rate in Dallas, TX with Mercury, USAA, Safe Auto, and Nationwide also being competitive. This example demonstrates why it is important to perform an extensive rate comparison to get the most budget-friendly insurance quotes for homeowners.
Insurance rates can be determined by many risk factors and change substantially, so the best company when you last compared rates may now be priced much higher than other options.