Who Has Cheap Car Insurance in Texas?

For drivers in Texas, one of the big considerations that is used to calculate the annual cost of car insurance is where you live in Texas. Areas with more people like McAllen, Houston, and Dallas tend to have higher rates, whereas areas that tend to be more rural can boast about having cheaper rates.

The next table lists the most expensive cities in Texas to purchase a policy in.

Premium costs are estimated as the vehicle garaging location can change prices substantially.

The make and model of vehicle you are buying coverage for is a large factor that determines whether or not you can buy cheap car insurance in Texas. Vehicles with reasonable performance levels, good safety features, or a low likelihood of having liability claims will cost substantially less to insure than higher performance models. The list below ranks insurance costs for a selection of the most affordable vehicles to insure.

Table data assumes married female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, multi-vehicle, safe-driver, multi-policy, and homeowner. Estimates do not factor in zip code location which can lower or raise premium rates greatly.

Looking at the numbers, cars like the Honda CR-V, Chevrolet Traverse, Toyota Prius, and Ford Escape should be the less-costly vehicles to insure for drivers in Texas.

Finding out which company has the cheapest auto insurance rates in Texas may require a little more effort in order to find the best policy.

Each insurer has their own formula to set premium rates, so we’ll take a look at the auto insurance companies that tend to be cheaper in Texas. It’s important to know that Texas auto insurance rates are based on many factors that will increase or decrease the policy premium. Simply having another birthday, buying a different vehicle, or having a fender bender can cause premium changes that can now make some companies more affordable than the competition.

Cheapest Insurance Rates in Texas

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Travelers normally has some of the lowest car insurance rates in Texas at around $1,021 a year. USAA, Germania Mutual, Texas Farm Bureau, and California Casualty also qualify as some of the cheaper Texas car insurance companies.

As illustrated above, if you currently have a policy with California Casualty and switched to USAA, you might realize an annual premium reduction of about $279. Insureds with Esurance might save as much as $290 a year, and State Farm policyholders might reduce prices by as much as $348 a year.

To find cheap car insurance in Texas for your vehicle, click here to start your custom quote or quote prices from the following companies.

Understand that those policy prices are averages across all insureds and vehicles and do not take into consideration a rate discount in Texas. So the auto insurance company that has the cheapest rates for you may not even be shown in the rate chart shown above. That points out the importance of why you need to compare rates from as many companies as possible using your own specific driver information and vehicle.

Insurance rate increases from tickets or accidents

The easiest method to enjoy the most affordable auto insurance prices in Texas for drivers in Texas is to drive safe and not get tickets or have accidents. The information below highlights how speeding tickets and at-fault collisions can affect insurance costs for each age group. Data assumes a single male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied to the premium.

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The chart shows that the average cost of an auto insurance policy in Texas per year with no accidents or violations is $1,793. Add in one speeding ticket and the average cost increases to $2,022, an increase of $229 each year. Next add one accident along with the one speeding ticket and the 12-month cost of auto insurance in Texas jumps again to an average of $2,657. That’s an increase of $864, or $72 per month, just for not keeping your driving record clean!

Cheap insurance quotes for drivers in Texas

There are many ways to find lower-cost auto insurance in Texas, but the most prevalent methods are through an independent or non-exclusive agent, an exclusive insurance agent such as Allstate or Liberty Mutual, or direct online or over the phone from a company like Geico or Progressive.

All three ways are similar, but they differ slightly in how they provide price quotes.

Independent insurance agencies write business for many companies and can provide price quotes from every one. Independent agents can quote with many companies and give you more rates, which may provide you with a better chance of finding cheaper coverage. If they find a cheaper price, your policy can be easily switched to a different company which makes it simple for you.

A captive or exclusive agent is usually just provide rates from a single company, a couple examples are a State Farm or Liberty Mutual agent. They generally cannot compare rates from other companies, so it’s a good idea to get additional price quotes.

Opting to purchase auto insurance direct means you skip either of the other two types of agents and instead buy buying direct from a company like Progressive or Geico. This option may be preferred by consumers who do not need high amounts of coverage and have a decent understanding of the exclusions of a policy.

So what is the best way to buy cheap car insurance in Texas? One answer would be shopping direct results in the cheapest rates because there is no agent taking a commission, but unfortunately, that is not the case. It would also be easy to say buying from an independent agent saves the most money since they have more companies to choose from, but again, that’s not a true statement. In many circumstances, exclusive agents have coverage prices that cannot be met by either independent or direct companies.

Since auto insurance prices are based on many different factors, the best way to find out which one is cheapest is to get as many comparison quotes as possible. Smart shoppers will get quotes from all three types in order to have enough rates to compare. For a list of auto insurance companies with low rates, click here to view.

How to find cheap car insurance in Texas

It’s not impossible to find cheaper rates, and here are some money-saving solutions that can help you find cheap car insurance.

• Buy a safer vehicle
• Don’t have frequent claims
• Home or renters coverage can save on auto insurance
• Raise your deductibles
• Improve your credit score
• Do not waste money insuring older vehicles for full coverage
• Compare rates regularly and switch companies to save money

The last idea is highly critical, as was affirmed in this article. Coverage prices in Texas can change considerably in a year, so you should be ready to buy from a new company if you can find a cheaper rate.

Many drivers prefer to stick with one company, but it isn’t a good idea if that inflexibility results in costing you lots of hard earned cash every month. Take a few minutes and shop around and find cheaper auto insurance in Texas.