Buying affordable auto insurance is not always easy, and figuring out which company offers the cheapest car insurance rates for 16 year olds calls for additional perseverance. Each insurance company has their own unique process to determine rates, so let’s take a look at the car insurance companies with the overall cheapest rates in Plano.
We do need to point out that Texas car insurance rates are impacted by many factors which can substantially change the cost of a policy. This price fluctuation is why Texas drivers need to compare many different companies when trying to find affordable car insurance rates for 16 year olds. Insurance rates can be altered by many different factors and can decrease or increase without notice, so the cheapest option two years ago may now be an over-priced policy.
Best Car Insurance Prices for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,128 |
| 3 | Texas Farm Bureau | $1,199 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,424 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,506 |
| 9 | Nationwide | $1,600 |
| 10 | Safe Auto | $1,613 |
| 11 | Allstate | $1,650 |
| 12 | Progressive | $1,664 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,135 |
| 16 | MetLife | $2,161 |
| 17 | Encompass | $2,232 |
| 18 | Unitrin | $2,241 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,646 |
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Travelers offers some of the cheapest car insurance rates in Plano at around $1,021 annually. This is $883 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the cheaper Plano, TX car insurance companies.
As shown in the table above, if you are a policyholder with Germania Mutual and switched to USAA, you might see yearly savings of about $166. Insureds with Esurance could save as much as $293 a year, and California Casualty policyholders might cut rates by $296 a year.
Bear in mind that those premiums are averaged across all drivers and vehicles in Texas and and are not calculated with a specific location for 16 year olds. So the insurer that is best for you may not even be in the top 23 companies shown above. That is why you need to compare prices as often as possible using your own personalized driver profile and vehicle information.
For new drivers, one of the big components that help determine insurance cost is the neighborhood you call home. Cities with larger populations or higher claim trends tend to have higher rates, whereas areas with lower crime rates and fewer weather claims tend to receive slightly lower rates.
The following table rates the most expensive areas in Texas for 16 year olds in which to buy car insurance. Plano is ranked at #21 with the annual price of $1,576 for the average insurance policy, which is about $131 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Houston | $1,909 |
| 3 | Brownsville | $1,908 |
| 4 | Garland | $1,850 |
| 5 | Dallas | $1,837 |
| 6 | Laredo | $1,833 |
| 7 | Irving | $1,789 |
| 8 | Amarillo | $1,786 |
| 9 | Mesquite | $1,771 |
| 10 | Grand Prairie | $1,740 |
| 11 | Pasadena | $1,740 |
| 12 | Lubbock | $1,733 |
| 13 | San Antonio | $1,722 |
| 14 | Beaumont | $1,702 |
| 15 | Fort Worth | $1,670 |
| 16 | Arlington | $1,658 |
| 17 | Carrollton | $1,647 |
| 18 | El Paso | $1,632 |
| 19 | Austin | $1,627 |
| 20 | Corpus Christi | $1,588 |
| 21 | Plano | $1,576 |
| 22 | McKinney | $1,561 |
| 23 | Abilene | $1,545 |
| 24 | Waco | $1,537 |
| 25 | Killeen | $1,488 |
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Rate quotes are approximated as zip code location can affect coverage rates significantly.
Get discounts on Plano insurance
Insurers that offer coverage for 16 year olds may also give you rate discounts that could reduce prices by as much as 35% if you meet specific criteria. Large car insurance companies and some of their more popular discounts are outlined below.
- State Farm may have discounts that include defensive driving training, Drive Safe & Save, Steer Clear safe driver discount, good driver, and multiple autos.
- GEICO has savings for multi-vehicle, membership and employees, seat belt use, air bags, good student, anti-lock brakes, and daytime running lights.
- Progressive may include discounts for multi-policy, continuous coverage, good student, homeowner, multi-vehicle, and online signing.
- 21st Century policyholders can earn discounts including defensive driver, homeowners, driver training, early bird, and anti-lock brakes.
- American Family discounts include good student, multi-vehicle, air bags, TimeAway discount, mySafetyValet, defensive driver, and early bird.
- The Hartford includes discounts for defensive driver, bundle, air bag, anti-theft, good student, and vehicle fuel type.
- AAA offers discounts including AAA membership discount, good student, anti-theft, education and occupation, multi-policy, and good driver.
The chart below shows the comparison of yearly insurance costs with and without discounts. The rate quotes are based on a female driver, no claims or violations, Texas state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The lower bar shows the rates with passive restraint, multiple vehicle, multiple policy, vehicle safety, homeowner, and accident-free discounts applied. With discounts applied, theaverage yearly reduction on car insurance for 16 year olds is 28% or $578.
The illustration below illustrates how choosing a deductible can increase or decrease yearly insurance costs when getting quotes for cheap insurance for 16 year olds. The data is based on a married female driver, full coverage, and no discounts are taken into consideration.
A 40-year-old driver could save $310 a year by switching from a $100 deductible to a $500 deductible, or save $468 by using a $1,000 deductible. Youthful drivers, like the 20-year-old, could save up to $772 or more just by choosing higher deductibles. If you do decide to increase your deductibles, it’s a good idea to have plenty of savings on hand to offset the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
If you aren’t clear which coverage you need and would like to have some advice when comparing insurance rates for new drivers, the agents listed below can help you make a decision which coverages and limits you need. To locate a Plano insurance agent in your neighborhood, click the button below the list or click here to compare prices now.
- Encore Insurance Agency, L.L.C.
2301 Ohio Dr – Plano, TX 75093 – (877) 745-5005 - A-Z Insurance Agency
1110 E Parker Rd #106 – Plano, TX 75074 – (972) 200-5070 - Paragon Independent Insurance Agencies
6305 Preston Rd Suite 1000 – Plano, TX 75024 – (972) 473-4813 - A and H Insurance
2504 K Ave #400 – Plano, TX 75074 – (972) 423-4348 - Executive Insurance Agency
6900 Alma Dr – Plano, TX 75023 – (469) 229-9080
View more Plano, TX insurance agents
Tips for finding economical car insurance for 16 year olds
The list below summarizes a few money-saving suggestions that can help you buy more affordable coverage.
- Avoid filing small claims
- Do not get tickets
- Vehicles with safetly features generally cost less to insure
- Full coverage is expensive so only insure older vehicles for liability only
- Home or renters coverage can save on auto insurance
- Accident-free drivers may qualify for discounts
- Shop around for lower rates once a year
The last item on the list is extremely critical, as was discussed in this article. Insurance rates vary greatly, so don’t be afraid to change insurance companies if you find a cheaper price. Having brand loyalty is commendable, but is isn’t recommended if that faithfulness ends up costing you a fortune every year. In less than five minutes you could compare rates to find cheaper car insurance for 16 year olds in Plano.