What Insurance is Cheapest for Low Mileage Drivers in Plano?

The words “cheap” and “insurance” really shouldn’t be used in the same sentence, specifically when searching for the best coverage prices for low mileage drivers. To save some money, let’s teach you some of the factors the can have a considerable influence on insurance premiums, and find a way to take the sting out of your next policy.

One of the more important components that are used to help calculate car insurance rates is where you live in Plano. Cities with larger populations or higher claim trends will most likely have higher rates, whereas areas with less congestion profit from lower rates.

The next table shows the most expensive cities in Texas for low mileage drivers to buy auto insurance in. Plano is ranked #20 with an annual premium of $1,576 for the average policyholder, which is about $131 per month.

Car insurance prices in Plano
Rank City Average Per Year
1 McAllen $1,956
2 Dallas $1,911
3 Houston $1,853
4 Brownsville $1,851
5 Laredo $1,851
6 Garland $1,832
7 Pasadena $1,812
8 Grand Prairie $1,811
9 Amarillo $1,804
10 Mesquite $1,771
11 Beaumont $1,754
12 Irving $1,736
13 Lubbock $1,733
14 San Antonio $1,722
15 Arlington $1,692
16 Carrollton $1,664
17 Austin $1,659
18 El Paso $1,616
19 Fort Worth $1,604
20 Plano $1,576
21 Corpus Christi $1,572
22 McKinney $1,561
23 Waco $1,537
24 Abilene $1,499
25 Killeen $1,488
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Annual rates are approximated as the specific zip code location can decrease or increase auto insurance rates noticeably.

Finding decent, low-cost insurance is not the easiest thing to accomplish, and deciding which company quotes the cheapest car insurance rates for low mileage drivers may require even more rate comparisons.

Every car insurance company uses different criteria to determine rates, so we need to take a look at the car insurance companies with the overall cheapest rates in Plano. It’s important that readers know that Plano car insurance rates are impacted by many things that will increase or decrease the price you pay. Improving your credit rating, buying a safer car, or getting a driving violation can trigger price changes that can cause some rates to be more affordable than others.

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Travelers normally has some of the best car insurance rates in Plano at around $1,010 per year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also some of the best Plano, TX insurance companies.

As shown in the table above, if you have coverage with Germania Mutual and switched to USAA, you could earn an annual premium reduction of upwards of $187. Policyholders with California Casualty could save as much as $301 a year, and Esurance policyholders might see rate reductions of $312 a year.

To discover how much you can save, click here to start your free quote or visit any of the companies below.

Remember that these policy prices are averages across all types of insureds and vehicles and are not factoring in a specific zip code for low mileage drivers. So the car insurance company that is best for you may not even be in the list above. That affirms the importance of why you need to compare as many prices as possible using your own specific driver and vehicle information.

Poor driving habits will raise your car insurance rates

The ideal way to enjoy cheap car insurance rates in Plano for infrequent drivers is to drive safely and avoid accidents and traffic citations. The chart below demonstrates how speeding tickets and accidents can increase yearly insurance costs for different ages of insureds. The rates are based on a single female driver, full physical damage coverage, $250 deductibles, and no discounts are applied.

The data in the chart shows the average cost of an auto insurance policy per year with no violations or accidents is $2,535. Add in one speeding ticket and the average cost hikes up to $2,875, an increase of $340 each year. Now include one accident along with the one speeding ticket and the 12-month cost of car insurance for low mileage drivers goes up to an average of $3,837. That’s an increase of $1,302, or $108 per month, just for not driving carefully!

Ending up with the top insurer can be difficult considering how many companies there are in Texas. The information shown below may help you pick which car insurance companies you want to consider when shopping your coverage around. These rankings only include the companies with a significant amount of written premium nationwide, so companies without a large exposure will not be included in this list.

Best Ten Car Insurance Companies for Low Mileage Drivers in Plano
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
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Data Source: Insure.com Best Car Insurance Companies

Should you buy full coverage?

Buying cheaper car insurance is the goal of the majority of vehicle owners, and an effective way to find cheaper insurance for low mileage drivers is to buy liability only. The example below shows the difference between premium costs with full coverage and liability only. The price estimates are based on no claims or violations, $100 deductibles, single marital status, and no discounts are factored in.

If averaged for all ages, physical damage insurance costs an extra $2,181 per year more than buying just liability insurance. That is a big expense that brings up the question when is it safe to stop buying full coverage. There is no exact formula for eliminating comprehensive and collision coverage on your policy, but there is a general convention. If the annual cost of comprehensive and collision coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then it might be time to consider dropping full coverage.

There are a few cases where eliminating full coverage is not in your best interest. If you haven’t satisfied your loan, you must maintain physical damage coverage in order to keep the loan. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should keep full coverage.

Why you should be shopping around

Plano, TX car insurance rates are influenced by many factors that may substantially change the cost of coverage. Simply having another birthday, increasing deductibles, or getting a few speeding tickets may cause policy rate changes resulting in some companies being cheaper in comparison to the competition.

Also, insurers modify pricing as needed in order to remain profitable. Higher than usual claims may result in high rates, while less frequent claims can produce cheaper Plano car insurance rates.

To illustrate this example, the bar chart below shows which company has the cheapest car insurance in Plano, TX for a 30-year-old female driver with no violations or accidents, and solid credit. If we compare prices based on her personal profile, Travelers might offer the best car insurance rates in Plano at $1,114 per year. This is $790 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 top five cheapest Plano, TX auto insurance companies.

Let’s now give the driver from the first example an accident surcharge, a lower credit rating, and a few blemishes on her driving record. Because each company has a different formula for determining rates, analyzing rate quotes most likely will result in a substantially altered list of affordable companies as shown below.

State Farm now has the cheapest insurance rate in Plano, TX with USAA, Mercury, Nationwide, and Safe Auto completing the list. This shows why it is important to perform an extensive rate comparison to get cheap insurance quotes for low mileage drivers. Prices can be determined by many risk factors and can change substantially, so the most economical option two years ago may now be quite expensive.

The agents shown below are willing to provide answers to your questions and help you determine which policy is best, since some drivers wish to have the advice of a professional agent when trying to find the best insurance rates for low mileage drivers. It can be hard to find the cheapest auto insurance company, and insurance agents can provide you comfort knowing you have sufficient coverage for your assets.

To locate a Plano auto insurance agent in your neighborhood, click the button link following the list.

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