The words “cheap” and “insurance” probably shouldn’t be used in the same sentence, specifically when comparison shopping for the cheapest auto insurance for drivers under 25. To save some money, let’s learn about some of the factors that can significantly affect car insurance premiums, and figure out some ways to reduce the price of your next policy.
Deciding which insurers offer the cheapest insurance rates for drivers under 25 will take more work in order to find the best price. Every insurance company uses a little different formula to establish rates, so we need to take a look at the most competitive insurance companies in Plano, TX.
It’s a good idea to know that Plano, TX insurance rates are impacted by many things that will increase or decrease the price of your policy. Simply improving your credit, buying a new vehicle, or getting a few speeding tickets may prompt premium changes resulting in some companies being cheaper in comparison to the competition.
Best Insurance Companies for Young Drivers
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,247|
|Find Your Rate Go|
Travelers may have some of the best car insurance rates in Plano at around $1,021 per year. This is $883 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the more affordable Plano, TX car insurance companies.
As shown in the table above, if you are a policyholder with Texas Farm Bureau and switched to Travelers, you might achieve a yearly price reduction of about $226. Policyholders with Germania Mutual might save as much as $261 a year, and Esurance insureds might cut rates by $358 a year.
To find the cheapest coverage for you, click here to get quotes or visit any of the companies below.
Remember that these prices are averaged across all ages of drivers and types of vehicles and do not factor in a specific zip code for drivers under 25. So the company that is most affordable for your situation may not even be in the top 23 companies shown above. That’s why you need to get rate quotes from many companies using your own driver data and vehicle information.
For drivers age 25 and younger, one of the big components that are looked at to determine the amount you pay for auto insurance is where you normally keep your vehicle in Plano. Cities with larger populations or higher claim trends are more likely to have higher rates, whereas areas with less crime or weather claims have the gratification of cheaper auto insurance rates.
The following table shows the highest-priced areas in Texas for drivers under 25 to buy car insurance in. Plano makes the list at #17 with an annual cost of $1,624 for car insurance, which is around $135 monthly.
|Rank||City||Premium Per Year|
|Find Cheaper Rates Go|
Premium costs are estimated as the garaging address in Plano can affect price quotes substantially.
The chart below highlights how deductible selection can affect premium costs when researching cheap insurance for drivers under 25. Data assumes a single male driver, comprehensive and collision coverage, and no discounts are applied.
A 50-year-old driver could reduce rates by $314 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $472 by switching to a $1,000 deductible. Young drivers, like the 20-year-old category, could drop their prices up to $1,026 or more just by choosing larger deductibles. When choosing a higher deductible, it will now be necessary to have enough savings set aside to cover the extra out-of-pocket expense. That is the one drawback of using higher deductibles.
Discount Plano insurance rates
Car insurance companies that offer coverage for drivers under 25 may also give you price discounts that can reduce rates by 30% or more if you are eligible for them. Large insurance companies and some of their more popular discounts can be read below.
- Farm Bureau offers discounts for multi-policy, good student, 55 and retired, driver training, multi-vehicle, and safe driver.
- State Farm may include discounts for good driver, defensive driving training, multiple policy, accident-free, Steer Clear safe driver discount, and driver’s education.
- Progressive offers premium reductions for online signing, good student, continuous coverage, homeowner, online quote discount, and multi-vehicle.
- Allstate may have discounts that include anti-theft, EZ pay plan discount, teenSMART discount, multi-policy, economy car, and senior citizen.
- Nationwide has savings for easy pay, defensive driving, Farm Bureau membership, good student, multi-policy, family plan, and business or organization.
- MetLife discounts include good student, claim-free, good driver, defensive driver, accident-free, and multi-policy.
The information below shows the difference between auto insurance costs with and without discounts being applied to the rates. The costs are based on a male driver, no claims or driving citations, Texas state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The second shows the rates with passive restraint, anti-theft, good student, paperless filing, paid-in-full, and continuous coverage discounts applied. When drivers qualify for the discounts, the average amount saved each year on insurance for drivers under 25 is 18% or $547.
Price comparison of only insuring for liability
Lowering the price of insurance should be important to the majority of drivers, and an effective way to pay less for insurance for drivers under 25 is to not buy full coverage. The illustration below shows the difference between premium costs when comparing full coverage to liability only. The rate quotes are based on no claims or driving citations, $100 deductibles, drivers are single, and no other discounts are factored in.
If we average all the age groups together, comp and collision coverage costs $2,922 per year more than insuring for liability only. Many of you may wonder if it’s worth it to buy full coverage. There is no written rule for eliminating comp and collision coverage, but there is a general guideline. If the annual cost of your full coverage insurance is 10% or more of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
How to find cheaper car insurance for drivers under 25
It is possible to find better rates, and here are many penny-pinching ideas that can help drivers quote more affordable auto insurance.
- Avoid at-fault accidents and claims
- Full coverage is expensive so only insure older vehicles for liability only
- The safer your car, the less it costs to insure
- Increase your deductibles
- Improve your credit rating
- Save money by obeying traffic laws and keeping a clean driving record
- Shop around for lower rates once a year
That last idea is incredibly valuable, as was pointed out in this piece. Car insurance rates change frequently, so drivers shouldn’t be reluctant to change to a new company if you can find a cheaper rate. Staying with the same company for years is fine, but it’s not recommended if that stubbornness costs you several hundred dollars every year. In just a couple of minutes you could compare rates and find cheaper car insurance for drivers under 25 in Plano.