The words “economical” and “auto insurance” really shouldn’t be used in the same sentence, specifically when you are looking for the cheapest car insurance for drivers under 21. Because it’s not cheap, let’s open your eyes to some of the factors the can have a considerable influence on car insurance prices, and come up with some ways to take the bite out of your next policy.
The vehicle model that needs insurance is one of the largest considerations when comparing the most economical car insurance for drivers under 21. Vehicles with lots of horsepower, poor safety features, or a high likelihood of having liability claims will cost much more to insure than more modest models.
The next table presents car insurance costs for a selection of the most cost-effective automobiles to insure.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Ford Escape XLT 2WD||$2,490|
|Honda CR-V LX 2WD||$2,500|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$2,749|
|Dodge Grand Caravan CV||$2,780|
|Ford Explorer XLT AWD||$2,788|
|Ford Edge Limited 2WD||$2,924|
|Nissan Altima 2.5 4-Dr Sedan||$2,955|
|GMC Sierra SLE Regular Cab 2WD||$2,963|
|Toyota RAV4 Sport 4WD||$2,955|
|Jeep Grand Cherokee Laredo 4WD||$2,962|
|Volkswagen Jetta S 4-Dr Sedan||$2,955|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$2,984|
|Chevrolet Malibu LT||$2,989|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$2,984|
|Compare Rates Now Go|
Table data assumes single female driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in specific Plano, TX garaging location which can affect prices significantly.
Looking at the rates, we can assume that vehicles like the Ford Escape, Honda CR-V, and Toyota Prius are likely to be the less-costly vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive anyway because of the fact that there is more claim risk for drivers under 21, but generally speaking those models will probably have the best insurance prices that you are likely to find.
Establishing which companies offer the most affordable insurance rates for drivers under 21 may require more time than just picking a company at random.
Each insurance company has a proprietary method to set policy rates, so let’s take a look at the insurance companies with the most affordable rates in Plano, TX.
Compare Cheap Insurance Quotes for Minors
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,235|
|Get a Custom Quote Go|
Travelers offers some of the best car insurance rates in Plano at around $1,021 per year. This is $883 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also rank well as some of the best Plano, TX car insurance companies.
As the rates illustrate above, if you are a policyholder with Germania Mutual and switched to Travelers, you may see annual savings of around $223. Insureds with California Casualty may save as much as $361 a year, and Esurance insureds might reduce rates by $386 a year.
Be aware that those policy rates are averaged across all types of insureds and vehicles and do not take into consideration an exact vehicle garaging location for drivers under 21. So the insurer that is best for you may not even be in the top 23 companies shown above. That illustrates why you need to quote rates from as many companies as possible using your own personal information and vehicle type.
For minors, one of the more important things that determine auto insurance rates is your address. Areas with a lot of weather claims or more people will most likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the luxury of cheap car insurance rates.
The following table rates the most expensive places in Texas for drivers under 21 in which to purchase auto insurance. Plano ranks #20 having an annual price of $1,608 for the average policy, which is about $134 each month.
|Start a Quote Go|
Table data uses comparative as the garaging address in Plano can change insurance rates substantially.
Buying coverage from the best auto insurance provider can be difficult considering how many companies sell coverage in Plano. The company ratings shown next may help you analyze which auto insurers you want to consider comparing rate quotes with. These rankings only include large nationwide companies, so smaller regional companies are not factored into these rankings.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
|Compare Rates Now Go|
Data Source: Insure.com Best Car Insurance Companies
Full coverage versus liability-only in Plano
Saving on insurance is important to the majority of people, and a great way to save on the cost of insurance for drivers under 21 is to only pay for liability coverage. The information below shows the comparison of car insurance costs when comparing full coverage to liability only. The premium estimates are based on no accidents or driving violations, $250 deductibles, single status, and no discounts are taken into consideration.
Averaged for all age groups, comp and collision coverage costs $2,000 per year more than insuring for liability only. That may make you wonder if buying full coverage is worth the expense. There is no clear-cut rule for dropping physical damage coverage on your policy, but there is a general convention. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost minus the deductible, then you may want to consider only buying liability coverage.
For example, let’s say your vehicle’s replacement value is $5,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $4,500 after paying your policy deductible. If premium cost is more than $450 annually for your policy with full coverage, then you might want to think about dropping full coverage.
There are some circumstances where dropping physical damage coverage is not in your best interest. If you still have a loan on your vehicle, you have to keep full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your finances do not allow you to purchase a different vehicle in the event your current vehicle is totaled, you should not buy liability only.
Get discounts on Plano car insurance
Insurance companies that provide policies for drivers under 21 may also offer price discounts that can lower rates by as much as 40% or more if you can meet the requirements. Popular insurance companies and some of the discounts are outlined below.
- State Farm offers discounts for Steer Clear safe driver discount, passive restraint, multiple autos, student away at school, anti-theft, good student, and defensive driving training.
- American Family has discounts for multi-vehicle, good student, bundled insurance, TimeAway discount, defensive driver, and good driver.
- GEICO discounts include daytime running lights, military active duty, anti-lock brakes, seat belt use, and multi-policy.
- 21st Century offers discounts including teen driver, air bags, good student, 55 and older, student driver, driver training, and automatic seat belts.
- Progressive includes discounts for continuous coverage, online quote discount, good student, multi-policy, and online signing.
The information below compares insurance premiums with and without discounts applied to the policy premium. The information is based on a female driver, no violations or claims, Texas state minimum liability limits, comprehensive and collision coverage, and $100 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with safe-driver, marriage, vehicle safety, multiple vehicle, accident-free, and defensive driving course discounts applied. When these discounts are applied, theaverage amount saved on insurance for drivers under 21 is 28% or $675.
How to find low-cost car insurance for drivers under 21
The list below summarizes some penny-pinching ideas that can help drivers get more affordable auto insurance.
- Save money by only buying liability coverage for older vehicles
- Raise physical damage deductibles
- Be a safe driver
- Earn a discount by not filing claims
- At-fault accidents can raise rates significantly
- Shop around for cheaper prices often
The last item on the list is very critical, as was stressed in this write-up. Auto insurance rates change constantly, so drivers shouldn’t be reluctant to buy a policy from a new company if a lower price can be found. We understand brand loyalty, but it’s not recommended if that faithfulness ends up costing you a fortune every year. It only take a few minutes to compare prices and find cheaper auto insurance for drivers under 21 in Plano.
The auto insurance agents in Plano shown below can help you make a decision which coverage meets your needs best, since some drivers wish to get some professional input when shopping for cheaper insurance for drivers under 21. It can be challenging to find the best coverage yourself, and a professional agent can bring comfort knowing your policy gives you suitable coverage if you ever need to use it.
To find an auto insurance agency near you, click the button at the bottom.
Encore Insurance Agency, L.L.C.
2301 Ohio Dr – Plano, TX 75093 – (877) 745-5005
Bob Redding – State Farm Insurance Agent
6833 Coit Rd #100 – Plano, TX 75024 – (972) 618-4300
Arthur Blake Insurance Group
542 Haggard St #502 – Plano, TX 75074 – (972) 335-4115
A-Z Insurance Agency
1110 E Parker Rd #106 – Plano, TX 75074 – (972) 200-5070