The words “affordable” and “insurance” really don’t belong together, in particular when you are shopping around for the best insurance rates for used cars. Because it’s not cheap, let’s start off by going over some things the can have a considerable influence on auto insurance premiums, and come up with some ideas to lower the price of your next policy.
Determining which companies have the cheapest auto insurance rates for used cars will involve a bit more work than just comparing a company or two. Each auto insurance company has their own formula to set premium rates, so let’s take a look at the overall cheapest auto insurance companies in Plano, TX.
We do need to point out that Plano auto insurance rates are impacted by many factors that will increase or decrease the price you have to pay. Turning one year older, buying a home, or getting a ticket for careless driving may generate price changes that can make some companies more affordable than the competition.
Best Cheap Insurance Rates for Used Cars
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,199|
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Travelers may offer some of the most affordable car insurance rates in Plano at around $1,052 per year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also rank well as some of the best Plano, TX insurance companies.
In the above example, if you are currently insured with Germania Mutual and switched to Travelers, you could earn annual savings of in the vicinity of $192. Policyholders with California Casualty could save as much as $344 a year, and Esurance customers might see rate reductions of $355 a year.
Remember that these premiums are averaged for all types of drivers and the different vehicles they drive and are not factoring in a specific location for used cars. So the car insurance company that fits you best may not even be in the top 23 companies in the list above. That helps illustrate why you need to get quotes using your own driver information and specific vehicle type.
One of the many criteria that aid in calculating car insurance rates is where you call home. Cities with more crime and/or more people tend to have more expensive auto insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.
The table below lists the most costly cities in Texas for used cars to buy an auto insurance policy in. Plano is listed at #21 with an annual cost of $1,576 for the average insurance policy, which is around $131 monthly.
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Rates are approximated as specific Plano zip code can decrease or increase premiums substantially.
The vehicle model driven is a large factor when comparing cheaper insurance for used cars. Vehicles with reasonable performance levels, modern passenger safety features, or a track record of few liability claims will cost much less to insure than fast, unsafe models. The next table showcases car insurance prices for a handful of the most cost-effective automobiles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Volkswagen Jetta S 2.5 Station Wagon||$945|
|Jeep Grand Cherokee Laredo 4WD||$1,032|
|Toyota RAV4 2WD||$1,040|
|Toyota Tacoma Double Cab 4WD||$1,032|
|Ford F-150 XLT Crew Cab 4WD||$1,051|
|Ford Focus SEL 4-Dr Sedan||$1,063|
|Ford Escape XLT 2WD||$1,070|
|Honda Accord EX 4-Dr Sedan||$1,075|
|Toyota Corolla LE||$1,085|
|Honda CR-V EX-L 2WD||$1,095|
|Kia Optima LX||$1,106|
|Ford Explorer Eddie Bauer 2WD||$1,121|
|GMC Sierra 3500HD SLE Extended Cab 2WD||$1,123|
|Jeep Wrangler Unlimited Sahara 4WD 4-Dr||$1,130|
|Dodge Ram Crew Cab ST 2WD||$1,125|
|Ford F-350 XLT Crew Cab Lariat 2WD||$1,144|
|Honda Odyssey LX||$1,174|
|Chevrolet Silverado 2500HD LT Crew Cab Diesel 4WD||$1,178|
|Chevrolet Impala LT||$1,182|
|Chevrolet Malibu Hybrid||$1,191|
|Chevrolet Equinox LT AWD||$1,182|
|Dodge Grand Caravan SE||$1,199|
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Table data represents single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, multi-vehicle, homeowner, multi-policy, and safe-driver. Estimates do not factor in specific garaging location which can increase or decrease premium rates considerably.
Looking at the numbers, makes and models like the Volkswagen Jetta, Jeep Grand Cherokee, Toyota RAV4, Toyota Tacoma, and Ford F-150 are likely to be a few of the most affordable vehicles to insure for pre-owned vehicles.
Get discount Plano auto insurance rates
Insurance companies that offer quotes for used cars may also give you discounts that may potentially lower prices by as much as 30% if you are eligible for them. Popular auto insurance companies and their possible discounts can be found below.
- American Family has discounts for mySafetyValet, bundled insurance, accident-free, air bags, multi-vehicle, and TimeAway discount.
- Nationwide may include discounts for good student, easy pay, anti-theft, family plan, defensive driving, and Farm Bureau membership.
- MetLife offers discounts for good student, claim-free, good driver, multi-policy, defensive driver, accident-free
- 21st Century policyholders can earn discounts including air bags, homeowners, automatic seat belts, student driver, early bird, 55 and older, and teen driver.
- Farmers Insurance includes discounts for business and professional, youthful driver, pay in full, homeowner, and early shopping.
- Allstate offers discounts including utility vehicle, early signing, EZ pay plan discount, FullPay discount, auto/life discount, new car, and safe driver.
The information below illustrates the difference between auto insurance costs with and without discounts applied. The premiums are based on a female driver, no accidents, no driving violations, Texas state minimum liability limits, comp and collision included, and $100 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with homeowner, claim-free, vehicle safety, multiple policy, safe-driver, and anti-theft discounts applied. When discounts are factored in, theamount saved on auto insurance for used cars is 28% or $570.
The information below illustrates how your choice of deductibles can change insurance rates when getting quotes for cheap insurance for used cars. The costs are based on a single female driver, full physical damage coverage, and no discounts are applied to the premium.
The data above shows that a 50-year-old driver could pocket $362 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $546 by selecting a $1,000 deductible. Youthful drivers, like the age 20 example, can save as much as $920 each year by choosing larger deductibles on their policy.
When choosing a higher deductible, it is necessary to have enough spare savings to enable you to pay the extra out-of-pocket expense associated with higher deductibles.
Full coverage versus liability only rates
Finding the cheapest auto insurance is probably important to most people, and one great way to buy cheaper insurance for used cars is to not insure for full coverage. The chart below illustrates the difference between insurance prices with liability coverage only compared to full coverage. The price estimates are based on no violations or accidents, $500 deductibles, marital status is single, and no discounts are applied.
Averaged out for all age groups, physical damage coverage on your policy costs $2,393 per year more than just buying liability insurance. Lot’s of drivers question when is the right time to remove full coverage. There is no exact rule to drop physical damage coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.
There are some situations where buying only liability insurance is not in your best interest. If you haven’t paid off your loan, you are required to maintain full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should keep full coverage.
The importance of comparing Plano car insurance rates
Plano, TX auto insurance rates are impacted by many things which can substantially decrease or increase the price you pay for coverage. Getting older, buying a different home, or having an accident can produce rate changes resulting in some rates now being cheaper than before.
In addition to those changes, auto insurance companies change rates as needed to adjust for gains or losses. A period of higher than normal claims can result in price increases, while less frequent claims may produce cheaper Plano car insurance rates.
To illustrate this example, the chart below shows the companies that have the cheapest car insurance in Plano, TX for a 30-year-old male driver with a clear driving record, no claims, and excellent credit. If we estimate rates based on his personal risk profile, Travelers might quote the best car insurance rates in Plano at $1,070 annually. This is $834 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the list of the best Plano, TX auto insurance companies.
The next chart shows rates after we give the driver in the first example some claims, bad credit, and a traffic citation. Since each company has a different process to determine rates, comparing insurance quotes may now result in a slightly different list of cheap Plano auto insurance companies as shown below.
State Farm now has the lowest car insurance rate in Plano with Mercury, Nationwide, Safe Auto, and USAA completing the list. This demonstrates why Texas drivers need to compare lots of rates to find the cheapest car insurance rates for used cars. Prices are influenced by many different factors and can decrease or increase without notice, so the most affordable company the last time you checked may now be an over-priced policy.