The words “cheap” and “insurance” really should not be used together, in particular when you are shopping around for the best car insurance for a learners permit. To help control this cost, let’s start the ball rolling by going over some situations that have a considerable impact on insurance premiums, and come up with some ideas to slash the price of the next policy you buy.
For new drivers, one of the big considerations that are looked at to help calculate the amount you pay for auto insurance is where you keep your car. Areas with increased crime or more people tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims benefit from lower rates.
The illustration below ranks the most expensive cities in Texas for a learners permit in which to buy car insurance. Plano is ranked #23 with the annual price of $1,576 for the average policy, which is about $131 monthly.
|Rank||City||Average Per Year|
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Premium amounts are approximated as specific location information can modify prices greatly.
Comparing rates for cheap insurance is not the easiest thing to do, and figuring out which companies have the most affordable auto insurance rates for a learners permit will require additional perseverance. Each insurer has their own formula for determining prices, so let’s begin by taking a look at the overall cheapest auto insurance companies in Plano.
It’s important to know that Plano, TX auto insurance rates are influenced by many factors which can significantly increase or decrease the price you have to pay. This price fluctuation is why drivers need to shop around with many companies to find the best car insurance rates for a learners permit. Auto insurance prices are calculated by many factors and change dramatically, so the most economical company a year ago may now not even be in the top five.
Lowest Insurance Price Quotes in Texas
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,199|
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Travelers normally has some of the cheapest car insurance rates in Plano at around $1,021 each year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty would also be considered some of the cheaper Plano, TX insurance companies.
As the example above demonstrates, if you have coverage with Texas Farm Bureau and switched to Travelers, you could see annual savings of approximately $178. Texas drivers with Germania Mutual could save as much as $235 a year, and California Casualty policyholders might lower prices by up to $361 a year.
To get a quick, customized rate comparison, click here to start your free quote or quote prices from the following companies.
Remember that these estimates are averages for all ages of drivers and types of vehicles and do not factor in a specific zip code for a learners permit. So the insurer that fits you best may not even be in the top 23 companies shown above. That point stresses why you need to get rate quotes using your own specific driver and vehicle information.
Insurance rate increases from tickets or accidents
A great way to obtain the best auto insurance premiums in Texas for new drivers is to be a cautious driver and avoid accidents and traffic citations. The information below shows how violations and at-fault collisions can impact insurance premiums for different age groups. The costs are based on a single female driver, comp and collision included, $1,000 deductibles, and no discounts are applied.
In the chart above, the average cost of a car insurance policy in Texas per year with no accidents or violations is $1,527. Add in one speeding ticket and the average cost rises to $1,733, an increase of $206 each year. Now get two accidents along with the one speeding ticket and the yearly cost of auto insurance for a learners permit goes up to an average of $3,665. That’s an increase of $2,138, or $178 per month, just for being a little careless behind the wheel!
Discounts on Plano insurance rates
Auto insurance companies that offer coverage for a learners permit may also provide rate discounts that can reduce rates by as much as 35% if you are eligible. Companies and their offered discounts can be found below.
- GEICO may have discounts that include good student, multi-vehicle, five-year accident-free, daytime running lights, and federal employee.
- Auto-Owners Insurance includes discounts for student away at school, air bags, multiple vehicles, anti-theft, teen driver, multi-policy, and paid in full.
- American Family has savings for accident-free, Steer into Savings, air bags, multi-vehicle, early bird, TimeAway discount, and mySafetyValet.
- Esurance policyholders can earn discounts including online quote, Pac-12 alumni, defensive driver, anti-theft, and DriveSense.
- Progressive offers premium reductions for online signing, homeowner, multi-policy, good student, online quote discount, and continuous coverage.
- State Farm may include discounts for driver’s education, good student, student away at school, multiple autos, and Steer Clear safe driver discount.
- AAA has discounts for pay-in-full, anti-theft, AAA membership discount, good driver, good student, and multi-policy.
The chart below illustrates the comparison of annual premium costs with and without discounts applied to the policy rates. The premiums are based on a female driver, no accidents, no driving violations, Texas state minimum liability limits, full physical damage coverage, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, paperless filing, continuous coverage, paid-in-full, vehicle safety, and anti-theft discounts applied. When these discounts are applied, theaverage yearly reduction on auto insurance for a learners permit is 28% or $806.
Here’s why you should shop around
Plano auto insurance rates are determined by lots of factors that control the price you pay for coverage. Simply having a birthday, buying a new vehicle, or getting a couple of tickets may generate price changes that can now make some companies more affordable than the competition. Not only that, but insurance companies file new Texas auto insurance rates as often as every three months in order to be able to pay unexpected claims. Heavier than normal losses can result in increased rates, while a better claims history may cause lower-cost Plano car insurance rates.
As an example, the bar chart below shows the companies that have the cheapest car insurance in Plano, TX for a 35-year-old female driver with no prior claims, no tickets, and a good credit rating. When comparing rates based on her current risk profile, Travelers quotes the cheapest car insurance rates in Plano at $1,051 per year. This is $853 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remaining cheapest Plano, TX auto insurance companies.
In this example, we will give the driver from above a claim or two, less-than-perfect credit, and a traffic ticket or two. Because every insurance company has a proprietary method for setting prices, comparing quotes could result in a new list of affordable Plano car insurance companies as shown below.
State Farm now has the best price on car insurance in Plano with Mercury, Safe Auto, USAA, and Nationwide now rounding out the top five. This shows why drivers need to perform an extensive rate comparison when trying to find the cheapest insurance rates for a learners permit. Auto insurance prices can be determined by many factors and change substantially, so the best company the last time you shopped your coverage around may now be wasting a lot of money.
Tips for buying more affordable auto insurance for a learners permit
Lowering your rates is not difficult, and here are a few penny-pinching solutions that can help drivers locate cheap car insurance.
- Avoid price increases by not filing claims
- Avoid speeding and other traffic citations and pay less
- Drive vehicles with five-star safety ratings
- Bundle home and auto and save
- Avoid accidents and claims
- Look for cheaper rates once a year by shopping around
The last tip is extremely necessary, as we noted in the article above. Insurance rates in Plano fluctuate constantly, so don’t be afraid to change to a new company if a cheaper price is available. Having a favorite company is great, but we do not recommend it if that devotion results in you overpaying a small fortune year after year. In just a couple of minutes you could shop around to find cheaper car insurance for a learners permit.
If you would rather have the advice of a professional agent when comparing insurance rates for new drivers, the professional agents shown below can probably provide answers to your questions and help you determine which car insurance company is the best fit.
To locate a Plano car insurance agency nearest to you, click the link after the list.
- Jason Ruiz – State Farm Insurance Agent
5809 Preston Rd #586 – Plano, TX 75093 – (972) 378-1024
- Hallmark Insurance Co
6500 Pinecrest Dr – Plano, TX 75024 – (800) 486-5616
- William Kuo – State Farm Insurance Agent
280 Legacy Dr #250 – Plano, TX 75023 – (972) 575-9100
- Christopher Walls – State Farm Insurance Agent
3308 Preston Rd #300 – Plano, TX 75093 – (972) 758-1111