The car, truck, or SUV you are buying coverage for is probably the largest consideration when trying to find low-priced car insurance for 16 year olds. Vehicles with more horsepower, a lack of safety features, or an increased likelihood of liability claims will cost significantly more to insure than safer, lower-performance models.
The list below ranks car insurance rates for a number of the more affordable vehicles to buy coverage for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $4,012 |
| Ford Escape Limited 4WD | $4,297 |
| Toyota Prius | $4,336 |
| Ford Explorer Eddie Bauer 2WD | $4,514 |
| Jeep Wrangler Sahara 4WD 2-Dr | $4,519 |
| Chevrolet Impala LS | $4,722 |
| Chevrolet Malibu Hybrid | $4,761 |
| Toyota Camry LE | $4,771 |
| Chevrolet Equinox LT 2WD | $4,761 |
| Ford Fusion S 4-Dr Sedan | $4,767 |
| Toyota RAV4 Sport 2WD | $4,761 |
| Dodge Grand Caravan Hero | $4,769 |
| Toyota Tacoma Double Cab 4WD | $4,761 |
| Compare Cheap Rates Go | |
Price data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate information does not factor in specific zip code location which can increase or decrease auto insurance rates greatly.
By looking at the data, you can assume that vehicles like the Honda CR-V, Ford Escape, Toyota Prius, and Ford Explorer are most likely going to be some of the cheapest vehicles to insure for new drivers. Auto insurance rates will trend higher because there is more liability risk for 16 year olds, but generally speaking those particular models will most likely have the least expensive rates compared to all other vehicles.
Finding reasonably-priced auto insurance is hard enough, and determining which company offers the lowest-priced car insurance rates for 16 year olds may require a little more work.
Each auto insurance company uses their own formula to establish rates, so let’s begin by taking a look at the car insurance companies that tend to be cheaper in Plano. It’s important to know that Plano, TX car insurance rates are influenced by many factors which can significantly increase or decrease your annual premium. This price variation is why consumers need to do a thorough rate comparison when trying to find affordable auto insurance rates for 16 year olds. Prices are impacted by many things and can change substantially, so the most affordable company the last time you shopped your coverage around may now be costing you a lot of money.
Best Insurance Companies for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,199 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,407 |
| 6 | California Casualty | $1,424 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,565 |
| 11 | Progressive | $1,664 |
| 12 | Allstate | $1,667 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,135 |
| 16 | MetLife | $2,183 |
| 17 | Unitrin | $2,264 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,646 |
| Quote Your Rates Go | ||
Travelers offers some of the best car insurance rates in Plano at around $1,021 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also rank well as some of the more affordable Plano, TX car insurance companies.
As the example above demonstrates, if you are a policyholder with Texas Farm Bureau and switched to Travelers, you could realize an annual premium reduction of around $178. Insureds with Germania Mutual could save as much as $261 a year, and Esurance policyholders might lower prices by up to $386 a year.
It’s important to note that these policy rates are averaged across all types of insureds and vehicles and and are not figured with a vehicle location for 16 year olds. So the car insurance company that is most affordable for your situation may not even be in the top 23 companies shown above. That underscores the importance of why you need to get rate quotes using your own driver information and specific vehicle type.
For new drivers, one of the big things that aid in calculating the cost of insurance is where you live in Plano. Regions with more people or even just more weather-related claims tend to pay more, whereas areas with less congestion benefit from having to pay less for coverage.
The next table lists the priciest cities in Texas for 16 year olds to buy car insurance in. Plano is ranked #20 having an annual price of $1,608 for the average policy, which is around $134 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,870 |
| 3 | Houston | $1,853 |
| 4 | Laredo | $1,851 |
| 5 | Amarillo | $1,840 |
| 6 | Dallas | $1,837 |
| 7 | Mesquite | $1,825 |
| 8 | Pasadena | $1,812 |
| 9 | Grand Prairie | $1,793 |
| 10 | Irving | $1,789 |
| 11 | Garland | $1,778 |
| 12 | Beaumont | $1,772 |
| 13 | Lubbock | $1,733 |
| 14 | Arlington | $1,692 |
| 15 | San Antonio | $1,688 |
| 16 | Corpus Christi | $1,636 |
| 17 | Fort Worth | $1,621 |
| 18 | Carrollton | $1,615 |
| 19 | Austin | $1,610 |
| 20 | Plano | $1,608 |
| Compare Rates Now Go | ||
Prices are comparative as the specific garaging location can influence premium rates substantially.
Do you need full coverage?
Paying a lower price for car insurance should be important to most vehicle owners, and one common way to find cheaper insurance for 16 year olds is to buy liability only. The example below compares insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data assumes no claims or driving violations, $100 deductibles, drivers are single, and no additional discounts are factored in.
Averaged for all ages 20 through 70, full coverage on your policy costs $2,922 per year more than carrying just liability coverage. Many drivers will wonder when is it a good idea to stop buying full coverage. There is no clear-cut formula to stop paying for physical damage coverage on your policy, but there is a general guideline. If the yearly cost of full coverage is 10% or more of the replacement cost minus the deductible, then you may want to consider only buying liability coverage.
For example, let’s pretend your vehicle’s book value is $12,000 and you have $1,000 policy deductibles. If your vehicle is destroyed, the most you would receive is $11,000 after paying your policy deductible. If premium cost is more than $1,100 annually for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
There are some circumstances where buying only liability insurance is not a good plan. If you still have a loan on your vehicle, you have to maintain 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 if your current one is damaged, you should keep full coverage.
How to get discounts on Plano car insurance
Insurance providers that offer quotes for 16 year olds may also offer policy discounts that could potentially reduce rates by as much as 35% or more if you qualify. A list of car insurance companies and a partial list of their discounts are outlined below.
- Progressive may have discounts that include continuous coverage, multi-vehicle, multi-policy, online signing, and online quote discount.
- Farmers Insurance policyholders can earn discounts including bundle discounts, switch companies, good student, mature driver, youthful driver, and teen driver.
- Farm Bureau may offer discounts for youthful driver, multi-vehicle, safe driver, driver training, multi-policy, renewal discount, and good student.
- State Farm offers discounts including multiple autos, Steer Clear safe driver discount, multiple policy, safe vehicle, good driver, anti-theft, and student away at school.
- GEICO has discounts for air bags, daytime running lights, driver training, anti-theft, and military active duty.
- SAFECO includes discounts for multi-car, accident prevention training, teen safe driver, anti-lock brakes, and teen safety rewards.
- Liberty Mutual discounts include safety features, new vehicle discount, new graduate, multi-policy, and good student.
The illustration below visualizes the comparison of car insurance costs with and without policy discounts. The data assumes a male 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 shows the rates with anti-theft, good student, continuous coverage, passive restraint, vehicle safety, and paid-in-full discounts applied. In this example, theaverage yearly reduction on car insurance for 16 year olds is 28% or $899.
The illustration below highlights how deductible selection can change yearly insurance costs when getting quotes for cheap insurance for 16 year olds. The rates are based on a single male driver, full physical damage coverage, and no additional discounts are factored in.
A 50-year-old driver could lower their car insurance rates by $440 a year by changing from a $100 deductible up to a $500 deductible, or save $660 by switching to a $1,000 deductible. Even younger insureds, like the age 20 example, could possibly save up to $1,446 or even more by using a higher deductible. If you do make the decision to raise your deductibles, it will be required to have plenty of discretionary funds to enable you to cover the extra out-of-pocket expense. This is the primary disadvantage of choosing high deductibles.
Ideas for finding budget-friendly auto insurance for 16 year olds
Lowering your rates is not difficult, and here are some of the recommended penny-pinching suggestions that can help Texas drivers find more affordable car insurance.
- Insure your home and auto with the same company
- Maintain a safe distance and avoid accidents
- Pay cheaper rates with good credit scores
- Save money by insuring older vehicles for liability only
- Safer vehicles cost less to insure
- Keep rates low by shopping around frequently
The final tip is extraordinarily significant, as we stressed in this write-up. Prices charged by companies in Plano can be changed at any time, so drivers shouldn’t be resistant to buy from a new company if you find a better deal.
Loyalty to a specific company is fine, but is isn’t recommended if your bullheadedness ends up costing you major coinage every year. If you have a few minutes, now is a great time to shop around to find cheaper insurance for 16 year olds.
If you like to have the advice of a professional agent when comparing insurance rates for new drivers, the agents below can help you determine which auto insurance policy fits you best.
To locate a Plano auto insurance agent close to you, click the button link following the list or click here to compare price quotes.
- Hallmark Insurance Co
6500 Pinecrest Dr – Plano, TX 75024 – (800) 486-5616 - Kelly Cook – State Farm Insurance Agent
5068 W Plano Pkwy Ste 277 – Plano, TX 75093 – (972) 250-4700 - Matt Lohoefer Insurance
5805 Coit Rd #401 – Plano, TX 75093 – (972) 964-0113