You’ve seen the ads from car insurance companies like GEICO, Allstate, and Liberty Mutual promising enormous savings, so drivers just need to pick the one with the catchiest commercial, right?
Unfortunately, it’s just not that easy, as there are many unknown elements such as your credit score, your date of birth, and how far you drive each year, that all have an effect on the price of a policy. We will attempt to cover the best ways to save money and should give you a solid foundation to find cheaper car insurance in Texas.
One of the many factors that are used to help calculate insurance cost is your zip code. Areas with more people or higher crime rates are more likely to have higher rates, whereas areas with lower crime rates and fewer weather claims benefit from lower prices.
The table below ranks the most expensive areas in Texas for high school students to buy car insurance in. Plano ranks #20 with an annual rate of $1,608 for coverage, which is about $134 monthly.
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Premium costs are approximated as the vehicle garaging location can lower or raise coverage rates substantially.
Determining which company quotes the most affordable auto insurance rates for high school students may require more work in order to find the most economical policy.
Each auto insurer has a proprietary formula to determine rates, so we need to take a look at the auto insurance companies with the overall cheapest rates in Texas.
Find the Cheapest Car Insurance for Students
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,235|
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Travelers generally has some of the best car insurance rates in Plano at around $1,010 a year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the more affordable Plano, TX insurance companies.
As shown above, if you currently have a policy with Germania Mutual and switched to Travelers, you could see a yearly price reduction of in the vicinity of $246. Drivers with Esurance might save as much as $411 a year, and California Casualty insureds might lower prices by $428 a year.
Bear in mind that those policy rates are averaged for all drivers and vehicles and are not factoring in a specific location for high school students. So the car insurance company that is best suited for you may not even be in the top 23 companies shown above. That underscores the importance of why you need to get car insurance quotes using your own driver information and specific vehicle type.
The vehicle you are seeking coverage for is one of the largest considerations that determines the availability of the most economical coverage for high school students. Vehicles with higher performance, poor crash test ratings, or a track record of large liability claims will cost more to insure than more modest models. The information below ranks insurance costs for a number of the cheaper vehicles to insure in Texas.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$3,287|
|Honda CR-V EX 2WD||$3,292|
|Honda Accord LX 4-Dr Sedan||$3,287|
|Hyundai Elantra SE Touring Station Wagon||$3,544|
|Ford Explorer XLT AWD||$3,683|
|Volkswagen Jetta SE 2.5 Station Wagon||$3,802|
|Chevrolet Impala LS||$3,863|
|Ford Focus S 4-Dr Sedan||$3,870|
|Honda Odyssey EX W/Rear Entertainment||$3,863|
|Ford Edge SEL 2WD||$3,868|
|Toyota RAV4 2WD||$3,902|
|Chevrolet Malibu LS||$3,909|
|Toyota Camry LE||$3,902|
|Dodge Grand Caravan Crew||$3,940|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$4,058|
|Toyota Corolla S||$4,122|
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Data rating is based on single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in vehicle garaging location which can raise or lower price quotes significantly.
Based upon the rates shown, cars like the Ford Escape, Honda CR-V, Honda Accord, and Hyundai Elantra will be the most economical vehicles to insure for teenagers. The cost of a car insurance policy will tend to be more expensive because there is more liability exposure for high school students, but overall those specific models will probably have the lowest prices available.
Full coverage rates compared to liability only
Saving money when shopping for auto insurance is important to most vehicle owners, and one way to pay less for insurance for high school students is to only buy liability insurance. The illustration below illustrates the comparison of car insurance costs with liability coverage only compared to full coverage. The prices are based on a clean driving record, no claims, $250 deductibles, drivers are single, and no additional discounts are factored in.
If all age groups are averaged, physical damage coverage on your policy costs an additional $2,671 per year more than just buying liability insurance. Many of you may wonder if buying full coverage is worth the expense. There is no definitive formula of when to phase out physical damage coverage on your policy, but there is a guideline you can use. If the yearly cost of comp and collision coverage is more than about 10% of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
There are a few situations where removing full coverage is not recommended. If you still owe money on your vehicle, you are required to maintain full coverage to satisfy the loan requirements. Also, if you can’t afford to buy a different vehicle in the event your current vehicle is totaled, you should keep full coverage.
Buying coverage from the top insurer can be challenging considering how many different companies there are to choose from in Texas. The company rank data listed below may help you analyze which coverage providers to look at shopping prices with. The rankings below only include companies that insure vehicles across America, so smaller regional companies are not included in this list.
Top 10 Large Auto Insurance Providers Overall in Plano
- Mercury Insurance
- AAA Insurance
- State Farm
- The Hartford
- Safeco Insurance
The illustration below shows how different deductible levels can affect insurance costs when researching cheap insurance for high school students. The premiums assume a single male driver, comprehensive and collision coverage, and no discounts are factored in.
As shown above, a 40-year-old driver could save $440 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $660 by selecting a $1,000 deductible. Even younger drivers, like the 20-year-old, could possibly save as much as $1,446 or even more by choosing larger deductibles on their policy. If you do make the decision to raise your deductibles, it is essential to have additional savings on hand to allow you to cover the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
Here’s why you should compare rates often
Plano, TX auto insurance rates are influenced by many factors which can substantially change the cost of coverage. Simply having a birthday, moving to a different location, or getting a few speeding tickets can trigger changes in premium resulting in some companies being more affordable than before.
Additionally, insurance companies change their prices every year or even multiple times each year to adjust for gains or losses. Higher than normal claims may result in higher priced premiums, while lower claims may result in cheaper Plano car insurance rates.
For instance, the bar chart below compares the cheapest car insurance in Plano, TX for a 35-year-old male driver with no accidents, a clean driving record, and a decent credit rating. If we look at prices based on his personal risk profile, Travelers has the best car insurance rates in Plano at $1,070 per year. This is $834 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the top five cheapest Plano, TX auto insurance companies.
The chart below compares rates after we give the driver from above a couple of claims, less-than-perfect credit, and a traffic citation. Since each auto insurance company has a different formula for setting prices, getting updated rate quotes most likely will result in a new list of cheap Plano auto insurance companies as shown below.
Mercury now has the lowest price on auto insurance in Plano with State Farm, USAA, Safe Auto, and Nationwide also being competitive. This illustrates why consumers need to compare lots of rates to find the cheapest insurance quotes for high school students. Insurance prices are made up of many things and change substantially, so the lowest-price company the last time you shopped your coverage around may now not even be in the top five.