For good drivers, one of the largest considerations that are used to help calculate insurance cost is your zip code. Areas with a lot of weather claims or more people tend to have higher auto insurance costs, whereas areas with lower vehicle theft rates and fewer weather claims benefit from lower rates.
The next table shows the highest-priced areas in Texas for safe drivers to buy car insurance in. Austin ranks #16 with an annual rate of $1,676 for coverage, which is approximately $140 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Laredo | $1,907 |
| 3 | Dallas | $1,893 |
| 4 | Houston | $1,891 |
| 5 | Brownsville | $1,870 |
| 6 | Garland | $1,832 |
| 7 | Pasadena | $1,794 |
| 8 | Amarillo | $1,786 |
| 9 | Beaumont | $1,754 |
| 10 | Mesquite | $1,753 |
| 11 | Grand Prairie | $1,740 |
| 12 | Lubbock | $1,733 |
| 13 | Irving | $1,719 |
| 14 | Arlington | $1,709 |
| 15 | San Antonio | $1,688 |
| 16 | Austin | $1,676 |
| 17 | Corpus Christi | $1,636 |
| 18 | El Paso | $1,632 |
| 19 | McKinney | $1,625 |
| 20 | Fort Worth | $1,621 |
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Premium amounts are estimated as the specific geographic location can revise prices greatly.
Trying to find low-cost insurance is hard enough, and figuring out which company quotes the cheapest insurance rates for safe drivers takes even more work. Every car insurance company uses a little different formula to set their prices, so let’s take a look at the most budget-friendly insurance companies in Austin, TX.
It’s a good idea to know that Austin insurance rates are influenced by many factors that can increase the cost of a policy. Simply improving your credit, adding a teenager to your policy, or having a fender bender can cause premium changes resulting in some companies being more expensive than others.
Best Cheap Insurance Rates for Safe Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,128 |
| 3 | Germania Mutual | $1,244 |
| 4 | Texas Farm Bureau | $1,247 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,424 |
| 7 | Mercury | $1,506 |
| 8 | State Farm | $1,510 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,565 |
| 11 | Progressive | $1,647 |
| 12 | Allstate | $1,667 |
| 13 | Amica | $1,705 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,183 |
| 17 | Encompass | $2,301 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,594 |
| Find Cheaper Rates Go | ||
Travelers generally has some of the cheapest car insurance rates in Austin at around $1,010 per year. This is $894 less than the average policy premium paid by Texas drivers of $1,904. USAA, Germania Mutual, Texas Farm Bureau, and Esurance also are some of the best Austin, TX insurance companies.
In the above example, if you are a policyholder with Texas Farm Bureau and switched to Travelers, you could earn annual savings of approximately $237. Customers with Esurance could save as much as $355 a year, and California Casualty insureds might reduce prices by as much as $414 a year.
These prices are averaged for all insureds and vehicles and are not factoring in an exact vehicle garaging location for safe drivers. So the company that is most affordable for your situation may not even be in the list above. That’s why you need to get quotes using your own specific driver and vehicle information.
The car, truck, or SUV you are seeking coverage for is probably the most important factor when consumers are trying to find the cheapest insurance for safe drivers. Vehicles with limited speed and performance, good safety features, or a track record of few liability claims will cost much less to insure than high performance models. The next list illustrates auto insurance rates for a handful of the cheaper automobiles to insure in Texas.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $1,070 |
| Honda CR-V EX-L 2WD | $1,095 |
| Ford Explorer XLT 4WD | $1,102 |
| Ford F-150 STX Super Cab 4WD | $1,117 |
| Ford Edge SEL 2WD | $1,137 |
| Chevrolet Impala LS | $1,146 |
| Volkswagen Jetta S 4-Dr Sedan | $1,157 |
| Chevrolet Silverado LS Extended Cab 4WD | $1,167 |
| Honda Odyssey LX | $1,171 |
| Toyota Prius | $1,191 |
| Honda Accord EX-L 4-Dr Sedan | $1,193 |
| Toyota Tacoma 4WD | $1,195 |
| Honda Civic LX 4-Dr Sedan | $1,200 |
| Hyundai Elantra SE 4-Dr Sedan | $1,220 |
| Toyota Corolla LE | $1,230 |
| GMC Sierra SLT Extended Cab 4WD | $1,242 |
| Jeep Grand Cherokee Limited 2WD | $1,249 |
| Jeep Wrangler Sahara 4WD 2-Dr | $1,242 |
| Dodge Ram Crew Cab TRX 2WD | $1,262 |
| Toyota RAV4 2WD | $1,267 |
| Compare Cheap Rates Go | |
Data based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, claim-free, and multi-vehicle. Prices do not factor in the specific area where the vehicle is garaged which can raise or lower coverage prices greatly.
Looking at the numbers, you can conclude that cars like the Ford Escape, Honda CR-V, and Ford Explorer are the most affordable vehicles to insure for good drivers.
Get discount Austin insurance
Auto insurance companies that provide policies for safe drivers may also give you policy discounts that can reduce rates by 35% or more if you qualify. A few of the larger companies and the discounts they provide are outlined below.
- GEICO has discounts for driver training, military active duty, emergency military deployment, seat belt use, multi-vehicle, and good student.
- SAFECO discounts include accident prevention training, homeowner, anti-theft, teen safety rewards, safe driver, and bundle discounts.
- State Farm offers premium reductions for passive restraint, anti-theft, accident-free, Drive Safe & Save, good driver, and driver’s education.
- MetLife may have discounts that include claim-free, good driver, good student, accident-free, and multi-policy.
- 21st Century policyholders can earn discounts including teen driver, air bags, anti-lock brakes, theft prevention, good student, defensive driver, and driver training.
- Progressive may include discounts for homeowner, online signing, multi-policy, good student, online quote discount, continuous coverage, and multi-vehicle.
The example below compares insurance costs with and without discounts applied to the premium. The premiums are based on a female driver, no claims or driving citations, Texas state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with defensive driving course, multiple policy, anti-theft, passive restraint, claim-free, and multiple vehicle discounts applied. When taking advantage of discounts, the average savings per year on insurance for safe drivers is 28% or $633.
Driving violations and accidents
The obvious way to find the most affordable insurance prices for good drivers is to drive safe and not receive tickets or have accidents. The diagram below highlights how speeding tickets and accident claims can increase car insurance rates for each different age group. The premiums assume a married male driver, full coverage, $1,000 deductibles, and no policy discounts are applied.
The data charted above shows the average cost of a car insurance policy in Austin per year with a clean driving record and no accidents is $1,358. Get two speeding tickets and the average cost increases to $1,864, an increase of $506 each year. Then throw in two accidents along with the two speeding tickets and the annual cost of insurance for safe drivers increases to an average of $3,976. That’s an increase of $2,618, or $218 per month, just for not being more responsible behind the wheel!
The illustration below illustrates how choosing a deductible can influence annual premium costs when trying to find cheap insurance for safe drivers. The rate quotes are based on a married female driver, full physical damage coverage, and no discounts are applied.
As shown above, a 30-year-old driver could pocket $422 a year by increasing from a $100 deductible up to a $500 deductible, or save $634 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old example, can cut $900 annually just by choosing higher deductibles when buying full coverage.
When using a larger deductible, it is a good idea to have enough funds in savings to allow you to pay the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
The benefit of shopping around
Austin insurance rates are impacted by many factors that can increase the policy price. Simply getting older, buying a different vehicle, or getting caught speeding may prompt premium changes that can cause some rates to be more affordable than before. In addition, insurance companies file new Texas auto insurance rates every year in order to remain profitable. Significantly higher claims may result in higher prices, while lower claim levels may result in lower-priced Austin car insurance rates.
For instance, the chart below demonstrates which company has the cheapest car insurance in Austin, TX for a 35-year-old male driver with no prior accidents, a clean driving record, and a high credit rating. Based on his personal risk profile, Travelers offers the lowest car insurance rates in Austin at $1,126 annually. This is $778 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remainder of the best Austin, TX auto insurance companies.
In this next rate comparison, we will give the driver from the first rate comparison an accident surcharge, a little lower credit rating, and a couple of points charged on his driving record. Because each company has a proprietary formula to set policy rates, comparing prices most likely will result in a different list of affordable companies as shown below.
Mercury now has the cheapest car insurance in Austin, TX with State Farm, Nationwide, Safe Auto, and USAA now rounding out the top five. This example demonstrates why it is important to compare many different companies when trying to find the most economical insurance quotes for safe drivers.
Insurance rates consist of many risk factors and can change without notice, so the most economical option three years ago may now be priced much higher than other options.