Buying cost effective car insurance is not the easiest thing to do, and figuring out which companies offer the best auto insurance rates for college graduates takes additional perseverance.
Every insurance provider uses slightly different criteria for establishing rates, so we need to take a look at the overall cheapest auto insurance companies in Austin. Keep in mind that Austin auto insurance rates are influenced by many factors that may substantially change the cost of having a policy. This price variation is why it is so important to take the time to shop around to find affordable car insurance quotes for college graduates. Insurance rates are influenced by many factors and can decrease or increase without notice, so the lowest-price company the last time you shopped your coverage around may now not even be in the top five.
Best Insurance Companies for Grads
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,128 |
| 3 | Texas Farm Bureau | $1,247 |
| 4 | Germania Mutual | $1,282 |
| 5 | Esurance | $1,407 |
| 6 | California Casualty | $1,438 |
| 7 | Mercury | $1,461 |
| 8 | State Farm | $1,510 |
| 9 | Safe Auto | $1,549 |
| 10 | Nationwide | $1,553 |
| 11 | Progressive | $1,647 |
| 12 | Amica | $1,705 |
| 13 | Allstate | $1,718 |
| 14 | GEICO | $2,093 |
| 15 | Home State | $2,134 |
| 16 | MetLife | $2,227 |
| 17 | Unitrin | $2,264 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,568 |
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Travelers may offer some of the cheapest car insurance rates in Austin at around $1,021 per year. This is $883 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance would also be considered some of the lowest-priced Austin, TX car insurance companies.
As shown in the table above, if you are insured with Esurance and switched to USAA, you might see savings of around $279. Customers with California Casualty may save as much as $310 a year, and Mercury customers might lower prices by up to $333 a year.
Remember that these premium estimates are averages for all ages of drivers and types of vehicles and do not factor in a specific vehicle garaging location for college graduates. So the auto insurance company that has the lowest price for you may not even be in the top 23 companies shown above. That affirms the importance of why you need to quote rates from many companies using your own specific driver and vehicle information.
One of the more important factors that determine the amount you pay for auto insurance is your address in Austin. Regions with more people or even just more weather-related claims are more likely to pay higher prices, whereas areas with less crime or weather claims have the luxury of cheap car insurance rates.
The following table lists the most expensive cities in Texas for college graduates to buy an auto insurance policy in. Austin comes in at #15 with the yearly price of $1,676 for the average insurance policy, which is about $140 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Houston | $1,891 |
| 3 | Laredo | $1,889 |
| 4 | Amarillo | $1,858 |
| 5 | Dallas | $1,855 |
| 6 | Brownsville | $1,851 |
| 7 | Garland | $1,832 |
| 8 | Pasadena | $1,812 |
| 9 | Mesquite | $1,807 |
| 10 | Irving | $1,772 |
| 11 | Grand Prairie | $1,740 |
| 12 | San Antonio | $1,722 |
| 13 | Beaumont | $1,720 |
| 14 | Lubbock | $1,716 |
| 15 | Austin | $1,676 |
| 16 | Fort Worth | $1,653 |
| 17 | Carrollton | $1,647 |
| 18 | Arlington | $1,642 |
| 19 | El Paso | $1,616 |
| 20 | Plano | $1,608 |
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Table data uses comparative as the specific area where the vehicle is garaged can raise or lower coverage rates noticeably.
Discounts on Austin insurance
Insurance companies that offer coverage for college graduates may also provide premium discounts that could lower prices by as much as 40% or more if you meet specific criteria. The best auto insurance companies and some of the discounts include:
- GEICO includes discounts for seat belt use, emergency military deployment, air bags, anti-lock brakes, and daytime running lights.
- Auto-Owners Insurance offers premium reductions for mature driver, teen driver, safe vehicle, anti-lock brakes, and anti-theft.
- American Family has savings for bundled insurance, accident-free, good student, early bird, TimeAway discount, and multi-vehicle.
- Esurance may have discounts that include safety device, homeowner, Pac-12 alumni, Switch & Save, anti-lock brakes, renters, and multi-policy.
- Progressive discounts include homeowner, multi-vehicle, good student, multi-policy, online quote discount, and continuous coverage.
- State Farm offers discounts including safe vehicle, anti-theft, good driver, defensive driving training, and multiple policy.
- AAA policyholders can earn discounts including good student, pay-in-full, good driver, multi-car, anti-theft, AAA membership discount, and multi-policy.
The example below visualizes the comparison of annual premium costs with and without policy discounts. The prices are based on a female driver, no violations or accidents, Texas state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with defensive driving course, safe-driver, accident-free, homeowner, multiple policy, and anti-theft discounts applied. When discounts are factored in, theaverage amount saved on auto insurance for college graduates is 28% or $782.
The chart below highlights how deductible choice can affect annual premium costs when quoting cheap insurance for college graduates. The premiums are based on a single female driver, full physical damage coverage, and no policy discounts are applied.
In the chart above, a 30-year-old driver could pocket $412 a year by switching from a $100 deductible to a $500 deductible, or save $624 by switching to a $1,000 deductible. Young drivers, like the Age 20 chart data, can save $920 annually just by choosing higher deductibles. When insureds make the decision to increase the deductibles on their policy, it is important to have enough savings to be able to pay the extra out-of-pocket expense associated with higher deductibles.
Difference between full coverage and liability only rates
Buying cheaper auto insurance should be important to the majority of people, and a good way to buy cheaper insurance for college graduates is to not buy comprehensive and collision coverage. The information below compares auto insurance costs with full coverage and liability only. Data assumes a clean driving record, no claims, $250 deductibles, single status, and no additional discounts are factored in.
If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs an additional $2,000 per year more than buying just liability insurance. At some point, about every driver wonders when is it a good idea to stop buying full coverage. There is no clear-cut rule of when to drop physical damage insurance, but there is a general convention. If the annual cost of your full coverage insurance is 10% or more of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.
There are some situations where dropping physical damage coverage is not in your best interest. If you still have a loan on your vehicle, you are required to maintain full coverage as part of the loan requirements. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should not buy liability only.
The professional agents shown below can probably answer your questions and help you decide which is the best policy, as many consumers aren’t sure which coverage to buy and prefer to have some advice when shopping for cheaper insurance for college graduates. It’s not always easy to do it yourself, and using a licensed agent can provide you satisfaction knowing you have adequate coverage when you need it most.
To find an agent nearest to you, click the button at the bottom or click here to get price quotes now.
- Bennie Council – State Farm Insurance Agent
6448 US-290 f110 – Austin, TX 78723 – (512) 454-4524 - EZ Insurance Agency – North
7600 N Lamar Blvd # E – Austin, TX 78752 – (512) 445-2700 - Capitol City Insurance
8030 N Mopac Expy – Austin, TX 78759 – (512) 343-0280 - Greater Texas Insurance
9809 Anderson Mill Rd – Austin, TX 78750 – (512) 250-5055
View more Austin, TX insurance agents
How to find low-cost car insurance for college graduates
It is possible to find better rates, and here are many money-saving ideas that can help Texas drivers quote lower-cost coverage.
- Drive safely
- Increase your policy deductibles
- Drive safe vehicles
- Do not get into accidents that are your fault
- Improve your credit
- Look for cheaper rates once a year by shopping around
The last tip is incredibly valuable, as was discussed in the prior article. Insurance rates in Austin can change considerably based on profitability, so drivers shouldn’t be reluctant to switch companies if a lower price can be found. Having a favorite company is great, but it’s not a good idea if that dedication is costing a small fortune. Spend a few minutes and shop around to find cheaper auto insurance for college graduates.