Establishing which companies have the cheapest car insurance rates for uninsured drivers takes more work in order to find the lowest price.
Each auto insurance company has a proprietary formula for determining rates in each state, so we need to take a look at the most budget-friendly car insurance companies in Austin.
Best Cheap Insurance Rates in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,211 |
| 4 | Germania Mutual | $1,256 |
| 5 | California Casualty | $1,382 |
| 6 | Esurance | $1,407 |
| 7 | State Farm | $1,510 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,585 |
| 10 | Safe Auto | $1,613 |
| 11 | Allstate | $1,667 |
| 12 | Progressive | $1,715 |
| 13 | Amica | $1,775 |
| 14 | GEICO | $2,072 |
| 15 | Home State | $2,134 |
| 16 | MetLife | $2,183 |
| 17 | Encompass | $2,255 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,594 |
| Get a Custom Quote Go | ||
Travelers may offer some of the most affordable car insurance rates in Austin at around $1,021 a year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also rank well as some of the cheapest Austin, TX auto insurance companies.
As shown in the rates above, if you currently buy coverage from Germania Mutual and switched to Travelers, you may realize annual savings of about $235. Texas drivers with California Casualty could save as much as $361 a year, and Esurance policyholders might reduce rates by $386 a year.
It’s important to note that these prices are averages across all types of insureds and vehicles and do not factor in a specific vehicle garaging location for uninsured drivers. So the insurer that can offer you the best price may not even be in the top 23 companies in the list above. That emphasizes why you need to get rate quotes from many companies using your own specific driver information and vehicle.
The vehicle model you are insuring is probably the most important factor when comparison shopping for low-cost insurance for uninsured drivers. Vehicles with lower acceleration and performance, a plethora of safety features, or a low likelihood of liability claims will cost less to insure than higher performance models.
The list below outlines insurance premiums for a number of the most cost-effective vehicles to buy insurance for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $905 |
| Chevrolet Impala LS | $1,050 |
| Chevrolet Equinox LS 2WD | $1,072 |
| Jeep Grand Cherokee Laredo 4WD | $1,081 |
| Volkswagen Jetta S 2.5 Station Wagon | $1,078 |
| Ford Escape Limited 4WD | $1,104 |
| Honda Civic LX 4-Dr Sedan | $1,108 |
| Hyundai Elantra SE 4-Dr Sedan | $1,130 |
| Toyota Prius | $1,132 |
| Nissan Altima 3.5 SR 4-Dr Sedan | $1,149 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,159 |
| Dodge Grand Caravan SE | $1,151 |
| Toyota Tacoma 2WD | $1,181 |
| Ford Explorer Limited AWD | $1,198 |
| Toyota RAV4 Limited 4WD | $1,207 |
| Toyota Camry Hybrid | $1,226 |
| Kia Optima SX | $1,236 |
| Ford F-150 XLT Crew Cab 4WD | $1,235 |
| Ford Focus SEL 4-Dr Sedan | $1,237 |
| Honda Odyssey EX-L W/Rear Entertainment | $1,239 |
| Start a Quote Go | |
Table data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-policy, claim-free, safe-driver, homeowner, and multi-vehicle. Premium amounts do not factor in your specific Austin, TX location which can increase or decrease coverage prices considerably.
Based upon the table data, you can expect vehicles like the Honda CR-V, Chevrolet Impala, Chevrolet Equinox, Jeep Grand Cherokee, and Volkswagen Jetta are likely to be some of the cheapest vehicles to insure for drivers with no prior coverage.
Liability rates compared to full coverage
Reducing the cost of car insurance is probably important to the majority of drivers, and one of the best ways to lower the cost of insurance for uninsured drivers is to not pay for full coverage. The information below visualizes the comparison of car insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The information is based on a clean driving record, no claims, $1,000 deductibles, drivers are not married, and no discounts are applied to the premium.
As an overall average, comp and collision coverage costs $1,598 per year more than buying just liability insurance. That brings up the question if you should buy full coverage. There is no definitive rule of when to drop comprehensive and collision coverage on your policy, but there is a guideline you can use. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then you may want to consider only buying liability coverage.
There are some circumstances where dropping full coverage is not financially feasible. If you still owe money on your vehicle, you have to maintain full coverage in order to satisfy the requirements of the loan. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should not buy liability only.
Driving violations and accidents
The common sense way to find the best car insurance prices in Texas for drivers with no prior coverage is to pay attention while driving and not get tickets or have accidents. The example below demonstrates how traffic citations and at-fault collisions can drive up insurance rates for each age group. The prices are based on a married male driver, comp and collision included, $1,000 deductibles, and no policy discounts are applied.
The chart shows that the average cost of an auto insurance policy per year with a clean driving record and no accidents is $1,358. Add in two speeding tickets and the average cost swells 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 car insurance for uninsured drivers jumps again to an average of $3,976. That’s an increase of $2,618, or $218 per month, just for being a less-than-perfect driver!
The importance of comparing Austin car insurance rates
Texas car insurance rates are calculated based on many things that can increase the policy price. Improving your credit rating, moving across town, or getting a ticket for running a stop sign can trigger rate changes resulting in some companies being affordable when they were higher priced. In addition, companies change prices as needed in order to offset underwriting gains or losses. Heavier than normal losses can cause additional premium costs, while less frequent claims can cause more affordable Austin car insurance rates.
As an example, the bar chart below shows the cheapest car insurance in Austin, TX for a 40-year-old male driver with a good driving record, no prior claims, and excellent credit. When quoting prices based on his personal risk profile, Travelers quotes the most affordable car insurance rates in Austin at $1,083 a year. This is $821 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance round out the rest of the cheapest Austin, TX auto insurance companies.
The example below compares rates after we give the driver from the above example some claims, bad credit, and a couple of points charged on his driving record. Since every car insurance company has a different process for filing rates in each state, getting updated rate quotes may result in a completely different list of the cheapest car insurance companies in Austin as shown below.
State Farm now has the best insurance rate in Austin, TX with Mercury, USAA, Nationwide, and Safe Auto now being in the top five. This example proves why it is so important to do a thorough rate comparison when trying to get affordable auto insurance rates for uninsured drivers.
Auto insurance prices consist of many different factors and can change substantially, so the most affordable company the last time you shopped around may now be an over-priced policy.
How to find low-cost car insurance for uninsured drivers
It’s not impossible to find cheaper rates, and here are some money-saving ideas that can help Austin drivers buy cheap coverage.
- Buy vehicles with five-star safety ratings
- Do not pay for full coverage if not needed
- Tickets and violations raise rates
- Good credit can mean cheaper rates
- Increase physical damage deductibles
- Accidents can significantly increase rates
- Compare rate quotes frequently
The last tip in the list is particularly critical, as was noted in the prior article. Coverage rates can be adjusted at any time, so drivers shouldn’t be reluctant to change to a new company if a lower price can be found.
Sticking with a specific company is fine, but is isn’t recommended if that loyalty ends up costing hundreds of dollars year after year. In just a couple of minutes you could shop around and find cheaper auto insurance for uninsured drivers in Austin.