Deciphering which company offers the cheapest car insurance rates for good drivers takes more time than just comparing a company or two.
Every insurance provider has their own process for filing rates in each state, so let’s look at the rankings for the most affordable car insurance companies in Texas. Keep in mind that Austin, TX car insurance rates are impacted by many things which can substantially change the cost of a policy. Getting older, buying a home instead of renting, or getting a speeding ticket may generate price changes resulting in some companies being cheaper in comparison to the competition.
Find the Cheapest Auto Insurance for Good Drivers
Travelers may offer some of the most affordable car insurance rates in Austin at around $1,041 per year. This is $863 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the lowest-priced Austin, TX auto insurance companies.
In this example, if you currently have coverage with Germania Mutual and switched to USAA, you could earn a yearly savings of about $127. Texas drivers with Esurance might save as much as $248 a year, and California Casualty customers might cut rates by $279 a year.
To see if you’re overpaying, click here to get a free quote or click several companies below for low rates.
Be aware that those policy prices are averaged for all ages of drivers and types of vehicles and are not factoring in an exact zip code location for good drivers. So the auto insurance company that can offer the best rates for your situation may not even be in the top 23 companies in the list above. That point stresses why you need to get quotes using your own personalized driver profile and vehicle information.
The make and model of vehicle you are buying coverage for is probably the most important factor that determines the availability of the cheapest coverage for good drivers. Vehicles with high performance, a lack of modern safety features, or an increased likelihood of liability claims will cost substantially more to insure than more modest models.
The next table estimates coverage costs for a number of the most economical vehicles to insure in Texas.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 2WD | $993 |
| Ford Escape XLT 4WD | $1,000 |
| Ford F-150 XL Super Cab 4WD | $1,087 |
| Dodge Grand Caravan SE | $1,092 |
| Toyota RAV4 Sport 4WD | $1,147 |
| Nissan Altima 2.5 4-Dr Sedan | $1,153 |
| Ford Explorer Limited 2WD | $1,170 |
| Honda Civic VP 4-Dr Sedan | $1,185 |
| Honda Odyssey LX | $1,223 |
| Nissan Rogue S 2WD | $1,232 |
| Ford F-350 XL Super Cab Turbo Diesel 2WD | $1,272 |
| Toyota Tacoma 2WD | $1,292 |
| Ford Focus S 4-Dr Sedan | $1,300 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,315 |
| Toyota Camry Hybrid | $1,322 |
| Chevrolet Impala LT | $1,317 |
| Volkswagen Jetta S 4-Dr Sedan | $1,323 |
| Chevrolet Equinox LS AWD | $1,317 |
| GMC Sierra SLE Crew Cab 2WD | $1,327 |
| Toyota Prius | $1,322 |
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Above prices assume single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, multi-policy, safe-driver, claim-free, and multi-vehicle. Rates do not factor in Austin, TX location which can lower or raise coverage rates noticeably.
By looking at the data, you can presume that vehicles like the Honda CR-V, Ford Escape, Ford F-150, Dodge Grand Caravan, and Toyota RAV4 are most likely to be the cheaper vehicles to insure for safe drivers.
Illustration showing the impact of accidents and violations
One of the best ways to obtain good car insurance rates for safe drivers is to be a good driver and avoid accidents and keep your driving record clean. The information below demonstrates how speeding tickets and at-fault collisions drive up yearly insurance costs for different age groups of insureds. Data assumes a single male driver, full coverage, $100 deductibles, and no policy discounts are applied.
The data above shows the average cost of a car insurance policy in Austin per year with a clean driving record and no accidents is $2,922. Receive one speeding ticket and the average cost hikes up to $3,293, an increase of $371 each year. Now throw in one accident along with the one speeding ticket and the annual cost of car insurance for good drivers goes up to an average of $4,352. That’s an increase of $1,430, or $119 per month, just for being a careless driver!
Should you buy full coverage?
Saving money when shopping for car insurance is probably important to most people, and one good way to buy cheap insurance for good drivers is to buy liability only. The information below illustrates the difference between insurance premiums with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The prices are based on a clean driving record, no at-fault accidents, $100 deductibles, drivers are not married, and no policy discounts are applied.
As an overall average, physical damage coverage costs $2,974 per year more than insuring for liability only. That is a large expense and it proposes the question if buying full coverage is worth the expense. There is no set rule of when to drop full coverage on your policy, but there is a broad guideline. If the annual cost of coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, the it may be a good time to stop paying for full coverage.
How to get discounts on Austin insurance
Insurance companies that offer quotes for good drivers may have policy discounts that can reduce rates by 30% or more if you are eligible for them. A few popular companies and some of their more popular discounts are included below.
- Farmers Insurance may offer discounts for mature driver, switch companies, homeowner, teen driver, multi-car, and distant student.
- State Farm discounts include driver’s education, anti-theft, safe vehicle, Steer Clear safe driver discount, student away at school, multiple policy, and Drive Safe & Save.
- Liberty Mutual may include discounts for teen driver discount, preferred payment discount, hybrid vehicle, exclusive group savings, and newly retired.
- MetLife may have discounts that include good driver, accident-free, multi-policy, good student, claim-free, and defensive driver.
- Progressive has discounts for homeowner, online quote discount, online signing, multi-policy, and continuous coverage.
The diagram below shows the comparison of insurance costs with and without discounts being applied to the rates. The costs are based on a male driver, no accidents, no driving violations, Texas state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with multiple vehicle, claim-free, marriage, homeowner, multiple policy, and defensive driving course discounts applied. When discounts are factored in, theamount saved on car insurance for good drivers is 28% or $815.
Why it’s important to shop around
Austin car insurance rates are based on many factors that may substantially change the price you pay. Improving your credit rating, buying a different home, or getting a driving violation can trigger rate changes that may make certain companies cheaper than others.
In addition, insurance companies file new Texas car insurance rates without warning in order to offset underwriting gains or losses. A period of higher than normal claims may result in additional premium costs, while a better claims history can produce cheaper Austin car insurance rates.
To illustrate this point, the bar chart below shows the company with the cheapest car insurance in Austin, TX for a 35-year-old male driver with no accidents or violations, and a good credit rating. If we estimate rates based on his personal profile, Travelers may offer the best car insurance rates in Austin at $1,130 per year. This is $774 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also on the list of the cheapest Austin, TX auto insurance companies.
In this next rate comparison, we will give the driver from above a chargeable accident, a lower credit rating, and a traffic ticket or two. Due to the fact that every insurance company has a different formula for setting rates, comparing prices may result in a different set of affordable companies as shown below.
State Farm now has the lowest car insurance rate in Austin with Mercury, Safe Auto, Nationwide, and USAA now rounding out the top five. This example demonstrates why Austin drivers need to shop around with many companies when trying to get the most budget-friendly auto insurance rates for good drivers.
Car insurance prices are made up of many different factors and can decrease or increase without notice, so the cheapest company when you last compared rates may now be quite expensive.