It’s hard to miss the catchy advertisements from auto insurance companies like Nationwide, GEICO, and The General that guarantee big savings. So drivers should just choose any of them, right?
It’s not that simple, unfortunately, as there are a whole slew of unknown elements like whether you are a man or a woman, if you have ever let your policy lapse, any driving violations you may have, and your credit history, that all go into determining the rate you pay. This article will detail the different scenarios that increase car insurance cost and will hopefully give you a jump start in finding the best auto insurance.
The vehicle on the policy is one of the main factors that determines the availability of economical insurance for good students. Vehicles with average performance, modern passenger safety features, or low incidents of liability claims will cost substantially less to insure than adrenaline junky models.
The next table shows coverage premiums for some of the more affordable vehicles to insure in Texas.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 4WD | $4,566 |
| Ford Escape Limited 2WD | $4,572 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,842 |
| Honda Accord EX-L 4-Dr Sedan | $4,851 |
| Toyota Prius | $4,884 |
| Toyota Tacoma 4WD | $5,092 |
| Dodge Grand Caravan CV | $5,099 |
| Ford Focus S 4-Dr Sedan | $5,329 |
| Ford Edge SE AWD | $5,334 |
| Toyota RAV4 4WD | $5,368 |
| Chevrolet Malibu LS | $5,374 |
| Jeep Grand Cherokee Laredo 4WD | $5,368 |
| Chevrolet Impala LT | $5,375 |
| Ford Explorer Limited 2WD | $5,409 |
| Hyundai Elantra GLS 4-Dr Sedan | $5,644 |
| Toyota Corolla XLE | $5,650 |
| Honda Odyssey EX-L | $5,644 |
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Above prices assume single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in vehicle garaging location which can decrease or increase coverage prices substantially.
Looking at the rates, you can conclude that models like the Honda CR-V, Ford Escape, Volkswagen Jetta, and Honda Accord are most likely going to be the cheaper vehicles to insure for student drivers.
One of the more important criteria that are looked at to help calculate auto insurance rates is where you normally keep your vehicle in Houston. Larger areas tend to have more expensive car insurance rates, whereas areas with lower crime rates and fewer weather claims have the benefit of cheaper car insurance.
The next table lists the most expensive cities in Texas for good students in which to purchase auto insurance. Houston is ranked at #3 with an annual cost of $1,853 for the average policyholder, which is about $154 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Laredo | $1,889 |
| 3 | Houston | $1,853 |
| 4 | Brownsville | $1,851 |
| 5 | Garland | $1,850 |
| 6 | Dallas | $1,837 |
| 7 | Mesquite | $1,825 |
| 8 | Pasadena | $1,794 |
| 9 | Grand Prairie | $1,793 |
| 10 | Amarillo | $1,786 |
| 11 | Irving | $1,772 |
| 12 | Beaumont | $1,720 |
| 13 | Arlington | $1,692 |
| 14 | San Antonio | $1,688 |
| 15 | Austin | $1,676 |
| 16 | Lubbock | $1,665 |
| 17 | El Paso | $1,632 |
| 18 | McKinney | $1,625 |
| 19 | Plano | $1,624 |
| 20 | Corpus Christi | $1,620 |
| 21 | Carrollton | $1,615 |
| 22 | Fort Worth | $1,604 |
| 23 | Abilene | $1,561 |
| 24 | Killeen | $1,533 |
| 25 | Waco | $1,522 |
| Get a Custom Quote Go | ||
Rate information is comparative as vehicle location can revise premiums considerably.
Drive safe and save
The ideal way to receive the best car insurance premiums for student drivers is to drive attentively and not receive tickets or have accidents. The diagram below highlights how traffic violations and at-fault fender-benders impact auto insurance rates for each different age group. The price estimates are based on a single male driver, comp and collision included, $1,000 deductibles, and no discounts are applied.
The data in the chart shows the average cost of car insurance in Texas per year with no accidents and a clean driving record is $1,730. Factor in two speeding tickets and the average cost rises to $2,283, an increase of $553 each year. Now throw in one accident along with the two speeding tickets and the annual cost of car insurance for good students increases to an average of $2,842. That’s an increase of $1,112, or $93 per month, just for not driving responsibly!
Rate difference between full and liability-only coverage
Buying cheaper car insurance is probably important to the majority of drivers, and one of the quickest ways to pay lower rates for insurance for good students is to buy liability only. The chart below illustrates the comparison of insurance prices with and without physical damage coverage. The rates are based on no claims, a clean driving record, $500 deductibles, marital status is single, and no discounts are applied.
If we average the cost for ages 20 through 70, physical damage coverage costs an additional $1,793 per year more than just buying liability only. Many people question when is it safe to stop buying full coverage. There is no set guideline for excluding comp and collision coverage, but there is a general school of thought. If the annual cost of having full coverage is more than around 10% of the replacement cost minus the deductible, the it may be a good time to stop paying for full coverage.
There are a few situations where dropping full coverage is not a good idea. If you haven’t paid off your loan, you have to carry full coverage in order to prevent your loan from defaulting. Also, if you can’t afford to buy a different vehicle in case of an accident, you should keep full coverage in place.
The agents below can probably help you determine which auto insurance policy fits you best, as some drivers have questions and prefer to get help from a professional when trying to find lower insurance rates for student drivers. It can be difficult to find the best policy on your own, so insurance agents licensed in the state of Texas can provide you peace of mind knowing you have suitable coverage if you ever need to use it. To locate a Houston insurance agent near you, click the button below the list or click here to compare price quotes.
- Allrisc Insurance Agency
6918 Corporate Dr – Houston, TX 77036 – (713) 771-6000 - Hallmark Insurance Agency Inc
12337 Jones Rd – Houston, TX 77070 – (281) 894-8200 - Hispano’s Insurance Agency
5420 Chimney Rock Rd – Houston, TX 77081 – (832) 778-8600 - Jason Jimenez Insurance Agency
8323 Southwest Fwy #390 – Houston, TX 77074 – (713) 270-0073
More insurance agents in Houston, TX
Tips for buying the cheapest insurance for good students
The list below shows a few penny-pinching ideas that can help Houston drivers locate cheap coverage.
- Get cheaper liability coverage by choosing a safer vehicle
- Serious violations like DUI or reckless driving can increase rates dramatically
- Buying car and homeowners insurance together can save money
- Pay for small claims rather than turning them in to your insurance company
- At-fault accidents will increase rates
- Shop around for cheaper prices often
The final tip is extremely crucial, as we emphasized in this write-up. Rates can change significantly in a year, so don’t be tentative to buy a different policy if a lower price can be found. Staying with the same car insurance company is fine, but we do not recommend it if your bullheadedness ends up costing you hundreds of dollars a year. If you have a few minutes, now is a great time to shop around to find cheaper auto insurance for good students in Houston.