For the unemployed, one of the big things that aid in calculating the amount you pay each year for auto insurance is where your residence is. Cities with larger populations tend to have more expensive auto insurance rates, whereas more rural areas have the enjoyment of a little cheaper coverage.
The table below rates the most expensive areas in Texas for unemployed drivers to buy car insurance in. Houston makes the list at #6 with a yearly premium of $1,835 for coverage, which is about $153 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Laredo | $1,907 |
| 3 | Dallas | $1,893 |
| 4 | Brownsville | $1,870 |
| 5 | Amarillo | $1,858 |
| 6 | Houston | $1,835 |
| 7 | Mesquite | $1,825 |
| 8 | Garland | $1,796 |
| 9 | Pasadena | $1,758 |
| 10 | Beaumont | $1,754 |
| 11 | Grand Prairie | $1,740 |
| 12 | San Antonio | $1,722 |
| 13 | Irving | $1,719 |
| 14 | Lubbock | $1,716 |
| 15 | Arlington | $1,709 |
| 16 | Austin | $1,676 |
| 17 | Carrollton | $1,647 |
| 18 | Fort Worth | $1,604 |
| 19 | Corpus Christi | $1,572 |
| 20 | Waco | $1,569 |
| 21 | El Paso | $1,568 |
| 22 | McKinney | $1,561 |
| 23 | Plano | $1,560 |
| 24 | Killeen | $1,518 |
| 25 | Abilene | $1,515 |
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Premium amounts are comparative as the garaging address in Houston can impact auto insurance rates substantially.
The vehicle model you are trying to insure is probably the most important factor when looking for the most affordable coverage for unemployed drivers. Vehicles with limited top-end speed, modern passenger safety features, or a low likelihood of having liability claims will cost quite a bit less to insure than higher performance models. The list below ranks auto insurance premiums for a number of the cheaper automobiles to insure.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $1,278 |
| Ford Explorer XLT AWD | $1,432 |
| Ford Escape XLS 2WD | $1,465 |
| Toyota Camry LE | $1,511 |
| Toyota RAV4 Sport 2WD | $1,517 |
| Ford Focus SEL 4-Dr Sedan | $1,563 |
| Ford Edge Limited AWD | $1,591 |
| Toyota Prius | $1,619 |
| Volkswagen Jetta 2.0T 4-Dr Sedan | $1,629 |
| Chevrolet Equinox LTZ 2WD | $1,619 |
| Jeep Wrangler Sport 4WD 2-Dr | $1,627 |
| GMC Sierra 2500HD SLT Crew Cab 4WD | $1,696 |
| Honda Accord LX-S 2-Dr Coupe | $1,701 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,729 |
| Toyota Tacoma 4WD | $1,758 |
| Dodge Grand Caravan SE | $1,766 |
| Ford F-150 FX2 2WD | $1,763 |
| Hyundai Elantra GLS 4-Dr Sedan | $1,822 |
| Toyota Corolla XLE | $1,827 |
| Honda Odyssey EX-L | $1,822 |
| Ford Fusion Sport 4-Dr Sedan | $1,855 |
| GMC Sierra SLE Crew Cab 2WD | $1,862 |
| Chevrolet Malibu Hybrid | $1,855 |
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Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-policy, safe-driver, claim-free, multi-vehicle, and homeowner. Table data does not factor in specific Houston, TX garaging location which can modify price quotes considerably.
Based upon the rates shown, you can figure that models like the Honda CR-V, Ford Explorer, Ford Escape, and Toyota Camry are most likely to be some of the cheaper vehicles to insure for the unemployed.
The chart below demonstrates how deductibles can change premium costs when quoting cheap insurance for unemployed drivers. The premium estimates are based on a single male driver, full physical damage coverage, and no additional discounts are factored in.
In the chart above, a 50-year-old driver could save $440 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $660 by selecting a $1,000 deductible. Even younger insureds, like the Age 20 chart data, could possibly save $1,446 each year by choosing a higher deductible. If you do decide to increase your deductibles, it will be required to have additional funds squirreled away to enable you to pay the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
Does it make sense to buy full coverage?
Lowering the price of insurance is important to the majority of drivers, and one of the best ways to buy cheap insurance for unemployed drivers is to only buy liability insurance. The example below shows the difference between annual premium costs when comparing full coverage to liability only. The rate quotes are based on no claims or driving violations, $1,000 deductibles, drivers are not married, and no other discounts are factored in.
As an average for all age groups, physical damage insurance costs an additional $1,598 per year over having just liability coverage. Many drivers will wonder if buying full coverage is worth the expense. There is no exact rule of when to eliminate comp and collision coverage, but there is a general guideline. If the annual cost of coverage is more than 10% of the settlement you would receive from your company, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s claim settlement value is $11,500 and you have $1,000 deductibles. If your vehicle is damaged in an accident, you would only receive $10,500 after paying your policy deductible. If you are currently paying more than $1,050 annually to have full coverage, then you might want to consider buying only liability coverage.
Buying coverage from the right auto insurance company can be difficult considering how many different companies sell coverage in Houston. The company ratings shown next may help you pick which car insurance companies you want to consider comparing rates with. The rankings below include companies with a nationwide focus, so smaller companies that only insure vehicles in Texas will not be included in the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
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Data Source: Insure.com Best Car Insurance Companies
How to find cheaper car insurance for unemployed drivers
Lowering your rates is not difficult, and here are many penny-pinching solutions that can help Texas drivers locate more affordable coverage.
- Save money by only buying liability coverage for older vehicles
- Prevent price hikes by avoiding at-fault accidents
- Drive safely
- Higher deductibles mean lower rates
- Having too many claims will increase rates substantially
- Shop around once a year for cheaper rates
That last idea is highly critical, as was pointed out in the prior information. Prices charged by car insurance companies fluctuate constantly, so don’t be unwilling to switch companies if a more affordable rate is found. Many drivers have brand loyalty and that’s fine, but it isn’t a good idea if your bullheadedness ends up costing you a small fortune. Take a few minutes and compare prices to find cheaper car insurance for unemployed drivers in Houston.