For new drivers, one of the largest things that help determine the amount you pay for auto insurance is the neighborhood you call home. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims benefit from having to pay less for coverage.
The illustration below ranks the most costly cities in Texas for inexperienced drivers in which to buy car insurance. Austin is ranked at #14 costing $1,676 for the average policy, which is approximately $140 each month.
|Start a Quote Go|
Rates are estimated as the specific garaging location can affect coverage rates greatly.
The type of vehicle to be insured is a large factor in finding affordable coverage for inexperienced drivers. Vehicles with high performance engines, a lack of advanced safety features, or an increased likelihood of liability claims will cost significantly more to insure than safer models.
The information below presents auto insurance rates for the cheapest vehicles to buy insurance for.
|Vehicle||Estimated Cost for Full Coverage|
|Ford F-150 XLT Super Cab 2WD||$1,017|
|Ford Escape XLT 2WD||$1,043|
|Chevrolet Impala LT||$1,073|
|Toyota RAV4 Limited 4WD||$1,079|
|Ford Edge Sport AWD||$1,130|
|Hyundai Elantra SE Touring Station Wagon||$1,140|
|Honda CR-V EX 4WD||$1,140|
|Nissan Rogue S AWD||$1,153|
|Dodge Grand Caravan SE||$1,169|
|Honda Civic EX-L 4-Dr Sedan||$1,186|
|Hyundai Sonata Limited 4-Dr Sedan||$1,231|
|Jeep Wrangler Rubicon 4WD 2-Dr||$1,249|
|Ford Explorer Eddie Bauer 2WD||$1,258|
|Nissan Altima 3.5 SR 2-Dr Coupe||$1,288|
|Dodge Ram 2500 Crew Cab Laramie 2WD||$1,294|
|Honda Odyssey EX-L W/Rear Entertainment||$1,296|
|Jeep Grand Cherokee Laredo 2WD||$1,318|
|Chevrolet Equinox LT AWD||$1,326|
|Volkswagen Jetta SE 4-Dr Sedan||$1,320|
|Find Cheaper Rates Go|
Prices 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, homeowner, claim-free, multi-vehicle, and safe-driver. Information does not factor in garaging location in Austin, TX which can decrease or increase prices considerably.
Looking at the data, makes and models like the Toyota Prius, Ford F-150, and Ford Escape will definitely be the most affordable vehicles to insure for new drivers.
The diagram below illustrates how your deductible choice can impact insurance premiums when getting quotes for cheap insurance for inexperienced drivers. The rates are based on a married female driver, comprehensive and collision coverage, and no discounts are applied to the premium.
The chart above illustrates that a 30-year-old driver could cut expenses by $408 a year by changing from a $100 deductible to a $500 deductible, or save $612 by choosing a $1,000 deductible. Younger drivers, such as the Age 20 example, could reduce their rates as much as $870 or even more by choosing a larger deductible amount.
When choosing a higher deductible, it is a good idea to have additional funds in a savings account to offset the extra out-of-pocket expense that is associated with using high deductibles.
Difference between liability only and full coverage rates
Paying less for car insurance should be important to most vehicle owners, and one of the quickest ways to buy cheaper insurance for inexperienced drivers is to not insure for full coverage. The example below compares auto insurance costs with and without physical damage coverage. The prices are based on no accidents, no driving violations, $250 deductibles, single status, and no policy discounts are applied.
If the expense is averaged for all age categories, full coverage costs an extra $2,000 per year over having just liability coverage. Many drivers may wonder if buying full coverage is worth the money. There is no clear-cut formula to stop buying full coverage on your policy, but there is a general guideline you can use. If the yearly cost of full coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you may need to consider dropping full coverage.
For example, let’s pretend your vehicle’s book value is $10,500 and you have $1,000 deductibles. If your vehicle is destroyed, the most you would receive is $9,500 after the deductible is paid. If it’s costing in excess of $950 annually to have full coverage, then it might be time to consider dropping full coverage.
Why you should be comparing rates
Austin car insurance rates are determined by lots of factors which can substantially change the price you have to pay for coverage. Improving your credit score, having a teen driver, or having an accident may cause policy rate changes resulting in some companies being much cheaper than others.
Not only may things change on your end, but insurers change the rates they charge in Texas without warning in order to maintain liquidity for claims. Heavier than normal losses can result in higher priced premiums, while a better claims history may cause cheaper Austin car insurance rates.
To illustrate this example, the chart below shows rates for the cheapest car insurance in Austin, TX for a 35-year-old female driver with no accidents, a clean driving record, and a decent credit rating. When quoting prices based on her current risk profile, Travelers might quote the most affordable car insurance rates in Austin at $1,127 annually. This is $777 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the most affordable Austin, TX auto insurance companies.
The chart below compares rates after we give the driver in the first example a claim or two, slightly worse credit, and a speeding citation. Due to the fact that each insurance company uses a different method for establishing rates, comparing quotes could now result in a different list of the cheapest companies as shown below.
State Farm now has the cheapest insurance rate in Austin, TX with Mercury, USAA, Nationwide, and Safe Auto also having competitive pricing. This example illustrates why Texas drivers need to take the time to shop around to find cheap car insurance rates for inexperienced drivers.
Prices are calculated by many risk factors and change frequently, so the most economical option a year ago may now be one of the more expensive options.
How to find low-cost auto insurance for inexperienced drivers
The list below details a few thrifty ideas that can help drivers get low-cost car insurance.
- Increase your policy deductibles
- Maintain a safe distance and avoid accidents
- Buying car and homeowners insurance together can save money
- Do not get traffic violations
- Good credit can save money
- Try to not file small claims
- Compare rate quotes frequently
That last tip is incredibly valuable, as we stressed in the article above. Car insurance rates can change significantly in a year, so don’t be hesitant to switch companies if you find a cheaper price.
Having a favorite company is great, but we do not recommend it if that faithfulness ends up costing you a small fortune. It only take a few minutes to compare rates to find cheaper insurance for inexperienced drivers in Austin.
If you prefer to get some professional input when comparing insurance rates for new drivers, the insurance agencies listed below are a good start to help you determine which coverage fits your budget. To find an agent near you, click the button after the list.
John Kirk – State Farm Insurance Agent
11130 Jollyville Rd Ste 201 – Austin, TX 78759 – (512) 343-7758
Nationwide Insurance: Bill Russell Insurance Agency Inc
9015 Mountain Ridge Dr #350 – Austin, TX 78759 – (512) 343-1106
State Farm: Charlie Anderson
12710 Research Blvd #210 – Austin, TX 78759 – (512) 258-2231