The words “affordable” and “insurance” really should not be used together, especially when you are searching for the best price on coverage for a school permit. Because it’s so expensive, let’s teach you a few of the things that determine insurance premiums, and find out if we can help you take the sting out of the next policy you buy.
For a learners permit, one of the big criteria that are looked at to help calculate the price you pay for insurance is where you keep your vehicle in Austin. Areas with more people or more claims tend to pay more, whereas areas with lower crime rates and fewer weather claims tend to receive slightly lower rates.
The next table shows the highest-priced areas in Texas for a school permit to purchase a policy in. Austin is ranked #14 having an annual price of $1,676 for the average policyholder, which is around $140 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,908 |
| 3 | Houston | $1,891 |
| 4 | Laredo | $1,889 |
| 5 | Dallas | $1,855 |
| 6 | Amarillo | $1,840 |
| 7 | Grand Prairie | $1,793 |
| 8 | Garland | $1,778 |
| 9 | Mesquite | $1,771 |
| 10 | Pasadena | $1,758 |
| 11 | Irving | $1,736 |
| 12 | Lubbock | $1,733 |
| 13 | Beaumont | $1,702 |
| 14 | Austin | $1,676 |
| 15 | San Antonio | $1,671 |
| 16 | Arlington | $1,642 |
| 17 | Fort Worth | $1,621 |
| 18 | Corpus Christi | $1,620 |
| 19 | Carrollton | $1,615 |
| 20 | Plano | $1,608 |
| Compare Prices Now Go | ||
Annual rates are comparative as specific location information can decrease or increase auto insurance rates considerably.
Deciphering which company offers the lowest-priced auto insurance rates for a school permit requires a little more effort in order to find the best policy. Each insurer has a proprietary method to set premium rates, so let’s rank the auto insurance companies with the overall best prices in Austin, TX.
Keep in mind that Texas auto insurance rates are impacted by many factors that can increase the price of your policy. Simply improving your credit, getting divorced, or getting caught speeding can trigger price changes that can now make some companies cheaper in comparison to the competition.
Compare Cheap Insurance Quotes for Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,095 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,244 |
| 5 | Esurance | $1,407 |
| 6 | California Casualty | $1,438 |
| 7 | Mercury | $1,476 |
| 8 | State Farm | $1,510 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,565 |
| 11 | Allstate | $1,667 |
| 12 | Progressive | $1,698 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,134 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,161 |
| 17 | Encompass | $2,301 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,672 |
| Get a Custom Quote Go | ||
Travelers has some of the most affordable car insurance rates in Austin at around $1,021 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the best Austin, TX auto insurance companies.
As shown above, if you are a policyholder with Texas Farm Bureau and switched to Travelers, you may see a yearly price reduction of about $214. Texas drivers with Germania Mutual could save as much as $223 a year, and Esurance policyholders might reduce prices by as much as $386 a year.
To see if you’re overpaying, click here to start your free quote or click several companies below for low rates.
It’s important to note that these policy prices are averaged for all types of insureds and vehicles and do not factor in an exact zip code location for a school permit. So the car insurance company that is best for you may not even be in the top 23 companies in the list above. That points out the importance of why you need to compare as many prices as possible using your own driver data and vehicle information.
The make and model of vehicle you are insuring is a significant factor when trying to find the most economical auto insurance for a school permit. Vehicles with lower performance, excellent safety ratings, or low incidents of liability claims will cost significantly less to insure than higher performance models.
The list below ranks car insurance rates for a selection of the most affordable vehicles to buy insurance for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $4,030 |
| Ford Escape XLT 4WD | $4,073 |
| Honda CR-V EX-L 4WD | $4,081 |
| Jeep Wrangler Sport 4WD 2-Dr | $4,210 |
| Toyota Prius | $4,377 |
| Dodge Grand Caravan CV | $4,516 |
| Ford Explorer XLT AWD | $4,526 |
| Honda Odyssey EX W/Rear Entertainment | $4,737 |
| Toyota Tacoma 2WD | $4,743 |
| Ford Edge SE AWD | $4,737 |
| Volkswagen Jetta S 4-Dr Sedan | $4,780 |
| Toyota RAV4 4WD | $4,785 |
| Chevrolet Impala LT | $4,780 |
| Toyota Camry LE | $4,786 |
| Chevrolet Malibu Hybrid | $4,780 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $4,820 |
| Ford F-150 Lariat Super Cab 4WD | $4,825 |
| Ford Focus SES 4-Dr Sedan | $5,001 |
| Toyota Corolla XLE | $5,043 |
| Chevrolet Equinox LTZ AWD | $5,084 |
| Start a Quote Go | |
Data assumes single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in Austin, TX location which can raise or lower premium rates greatly.
Looking at the rates, models like the Hyundai Elantra, Ford Escape, Honda CR-V, and Jeep Wrangler should be a few of the most budget-friendly vehicles to insure for a learners permit. The cost of auto insurance will tend to be more expensive anyway just because there is more inherent risk for a school permit, but overall those specific models will probably have the lowest prices compared to other vehicles.
Choosing a highly-rated insurance provider can be a challenge considering how many companies sell coverage in Austin. The company ratings in the lists below can help you choose which companies you want to consider purchasing from.
These rankings are only made up of companies with a national presence, so companies that may only write in Texas will not be included in the list. To compare prices from these top-rated insurers and more, click here.
Top 10 Major Auto Insurers in Austin Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Titan Insurance – A+
- Esurance – A+
- Progressive – A+
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
Top 10 Major Auto Insurers in Austin Ranked by Customer Service
- USAA
- Travelers
- Mercury Insurance
- AAA Insurance
- Nationwide
- Safeco Insurance
- Progressive
- State Farm
- The Hartford
- The General
Rate comparison of full coverage and liability-only
Buying cheaper auto insurance is probably important to most drivers, and one good way to buy cheaper insurance for a school permit is to not buy full coverage. The diagram below illustrates the comparison of insurance rates with and without full coverage. The premium estimates are based on no claims, a clean driving record, $1,000 deductibles, drivers are not married, and no discounts are taken into consideration.
Averaged out for all age groups, full coverage costs $2,131 per year more than insuring for liability only. Many people question when is it safe to stop buying full coverage. There is no set rule to stop buying physical damage coverage, but there is a broad guideline. If the annual cost of comprehensive and collision coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s say your vehicle’s replacement value is $10,500 and you have $1,000 deductibles. If your vehicle is totaled, the most you would get paid by your company is $9,500 after paying the physical damage deductible. If you are paying over $950 a year for your policy with full coverage, then it may be the right time to buy liability only.
The chart below illustrates how your choice of deductibles can increase or decrease yearly insurance costs when trying to find cheap insurance for a school permit. The price estimates are based on a single male driver, full physical damage coverage, and no discounts are applied to the premium.
The data above shows that a 30-year-old driver could save $422 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $634 by using a $1,000 deductible. Younger drivers, like the Age 20 chart data, could save as much as $1,236 each year by choosing larger deductibles on their policy. If you do decide to increase your deductibles, it will be required to have plenty of discretionary funds to enable you to cover the extra out-of-pocket expense, which deters some people from using high deductibles.
If you wish to have some professional guidance when trying to find the best insurance rates for a learners permit, the agents below are willing to answer your questions and help you decide which coverages are best. To locate an Austin insurance agent close to you, click the link after the list or click here to compare price quotes now.
- Allstate Insurance: Fleming and Conway Agency
3435 Greystone Dr Ste 107 – Austin, TX 78731 – (512) 345-0005 - Karen Easterling – State Farm Insurance Agent
2711 W Anderson Ln #201 – Austin, TX 78757 – (512) 454-4784 - Lezam Insurance
4301 W. William Cannon Dr., Ste. B-120 – Austin, TX 78749 – (512) 263-4333
More insurance agents in Austin, TX
How to find low-cost insurance for a school permit
Here are some of the better money-saving ideas that can help drivers quote cheaper auto insurance.
- Buying car and homeowners insurance together can save money
- At-fault accidents can raise rates significantly
- The safer your car, the less it costs to insure
- Be a cautious driver
- Avoid filing small claims
- Comparison shop at least once a year
That final tip is particularly necessary, as was noted in this article. Insurance prices can be changed at any time, so you should be ready to change insurance companies if a cheaper price is available. Many drivers tend to have loyalty to a certain company, but it’s not recommended if that loyalty results in overpaying money that could be used for better things. Take a couple minutes and compare rates to find cheaper car insurance for a school permit in Austin.