The words “affordable” and “auto insurance” really shouldn’t be used together, in particular when you are searching for the best price on coverage for drivers under 25. Because it’s so expensive, let’s take a look at some of the factors that have an effect on auto insurance prices, and come up with some ways to take the bite out of your next policy.
Deciphering which company offers the most affordable insurance rates for drivers under 25 requires more time in order to find a policy that fits your budget.
Every insurance company uses their own formula to set policy rates, so to begin we’ll rank the insurance companies with the overall best prices in Houston. It’s important that you understand Houston, TX insurance rates are based on many factors which can substantially change the price you have to pay. Simply getting older, having a claim, or having an at-fault accident can produce rate changes resulting in some companies being more affordable than competitors.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,095 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,438 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,506 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,597 |
| 11 | Progressive | $1,647 |
| 12 | Allstate | $1,718 |
| 13 | Amica | $1,723 |
| 14 | GEICO | $2,135 |
| 15 | Home State | $2,155 |
| 16 | MetLife | $2,227 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,255 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,672 |
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Travelers offers some of the best car insurance rates in Houston at around $1,021 per year. This is $883 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance would also make the list of some of the lowest-priced Houston, TX car insurance companies.
As the example above demonstrates, if you buy coverage from Esurance and switched to USAA, you might achieve a yearly savings of in the vicinity of $326. Drivers with California Casualty might save as much as $343 a year, and State Farm insureds might cut rates by $400 a year.
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Bear in mind that those policy rates are averaged for all ages of drivers and types of vehicles and and are not calculated with a specific zip code for drivers under 25. So the insurer that has the cheapest price for you may not even be in the top 23 companies in the list above. That point stresses why you need to quote rates from many companies using your own specific driver and vehicle information.
The type of vehicle driven is one of the largest considerations that determines whether or not you can buy the most economical insurance for drivers under 25. Vehicles with higher performance characteristics, a lack of safety features, or high incidents of liability claims will cost quite a bit more to insure than more modest models.
The next table ranks car insurance prices for a selection of the most affordable automobiles to buy insurance for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX-P 4-Dr Sedan | $2,722 |
| Honda CR-V LX 2WD | $2,731 |
| Ford Escape Limited 4WD | $2,937 |
| Toyota Prius | $2,977 |
| Ford Edge SE 2WD | $3,012 |
| Ford Explorer Eddie Bauer 2WD | $3,053 |
| Dodge Grand Caravan CV | $3,058 |
| Toyota RAV4 2WD | $3,227 |
| Volkswagen Jetta S 4-Dr Sedan | $3,234 |
| Chevrolet Malibu Hybrid | $3,227 |
| Jeep Grand Cherokee Laredo 4WD | $3,232 |
| Chevrolet Impala LT | $3,227 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $3,267 |
| Jeep Wrangler Unlimited Sahara 2WD 4-Dr | $3,358 |
| Ford Focus SES 4-Dr Sedan | $3,361 |
| Honda Odyssey EX-L W/Rear Entertainment | $3,401 |
| Toyota Corolla XLE | $3,409 |
| Hyundai Elantra SE 4-Dr Sedan | $3,401 |
| Toyota Camry SE | $3,408 |
| Chevrolet Equinox LTZ 2WD | $3,441 |
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Data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium costs do not factor in garaging location in Houston, TX which can revise auto insurance rates significantly.
Based upon the rates shown, you can figure that cars like the Honda Accord, Honda CR-V, Ford Escape, Toyota Prius, and Ford Edge are most likely to be some of the most economical vehicles to insure for drivers age 25 and younger. The cost of a car insurance policy will tend to be higher just because there is more risk for drivers under 25, but overall those vehicles will tend to have the best insurance prices available.
Selecting the highest-rated car insurance provider can be a challenge considering how many choices drivers have in Texas. The company information displayed below could help you select which auto insurance companies you want to consider putting your business with. These ratings are for major nationwide insurance companies, so companies that have a smaller presence are not taken into consideration for the list.
Top 10 Major Auto Insurers Overall in Houston
- Travelers
- USAA
- Mercury Insurance
- AAA Insurance
- Nationwide
- Allstate
- State Farm
- The Hartford
- Safeco Insurance
- Progressive
Top 10 Major Auto Insurers in Houston 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+
Discounts on Houston insurance
Car insurance companies that offer quotes for drivers under 25 may additionally offer special discounts that can reduce rates by as much as 25% or more if you are eligible. Popular insurance companies and a partial list of their discounts can be found below.
- State Farm has savings for Steer Clear safe driver discount, multiple policy, student away at school, driver’s education, passive restraint, and anti-theft.
- Liberty Mutual policyholders can earn discounts including new vehicle discount, good student, newly married, hybrid vehicle, multi-policy, teen driver discount, and new move discount.
- American Family offers discounts for early bird, good student, multi-vehicle, mySafetyValet, bundled insurance, and defensive driver.
- Progressive offers discounts including continuous coverage, online signing, homeowner, good student, multi-vehicle, and online quote discount.
- Farmers Insurance may offer discounts for good student, pay in full, electronic funds transfer, mature driver, youthful driver, and homeowner.
- Auto-Owners Insurance discounts include anti-lock brakes, safe vehicle, multiple vehicles, anti-theft, paid in full, multi-policy, and mature driver.
- SAFECO may have discounts that include teen safety rewards, bundle discounts, homeowner, multi-car, teen safe driver, and anti-theft.
The information below shows the difference between premium costs with and without discounts applied to the rates. The premiums assume a male driver, no tickets, no at-fault accidents, Texas state minimum liability limits, comp and collision included, and $250 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with anti-theft, paid-in-full, passive restraint, good student, vehicle safety, and continuous coverage discounts applied. With discounts applied, theamount saved on insurance for drivers under 25 is 18% or $403.
Liability-only versus full coverage
Paying a lower price for insurance is probably important to most drivers, and one of the quickest ways to find cheaper insurance for drivers under 25 is to buy liability only. The information below shows the comparison of premium costs with full coverage and liability only. Data assumes no violations or claims, $1,000 deductibles, single marital status, and no discounts are applied.
If averaged for all ages, comprehensive and collision coverage on your policy costs $1,598 per year more than just insuring for liability. That amount may make you wonder if buying full coverage is worth the expense. There isn’t a steadfast formula of when to exclude full coverage, but there is a general guideline. If the yearly cost of full coverage is more than about 10% of the replacement cost minus the deductible, then it might be time to consider dropping full coverage.