For infrequent drivers, one of the more important things that are looked at to help calculate insurance cost is the neighborhood you call home. Areas with high crime rates or more dense population tend to have more expensive car insurance rates, whereas areas with less crime or weather claims can boast about having cheaper rates.
The information below rates the highest-priced areas in Texas for low mileage drivers to buy an auto insurance policy in. Houston is listed at #2 with a yearly cost of $1,853 on average, which is around $154 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Houston | $1,853 |
| 3 | Brownsville | $1,851 |
| 4 | Amarillo | $1,840 |
| 5 | Dallas | $1,837 |
| 6 | Laredo | $1,833 |
| 7 | Pasadena | $1,812 |
| 8 | Grand Prairie | $1,811 |
| 9 | Irving | $1,789 |
| 10 | Garland | $1,778 |
| 11 | Beaumont | $1,772 |
| 12 | Mesquite | $1,753 |
| 13 | Lubbock | $1,682 |
| 14 | San Antonio | $1,671 |
| 15 | Austin | $1,659 |
| 16 | Arlington | $1,658 |
| 17 | Plano | $1,624 |
| 18 | El Paso | $1,616 |
| 19 | Carrollton | $1,615 |
| 20 | McKinney | $1,609 |
| 21 | Fort Worth | $1,604 |
| 22 | Corpus Christi | $1,588 |
| 23 | Waco | $1,537 |
| 24 | Killeen | $1,533 |
| 25 | Abilene | $1,499 |
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Annual rates are comparative as specific location information can raise or lower insurance rates significantly.
Deciding which companies have the cheapest car insurance rates for low mileage drivers requires a little more sweat in order to find the best policy.
Each insurance company has their own guidelines for establishing rates, so let’s take a look at the most affordable car insurance companies in Texas. It’s important that readers know that Houston, TX car insurance rates are impacted by many factors that may substantially change the cost of your policy. Simply having a birthday, moving to a different location, or getting a couple of tickets may generate price changes that may make certain companies more affordable than the competition.
Best Cheap Insurance Rates in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,244 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,438 |
| 7 | Mercury | $1,461 |
| 8 | State Farm | $1,510 |
| 9 | Safe Auto | $1,549 |
| 10 | Nationwide | $1,585 |
| 11 | Amica | $1,705 |
| 12 | Progressive | $1,715 |
| 13 | Allstate | $1,718 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,093 |
| 16 | MetLife | $2,227 |
| 17 | Encompass | $2,324 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,568 |
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Travelers offers some of the cheapest car insurance rates in Houston at around $1,010 a year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the more affordable Houston, TX car insurance companies.
As the example above demonstrates, if you are insured with Esurance and switched to USAA, you may see a yearly price reduction of upwards of $337. Customers with California Casualty could save as much as $354 a year, and Mercury customers might lower prices by up to $377 a year.
Be aware that those premiums are averages for all drivers and vehicles in Texas and are not factoring in an exact location for low mileage drivers. So the insurer that fits your situation best may not even be in the top 23 companies in the list above. That emphasizes why you need to get rate quotes using your own personalized driver profile and vehicle information.
Liability-only versus full coverage
Reducing premiums for car insurance is the goal of the majority of vehicle owners, and one easy way to buy cheap insurance for low mileage drivers is to not pay for full coverage. The diagram below compares premium costs when comparing full coverage to liability only. The rate quotes are based on no accidents or driving violations, $100 deductibles, single marital status, and no policy discounts are applied.
Averaged for all age groups, physical damage insurance costs an extra $2,974 per year over and above liability coverage. That is a big expense that brings up the question if full coverage is worth the money. There is no definitive formula to eliminate full coverage, but there is a general convention. If the annual cost of your full coverage insurance is more than 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
For example, let’s pretend your vehicle’s replacement value is $7,500 and you have $1,000 deductibles. If your vehicle is totaled, the most your company will settle for is $6,500 after you pay the deductible. If it’s costing in excess of $650 annually for physical damage coverage, then it’s probably a good time to buy liability coverage only.
There are some scenarios where only buying liability is not a good plan. If you still owe a portion of the original loan, you have to carry full coverage as part of the loan conditions. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should keep full coverage in place.
Impact of speeding/accidents on car insurance rates
The recommended way to maintain affordable car insurance premiums for infrequent drivers is to be a careful driver and avoid accidents and violations. The illustration below highlights how traffic violations and at-fault collisions increase annual premium costs for each age group. The premiums are based on a single male driver, comp and collision included, $100 deductibles, and no discounts are factored in.
The data in the chart shows the average cost of a car insurance policy in Texas per year with a clean driving record and no accidents is $2,922. Add in two speeding tickets and the average cost jumps to $3,883, an increase of $961 each year. Then add one accident along with the two speeding tickets and the yearly cost of car insurance for low mileage drivers goes up to an average of $4,866. That’s an increase of $1,944, or $162 per month, just for not maintaining a clean driving record!
Why are you paying too much for car insurance?
Houston, TX car insurance rates are influenced by many factors which can substantially change the cost of coverage. Simply getting older, buying a home instead of renting, or getting a DUI can trigger rate changes that can make some companies cheaper than competitors.
In addition to those changes, insurers change premium rates multiple times each year to reflect underwriting profits or losses. Heavier than normal losses can cause higher priced premiums, while lower claim expenses can result in lower-priced Houston car insurance rates.
The data below shows a variety of companies that have the cheapest car insurance in Houston, TX for a 35-year-old female driver with no prior claims, no tickets, and great credit. If we look at prices based on her current risk profile, Travelers may offer the cheapest car insurance rates in Houston at $1,271 per year. This is $633 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the list of the cheapest Houston, TX auto insurance companies.
The example below compares rates after we give the driver in the first chart a chargeable accident, a lower credit rating, and a speeding ticket. Since each auto insurer has their own process for determining rates, comparing rates could now result in a significantly different list of cheap Houston auto insurance companies as shown below.
State Farm now has the cheapest car insurance in Houston, TX with Mercury, Nationwide, Safe Auto, and USAA also being competitive. This demonstrates why Texas drivers need to perform a complete rate comparison when trying to find the best insurance rates for low mileage drivers. Insurance prices consist of many things and can change without notice, so the most affordable company the last time you compared rates may now be an over-priced policy.
How to find economical auto insurance for low mileage drivers
Below you’ll find some of the recommended penny-pinching ideas that can help drivers quote cheap car insurance.
- Better credit rating means better rates
- Safer vehicles cost less to insure
- Drive safely
- Maintain a safe distance and avoid accidents
- Increase your comprehensive and collision deductibles
- Compare prices as often as possible
The last tip in the list is highly important, as we pointed out in the prior article. Insurance rates can be changed at any time, so you should be ready to change insurance companies if a more affordable price is available. Having a favorite company is fine, but it isn’t a good idea if that loyalty results in overpaying a small fortune. If you have a few minutes, shop around to find cheaper auto insurance for low mileage drivers in Houston.