The make and model of vehicle that needs insurance is probably the largest consideration that determines if you can find cheaper insurance for college graduates. Vehicles with average performance, good safety features, or a track record of few liability claims will cost substantially less to insure than fast, unsafe models.
The information below presents insurance premiums for a handful of the most budget-friendly vehicles to buy insurance for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $1,139 |
| Honda Odyssey LX | $1,252 |
| Ford Focus SE 4-Dr Sedan | $1,320 |
| Honda CR-V EX-L 4WD | $1,335 |
| Toyota RAV4 4WD | $1,347 |
| Chevrolet Malibu Hybrid | $1,357 |
| Ford Explorer Limited 2WD | $1,374 |
| Hyundai Elantra Blue 4-Dr Sedan | $1,390 |
| Chevrolet Impala LTZ | $1,417 |
| Toyota Corolla LE | $1,424 |
| Toyota Prius | $1,444 |
| GMC Sierra SLT Extended Cab 2WD | $1,453 |
| Jeep Grand Cherokee Limited 2WD | $1,444 |
| Ford F-150 Lariat Crew Cab Harley 4WD | $1,468 |
| GMC Sierra 2500HD SLT Crew Cab 4WD | $1,514 |
| Ford Edge SEL 2WD | $1,516 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,526 |
| Chevrolet Silverado LS Regular Cab 4WD | $1,531 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,538 |
| Toyota Camry Hybrid | $1,546 |
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Price data assumes single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, safe-driver, homeowner, multi-vehicle, and multi-policy. Premium costs do not factor in specific location information which can affect auto insurance rates greatly.
By looking at the data, you can infer that makes and models like the Ford Escape, Honda Odyssey, Ford Focus, and Honda CR-V are some of the less-costly vehicles to insure for college grads.
Comparing rates for low-priced auto insurance is difficult, and finding out which companies have the cheapest auto insurance rates for college graduates will take even more diligence. Each company has a unique approach for determining prices, so to begin we’ll rank the auto insurance companies with the overall best prices in Texas.
It’s important to know that Houston, TX auto insurance rates are impacted by many factors which can substantially decrease or increase the cost of a policy. This price fluctuation is why it is crucial to compare lots of rates when trying to find the most affordable car insurance quotes for college graduates. Insurance prices are impacted by many risk factors and can change substantially, so the best company six months ago may now be costing you a lot of money.
Best Car Insurance Prices for Grads
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,211 |
| 4 | Germania Mutual | $1,256 |
| 5 | California Casualty | $1,396 |
| 6 | Esurance | $1,407 |
| 7 | State Farm | $1,465 |
| 8 | Mercury | $1,476 |
| 9 | Nationwide | $1,585 |
| 10 | Safe Auto | $1,613 |
| 11 | Progressive | $1,647 |
| 12 | Allstate | $1,667 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,071 |
| 15 | GEICO | $2,093 |
| 16 | MetLife | $2,183 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,594 |
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Travelers normally has some of the lowest car insurance rates in Houston at around $1,021 annually. This is $883 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty would also be considered some of the cheapest Houston, TX insurance companies.
As illustrated above, if you currently have a policy with USAA and switched to Travelers, you might achieve a yearly price reduction of in the neighborhood of $96. Insureds with Texas Farm Bureau may save as much as $190 a year, and Germania Mutual insureds might realize rate reductions of up to $235 a year.
Be aware that those estimates are averaged across all ages of drivers and types of vehicles and and are not figured with an exact location for college graduates. So the car insurance company that fits you best may not even be in the list above. That affirms the importance of why you need to quote rates from many companies using your own specific driver and vehicle information.
For college grads, one of the largest factors that determine the annual cost of car insurance is your zip code in Houston. Areas with more people or even just a higher incidence of claims tend to have higher rates, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.
The table below shows the most expensive cities in Texas for college graduates to buy auto insurance in. Houston is ranked at #3 with a yearly cost of $1,853 for the average policy, which is approximately $154 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,927 |
| 3 | Houston | $1,853 |
| 4 | Garland | $1,850 |
| 5 | Dallas | $1,837 |
| 6 | Laredo | $1,833 |
| 7 | Amarillo | $1,804 |
| 8 | Grand Prairie | $1,793 |
| 9 | Mesquite | $1,753 |
| 10 | Pasadena | $1,740 |
| 11 | San Antonio | $1,739 |
| 12 | Irving | $1,719 |
| 13 | Arlington | $1,709 |
| 14 | Beaumont | $1,702 |
| 15 | Austin | $1,676 |
| 16 | Fort Worth | $1,670 |
| 17 | Lubbock | $1,665 |
| 18 | Plano | $1,624 |
| 19 | Carrollton | $1,598 |
| 20 | Waco | $1,584 |
| Find the Best Rates Go | ||
Annual rates are estimated as the garaging address in Houston can modify auto insurance rates significantly.
Impact of careless driving on auto insurance rates
The common sense way to receive the cheapest auto insurance prices in Texas for college grads is to be an attentive driver and avoid getting tickets or having accidents. The diagram below illustrates how violations and at-fault collisions impact auto insurance costs for different age groups of insureds. The price estimates are based on a single female driver, comp and collision included, $100 deductibles, and no other discounts are factored in.
The data in the chart shows the average cost of a car insurance policy per year with no accidents and a clean driving record is $2,067. Get one speeding ticket and the average cost hikes up to $2,343, an increase of $276 each year. Next add one accident along with the one speeding ticket and the yearly cost of auto insurance for college graduates goes up to an average of $3,118. That’s an increase of $1,051, or $88 per month, just for not being attentive to the road!
How to get discounts on Houston insurance
Insurance companies that provide coverage for college graduates may also give you price discounts that could reduce prices by 40% or more if you qualify. A few of the larger companies and some of the premium reductions they offer are outlined below.
- GEICO offers discounts including daytime running lights, anti-theft, military active duty, good student, and membership and employees.
- USAA offers premium reductions for new vehicle, safe driver, annual mileage, good student, military installation, family discount, and vehicle storage.
- Progressive discounts include homeowner, good student, continuous coverage, multi-policy, online signing, and multi-vehicle.
- American Family offers discounts for accident-free, mySafetyValet, air bags, bundled insurance, good student, multi-vehicle, and early bird.
- Esurance may have discounts that include renters, claim free, anti-theft, online quote, good student, and defensive driver.
- Farmers Insurance includes discounts for alternative fuel, youthful driver, business and professional, bundle discounts, early shopping, and mature driver.
- State Farm may include discounts for defensive driving training, multiple autos, multiple policy, student away at school, and passive restraint.
The chart below shows the difference between yearly insurance costs with and without policy discounts. Data assumes a female driver, no driving violations, no at-fault accidents, Texas state minimum liability limits, full physical damage coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with defensive driving course, safe-driver, anti-theft, multiple vehicle, claim-free, and multiple policy discounts applied. In this example, theaverage yearly reduction on auto insurance for college graduates is 28% or $706.
Liability-only versus full coverage
Finding the cheapest auto insurance is probably important to most drivers, and one good way to lower the cost of insurance for college graduates is to not insure for full coverage. The example below visualizes the comparison of insurance prices with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The prices are based on no accidents, no driving violations, $1,000 deductibles, single marital status, and no discounts are applied to the premium.
On average, full coverage on your policy costs $1,598 per year more than buying just liability insurance. That amount may make you wonder if buying full coverage is worth the expense. There is no clear-cut formula to stop buying full coverage on your policy, but there is a broad guideline. If the annual cost of having full coverage is 10% or more of the replacement cost of your vehicle minus the policy deductible, then you may need to consider dropping full coverage.
For example, let’s say your vehicle’s claim settlement value is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most you would receive is $4,000 after you pay the deductible. If it’s costing you more than $400 annually for physical damage coverage, then it might be time to consider dropping full coverage.
There are some scenarios where eliminating full coverage is not recommended. If you still owe a portion of the original loan, you have to carry full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is totaled, you should maintain full coverage.
Ideas for finding more affordable auto insurance for college graduates
The list below summarizes a few thrifty ideas that can help Houston drivers quote cheaper auto insurance.
- Having at-fault accidents will increase rates
- You will pay more if you get tickets or have at-fault accidents
- Vehicles with good safety ratings are usually cheaper to insure
- Improve your credit
- Raise deductibles
- Shop your coverage around for the best deal
That final tip is particularly critical, as was noted in this write-up. Car insurance prices in Houston can be adjusted at any time, so don’t be afraid to switch carriers if you find a better deal.
Staying with the same company for years is fine, but it isn’t a good idea if that inflexibility results in costing you money that could be spent on other things. Take a couple minutes and compare prices and find cheaper auto insurance for college graduates.
The Houston, TX, insurance agents below can help you determine which coverage meets your needs best, since some drivers aren’t sure which coverage they need and prefer to have a consultation when shopping for the best coverage for college graduates. It can be challenging to find the best policy on your own, so insurance agents can provide satisfaction knowing your coverage gives you adequate protection in case of an accident or claim. To find a Houston insurance agent closest to you, click the button at the bottom of the list.
- Town and Country Insurance Agency – Houston, TX
10575 Katy Fwy # 150 – Houston, TX 77024 – (713) 461-8979 - Brandon Herndon – State Farm Insurance Agent
10103 Fondren Rd #150 – Houston, TX 77096 – (832) 431-4222 - Scott McNab – State Farm Insurance Agent
1005 Waugh Dr b – Houston, TX 77019 – (713) 520-5556 - Jason Jimenez Insurance Agency
8323 Southwest Fwy #390 – Houston, TX 77074 – (713) 270-0073 - Oscar’s Insurance Agency
5921 S Gessner Rd – Houston, TX 77036 – (713) 271-8889