The words “low-cost” and “auto insurance” probably shouldn’t be used together, in particular when you are searching for the cheapest coverage for high risk drivers. Because of the high cost, let’s start off by going over some things that have a considerable impact on car insurance rates, and see if we can help you slash the price of the next policy you buy.
The make and model of vehicle you are buying coverage for is a large factor that determines if you can find affordable auto insurance for high risk drivers. Vehicles with higher performance characteristics, poor safety ratings, or a high likelihood of having liability claims will cost significantly more to insure than safer, lower-performance models.
The data below features insurance rates for a number of the most budget-friendly vehicles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$4,574|
|Ford Escape XLT 4WD||$4,631|
|Honda Accord EX-L 4-Dr Sedan||$4,880|
|Chevrolet Impala LS||$5,004|
|Toyota RAV4 4WD||$5,051|
|Chevrolet Equinox LT AWD||$5,057|
|Dodge Grand Caravan SXT||$5,100|
|Honda Odyssey EX||$5,236|
|Toyota Camry XLE||$5,278|
|Volkswagen Jetta LE 4-Dr Sedan||$5,288|
|Nissan Altima 3.5 SR 4-Dr Sedan||$5,328|
|GMC Sierra SLT Crew Cab 2WD||$5,334|
|Ford Explorer Eddie Bauer 4WD||$5,340|
|Toyota Tacoma Double Cab TRD Off-Road Package 4WD||$5,348|
|Ford Edge SEL AWD||$5,360|
|Honda Civic SI 4-Dr Sedan||$5,506|
|Hyundai Elantra GLS 4-Dr Sedan||$5,528|
|Dodge Ram Quad Cab SLT 2WD||$5,543|
|Chevrolet Silverado LS Crew Cab 4WD||$5,580|
|Toyota Corolla XRS||$5,586|
|Ford F-150 Lariat King Ranch 4WD||$5,632|
|Hyundai Sonata SE 4-Dr Sedan||$5,721|
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Premium data assumes single female driver age 30, two speeding tickets, two at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-vehicle, homeowner, and multi-policy. Price information does not factor in specific Houston, TX garaging location which can change prices significantly.
Based upon these rates, we can conclude that models like the Honda CR-V, Ford Escape, Honda Accord, Toyota Prius, and Chevrolet Impala will be the less-costly vehicles to insure for high risk drivers. The price for car insurance will be higher anyway just because there is more inherent risk for high risk drivers, but generally speaking those specific models will have the cheapest car insurance rates compared to other types of vehicles.
Finding affordable insurance is easier said than done, and determining which company quotes the cheapest car insurance rates for high risk drivers requires more quotes for comparison. Each insurance company has their own guidelines to set premium rates, so let’s take a look at the car insurance companies with the overall best prices in Texas.
Find the Cheapest Car Insurance for Risky Drivers
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,211|
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Travelers offers some of the most affordable 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 California Casualty would also make the list of some of the cheaper Houston, TX car insurance companies.
In the rate table above, if you buy coverage from USAA and switched to Travelers, you could earn annual savings of upwards of $107. Drivers with Texas Farm Bureau might save as much as $190 a year, and Germania Mutual insureds might lower prices by $273 a year.
To find cheaper insurance rates for your vehicle, click here to start your custom quote or click several companies below for low rates.
Be aware that those prices are averaged across all ages of drivers and types of vehicles and do not take into consideration a specific location for high risk drivers. So the auto insurance company that fits your situation best may not even be in the top 23 companies in the list above. That is why you need to compare rates from as many companies as possible using your own driver information and specific vehicle type.
For high risk drivers, one of the big considerations that determine car insurance rates is where you keep your vehicle in Houston. More densely populated places tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents tend to receive cheaper rates.
The information below lists the most costly cities in Texas for high risk drivers to buy auto insurance in. Houston ranks #5 with a yearly cost of $1,853 for the average policyholder, which is approximately $154 monthly.
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Annual rates are comparative as specific Houston garaging address can impact auto insurance rates considerably.
Types of discounts on Houston car insurance rates
Insurance companies that offer coverage for high risk drivers may additionally offer special discounts that may potentially lower prices by as much as 30% if you are eligible to receive them. A few popular companies and some of the discounts are detailed below.
- GEICO offers premium reductions for defensive driver, multi-policy, seat belt use, emergency military deployment, and anti-lock brakes.
- Mercury Insurance policyholders can earn discounts including anti-theft, annual mileage, ease of repair, type of vehicle, good driver, and professional/association.
- Farmers Insurance may offer discounts for youthful driver, teen driver, good student, mature driver, and alternative fuel.
- Auto-Owners Insurance discounts include multiple vehicles, student away at school, safe vehicle, mature driver, company car, anti-theft, and paperless.
- Liberty Mutual has savings for good student, newly retired, exclusive group savings, teen driver discount, and newly married.
- SAFECO may have discounts that include teen safe driver, anti-lock brakes, safe driver, drive less, bundle discounts, and multi-car.
- Progressive may include discounts for multi-policy, multi-vehicle, homeowner, continuous coverage, online signing, good student, and online quote discount.
- USAA includes discounts for loyalty savings, driver training, safe driver, multi-policy, and annual mileage.
The example below shows the difference between insurance costs with and without discounts applied to the policy rates. The rates are based on a male driver, one accident and one traffic ticket, Texas state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with homeowner, anti-theft, multiple policy, marriage, vehicle safety, and continuous coverage discounts applied. With discounts applied, theaverage amount saved on car insurance for high risk drivers is 28% or $903.
The example below illustrates how choosing a deductible can raise or lower insurance prices when quoting cheap insurance for high risk drivers. The information is based on a single male driver, comp and collision included, and no policy discounts are applied.
A 40-year-old driver could lower their policy premium by $314 a year by increasing from a $100 deductible to a $500 deductible, or save $472 by switching to a $1,000 deductible. Younger drivers, like the Age 20 category, could possibly save as much as $1,026 or even more just by choosing higher deductibles when buying full coverage.
When insureds make the decision to increase the deductibles on their policy, it will now be necessary to have enough savings set aside to enable you to pay the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Chances are good that you’re overpaying for Houston car insurance
Texas car insurance rates are influenced by many factors that may substantially change the policy price. Simply having a birthday, having a teen driver, or getting a ticket for careless driving can produce rate changes that can cause some rates to be cheaper than others.
Also, companies file new rates as often as every three months to ensure their profitability. Higher than normal claim frequency or severity can cause increased policy costs, while a better claims history may cause lower-priced Houston car insurance rates.
As an example, the chart below shows a variety of companies that have the cheapest car insurance in Houston, TX for a 45-year-old female driver with no prior accidents, a clean driving record, and good financial standing. If we look at prices based on her current risk factors, Travelers might offer the most affordable car insurance rates in Houston at $1,300 per year. This is $604 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also on the list of the most affordable Houston, TX auto insurance companies.
The example below compares rates after we give the driver in the first chart a chargeable accident, a little lower credit rating, and a traffic citation. Since each insurance company has a proprietary formula for setting prices, analyzing rates most likely will result in a completely different list of companies as shown below.
Mercury now has the best auto insurance rate in Houston, TX with USAA, State Farm, Nationwide, and Safe Auto also being competitive. This example proves why it is important to perform a complete rate comparison when trying to get cheap insurance rates for high risk drivers.
Insurance prices are calculated by many risk factors and change dramatically, so the cheapest rate when you last compared rates may now be one of the higher cost companies.
How to find budget-friendly car insurance for high risk drivers
The list below details many money-saving solutions that can help drivers locate more affordable car insurance.
- Lower rates by purchasing a safer vehicle
- Drop full coverage on older vehicles
- Pay lower rates with good credit
- Tickets and violations raise rates
- Increase the comprehensive and collision deductibles on your policy
- Maintain a safe distance and avoid accidents
- Compare rates regularly to ensure the best deal
The last item on the list is certainly valuable, as we discussed in this article. Car insurance prices change constantly, so don’t be hesitant to change to a new company if you can save money.
Having a favorite company is great, but it isn’t a good idea if it’s costing you thousands of dollars over the life of your policy. It only takes a couple minutes to shop around and find cheaper auto insurance for high risk drivers in Houston.
The agents below are a good start to help you decide which coverages you need, as some drivers have questions and prefer to get some professional input when shopping for cheaper insurance for high risk drivers. It can be hard to find the cheapest rate yourself, and professional agents can give you peace of mind knowing you have adequate asset protection. To find a Houston insurance agent near you, click the link at the bottom.
- Sean Wong – State Farm Insurance Agent
7035 Hwy 6 N – Houston, TX 77095 – (281) 550-0555
- R.Y.A. Insurance Agency, Inc.
12155 Jones Rd #300 – Houston, TX 77070 – (281) 469-6286
- Brandon Herndon – State Farm Insurance Agent
10103 Fondren Rd #150 – Houston, TX 77096 – (832) 431-4222