Wouldn’t it be nice if we knew the one company that has the most affordable coverage for drivers under 21? Unfortunately, it’s just not that easy, as there are a whole slew of unknowns such as if you are a man or woman, what deductibles to use for physical damage coverage, and the vehicle you drive. This article covers the best ways to pay less and will hopefully give the reader a good start to your coverage search.
For minors, one of the largest factors that help determine car insurance rates is where your car is garaged in Houston. More populated areas will most likely pay more, whereas areas with less congestion have the luxury of cheap car insurance rates.
The illustration below ranks the most expensive places in Texas for drivers under 21 to purchase a policy in. Houston makes the list at #2 with a yearly premium of $1,909 for the average policy, which is around $159 monthly.
|Rank||City||Premium Per Year|
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Premium costs are estimated as the specific area where the vehicle is garaged can impact auto insurance rates significantly.
The vehicle that is being insured is one of the largest factors when comparing quotes for the lowest-priced insurance for drivers under 21. Vehicles with lots of horsepower, a lack of safety features, or a history of substantial liability claims will cost substantially more to insure than more modest models.
The next table showcases car insurance rates for a handful of the most affordable vehicles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V LX 2WD||$4,548|
|Hyundai Elantra GLS Touring Station Wagon||$4,555|
|Ford Escape Limited 2WD||$4,600|
|Jeep Wrangler Sport 4WD 2-Dr||$4,737|
|Honda Accord EX-L 4-Dr Sedan||$4,901|
|Dodge Grand Caravan SE||$5,093|
|Ford Edge Limited 2WD||$5,342|
|Toyota RAV4 4WD||$5,395|
|Chevrolet Equinox LT 2WD||$5,402|
|Ford Fusion S 4-Dr Sedan||$5,395|
|Chevrolet Impala LT||$5,404|
|Ford F-150 XLT Crew Cab 4WD||$5,447|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$5,453|
|Ford Explorer Limited 2WD||$5,447|
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Data variables include single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in specific location information which can modify prices noticeably.
Based on these rates, you can conclude that models like the Honda CR-V, Hyundai Elantra, and Ford Escape are most likely to be a few of the cheapest vehicles to insure for minors. Car insurance rates will tend to be higher just because there is more liability exposure for drivers under 21, but overall those models will have the cheapest car insurance rates possible.
Cost difference between full coverage and liability
Reducing the cost of auto insurance should be important to the majority of drivers, and one of the easiest ways to find cheap insurance for drivers under 21 is to buy only liability coverage. The chart below shows the comparison of yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The data assumes no accidents, no driving violations, $250 deductibles, single marital status, and no policy discounts are applied.
As an average for all age groups, comprehensive and collision coverage on your policy costs $2,671 per year more than just insuring for liability. That is a large expense which might make you wonder when is the right time to remove full coverage. There is no definitive formula to exclude physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you might consider buying liability only.
For example, let’s pretend your vehicle’s book value is $4,000 and you have $1,000 deductibles. If your vehicle is severely damaged, the most you would receive is $3,000 after the deductible is paid. If premiums are more than $300 a year for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
There are a few situations where only buying liability is not a good idea. If you haven’t satisfied your loan, you have to carry full coverage as part of the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is totaled, you should not eliminate full coverage.
Types of discounts on Houston insurance
Car insurance companies that sell policies for drivers under 21 may also provide price discounts that may potentially lower prices by 40% or more if you meet certain criteria. A few popular companies and a partial list of their discounts include:
- Progressive has discounts for multi-vehicle, online quote discount, continuous coverage, multi-policy, online signing, homeowner, and good student.
- SAFECO may offer discounts for teen safe driver, homeowner, drive less, safe driver, and multi-car.
- American Family may include discounts for defensive driver, good student, good driver, multi-vehicle, TimeAway discount, Steer into Savings, and air bags.
- MetLife policyholders can earn discounts including multi-policy, good student, good driver, defensive driver, and claim-free.
- GEICO discounts include membership and employees, five-year accident-free, anti-lock brakes, defensive driver, driver training, good student, and multi-policy.
- The Hartford may have discounts that include air bag, good student, bundle, vehicle fuel type, anti-theft, defensive driver, and driver training.
The chart below shows the comparison of insurance premiums with and without discounts applied. The prices are based on a male driver, no claims or violations, Texas state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with paperless filing, continuous coverage, passive restraint, paid-in-full, vehicle safety, and anti-theft discounts applied. When these discounts are applied to the policy premium, theaverage amount saved on auto insurance for drivers under 21 is 28% or $944.
Are you paying too much for car insurance in Houston?
Texas auto insurance rates are determined by lots of factors that control the price you have to pay for coverage. Simply turning a year older, buying a different vehicle, or getting a reckless driving citation may generate price changes that may make certain companies cheaper in comparison to the competition. And not only may your rating factors change, but insurers change rates as needed to adjust for unexpected claims or profits. An extended period of higher than normal claims can result in rate increases, while profitable underwriting can result in lower-priced Houston car insurance rates.
To help illustrate this point, the bar chart below shows the cheapest car insurance in Houston, TX for a 45-year-old male driver with no accidents, a clean driving record, and good credit. Based on his current risk factors, Travelers may offer the lowest car insurance rates in Houston at $1,297 per year. This is $607 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remaining best Houston, TX auto insurance companies.
The next chart shows rates after we give the driver in the first example an at-fault accident, poor credit, and a stop sign violation. Since every car insurance company has their own unique process to determine rates, comparing prices could result in a different set of the cheapest companies as shown below.
State Farm now has the best price on car insurance in Houston, TX with Mercury, Nationwide, Safe Auto, and USAA now being in the top five. This example proves why consumers need to compare lots of rates to get the lowest auto insurance quotes for drivers under 21.
Rates can be altered by many risk factors and change substantially, so the most economical company the last time you shopped around may now be an over-priced policy.
How to find more affordable insurance for drivers under 21
The list below shows some of the better penny-pinching solutions that can help you find more affordable auto insurance.
- At-fault accidents can raise rates significantly
- Do not pay for full coverage on older vehicles
- Pay lower rates with good credit
- Buy your homeowners policy from the same company as your auto insurance
- Buy safe vehicles
- Shop around for cheaper rates regularly
The last idea is certainly vital, as was emphasized in the prior information. Auto insurance rates can be adjusted at any time, so don’t be tentative to buy a different policy if you can find a cheaper rate.
Having brand loyalty is commendable, but we do not recommend it if that loyalty ends up costing lots of money. It only takes a couple minutes to shop around to find cheaper auto insurance for drivers under 21 in Houston.
The auto insurance agents in Houston shown below are willing to provide answers to your questions and help you determine which coverages you need, since many people would rather have the advice of a professional agent when shopping for cheaper insurance for drivers under 21. It can be challenging to find the cheapest rate yourself, so using a licensed agent can add satisfaction knowing you have sufficient protection if you have a claim. To locate a Houston insurance agent by location nearest to you, click the link after the list or click here to compare rates now.
Deborah A. Olson Insurance Agency, Inc.
10592 Fuqua St – Houston, TX 77089 – (281) 481-1903
Oscar’s Insurance Agency
5921 S Gessner Rd – Houston, TX 77036 – (713) 271-8889
Memorial Insurance Agency, LLC
13624 Memorial Dr – Houston, TX 77079 – (713) 461-8272
Texas Prime Insurance Agency, LLC
6750 West Loop S #430 – Bellaire, TX 77401 – (713) 750-9000
Brandon Herndon – State Farm Insurance Agent
10103 Fondren Rd #150 – Houston, TX 77096 – (832) 431-4222