In an ideal world, we could simply give you the name of the one company in Texas that has the best auto insurance prices in Texas. It’s just not that simple, as there are many unknown aspects like where you live in San Antonio, if you have a lapse in coverage, and what physical damage coverage deductibles you want. This article will discuss the best ways to avoid paying too much and hopefully give you enough understanding to have a good beginning to your search for cheaper coverage.
One of the more important factors that aid in calculating the price you pay for insurance is where your car is garaged. Larger areas likely pay more, whereas areas that tend to be more rural have the benefit of cheaper auto insurance prices.
The following table sorts the highest-priced areas in Texas for drivers under 21 in which to purchase auto insurance. San Antonio makes the list at #14 costing $1,688 on average, which is about $141 monthly.
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Rate information is comparative as the specific geographic location can influence premium rates greatly.
The car, truck, or SUV requiring coverage is a large consideration that determines the availability of cheaper insurance for drivers under 21. Vehicles with high performance features, poor crash test ratings, or a high likelihood of having liability claims will cost substantially more to insure than more modest models.
The table below estimates car insurance premiums for a number of the more affordable automobiles to buy coverage for.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$2,585|
|Ford Escape Limited 4WD||$2,817|
|Ford F-150 STX Regular Cab 4WD||$2,881|
|Dodge Grand Caravan SE||$2,888|
|Chevrolet Impala LS||$3,031|
|Ford Edge SE AWD||$3,039|
|Chevrolet Equinox LT AWD||$3,072|
|GMC Sierra SL Extended Cab 2WD||$3,078|
|Chevrolet Malibu Hybrid||$3,072|
|Toyota RAV4 Limited 2WD||$3,082|
|Nissan Altima 2.5 4-Dr Sedan||$3,072|
|Ford Explorer Eddie Bauer 4WD||$3,110|
|Jeep Wrangler Unlimited Sport 4WD 4-Dr||$3,116|
|Toyota Tacoma X-Runner 2WD||$3,266|
|Toyota Corolla S||$3,272|
|Hyundai Elantra GLS 4-Dr Sedan||$3,266|
|Hyundai Sonata GLS 4-Dr Sedan||$3,290|
|Nissan Rogue SL 2WD||$3,300|
|Honda Odyssey Touring||$3,304|
|Volkswagen Jetta SE 4-Dr Sedan||$3,314|
|Jeep Grand Cherokee Limited 2WD||$3,304|
|Chevrolet Silverado LTZ Extended Cab 4WD||$3,309|
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Data based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Price information does not factor in specific location information which can raise or lower coverage prices significantly.
Based upon these rates, models like the Honda CR-V, Ford Escape, Toyota Prius, Ford F-150, and Dodge Grand Caravan are some of the more affordable vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive because there is more inherent risk for drivers under 21, but overall those models will most likely have the cheapest auto insurance rates that you are likely to find.
Finding out which company quotes the most affordable insurance rates for drivers under 21 may require a little more work in order to find the best price. Each insurer has a different formula to determine premium rates, so let’s examine the lowest cost insurance companies in San Antonio, TX.
It’s important to know that San Antonio insurance rates are impacted by many factors that may substantially change the cost of your policy. Improving your credit rating, buying a different vehicle, or having an accident can trigger changes in premium that may make certain companies more affordable than the competition.
Best Cheap Insurance Rates for Minors
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,247|
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Travelers generally has some of the best car insurance rates in San Antonio at around $1,052 each year. This is $852 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also rank well as some of the cheaper San Antonio, TX insurance companies.
In the above example, if you are a policyholder with Germania Mutual and switched to USAA, you may see a yearly savings of in the neighborhood of $154. Texas drivers with California Casualty may save as much as $268 a year, and Esurance insureds might reduce prices by as much as $279 a year.
To find the cheapest coverage for you, click here to get a free quote or visit any of the low-priced companies below.
Understand that those policy rates are averages for all types of insureds and vehicles and are not factoring in a specific vehicle garaging location for drivers under 21. So the auto insurance company that fits your age and vehicle best may not even be in the list above. That affirms the importance of why you need to get auto insurance quotes using your own driver and vehicle profiles.
Should you buy full coverage?
Reducing premiums for insurance is probably important to most people, and a great way to buy cheap insurance for drivers under 21 is to buy liability only. The diagram below shows the comparison of insurance prices with full coverage and liability only. The premium estimates are based on a clean driving record, no claims, $500 deductibles, marital status is single, and no discounts are applied.
If we average all the age groups together, comprehensive and collision coverage on your policy costs an extra $2,393 per year over and above liability only. That proposes the question when is it safe to stop buying full coverage. There is no specific rule of when to eliminate physical damage coverage on your policy, but there is a general guideline. If the annual cost of coverage is more than 10% of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.
For example, let’s say your vehicle’s replacement value is $11,500 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $10,500 after paying the physical damage deductible. If premiums are more than $1,050 annually to have full coverage, then it’s probably a good time to buy liability coverage only.
There are some circumstances where buying only liability insurance is not advised. If you haven’t paid off your loan, you have to carry full coverage to protect the lienholder’s interest. Also, if you don’t have enough money to buy a different vehicle in case of an accident, you should not eliminate full coverage.
Discount San Antonio insurance
Insurers that provide coverage for drivers under 21 could also offer price discounts that can reduce rates by as much as 35% if you meet eligibility requirements. A few of the larger companies and some of the discounts are:
- American Family includes discounts for good driver, early bird, bundled insurance, accident-free, and TimeAway discount.
- Nationwide offers discounts including Farm Bureau membership, defensive driving, family plan, good student, and accident-free.
- MetLife may offer discounts for good student, defensive driver, multi-policy, accident-free, and claim-free.
- 21st Century offers premium reductions for air bags, homeowners, defensive driver, student driver, anti-lock brakes, theft prevention, and 55 and older.
- Farmers Insurance policyholders can earn discounts including youthful driver, bundle discounts, multi-car, electronic funds transfer, and pay in full.
- Allstate has discounts for resident student, premier discount, new car, economy car, and good payer.
The example below compares insurance prices with and without discounts being applied to the rates. The price estimates are based on a male driver, no violations or accidents, Texas state minimum liability limits, comp and collision included, and $1,000 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with good student, anti-theft, continuous coverage, passive restraint, vehicle safety, and paperless filing discounts applied. When taking advantage of discounts, the average amount saved each year on insurance for drivers under 21 is 19% or $415.
Here’s why you should shop around
Texas insurance rates are determined by lots of factors that may substantially change the price of your policy. Getting older, buying a home, or having a fender bender can trigger changes in premium that can now make some companies more affordable than others. Additionally, auto insurance companies modify rates as often as every three months in order to remain profitable. Significantly higher claims can result in rate hikes, while profitable underwriting can cause more affordable San Antonio car insurance rates.
To help illustrate this point, the bar chart below shows the company with the cheapest car insurance in San Antonio, TX for a 30-year-old female driver with a clear driving record, no claims, and a good credit rating. If we compare prices based on her personal risk profile, Travelers might offer the most affordable car insurance rates in San Antonio at $1,184 a year. This is $720 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are the rest of the most affordable San Antonio, TX auto insurance companies.
In this example, we will give the driver in the first example some claims, a lower credit rating, and a speeding ticket. Due to the fact that each insurance company has a different process to determine rates, getting updated rate quotes will most likely result in a different set of the cheapest San Antonio car insurance companies as shown below.
Mercury now has the best car insurance rate in San Antonio with State Farm, USAA, Safe Auto, and Nationwide also being competitive. This example shows why it is important to spend some time comparing rates when trying to find affordable insurance quotes for drivers under 21.
Insurance prices are made up of many different factors and change dramatically, so the most economical company the last time you shopped around may now be an over-priced policy.
The agents below can most likely help you decide which coverage meets your needs best, since some people prefer to get some help when shopping for cheaper insurance for drivers under 21. It’s not always easy to find the best policy yourself, and insurance agents licensed in the state of Texas can give you comfort knowing your coverage gives you adequate coverage when you need it most.
To locate an agency close to you, click the button after the list.
Deserae Navarro – State Farm Insurance Agent
5975 Bandera Rd – San Antonio, TX 78238 – (210) 647-7975
Grona Boles Martin Bloxsom Insurance Agency
800 Isom Rd # 100 – San Antonio, TX 78216 – (210) 366-5094
Bapodra Insurance Agency, Inc
8607 Wurzbach Rd #101 – San Antonio, TX 78240 – (210) 696-1133
Kristin Sorensen – State Farm Insurance Agent
430 W Loop 1604 N Suite 112 – San Antonio, TX 78251 – (210) 682-1200
IBC Insurance Agency Ltd
5300 Walzem Rd – San Antonio, TX 78218 – (210) 646-9870