It’s impossible to miss the captivating commercials from insurers like The General and GEICO guaranteeing huge savings, so drivers should just pick the company with the catchiest ad, right?
That is not the case, however, as there are a whole bunch of unknown elements like the number of miles you drive each year, when you were born, and if you are currently insured, that all factor into the price you pay. The content below covers these topics and will hopefully give the reader a good start in finding the cheapest insurance.
Determining which company offers the most affordable insurance rates for drivers under 25 will take more time than just comparing a company or two.
Every insurance company has a unique approach to set policy rates, so to begin we’ll rank the most affordable insurance companies in Texas.
Cheapest Insurance Rates for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,199 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,382 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,506 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,613 |
| 11 | Progressive | $1,664 |
| 12 | Amica | $1,705 |
| 13 | Allstate | $1,718 |
| 14 | Home State | $2,155 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,183 |
| 17 | Encompass | $2,255 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,594 |
| Quote Your Rates Go | ||
Travelers offers some of the best car insurance rates in Fort Worth at around $1,010 each year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the more affordable Fort Worth, TX insurance companies.
As shown in the table above, if you buy coverage from Texas Farm Bureau and switched to Travelers, you might see an annual savings of roughly $189. Drivers with Germania Mutual could save as much as $284 a year, and Esurance policyholders might lower prices by $355 a year.
Understand that those estimates are averaged for all drivers and vehicles in Texas and do not factor in a specific zip code for drivers under 25. So the car insurance company that can offer you the lowest price may not even be in the top 23 companies shown above. That point stresses why you need to compare rates from as many companies as possible using your own personal information and vehicle type.
One of the many things that determine the amount you pay for auto insurance is where your car is garaged in Fort Worth. Cities with more crime and/or more people tend to have higher rates, whereas areas that tend to be more rural have the gratification of cheaper auto insurance rates.
The following table lists the most expensive cities in Texas for drivers under 25 to buy auto insurance in. Fort Worth makes the list at #22 with a yearly cost of $1,604 for the average policy, which is approximately $134 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Dallas | $1,893 |
| 3 | Houston | $1,891 |
| 4 | Laredo | $1,889 |
| 5 | Brownsville | $1,851 |
| 6 | Amarillo | $1,840 |
| 7 | Mesquite | $1,825 |
| 8 | Garland | $1,796 |
| 9 | Pasadena | $1,758 |
| 10 | Beaumont | $1,754 |
| 11 | Grand Prairie | $1,740 |
| 12 | Irving | $1,736 |
| 13 | Lubbock | $1,733 |
| 14 | San Antonio | $1,722 |
| 15 | Carrollton | $1,647 |
| 16 | Arlington | $1,642 |
| 17 | Plano | $1,624 |
| 18 | Corpus Christi | $1,620 |
| 19 | El Paso | $1,616 |
| 20 | Austin | $1,610 |
| Compare Prices Now Go | ||
Prices are approximated as the specific garaging location can modify premium rates considerably.
Should you buy full coverage?
Paying less for insurance is important to most vehicle owners, and a great way to reduce the cost of insurance for drivers under 25 is to only buy liability coverage. The illustration below shows the difference between premium costs with full physical damage coverage compared to only buying the minimum liability limits required in Texas. The premiums are based on no claims, a clean driving record, $1,000 deductibles, single marital status, and no policy discounts are applied.
Averaged for all ages 20 through 70, full coverage costs $1,598 per year more than just insuring for liability. That touches on the question when is it a good idea to stop buying full coverage. There is no set guideline to stop paying for physical damage coverage, but there is a general school of thought. If the annual cost of coverage is 10% or more of the settlement you would receive from your company, then you might want to think about dropping full coverage.
Ending up with the top insurance company can be difficult considering how many companies sell insurance in Texas. The rank data below can help you analyze which auto insurance companies to look at comparing rates with. These rankings only include large nationwide companies, so companies that only write business in Texas or surrounding areas are not taken into consideration for this list.
Top 10 Large Car Insurance Companies in Fort Worth Ranked by Value
- Mercury Insurance
- Travelers
- American Family
- AAA Insurance
- Safeco Insurance
- Progressive
- The Hartford
- The General
- 21st Century
- Esurance
Top 10 Large Car Insurance Companies Overall in Fort Worth
- Travelers
- USAA
- Mercury Insurance
- AAA Insurance
- Nationwide
- Allstate
- State Farm
- The Hartford
- Safeco Insurance
- Progressive
The illustration below illustrates how choosing a deductible can affect insurance premiums when getting quotes for cheap insurance for drivers under 25. The costs are based on a single female driver, full physical damage coverage, and no other discounts are factored in.
As shown above, a 30-year-old driver could cut expenses by $482 a year by increasing from a $100 deductible to a $500 deductible, or save $726 by choosing a $1,000 deductible. Even younger drivers, like the age 20 example, could roll back prices as much as $1,074 each year by using higher deductibles when buying full coverage. When increasing deductibles, it will now be necessary to have enough in a savings account to allow you to cover the extra out-of-pocket expense associated with higher deductibles.
Compare rates to save
Fort Worth insurance rates are impacted by many things which can substantially decrease or increase the cost of your policy. Simply getting older, increasing liability limits, or having an accident can cause premium changes that can now make some companies more affordable than before. Not only may your risk profile change, but companies file new Texas auto insurance rates every year in order to maintain liquidity for claims. Larger than normal claims may cause additional price hikes, while lower claim levels can produce lower-cost Fort Worth car insurance rates.
To illustrate this point, the data below analyzes the cheapest car insurance in Fort Worth, TX for a 30-year-old female driver with a good driving record, no prior claims, and good credit. If we look at prices based on her current risk factors, Travelers offers the cheapest car insurance rates in Fort Worth at $1,160 annually. This is $744 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the top five cheapest Fort Worth, TX auto insurance companies.
In this next rate comparison, we will give the driver in the first chart a claim or two, slightly worse credit, and a blemish on her driving record. Since each auto insurance company has their own formula for determining rates in each state, comparing quotes could result in a slightly different list of affordable Fort Worth car insurance companies as shown below.
Mercury now has the cheapest price in Fort Worth, TX with State Farm, Safe Auto, Nationwide, and USAA now rounding out the top five. This shows why Texas drivers need to shop around with many companies to find the best car insurance quotes for drivers under 25.
Auto insurance prices can be determined by many risk factors and can change substantially, so the best company the last time you checked may now be quite expensive.