The words “affordable” and “insurance” really shouldn’t be used in the same sentence, specifically when searching for the cheapest coverage for college graduates. To save some money, let’s get started by showing you a few of the factors that impact car insurance rates, and figure out some ways to reduce the cost of the next policy you buy.
Shopping around for cheap insurance is confusing at best, and deciding which companies quote the most affordable insurance rates for college graduates involves a bit more work.
Each auto insurer uses their own formula to set their prices, so we’ll take a look at the insurance companies that tend to have lower prices in Fort Worth, TX. It’s important that you understand Fort Worth, TX insurance rates are calculated based on many things that can increase the price you have to pay. Events such as a birthday, moving across town, or getting a couple of tickets may generate price changes that can make some companies cheaper than others.
Find Cheaper Auto Insurance for Grads
Travelers normally has some of the cheapest car insurance rates in Fort Worth at around $1,041 annually. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the best Fort Worth, TX insurance companies.
As shown in the table above, if you currently have coverage with Germania Mutual and switched to USAA, you might realize an annual premium reduction of upwards of $165. Customers with Esurance may save as much as $248 a year, and California Casualty insureds might cut rates by $265 a year.
Bear in mind that those policy rates are averaged across all ages of drivers and types of vehicles and and are not calculated with a vehicle location for college graduates. So the auto insurance company that has the lowest price for you may not even be in the top 23 companies shown above. That underscores the importance of why you need to compare as many prices as possible using your own driver data and vehicle information.
The make and model of vehicle you are insuring is one of the biggest factors when comparison shopping for the best auto insurance for college graduates. Vehicles with limited top-end speed, good crash test ratings, or a low likelihood of having liability claims will cost quite a bit less to insure than adrenaline junky models.
The table below shows coverage costs for a selection of the more affordable vehicles to insure in Texas.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$914|
|Ford Escape XLS 4WD||$998|
|Ford F-150 XL Crew Cab 2WD||$1,026|
|Chevrolet Malibu Hybrid||$1,084|
|Jeep Grand Cherokee Laredo 2WD||$1,090|
|Honda Odyssey LX||$1,095|
|Ford Explorer Limited 2WD||$1,104|
|Hyundai Elantra Blue 4-Dr Sedan||$1,121|
|Toyota Corolla XLE||$1,143|
|Kia Optima LX||$1,162|
|GMC Sierra 2500HD SLE Extended Cab 4WD||$1,172|
|Volkswagen Jetta SE 2.5 Station Wagon||$1,177|
|Dodge Grand Caravan Hero||$1,186|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$1,209|
|Toyota RAV4 2WD||$1,222|
|Ford Fusion S 4-Dr Sedan||$1,227|
|Ford F-250 XL Crew Cab 2WD||$1,240|
|Chevrolet Silverado LT Regular Cab||$1,270|
|Nissan Rogue S AWD||$1,277|
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Data rating is based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, claim-free, multi-policy, safe-driver, and multi-vehicle. Prices do not factor in specific garaging location which can influence coverage rates greatly.
Based upon the table data, you can expect makes and models like the Honda CR-V, Ford Escape, Toyota Prius, and Ford F-150 are the cheaper vehicles to insure for college grads.
For college grads, one of the more important things that are used to help calculate car insurance rates is the neighborhood you call home in Fort Worth. Larger areas tend to have higher auto insurance costs, whereas areas with less congestion benefit from lower coverage costs.
The illustration below rates the most expensive areas in Texas for college graduates to buy an auto insurance policy in. Fort Worth ranks #18 with an annual rate of $1,653 for the average policy, which is about $138 monthly.
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Rates are estimated as the specific geographic location can alter prices noticeably.
Liability-only versus full coverage
Buying cheaper insurance is probably important to most people, and an easy way to find cheaper insurance for college graduates is to buy liability only. The diagram below shows the difference between yearly insurance costs when comparing full coverage to liability only. The premiums are based on a clean driving record, no claims, $500 deductibles, single marital status, and no discounts are factored in.
If averaged for all ages, comp and collision coverage costs an additional $2,431 per year more than just insuring for liability. Many people question when is it safe to stop buying full coverage. There is no exact rule of when to phase out physical damage coverage on your policy, but there is a broad guideline. If the yearly cost for physical damage coverage is about 10% or more of the settlement you would receive from your company, then it may be the right time to buy liability only.
For example, let’s pretend your vehicle’s settlement value is $7,000 and you have $1,000 deductibles. If your vehicle is destroyed, the most your company would pay you is $6,000 after the deductible is paid. If you are paying more than $600 a year for your policy with full coverage, then it might be time to consider dropping full coverage.
The chart below illustrates how choosing a deductible can change yearly insurance costs when quoting cheap insurance for college graduates. The price estimates are based on a married female driver, full physical damage coverage, and no discounts are factored in.
A 40-year-old driver could reduce rates by $352 a year by changing from a $100 deductible to a $500 deductible, or save $528 by changing to a $1,000 deductible. Youthful drivers, such as the Age 20 example, can save as much as $870 annually by choosing a higher deductible. When insureds make the decision to increase the deductibles on their policy, it will now be necessary to have additional funds squirreled away to enable you to pay the extra out-of-pocket expense associated with higher deductibles.
Chances are good that you’re overpaying for Fort Worth car insurance
Fort Worth, TX insurance rates are determined by lots of factors that may substantially change the price you have to pay. Simply having another birthday, buying another vehicle, or getting a reckless driving citation may cause policy rate changes that can make some companies cheaper than competitors.
Not only may things change on your end, but insurance companies modify pricing without warning in order to offset underwriting gains or losses. Unexpectedly high claims may cause more expensive prices, while profitable underwriting may produce lower-priced Fort Worth car insurance rates.
The bar chart below shows which companies have the cheapest car insurance in Fort Worth, TX for a 40-year-old male driver with no prior claims, no tickets, and good financial standing. If we look at prices based on his current rating profile, Travelers offers the lowest car insurance rates in Fort Worth at $1,122 annually. This is $782 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remainder of the top five cheapest Fort Worth, TX auto insurance companies.
Now we will give the driver from the above example a couple of claims, less-than-perfect credit, and a few traffic violations. Since every insurance provider has a unique approach for setting rates, comparing quotes could result in a completely different list of the cheapest companies as shown below.
State Farm now has the cheapest insurance rate in Fort Worth with USAA, Mercury, Safe Auto, and Nationwide also being competitive. This example shows why it is critical to compare rates when trying to find the best car insurance quotes for college graduates. Insurance prices are made up of many factors and change frequently, so the most economical option two years ago may now be one of the higher cost companies.