Deciding which company has the best auto insurance rates for drivers under 21 requires a tad more effort in order to find the lowest price. Every insurance provider has their own formula for determining prices, so we need to take a look at the most affordable auto insurance companies in Texas.
We do need to point out that Fort Worth, TX auto insurance rates are calculated based on many things which can substantially decrease or increase the price of your policy. Simply getting older, filing a claim, or getting a ticket for running a stop sign can cause premium changes resulting in some rates now being cheaper than before.
Cheap Insurance Rates for Minors
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,247|
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Travelers may offer some of the lowest car insurance rates in Fort Worth at around $1,041 annually. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the most economical Fort Worth, TX auto insurance companies.
In the above rates, if you buy coverage from USAA and switched to Travelers, you might achieve annual savings of in the vicinity of $76. Drivers with Texas Farm Bureau could save as much as $206 a year, and Germania Mutual policyholders might lower prices by $253 a year.
Understand that those policy prices are averaged across all types of drivers and the different vehicles they drive and and are not calculated with a specific zip code 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’s why you need to get auto insurance quotes using your own personal information and vehicle type.
For minors, one of the largest criteria that aid in calculating the price you pay for insurance is where you keep your car. Regions with more people or even just more weather-related claims tend to have higher auto insurance costs, whereas areas with lower crime rates and fewer weather claims profit from lower rates.
The table below sorts the most expensive places in Texas for drivers under 21 to purchase auto insurance in. Fort Worth makes the list at #17 costing $1,653 for coverage, which is around $138 per month.
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Rate quotes are approximated as the garaging address in Fort Worth can revise prices greatly.
Bad driving habits will cost you more
The ideal way to get the cheapest auto insurance prices in Fort Worth for minors is to drive attentively and avoid getting tickets or having accidents. The illustration below illustrates how speeding tickets and at-fault claims raise premium costs for different age groups of insureds. The premium estimates are based on a married male driver, full coverage, $500 deductibles, and no discounts are factored in.
The data in the chart shows the average cost of an auto insurance policy in Fort Worth per year with no accidents or violations is $2,035. Factor in one speeding ticket and the average cost rises to $2,341, an increase of $306 each year. Now add one accident along with the one speeding ticket and the annual cost of auto insurance for drivers under 21 goes up to an average of $3,203. That’s an increase of $1,168, or $97 per month, just for not driving attentively!
How much more does full coverage cost?
Saving money on auto insurance is probably important to most people, and one good way to buy cheaper insurance for drivers under 21 is to only buy liability coverage. The diagram below visualizes the comparison of auto insurance rates with and without physical damage coverage. The costs are based on no claims or driving violations, $100 deductibles, single status, and no discounts are applied to the premium.
As an overall average, comprehensive and collision coverage on your policy costs $2,181 per year more than just buying liability insurance. Many people question when is it safe to stop buying full coverage. There is no definitive guideline that works best for making the decision to drop full coverage on your policy, but there is a general guideline. If the annual cost of coverage is about 10% or more of replacement cost minus your deductible, then you might consider buying liability only.
For example, let’s assume your vehicle’s replacement cost is $7,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $6,500 after paying your deductible. If premium cost is more than $650 a year to have full coverage, then it might be time to buy liability only.
There are some situations where eliminating full coverage is not a good idea. If you still have a loan on your vehicle, you have to keep full coverage to satisfy the loan requirements. Also, if you cannot afford to purchase a different vehicle in case of an accident, you should not opt for liability only.
Here’s why you should shop around
Fort Worth auto insurance rates are impacted by many things which can substantially change the policy premium. Simply improving your credit, buying higher coverage limits, or getting a ticket for running a stop sign may generate price changes that can now make some companies cheaper than before. In addition, insurers change their prices as needed in order to protect their financial rating. A period of increased losses can result in increased policy costs, while a better claims history can cause cheaper Fort Worth car insurance rates.
The graph below shows a variety of companies that have the cheapest car insurance in Fort Worth, TX for a 30-year-old female driver with no accidents, a clean driving record, and solid credit. If we estimate prices based on her personal risk profile, Travelers may have the lowest car insurance rates in Fort Worth at $1,126 a year. This is $778 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also on the list of the top five cheapest Fort Worth, TX auto insurance companies.
The chart below compares rates after we give the driver from the first set of rates an accident surcharge, a lower credit score, and a traffic citation. Since each insurance company uses their own calculation for determining rates, getting updated rate quotes could result in a different ranking of affordable Fort Worth car insurance companies as shown below.
State Farm now has the best car insurance rate in Fort Worth, TX with Mercury, USAA, Safe Auto, and Nationwide completing the list. This example illustrates why it is crucial to shop around when trying to find cheap insurance rates for drivers under 21. Insurance rates are impacted by many different factors and change frequently, so the cheapest rate six months ago may now be costing you a lot of money.