The words “low-cost” and “insurance” probably shouldn’t be used in the same sentence, especially when you are looking for the lowest insurance rates for first-time drivers. Let’s open your eyes to some of the things that have an effect on auto insurance rates, and find out if we can help you reduce the cost of the next policy you buy.
The type of vehicle that is being insured is a significant factor that determines if you can find the most affordable car insurance for first-time drivers. Vehicles with higher performance, a lack of modern safety features, or high incidents of liability claims will cost substantially more to insure than safer, lower-performance models. The table below outlines car insurance prices for some of the cheaper automobiles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 4WD | $4,438 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,708 |
| Hyundai Elantra SE Touring Station Wagon | $4,715 |
| Ford Escape Limited 4WD | $4,708 |
| Toyota Prius | $4,750 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $4,907 |
| Ford F-150 XL Regular Cab 4WD | $4,948 |
| Toyota Tacoma 4WD | $4,953 |
| Ford Explorer XLT 4WD | $4,948 |
| Dodge Grand Caravan SE | $4,956 |
| Chevrolet Impala LT | $5,217 |
| Chevrolet Silverado LT Extended Cab 4WD | $5,225 |
| Jeep Grand Cherokee Laredo 2WD | $5,217 |
| Toyota RAV4 Sport 2WD | $5,225 |
| Toyota Corolla S | $5,487 |
| Ford Edge Sport 2WD | $5,492 |
| Toyota Camry SE | $5,487 |
| Chevrolet Equinox LTZ AWD | $5,530 |
| Ford Fusion Sport 4-Dr Sedan | $5,539 |
| Honda Odyssey Touring | $5,530 |
| Chevrolet Malibu LTZ | $5,537 |
| Nissan Rogue SL 2WD | $5,653 |
| Honda Civic EX-L 4-Dr Sedan | $5,756 |
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Data variables include single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in garaging location in San Antonio, TX which can modify price quotes substantially.
Based upon these rates, you can assume that models like the Honda CR-V, Volkswagen Jetta, Hyundai Elantra, and Ford Escape will definitely be a few of the most budget-friendly vehicles to insure for new drivers. The price for car insurance will be higher anyway because there is more liability exposure for first-time drivers, but generally speaking those models will have the lowest insurance rates compared to all other vehicles.
One of the more important components that are looked at to determine auto insurance rates is where you call home in San Antonio. Cities with more crime and/or more people tend to have more expensive auto insurance rates, whereas areas with less congestion have the luxury of cheap car insurance rates.
The following table ranks the most expensive places in Texas for first-time drivers in which to buy car insurance. San Antonio makes the list at #15 with an annual cost of $1,688 for coverage, which is approximately $141 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,927 |
| 3 | Houston | $1,909 |
| 4 | Laredo | $1,851 |
| 5 | Dallas | $1,837 |
| 6 | Amarillo | $1,804 |
| 7 | Grand Prairie | $1,793 |
| 8 | Garland | $1,778 |
| 9 | Irving | $1,772 |
| 10 | Beaumont | $1,772 |
| 11 | Pasadena | $1,758 |
| 12 | Mesquite | $1,753 |
| 13 | Lubbock | $1,733 |
| 14 | Arlington | $1,692 |
| 15 | San Antonio | $1,688 |
| 16 | Austin | $1,676 |
| 17 | Carrollton | $1,647 |
| 18 | Corpus Christi | $1,636 |
| 19 | Fort Worth | $1,604 |
| 20 | Plano | $1,576 |
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Rate quotes are approximated as the specific San Antonio residence address can influence rates substantially.
Bad driving habits will cost you more
The easiest way to enjoy the most affordable auto insurance prices in Texas for new drivers is to be a good driver and avoid accidents and keep your driving record clean. The illustration below shows how violations and at-fault collisions impact car insurance rates for different insured age categories. The data assumes a married female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are factored in.
In the chart above, the average cost of car insurance in Texas per year with no accidents and a clean driving record is $1,542. Get written up for two speeding tickets and the average cost increases to $2,191, an increase of $649 each year. Then include two accidents along with the two speeding tickets and the 12-month cost of auto insurance for first-time drivers jumps again to an average of $4,584. That’s an increase of $3,042, or $253 per month, just for not driving attentively!
Discount San Antonio auto insurance rates
Insurance companies that sell policies for first-time drivers may also offer policy discounts that could potentially reduce rates by as much as 25% or more if you are eligible. A list of companies and some of their more popular discounts are outlined below.
- Travelers offers discounts including home ownership, IntelliDrive, multi-policy, driver training, continuous insurance, and student away at school.
- 21st Century has discounts for anti-lock brakes, homeowners, good student, teen driver, and defensive driver.
- State Farm discounts include driver’s education, student away at school, good driver, Steer Clear safe driver discount, and defensive driving training.
- GEICO may offer discounts for membership and employees, five-year accident-free, air bags, federal employee, and driver training.
- SAFECO offers premium reductions for teen safe driver, bundle discounts, anti-theft, multi-car, drive less, and homeowner.
- AAA offers discounts for anti-theft, good driver, multi-car, good student, education and occupation, and multi-policy.
The illustration below illustrates the difference between insurance prices with and without discounts. The premium estimates are based on a male driver, no claims or driving citations, Texas state minimum liability limits, full coverage, and $1,000 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with paperless filing, good student, anti-theft, vehicle safety, paid-in-full, and continuous coverage discounts applied. When discounts are factored in, the average savings per year on auto insurance for first-time drivers is 28% or $594.
Selecting the right car insurance company can be a challenge considering how many companies provide coverage in San Antonio. The company rank data shown below can help you pick which car insurance providers you want to consider comparing rates with. These ratings are for companies with a nationwide focus, so smaller companies that only insure vehicles in Texas are not included in the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
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Data Source: Insure.com Best Car Insurance Companies
Your low-price policy may be costing you money
Texas auto insurance rates are influenced by many factors which can significantly increase or decrease the cost of having a policy. Simply improving your credit, having a claim, or getting a speeding ticket may prompt premium changes resulting in some companies being cheaper than competitors. In addition to those changes, insurers file new rates without warning in order to be able to pay unexpected claims. An unexpected high level of claims may cause increased policy costs, while profitable underwriting may result in cheaper San Antonio car insurance rates.
The bar chart below demonstrates which company has the cheapest car insurance in San Antonio, TX for a 40-year-old male driver with no prior accidents, a clean driving record, and a good credit rating. If we estimate rates based on his current rating profile, Travelers quotes the lowest car insurance rates in San Antonio at $1,181 each year. This is $723 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the cheapest San Antonio, TX auto insurance companies.
In the next rate comparison, we’ll give the driver from the first rate comparison an accident claim, less-than-perfect credit, and a few blemishes on his driving record. Since each insurance company has a unique approach for determining rates in each state, comparing prices may result in a new list of cheap San Antonio auto insurance companies as shown below.
State Farm now has the cheapest rate in San Antonio, TX with Mercury, USAA, Nationwide, and Safe Auto now being in the top five. This example shows why it is critical to do a thorough rate comparison to find cheap insurance rates for first-time drivers. Rates can be determined by many factors and can change without notice, so the most economical company the last time you shopped around may now be priced much higher than other options.