One of the many criteria that determine the amount you pay each year for auto insurance is where your car is garaged. Larger areas like McAllen, Laredo, and Dallas likely pay more, whereas areas with less people or fewer weather incidents benefit from lower prices.
The illustration below rates the most costly cities in Texas for welfare recipients to purchase auto insurance in.
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Premium amounts are comparative as the vehicle garaging location can lower or raise premiums greatly.
Deciphering which company offers the cheapest car insurance rates for welfare recipients in Texas involves a bit more effort in order to find coverage that fits your buget. Every insurance provider uses different criteria for determining prices, so let's look at the rankings for the car insurance companies with the overall best prices in Texas.
Keep in mind that Texas car insurance rates are influenced by many factors that may substantially change the price you pay. Getting older, becoming a homeowner, or getting a driving violation can trigger price changes that can make some companies cheaper in comparison to the competition.
Find the Cheapest Car Insurance in Texas
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,247|
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Travelers may have some of the most affordable car insurance rates in Texas at around $1,021 each year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the most economical Texas auto insurance companies.
As depicted above, if you currently buy coverage from Esurance and switched to USAA, you may see an annual premium reduction of about $295. Drivers with California Casualty may save as much as $298 a year, and State Farm insureds might realize rate reductions of up to $381 a year.
Remember that these policy prices are averaged across all drivers and vehicles in Texas and and are not figured with a price decrease for welfare recipients. So the company that is most affordable for your situation may not even be in the top 23 companies in the list above. That's why you need to get auto insurance quotes using your own specific driver and vehicle information.
The make and model of vehicle you are seeking coverage for is a large factor that determines whether or not you find cheaper auto insurance for welfare recipients. Vehicles with lower acceleration and performance, a plethora of safety features, or a positive history of liability claims will cost less to insure than adrenaline junky models. The table below estimates auto insurance costs for some of the most economical automobiles to buy insurance for.
|Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$1,024|
|Honda Accord LX-P 4-Dr Sedan||$1,034|
|Ford Escape XLT 2WD||$1,122|
|Honda CR-V EX 4WD||$1,188|
|GMC Sierra SLE Crew Cab 2WD||$1,211|
|Dodge Grand Caravan Crew||$1,233|
|Ford Focus SEL 4-Dr Sedan||$1,252|
|Ford Explorer XLT AWD||$1,254|
|Toyota Corolla XLE||$1,275|
|Jeep Grand Cherokee SRT-8 4WD||$1,297|
|Nissan Altima 3.5 SR 4-Dr Sedan||$1,304|
|Chevrolet Equinox LTZ AWD||$1,297|
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Prices above based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-vehicle, and multi-policy. Rate information does not factor in specific location which can influence premiums significantly.
By looking at the data, we can expect makes and models like the Hyundai Elantra, Honda Accord, Ford Escape, and Honda CR-V are some of the cheaper vehicles to insure for drivers on welfare.
Discounts on Texas insurance
Insurers that sell policies for welfare recipients may provide price discounts that could reduce prices by as much as 35% or more if you qualify. The best car insurance companies and their possible discounts are detailed below.
- AAA may have discounts that include multi-car, AAA membership discount, good student, anti-theft, multi-policy, pay-in-full, and good driver.
- Progressive may offer discounts for online quote discount, good student, continuous coverage, multi-policy, homeowner, and multi-vehicle.
- State Farm may include discounts for student away at school, anti-theft, safe vehicle, driver's education, and good student.
- Esurance offers discounts including Switch & Save, paid-in-full, multi-policy, homeowner, and emergency road assistance.
- Nationwide has savings for good student, Farm Bureau membership, defensive driving, multi-policy, accident-free, and family plan.
The chart below shows the difference between car insurance costs with and without discounts applied to the rates. Data assumes a male driver, no driving violations, no at-fault accidents, Texas state minimum liability limits, full physical damage coverage, and $250 deductibles. The first bar for each age group shows the average rate with no discounts. The lower bar shows the rates with claim-free, homeowner, defensive driving course, passive restraint, anti-theft, and marriage discounts applied. With discounts applied, the the amount saved on car insurance for welfare recipients is 28% or $552.
Price comparison of only insuring for liability
Finding the cheapest car insurance should be important to the majority of drivers, and one good way to find cheap insurance for welfare recipients in Texas is to not insure for full coverage. The information below illustrates the comparison of premium costs with full physical damage coverage compared to only buying liability only. The premium estimates are based on no claims or violations, $100 deductibles, drivers are single, and no discounts are taken into consideration.
As an overall average, physical damage coverage on your policy costs $2,181 per year over having just liability coverage. At some point, every insured wonders if buying full coverage is a good investment. There is no exact formula of when to stop paying for physical damage coverage, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is about 10% or more of the vehicle's replacement cost less your deductible, the it may be a good time to stop paying for full coverage.
For example, let's say your vehicle's claim settlement value is $9,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $8,000 after paying your policy deductible. If you are currently paying more than $800 annually for physical damage coverage, then you may want to consider only buying liability coverage.
Tips for buying more affordable insurance for welfare recipients
The list below summarizes some of the recommended thrifty suggestions that can help Texas drivers quote cheap coverage.
- Lower rates by purchasing a safer vehicle
- Save money by obeying traffic laws and keeping a clean driving record
- Do not get into accidents
- Increase your deductibles
- Improve your credit score
- Do not pay for comprehensive and collision coverage on older vehicles
- Ensure you have the best deal by shopping around regularly
That last tip is notably valuable, as we hit on in this piece. Car insurance rates fluctuate constantly, so don't be hesitant to switch carriers if you find a cheaper price.
Many drivers tend to have loyalty to a certain company, but is isn't recommended if that inflexibility results in costing you major coinage every year. Take a few minutes and compare prices and find cheaper insurance for welfare recipients.