Is It Possible to Find Cheap Car Insurance in Dallas?
Last Updated on November 26, 2021
Shopping for cheap car insurance in Dallas is easy – if you know where to look.
You can find cheap car insurance in Dallas by shopping around, taking advantage of discounts, and adjusting coverage to match your unique needs.
Keep reading to discover everything you need to know about obtaining cheap car insurance in Dallas, including how much you can expect to spend, how much you can save, and how to pay the lowest possible rates for auto insurance anywhere in Dallas.
Table of Contents:
- Cheapest Car Insurance Companies in Dallas, Texas
- Factors that Impact Car Insurance in Dallas, Texas
- Why Is Car Insurance So Expensive in Dallas?
- Top 5 Tips for Finding Cheap Car Insurance in Dallas
- Dallas Has Similar Car Insurance Rates to Other Major Cities
Cheapest Car Insurance Companies in Dallas, Texas
Car insurance companies in Texas charge different premiums based on age, gender, driving history, and other factors.
However, some companies have a reputation for continually charging cheap rates to drivers in Dallas, Texas, while other companies have a reputation for charging higher prices.
Some of the cheapest car insurance companies in Dallas, Texas include:
- USAA: $601 per year
- State Farm: $700 per year
- GEICO: $893 per year
- Nationwide: $943 per year
- Texas Farm Bureau: $1,323 per year
- Allstate: $1,449 per year
- Dairyland: $1,502 per year
- Esurance: $1,599 per year
All rates are based on a minimum liability car insurance plan (which includes bodily injury and property damage liability coverage but no full coverage car insurance). These are average rates across multiple model driver profiles. If you’re a safe driver with years of driving experience, then you could pay less. If you’re a medium-risk or high-risk driver, then you could pay much more.
Factors that Impact Car Insurance in Dallas, Texas
Insurers use hundreds of factors to calculate premiums. Based on your age, gender, and other information, you could pay over $3,000 per year for car insurance in Dallas – or less than $500 per year.
Here are some of the factors that impact car insurance in Dallas, Texas:
ZIP Code: Insurers check your ZIP code when assigning insurance premiums in Dallas, Texas. If you live in a ZIP code with high traffic density or high accident rates, then you’ll pay more for car insurance. Similarly, if you live in a ZIP code with high crime, then you’ll pay higher rates for car insurance (particularly for comprehensive coverage, which covers theft, vandalism, and similar damages).
State Laws: Texas has higher insurance requirements than most other states. According to Texas law, drivers must carry $50,000 of bodily injury liability coverage per person, $100,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage per accident (a 50/100/25 plan). Because the state requires higher minimum liability limits, even basic car insurance policies can be expensive in Dallas.
Higher Accident Rates and Population Density: Dallas is one of the biggest cities in Texas and all of the United States. Most big cities have more expensive car insurance premiums because of various city-related factors. Cities tend to have higher accident rates than rural areas. Driving on the freeways across the DFW Metroplex area can be dangerous. Insurers charge higher premiums in exchange for covering this risk.
Age and Gender: Texas insurance companies consider your age and gender when calculating premiums. Certain demographics have a higher risk of accidents than others. Young men tend to pay more for car insurance than young females, for example.
Credit Score: Texas allows insurers to charge higher or lower premiums to drivers based on their credit score. If you have a high credit score, then you’ll pay less for car insurance than someone with a low credit score – or no credit score. All states except for California, Massachusetts, and Hawaii allow insurers to use credit scores to calculate insurance premiums.
Your Vehicle: Does your vehicle have a strong safety rating? Does your vehicle perform well in crashes? Does your vehicle have a long history of causing costly accidents? Insurers consider various vehicle-specific factors when calculating insurance. If you drive a safer vehicle, then you’ll pay less for car insurance.
Type of Coverage: Some drivers want maximum peace of mind, so they buy a car insurance policy with all of the bells and whistles. Other drivers want the cheapest possible rates, so they buy a minimum liability policy. Depending on the type of coverage you buy, you could pay a range of prices for car insurance.
Limits and Deductibles: It’s more than the type of coverage that matters: your premiums also change based on limits and deductibles. If you have high limits and small deductibles, for example, then you’ll pay more for car insurance than someone with low limits and high deductibles.
Why Is Car Insurance So Expensive in Dallas?
Drivers in Dallas pay higher than average car insurance premiums compared to the rest of the United States. The average driver in Dallas pays around $1,650 per year for full coverage car insurance, which is over $200 higher than the nationwide average.
Why Dallas? Why is car insurance more expensive in Dallas? Several factors raise car insurance premiums in Dallas higher than average, including:
High Auto Theft Rates: Dallas has the highest auto crime rate out of the 11 most populous cities in Texas. According to FBI crime data, approximately 8 cars are stolen in Dallas for every 1,000 residents. With a theft rate of 7.5 per 1,000 people, Dallas is ahead of Houston (5.6), San Antonio (5.0), Lubbock (4.7), and Fort Worth (3.6), among other major cities in Texas.
Rising Medical Costs: The cost of healthcare rises every year. As healthcare costs rise, insurers need to pay higher medical bills. Insurers pass these higher medical bills to policyholders as higher premiums.
Higher Cost of Living: The cost of living has risen in Dallas over the years. As the cost of living continues to rise, insurers pay more for car repairs and other expenses. Just like they do with medical costs, insurers pass these higher costs to policyholders in the form of higher insurance premiums.
High Rates of Uninsured Drivers: Approximately 1 in 5 drivers in Dallas drive without insurance. This number rises every year. Driving without insurance is illegal, but many drivers drive without insurance and never get caught. Uninsured drivers lead to higher costs for insurance companies. If an uninsured driver hits you, then your insurance company pays for your claim even if the other driver was at fault, increasing costs for the insurance company.
Top 5 Tips for Finding Cheap Car Insurance in Dallas
Yes, it’s possible to find cheap car insurance in Dallas. To find cheap car insurance, consider the following tips:
Compare Quotes: Some insurers specialize in insuring drivers like you. Other insurers charge higher rates to drivers like you. By comparing quotes across companies, you can find the best car insurance company in Dallas for your unique needs.
Drive Less: The more miles you drive each year, the more you’ll pay for car insurance. Low mileage drivers in Dallas will pay less for car insurance. If you drive less than, say, 5,000 miles per year, then you could pay less for car insurance because you drive significantly fewer miles than average.
Improve your Credit Score: Your credit score significantly impacts car insurance premiums in Dallas. If you have a low credit score or no credit score, then you’ll pay more for insurance.
Adjust Coverage: Some people are over-insured. They pay for more car insurance than they need. Adjust coverage to ensure it meets your unique needs. Some people want the minimum 50/100/25 plan required by the state of Texas. Others want full coverage car insurance with all of the bells and whistles.
Take Advantage of Discounts: All insurers offer discounts. Some insurers offer good student discounts. Others offer safe driving discounts. Some offer military discounts, while others offer low mileage or driver tracking discounts. Take advantage of discounts to save hundreds per year on car insurance in Dallas, Texas.
Dallas Has Similar Car Insurance Rates to Other Major Cities
Drivers in Dallas may complain about car insurance premiums. However, drivers in Dallas pay similar car insurance premiums to drivers in other major American cities.
Most cities in America have a higher population, more traffic crime, and higher accident rates than rural areas and smaller towns.
Dallas car insurance may seem expensive compared to car insurance in other parts of Texas. However, car insurance premiums are similar to what you pay in other major American cities.
Final Word on Finding Cheap Insurance in Dallas
It’s possible to find cheap car insurance in Dallas.
By comparing quotes, taking advantage of discounts, and adjusting coverage to match your needs, you can find the cheapest possible car insurance in Dallas, Texas.