Looking for cheap car insurance in Austin takes more than a little research as companies offer a variety of choices from local options to some of the top brands in the U.S. Whether you’re interested in buying minimum coverage or full coverage, you can expect a wide range of rates based on each insurer’s criteria for writing insurance policies.
What Are the Vehicle Insurance Requirements for Texas?
In Texas, any person who operates a vehicle must prove they are financially responsible and able to pay for damages in the event they cause an accident. This means drivers must have proof of insurance in hand before operating a vehicle. The coverage must be for the minimum amount of insurance required by the state or more.
What Is the Minimum Required Car Insurance Coverage in Texas?
The minimum insurance coverage in Texas is $30,000/$60,000/$25,000. The $30,000 is coverage for each injured person, at a total of $60,000 per accident. The $25,000 is coverage for property damage. While the minimum coverage is required by the state, drivers have the option to buy additional insurance, as there is no guarantee the minimum amounts (30/60/25) will be enough to cover all damages.
What Is Full Coverage Insurance?
In Texas, full coverage insurance includes several state-mandated policies. These include bodily injury and liability coverage for property damage. Full coverage insurance also generally includes coverage for uninsured and underinsured motorists, comprehensive and collision coverage, and coverage for medical payments.
What Factors Affect the Insurance Rate?
When shopping for cheap car insurance, each company uses its own criteria in calculating the premium rate. During your research of insurance companies, one question to ask the agent is what factors the company uses in determining its rates. By knowing what these factors are, you can create a short list of potential insurers, especially if any of the factors apply to you. Some things insurance companies might consider include:
- Age
- Annual mileage
- Claims history
- Credit history
- Driving history
- Gender
- Insurance history
- Location
- Marital status
- Vehicle
- Vehicle ownership status (owned, leased, or financed)
- Years of driving experience
What Type of Insurance Discounts Are Available?
When the rate is being determined for a policy based on the company’s specific criteria and the applicant’s rating factors, applicants may qualify for discounts that lower the cost of the insurance coverage. Some of the most common discounts include the following:
- Affinity, professional, and membership discount
- Anti-theft equipment discount
- Bundling discount (homeowner, car insurance, etc.)
- E-Pay/paperless billing discount
- Good Driver and good student discount
- Environmentally friendly green vehicle discount
- Low mileage discount
- Loyalty discount for long-term policyholders
- Military personnel discount
- Multi-vehicle discount
Top Texas Car Insurance Companies
According to research by an independent source, combined with information from J.D. Power on customer satisfaction ratings, the following five companies are considered top-of-the-line insurers. While your quote may vary, you can also review an average of each company’s annual minimum and maximum premiums below:
- Allstate
- Annual minimum coverage: $500
- Annual maximum coverage: $1,546
- J.D. Power score (Texas): 832/1000
- GEICO
- Annual minimum coverage: $418
- Annual maximum coverage: $1,290
- J.D. Power score (Texas): 846/1000
- Nationwide
- Annual minimum coverage: $481
- Annual maximum coverage: $1,245
- J.D. Power score (Texas): 820/1000
- State Farm
- Annual minimum coverage: $574
- Annual maximum coverage: $1,433
- J.D. Power score (Texas): 844/1000
- USAA
- Annual minimum coverage: $436
- Annual maximum coverage: $1,344
- J.D. Power score (Texas): 878/1000
Allstate
This company has an option called Milewise, which provides a discount for drivers whose vehicle is not frequently driven. The company also has a car-sharing option.
GEICO
GEICO provides 24/7 customer service, the cheapest rates on average, and multiple money-saving options and discounts.
Nationwide
Along with helpful resources for drivers, the company offers a safe-driving program and the free On Your Side Review service for policyholders.
State Farm
Although State Farm’s minimum coverage is the highest, the company offers a variety of discounts and other types of insurance besides car insurance.
USAA
Based on several factors, USAA offers one of the cheapest car insurance in Austin for former and current military personnel and their families.
Top Austin Car Insurance Companies
Based on each company’s ratings for financial stability, affordability, user satisfaction, and quality of service, research shows that several companies stand out in Austin for customers to consider. These are:
- USAA
- GEICO
- State Farm
- Auto Club of Southern California Insurance Group
- Allstate
- Progressive
- Nationwide
- Farmers
- Liberty Mutual
Although USAA limits vehicle coverage to veterans and military personnel and their families, the company ranks at the top of the list with a score of five out of five, due to high ratings on availability, claims ratings, user satisfaction, and superior financial responsibility. GEICO and State Farm also earned high marks of three out of five for affordability, claims ratings, and user satisfaction.
What is the Best Way to Get Insurance Quotes?
Researching for cheap insurance in Austin can be time-consuming simply because of the vast number of companies you need to contact in order to request quotes. Once you receive the quotes, you’ll need to do a preliminary comparison to find the best coverage and price based on your needs and the cost. To help speed the research process along, there are three ways to get quotes quickly. These include:
Online
Using the online option is a fast and convenient way to request a quote. An online form generally asks limited questions, such as name, contact information, and information about your vehicle.
By Phone
Making a call to an insurance agent is a more personalized approach. The agent can help guide you towards the type of coverage you need and provide an estimated quote.
Office Visit
Visiting each insurance company to get a quote may take more time, but it also allows potential policyholders the opportunity to interact with the agent one-on-one. During the visit, you can ask questions about the factors the company uses to set their premium rate and request thorough explanations of Texas insurance requirements, the types of insurance coverage available, and any discounts the company might offer.
Buying Cheap Car Insurance
The main thing to remember when it comes time to purchase cheap car insurance is that there is no one set rate. Each company uses a set of factors to determine cost and applicable discounts. It’s also important to remember that rates vary among different insurance companies and the cost of coverage may change in the future.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
