The cheapest car insurance company depends on your driver profile and needs. MoneyGeek’s analysis in Dallas shows State Farm is ideal for full and minimum coverage, with an at-fault accident or speeding ticket, military members, teens, young adults, seniors and drivers with sports cars. Mercury is the lowest-priced after a DWI or with bad credit.
MoneyGeek also analyzed the best car insurance in Dallas, balancing cost and service quality.
Cheapest Car Insurance in Dallas, TX
Cheapest Minimum Coverage Car Insurance in Dallas
MoneyGeek found the following companies, on average, are the cheapest for minimum coverage in Dallas:
- State Farm: $387 per year
- Texas Farm Bureau: $446 per year
Dairyland charges the highest rate for that policy, of the companies MoneyGeek collected quotes for in Dallas, with an average cost of $1,349 per year.
State Farm also offers the cheapest car insurance in Texas, but its average statewide rate is slightly lower at $300 annually for minimum coverage.
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You will only get coverage against bodily injury and property damage if you purchase a minimum coverage policy in Texas. It includes the following coverage limits:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
These limits show how much of a claim for third parties the insurer will cover. If passengers in the car you hit are injured in the accident, the insurance company will pay $30,000 for each person, up to $60,000 per accident. So if the other driver sustains injuries totaling $55,000, you must pay $25,000 out of pocket.
While minimum coverage may be the cheapest car insurance policy you can get in Dallas, insurance professionals recommend purchasing liability coverage above the state minimum for a greater level of financial protection from at-fault accidents. If your budget allows, consider increasing your liability limits to $100,000 bodily injury liability per person, $300,000 bodily injury liability per accident and $100,000 property damage liability per accident.
You also want to have uninsured and underinsured motorist (UM/UIM) coverage in Texas. UM/UIM is optional in the state, but every insurer must offer it. If you don't want it, you must decline it in writing. But UM/UIM is worth it since it covers damages you sustain in an accident that is not your fault with a driver who does not have insurance or does not have enough coverage. Hit-and-runs may also fall under UM/UIM. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Full Coverage Car Insurance in Dallas
The following companies, on average, offer the most affordable rates for a full coverage policy in Dallas:
- State Farm: $793 per year
- Texas Farm Bureau: $937 per year
Dairyland is the most expensive car insurance company, charging around $2,396 annually in Dallas for full coverage.
As of October 2022, State Farm is also the cheapest full coverage car insurance provider in Texas, with its statewide average cost at $711 per year, less than what Dallas drivers pay.
Comprehensive and collision insurance are part of a full coverage policy.
- Comprehensive insurance: This coverage will cover the repair or replacement costs if the damage to your car is due to a non-accident incident, such as fire, flood or theft.
- Collision insurance: You will get compensation through this coverage if you damage your car in an at-fault accident.
Buying full coverage for older vehicles might not be the best choice, as you will pay a lot of money to insure a vehicle that may not have much value.
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Cheaper insurers could pocket you hundreds of dollars per year.
Cheapest Car Insurance in Dallas After a Driving Offense
MoneyGeek’s research shows that the following companies offer the average cheapest rates for Dallas drivers with a moving violation on their record:
- Speeding ticket: State Farm ($793 per year)
- At-fault accident: State Farm ($985 per year)
- DUI: Mercury ($1,407 per year)
The highest priced full coverage policy with a speeding ticket is with Dairyland at around $2,952 per year; with an at-fault accident, it is Foremost at roughly $3,631 per year; and with a DWI (Texas does not use DUI), it is Chubb at around $3,092 per year.
A moving violation may significantly affect your rate for many years, which means the most affordable insurer for you will still be more expensive than the cheapest option for a safe driver.
Severe violations (like a DWI in Texas) may significantly increase your car insurance. MoneyGeek found that drivers with a DWI pay around $347 more per year in Dallas for a full coverage policy than someone with a speeding ticket. They also have to file an SR-22, a certificate of financial responsibility that proves they have at least the minimum liability coverage Texas requires. The insurer files the SR-22 on their behalf, and they must have a valid SR-22 for a minimum of two years.
You should shop around to find the cheapest car insurance for a poor driving record since rates can vary significantly between companies.
Cheapest Car Insurance in Dallas for Teens and Their Families
Teens on a full coverage family policy in Dallas will find the most affordable car insurance, on average, from the following companies:
- State Farm: $2,103 per year for female teens; Nationwide: $2,472 per year for male teens
- Nationwide: $2,153 per year for female teens; State Farm: $2,537 per year for male teens
The second-cheapest option for female teens is Nationwide, with an average cost of $2,153 per year, while for male teens, it’s State Farm, charging around $2,537 per year.
Allstate is the most expensive option for male and female teens, charging roughly $8,390 per year and $7,120 per year, respectively.
Insurers charge more to male teens because of an increased risk of at-fault accidents and moving violations. But, this difference drops off in early adulthood.
The policy cost will be significantly higher if a teen driver buys a policy compared to being on a family policy. And it is usually illegal for a teen under 18 to purchase auto insurance without a parent or guardian as a co-signer.
For instance, MoneyGeek found that a 16-year-old male driver in Dallas will pay an average of $7,077 per year for their full coverage policy, while the cost of a family policy is around $3,810 per year.
You can find cheap car insurance for teens by comparing rates from different insurers.
Cheapest Car Insurance in Dallas for Military Drivers
On average, the most affordable full coverage car insurance for active-duty military or veterans in Dallas is with the following:
- State Farm: $793 per year
- Texas Farm Bureau: $937 per year
USAA is also an ideal option, as it offers auto insurance policies tailored to and restricted to members of the military community. The company offers cheap military car insurance in Dallas at roughly $950 annually for full coverage.
As of October 2022, State Farm also offers the cheapest minimum coverage policy in Dallas, costing around $387 annually. USAA is the second cheapest, with an average cost of $434 annually.
Although GEICO was not one of the cheapest options for full or minimum coverage in Dallas as an active-duty military member or veteran in MoneyGeek's study, you may want to get a quote from the company. It has discounts available for the military community that may reduce your premium substantially.
How to Compare Cheap Dallas Car Insurance Quotes Online
In Dallas, Texas, comparing car insurance quotes online can be a time-consuming process requiring you to share personal information.
However, with MoneyGeek's car insurance calculator, you can quickly get a ballpark estimate based on basic information such as your age, vehicle type, coverage level and driving record. Our convenient tool helps you save time and gain insight into your expected car insurance premiums, all while ensuring accuracy and reliability.
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Cheapest Car Insurance in Dallas for Young Adults
The following companies, on average, offer the cheapest full coverage car insurance for young adults in Dallas:
- State Farm: $1,022 per year
- Texas Farm Bureau: $1,157 per year
Dairyland is the most expensive car insurance company in Dallas for young adults with full coverage, with an average annual policy cost of $2,935.
A 25-year-old driver pays an average of $1,703 per year for full coverage in Dallas, while the average cost is $1,314 per year for a 40-year-old driver.
Insurers generally charge higher rates to young drivers because they are more at risk of getting into accidents.
Cheapest Car Insurance in Dallas for Seniors
MoneyGeek found the following companies offer, on average, the most affordable car insurance for seniors with full coverage car insurance in Dallas:
- State Farm: $721 per year
- Texas Farm Bureau: $777 per year
Dairyland offers seniors the most expensive full coverage car insurance in Dallas, charging around $2,163 annually.
The average annual premium for a 40-year-old driver is $1,314 per year in Dallas, while a 65-year-old driver pays roughly $1,255 per year.
Car insurance rates are generally higher for seniors than middle-aged adults due to an increased risk of accidents, but that’s not the case in Dallas.
Cheapest Car Insurance in Dallas for Poor Credit
The following companies offer the average cheapest rate to drivers looking for full coverage with a poor credit history in Dallas:
- Mercury: $1,518 per year
- Allstate: $1,532 per year
State Farm charges the highest rate for full coverage car insurance for drivers with bad credit. Its policy in Dallas costs roughly $4,310 per year.
MoneyGeek found that drivers with a poor credit history pay an average of $1,067 per year or 81% more for a full coverage policy than those with good credit.
Insurers believe that drivers with bad credit scores or lower credit-based insurance scores generally file more claims, which causes them to charge them more. Besides improving their credit score over time, such drivers can look for discounts, bundle different policies and compare quotes to find a cheaper policy.
Cheapest Car Insurance in Dallas for Sports Cars
MoneyGeek found that the following companies offer, on average, the most affordable car insurance for drivers with sports cars in Dallas with a full coverage policy:
- State Farm: $974 per year
- GEICO: $1,227 per year
Dairyland is the most expensive car insurance company with a sports car in Dallas, costing an average of $2,464 annually.
MoneyGeek found that insuring a Ford Mustang sports car in Dallas is around 24% more expensive than a standard Toyota Camry, costing roughly $309 more a year.
MoneyGeek used a Ford Mustang to represent a sports car when collecting quotes in Dallas. But your car insurance cost may vary based on your sports car’s make and model. Also, luxury, electric and sports cars tend to cost the most to insure.
There are no restrictions in Texas on what rating factors insurers can use to calculate your premium. Your gender, age, marital status, employment status and occupation, level of education, motor vehicle record, vehicle type, ZIP code and more may affect how much you pay for car insurance in Dallas. Getting quotes from multiple companies is a smart choice since each may weigh factors differently. For example, one company may charge a great deal more to drivers with bad credit, a speeding ticket or who are single than another.
Average Cost of Car Insurance in Dallas
The average cost of car insurance in Dallas for a full coverage policy is $1,314 per year, around $113 more than the average car insurance cost in Texas and about $49 more than the national average. Your location significantly affects your auto insurance rate.
On average, car insurance in Dallas is $174 more a year than in Corpus Christi and $182 more annually than in Denton.
The rates discussed are for a full coverage policy with $100,000 bodily injury liability per person, $300,000 bodily injury liability per accident and $100,000 property damage liability per accident, which are limits recommended by insurance professionals.
About Mark Fitzpatrick