Who Has the Cheapest Car Insurance Rates in Dallas?

Dallas is the third largest city in Texas with a population of 1,345,047. Combined with neighboring Forth Worth, it’s the largest metropolitan area in the southern United States, and the ninth largest in the country. With an area of 386 square miles in the city itself, drivers in Dallas are used to driving long distances.

The average person living in Dallas drives 26.8 miles to work each day, which means they spend at least an hour on the road commuting to and from work. Reliable transportation is a must, and with vehicle ownership comes insurance requirements. In order to license your vehicle in Texas, you must first have insurance, and it can be quite confusing trying to decipher what you have to have in order to drive legally, as opposed to add-ons to your policy which you may choose or refuse.

While the minimum coverage requirements will allow you to drive legally, they may not be enough if you’re in an accident with an uninsured motorist or your vehicle is stolen. Here you’ll find an overview of car insurance requirements in Dallas, as well as recommendations for extra coverage you may be wise to consider.

What are the Insurance Requirements in Dallas?

In Dallas, you must carry a minimal amount of insurance on each licensed vehicle in order to comply with Texas state requirements. Here are the minimum amounts you must have:

  • $60,000 bodily injury liability per incident
  • $30,000 bodily injury liability per person
  • $25,000 property damage liability per incident

This coverage is the amount your insurance company will pay (after deductible) if you are at fault in an accident and injure another driver or their vehicle. While it seems adequate, it’s important to consider the cost of emergency room treatment or hospitalization, as well as the cost of vehicles. If you’ve been to the ER, you know how quickly the bills add up, and If you hit a new truck and are found at fault, your insurance will only pay for about half the cost of replacement.

Another important policy add-on is vehicle theft coverage. According to the National Insurance Crime Bureau (NICB), in 2018 there were 23,261 vehicles stolen in Dallas, about one per 309 residents and ranking Dallas the 83rd highest US city for vehicle thefts.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Dallas by Insurer

While each company will base your rates on your personal information such as age, driving experience and record, and credit score, there are certain companies that have consistently lower rates for vehicle insurance coverage. Here’s a look at the lowest car insurance rates in Dallas.

Use our pro guide to find the best cheap car insurance quotes.

Low Cost Auto Insurance for Bad Credit in Dallas

Because your policy is at least partially based on your credit score, you may need to use a company that specializes in lower than average rates for low credit scores. Here are the best insurance companies and rates for Dallas residents with less than stellar credit scores.

Use this guide to find cheap auto insurance coverage with bad credit.

What is the Difference Between Full Coverage and Liability?

What is Liability-Only?

Liability-only coverage means coverage that only pays for the loss others incur if you are at fault in an automobile accident. These are for the medical expenses, other property damage or car repairs that you cause to another or their property in an accident.

One has the option of paying for more than the state minimum requirements outlined above for liability insurance. That is a good idea because you will be personally liable from your own finances and assets if you harm someone else or their property in an accident and your state minimum coverage levels do not fully reimburse the losses of the other party.

What does Full Coverage Insurance Cover?

Full coverage means that you not only have adequate insurance to cover the losses of others if you are at fault in an accident. Full coverage means you have all the liability coverage you need to care for the harm to others if you have an accident and are at fault, and you have coverage for your own losses as well. There are two main kinds of other coverages that drivers purchase in order to repair their vehicles in the event of an accident they cause:

What is Collision Coverage?

Collision insurance covers the cost of repairing your own car if you are in an accident that is your fault. A way to save money on collision insurance is to purchase it with a higher deductible. For example, it will likely be very expensive to have collision coverage on your vehicle with a $500 deductible, but a $1,500 deductible or a $2,000 deductible will save considerable money on your automobile full coverage policy.

What is Comprehensive Coverage?

Comprehensive insurance covers the cost of repairing your vehicle for those things that were not your fault, like extreme weather that damaged your vehicle, or a deer that walked in front of you, theft, or vandalism. Comprehensive insurance tends to be much cheaper than collision. Even those with older vehicles may benefit from carrying comprehensive insurance because it is relatively cheap and will cover things like windshield replacement.

What is the Difference Between the Two Types of Car Insurance?

The main difference between having liability and full coverage insurance is that liability insurance will only pay for injuries to others and their damages that resulted from an accident where you were at fault, where full coverage will not only pay for the damages and injuries done to others but will also cover your injuries and auto damages that resulted from an accident that you caused as well.

Average Annual Car Insurance Rates in Texas by City

Additional cities in Texas you can check out.

Helpful Advice to Get Lower Car Insurance Rates

Save on Your Insurance Policy Rates With These Discounts in Dallas:

  • Raise your deductible

    If you are willing to pay more money for a deductible, in the event of an accident, then you can lower your insurance rates substantially. You can lower your premium to around 10% just by raising your deductible to around $1,000.

  • Drop Collision Coverage on Old Cars

    Dropping collision coverage on older cars can really help save you a lot, especially for cars that are more than ten years old and only worth four or five thousand dollars. Think about it, if you have an accident while driving an older car, are you really going to pay to repair it or just buy a new car?

  • Check Insurance Rates for Your Car’s Make and Model

    The make and model of your car can make a big difference in how much you pay for auto insurance. Therefore, before purchasing a new car, be sure and check the insurance rates for it as some can be much higher than others.

  • Shop Around to Check Rates from Numerous Insurance Companies

    The chart in this article should be enough proof to know that there can be a big difference in what various insurance companies charge for auto insurance. That is why it is a good idea to check rates from a number of insurance companies before deciding which plan to choose.

  • Drive Fewer Miles

    One of the questions asked when applying for auto insurance rates, is how many miles you drive regularly. This is because the more miles you drive, the more risk you are to the insurance company and the higher your insurance cost will be. Try to drive fewer miles, if possible, to save more money on your premiums.

  • Maintain a Good driving record

    Being a safe driver can not only save your life, but it can also save you a lot of money, too. There is a big difference in how much people with accidents on their record have to pay, and what those without any accidents pay. Therefore, always drive safely.

  • Live in a less populated area

    Your location matters when it comes to auto insurance rates. If you live in a highly populated area, your rates will be higher than if you live in a lower-population area. The Jefferson and New Orleans areas have some of the highest rates in Louisiana, but if you live just 30 minutes outside of the city, you can expect your rates to go down.

Find the best discounts on car insurance using this guide.

What are the Factors that Affect Your Dallas, TX Car Insurance Premiums

There are quite a few factors included in determining your cost for auto insurance such as:

  • Your location
  • Age
  • Number of violations you had in the past
  • Gender
  • Whether you are married or single
  • Your credit score
  • The plan you are seeking
  • The deductible
  • Daily miles you drive
  • The make, model, and year of the vehicle to be insured
  • Whether you live alone or with others
  • Your occupation

Use this guide to compare top insurance company rates if you have a bad driving record.

Helpful Dallas, Texas Vehicle Resources:

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