Non Owners Car Insurance Texas - Car insurance is mandatory in Texas. If you're a low-income driver, you may be inclined to save money by buying the minimum car insurance, but we've found that rates can vary from one insurance company to the next, even for a minimum policy. In fact, the difference between the average of the most expensive and most affordable auto insurance in Texas is more than $1,400 a year.
Below, you'll find our analysis of the cheapest insurance coverage for low-income drivers and their families in the Lone Star State.
Non Owners Car Insurance Texas
On average, the cheapest auto insurance company in Texas is USAA, with policies as low as $34 per month for our sample drivers. But USAA is only available to current and former military members and their families.
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Fred Loya Insurance is the cheapest company without eligibility requirements, with an average cost of $45 per month.
For low-income drivers, purchasing required Texas auto insurance can cut into your budget, especially if you use a more expensive auto insurance company.
For example, say you earn $24,000 a year — or $2,000 a month — after taxes. With Loya or USAA you will spend 2% of your income on car insurance, but with Allstate or MetLife you will spend 6% to 8% of your income on car insurance.
Below, we've listed the nine insurance companies sampled in our research from cheapest to most expensive monthly average. We also looked at how much income a driver would dedicate to car insurance if he earned $2,000 a month after taxes.
Auto Owners Insurance
*USAA is only available to current and former military members and their families. The sample budget is for a driver who earns $2,000 a month after taxes.
Looking for a policy with more coverage than the minimum required for Texas? Check out our breakdown of the cheapest auto insurance in Texas to see how rates change when you add more coverage to your policy.
Low-income drivers in Texas don't have many options when it comes to affordability. But the most affordable insurance company is not necessarily the best. If you are willing or able to pay a large portion of your budget for a better service experience, you may want to consider choosing an insurance company with a strong customer service reputation.
For example, Chubb is relatively affordable in Texas: it costs an average of $63 a month, just $18 more than Fred Loya's insurance. But based on customer complaints, Chubb's has a reputation for service and is a better choice than Fred Loya. In fact, Fred Loya has the highest rate of customer complaints among our sample insurance companies.
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Low-income drivers who value customer service and can afford to spend about $20 more per month on car insurance should consider this trade-off.
Companies are ranked by the rate of customer complaints as measured by the Complaint Index calculated by the National Association of Insurance Commissioners. A lower complaint index means a company is more likely to have good customer service.
Texas has the same minimum auto insurance coverage requirements for every driver. Texans must carry coverage with at least the following limits:
If you're a low-income driver and just looking for savings, a policy with minimum state requirements will be the cheapest you can buy. But you should note that liability insurance with this limit may not provide adequate coverage in the event of a major accident.
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Liability insurance will not cover damage to your car; You need comprehensive and collision insurance for that. And while gap insurance isn't required by law, it can also be a good investment. Especially if you've just bought a new car, or if your vehicle is underwater - meaning it's worth less than the amount owed on your car loan.
Rates were taken for nine companies in thousands of Texas cities. Our sample driver is a 30-year-old male who drives a 2015 Honda Civic EX. Unless otherwise stated, rates are for this driver, who has a below-average credit record and is quoted for a minimum coverage policy.
To get an insurance quote over the phone, call: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! Non-owner vehicle insurance is for drivers who don't own a car but still want coverage when they rent a vehicle or drive someone else's car. Getting a quote for non-owner coverage is more difficult than standard car insurance, as some insurance companies do not offer this policy.
However, the major insurance companies commonly known to offer non-owner auto insurance coverage include Geico, State Farm and Progressive. Of these companies, Geico offers the cheapest non-owner auto insurance policy quotes, 26% lower than the average annual cost.
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Drivers can expect lower costs for non-owner car insurance with Geico, based on the liability insurance rates quoted to our profiled drivers. At $621 per year, Geico's average quote is 26% cheaper than the average among the companies we studied — which is $834. Choosing State Farm or Progressive over Geico can cost you $285 to $354 more per year.
While Geico's rates are the cheapest, the best non-owner auto insurance company for you will depend a lot on where you live, as the insurers willing to offer this type of policy can vary in any given area. To find the cheapest non-owner insurance rates, you need to call multiple insurance companies in your area and compare quotes.
Non-owner car insurance is much cheaper than a regular insurance policy. In our research, non-owners insurance costs 72% less than a full coverage policy. In Los Angeles, we estimate that non-owner auto insurance costs $2,565 less per year than a policy that includes comprehensive and collision coverage.
Non-owner car insurance is usually cheaper than a regular full coverage auto insurance policy because it does not cover vehicle repairs or replacements; It only provides liability insurance. Comprehensive and collision insurance – which is included in a full coverage policy – covers the repair and replacement of your own vehicle after an accident, regardless of damage. This type of coverage is not required if you do not own a vehicle. It can be one of the most expensive components that make up your premium—at least half the cost of a full coverage policy.
Best Cheap Non Owner Car Insurance
Non-owner car insurance is also cheaper than regular policies because insurance companies assume you will drive less often and are less likely to file a claim. One of the questions insurance companies often ask is how many miles do you plan to drive in a year. People who drive more often have a higher risk of getting into an accident, causing insurance companies to pay for claims. Insurers will assume that people who don't own a car don't drive often, and will therefore charge less for a non-owner's policy.
You may not qualify for a non-owner car insurance policy if you have regular access to the car. For example, if you don't own a car but live with a roommate who does, you may not qualify for a named non-owner policy. In this situation, your roommate's insurance may cover you if you occasionally use their car with their permission. If you lie about normal access to the car, the policy will not cover you in the event of an accident that is your fault.
To get a non-owner auto insurance quote, you will need to contact the insurance company that provides service in your area directly, as most companies do not offer online quotes. Additionally, insurance companies may require you to work directly with a local agent or meet at a nearby office.
Because non-owner auto insurance policies are common, major insurance companies may not offer you coverage. Instead, the insurance company may refer you to a non-standard car insurance company. Some examples of these insurance companies include Direct Insurance, General Insurance and Titan Insurance.
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Non-standard car insurers specialize in offering cover to high-risk drivers, and those seeking non-owner car insurance are sometimes considered high-risk. If you do not currently have a vehicle insurance policy or have not had one for a long time, insurance companies will consider you to be a higher risk than drivers who maintain continuous coverage. This is true even if you don't need car insurance - which is highly likely if you're looking for a non-owner car insurance policy.
Additionally, a non-standard auto insurance policy may be the only option if you are looking for an SR-22 non-owner auto insurance policy. This is often the case for drivers who have had their license suspended (often for DUI), do not own a car, and need to file an SR-22 to reinstate their license. The SR-22 is a form filed by the insurance company on your behalf to prove that you have liability insurance.
Insurance rates are estimated based on liability coverage quotes and deducting the typical cost difference for non-owner auto insurance policies. We sampled rates in three cities: Los Angeles, Chicago, and New York City.
To get an insurance quote over the phone, call: (855) 596-3655 | Agents are available 24 hours a day, 7 days a week! When your license is suspended after a serious offense, such as a DUI or driving without insurance, your state may require you to file an SR-22 form.
Cheapest Texas Car Insurance For Low Income Drivers
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