Dallas, Texas, ranks as the third most populous city in the state and the ninth in the entire United States. Moreover, it is recognized as one of the cities with a higher level of risk when it comes to driving. Consequently, possessing valid auto insurance holds significant importance for residents of Dallas. Way.com has dedicated considerable efforts to gather information on cost-effective car insurance rates specifically tailored for individuals who commute by car within the city. Regardless of whether you reside in Oak Lawn or Uptown, we are here to provide you with the necessary assistance in obtaining the finest car insurance available in Dallas, Texas.
Insurance is an agreement between an individual or a business and an insurance company, aimed at offering financial security and minimizing the potential risks linked to specific circumstances or occurrences. A wide range of insurance options are accessible, encompassing health, dental and vision, life, auto, and legal insurance.
Auto insurance functions as a formal agreement between you and an insurance provider, where you commit to making premium payments in return for coverage against potential financial setbacks resulting from a car accident or any other harm to the vehicle.
How much does car insurance cost in Dallas?
Drivers in Dallas might notice that car insurance can be expensive, as the average six-month premium is $1,170 or $195 per month. These prices exceed both the state average in Texas and the national average ($990 and $742 respectively). Our statistics indicate that 43% of our Dallas customers feel they are paying too much for their car insurance.
Consider GEICO as a viable option for affordable car insurance in Dallas. Our 2023 data reveals that the company offers rates nearly 30% lower than the standard Dallas rate, with a six-month policy priced at just $822. Whether you are satisfied with your current insurer or considering a change, The Zebra can assist you in finding the most suitable policy for your Dallas needs. We will consider various factors like your age, credit score, and location to ensure you receive the most competitive rates.
Car Insurance in Dallas vs. Texas Average 6 Months Premium
Dallas Average $1,170
Texas Average $990
The cheapest car insurance companies in Dallas
1. GEICO secures the top spot as the most affordable car insurance option in Dallas, with a monthly rate of $137 or $822 for a six-month policy.
2. Nationwide takes the second spot on our list, with a monthly cost of $150 ($902 for six months).
3. State Farm claims the third position, with an average cost of $155 per month or $932 for a six-month policy in Dallas.
Average car insurance in Dallas by rating factor
Car insurance companies employ a range of criteria to calculate the price of your policy. These criteria, including age, gender, location, and credit score, aid insurers in evaluating the level of risk you present as a driver.
Although many insurance providers consider similar rating factors, the effect they have on your premium can differ significantly.
To secure cost-effective and all-encompassing car insurance, it is crucial to compare quotes from various providers. This will enable you to discover the most favorable rates based on your individual rating factors.
Auto insurance premiums by age in Dallas
Insurance companies in Dallas take age into serious consideration when determining car insurance rates. Younger drivers tend to have less experience behind the wheel, resulting in higher chances of accidents. This information is utilized by insurance companies to evaluate the risk of accidents for drivers, leading to higher insurance premiums for teenage drivers in Dallas. The contrast in insurance rates between teenagers and drivers in their twenties exceeds $4,000 annually in Dallas, making it the most significant difference among age groups.
Cheapest car insurance companies for teen drivers in Dallas
Company Average 6 Months Premium
Texas Farm Bureau $1,984
GEICO $2,089
USAA $2,218
State Farm $3,149
Nationwide $3,361
Progressive $6,449
Allstate $6,785
Auto insurance premiums for minimum coverage in Dallas
In Dallas, 35% of drivers choose basic coverage, which may not provide adequate protection in case of an accident. It is advisable to compare quotes from various insurance companies to determine the most suitable coverage level for your needs.
Full coverage car insurance, which includes collision and comprehensive coverage, can offer additional peace of mind while driving. However, it is important to be aware that this type of coverage usually comes with a deductible and a higher premium. To balance costs and protection, consider raising your deductible when selecting full coverage.
Roadside assistance and uninsured motorist coverage are extra options to think about when buying an insurance policy. These options can help protect you against uninsured drivers and provide an additional layer of security in case of an accident. While your rates may go up, experts at The Zebra recommend including them along with full coverage.
Cheapest car insurance companies for minimum coverage in Dallas
Company Average 6 Months Premium
GEICO $317
USAA $360
Texas Farm Bureau $437
Allstate $441
State Farm $441
Nationwide $476
Progressive $509
Dallas car insurance rates by credit score
Your credit score plays a crucial role in determining your auto insurance premium in Dallas. Despite having a spotless driving history, a low credit score may lead to higher rates. Insurers have observed that individuals with lower credit scores are more likely to make claims and have accidents, ultimately driving up insurance expenses.
Auto insurance rates with an at-fault accident
At-fault and collision-type accidents are the most common types of auto insurance claims in Dallas. If you are deemed responsible for an accident, it is likely that your insurance rates will go up.
Driving safely and avoiding accidents and violations is essential not only in Dallas but also in any other location. Violations can affect your rates in various ways, with most remaining on your record for a few years. Major violations such as DUI or reckless driving can result in significant rate hikes that may stay on your record for an extended period. On the other hand, minor infractions like failing to signal or running a stop sign may not have as significant of an impact. The key is to steer clear of violations altogether and maintain a clean driving record to secure the most competitive rates available.
Dallas car insurance rates by violation
Below, you can view how various violations and claims will affect your rate in Dallas.
Car insurance premiums rise following violations and citations in Dallas.
Accident/Violation Average 6 Month Premium % Rate Increase $ Rate Increase
None $1,170 0% $0
One Med/PIP claim $1,180 1% $10
One comp claim $1,243 6% $73
Not-at-fault accident $1,249 7% $79
Failure to show documents $1,250 7% $80
Driving with expired registration $1,259 8% $89
Two Med/PIP claims $1,263 8% $93
Failure to wear a seat belt $1,267 8% $97
Driving without lights $1,268 8% $98
Child safety restraint $1,275 9% $105 Texting while driving $1,297 11% $127
Cell phone violation $1,297 11% $127
Speeding 11 – 15 MPH over limit $1,300 11% $130
Speeding 16 – 20 MPH over limit $1,300 11% $130
Speeding 6 – 10 MPH over limit $1,300 11% $130
Driving too slowly $1,305 12% $135
Speeding in school zone $1,305 12% $135
In 65 MPH zone $1,308 12% $138
Failure to stop at a red light $1,309 12% $139
Two comp claims $1,311 12% $141
Improper passing $1,312 12% $142
Speeding 21 – 25 MPH over limit $1,313 12% $143
Wrong way/wrong lane $1,316 12% $146
Failure to yield $1,318 13% $148
Illegal turn $1,318 13% $148
Following too closely $1,320 13% $150
Passing school bus $1,327 13% $157
Operating a vehicle without permission $1,334 14% $164
At-fault accident – less than $1000 $1,453 24% $284
Driving with a suspended license $1,645 41% $475
Racing $1,651 41% $481
Reckless driving $1,676 43% $506
Leaving scene of an accident/hit and run $1,706 46% $536
Open container $1,726 48% $556
At-fault accident – $1000-$2000 $1,860 59% $690
At-fault accident – greater than $2000 $1,867 60% $697
Refusal to submit to a chemical test $1,939 66% $769
DUI $1,961 68% $791
Why is car insurance in Dallas so expensive?
Auto insurance rates in Dallas can be quite costly for various reasons. The first factor contributing to this is the city’s expanding population and the subsequent rise in traffic volume. With more vehicles on the road, the likelihood of accidents and subsequent insurance claims increases. Moreover, the escalating expenses associated with vehicle repairs and medical treatments further add to the overall cost of insurance coverage.
Insurance companies in Dallas also face the challenge of covering their operational expenses, which necessitates an increase in insurance rates. These costs include administrative expenses, employee salaries, and other overheads. Consequently, policyholders end up bearing a portion of these costs through higher premiums.
Apart from these general factors, the type of vehicle an individual drives and their personal driving history can also impact insurance rates. Certain vehicles, such as luxury cars or sports cars, tend to have higher insurance premiums due to their higher repair costs and increased risk of theft. Similarly, drivers with a history of accidents or traffic violations are considered higher risk, leading to elevated insurance rates.
Read more here How to Get Car Insurance For Foreign Drivers in USA | Best Guide
In summary, regardless of a driver’s history, insurance rates in the Dallas area can be expensive due to the city’s growing population, increased traffic, rising vehicle repair and medical expenses, as well as the need for insurance companies to cover their operational costs.
Costs
Numerous urban areas have witnessed a rise in the cost of living for their inhabitants in recent years, leading to a corresponding increase in operating expenses for car insurance companies. As a result, these additional costs are transferred to customers in the form of elevated car insurance premiums.
Location
The location of your residence is a key factor in determining the cost of your car insurance, extending beyond just the city and state. Dallas has a variety of ZIP codes, some of which have higher rates of crime and theft. Additionally, certain areas have a larger number of uninsured drivers. Generally, individuals living in high-crime neighborhoods will pay more for car insurance compared to those in safer areas. Below are the most expensive and most affordable ZIP codes in Dallas for car insurance rates.
Expensive Dallas ZIP codes: 75242, 75241, 75215, 75216, 75227
Affordable Dallas ZIP codes: 75098, 75287, 75252, 75248, 75234.
Weather
Insurance companies face higher risks of loss in areas that are prone to hurricanes, flooding, or other natural disasters. Therefore, residents living in these regions should anticipate slightly higher insurance premiums. Comprehensive coverage includes protection against weather-related damage, making it advisable for individuals in Dallas who are worried about potential harm caused by severe weather to opt for this type of coverage.
Drivers
Insurance companies assume the risk of drivers, which includes potential claim costs. This implies that even if you are a safe driver, you might face increased premiums due to the elevated risk presented by other drivers. It is crucial to bear this in mind when searching for car insurance. Dallas also experiences a high number of uninsured drivers, so in case of an accident with an uninsured driver, you may have to cover the expenses yourself. It is advisable to consider adding uninsured motorist coverage (UMPD) to your auto insurance policy. UMPD can offer protection in case of an accident involving a driver without insurance or with insufficient insurance to cover the damages.
Dallas Car Insurance Coverage Requirements
Drivers in Dallas must ensure they possess an auto insurance policy that satisfies the minimum coverage requirements set by the state of Texas. The state’s minimum coverages consist of bodily injury liability at $30,000 per person and $60,000 per accident, property damage liability at $25,000, personal injury protection (PIP) at $2,500 unless declined, uninsured motorist bodily injury at $30,000 per person and $60,000 per accident unless declined, and uninsured motorist property damage at $25,000 with a $250 deductible unless declined. Even though these are the minimum coverages mandated by Texas, it is important to remember that each individual’s insurance needs may vary. Visit our Coverage Calculator for a customized recommendation.
Bundling insurance policies in Dallas
In Dallas, where insurance rates can be high, there are still ways to save on your premiums. One effective method is to bundle your home and car insurance together. By combining these policies, you may qualify for a discount of 10% or more. When comparing rates, be sure to ask about bundling discounts to help reduce your insurance costs. Remember, even though factors like your driving record and location can affect your car insurance rates, there are still steps you can take to lower them. Shopping around for the best rates is one of the most effective ways to save money, as different insurers may offer different prices for similar coverage levels. Stay proactive by keeping your information up to date with your insurance company and considering switching providers if you find a better deal that meets your needs. It’s also a good idea to get new auto insurance quotes every six months to a year. By making informed choices, you have the power to save money on your car insurance.
Conclusion
Car insurance costs in Dallas depends on various factors such as the driver’s age, driving history, type of vehicle, coverage options, and the insurance company chosen. Generally, car insurance rates in Dallas can vary significantly from person to person. However, it’s important to note that Dallas is often considered to have higher-than-average insurance premiums compared to other cities in Texas due to factors like population density, traffic congestion, and the frequency of accidents.
To get an accurate estimate of car insurance costs in Dallas, individuals should request quotes from multiple insurance providers, consider bundling policies, inquire about available discounts, and review their coverage needs carefully. Additionally, maintaining a clean driving record and opting for a higher deductible may help reduce insurance premiums. Ultimately, the cost of car insurance in Dallas will depend on individual circumstances and preferences.