Deciphering which companies offer the most affordable insurance rates for teenagers involves a bit more work in order to find the lowest price quote. Each auto insurer has a proprietary method to determine premium rates, so let’s rank the insurance companies that tend to be cheaper in Texas.
It’s important that readers know that Austin insurance rates are impacted by many things that control your annual premium. Improving your credit rating, buying a home instead of renting, or getting a ticket for running a stop sign can cause premium changes that can cause some rates to be much cheaper than others.
Compare Cheap Insurance Quotes for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,041 |
| 2 | USAA | $1,128 |
| 3 | Texas Farm Bureau | $1,247 |
| 4 | Germania Mutual | $1,256 |
| 5 | Esurance | $1,379 |
| 6 | California Casualty | $1,382 |
| 7 | State Farm | $1,465 |
| 8 | Mercury | $1,476 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,613 |
| 11 | Progressive | $1,715 |
| 12 | Allstate | $1,718 |
| 13 | Amica | $1,775 |
| 14 | GEICO | $2,093 |
| 15 | Home State | $2,155 |
| 16 | MetLife | $2,227 |
| 17 | Unitrin | $2,264 |
| 18 | Encompass | $2,301 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,646 |
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Travelers may have some of the best car insurance rates in Austin at around $1,041 each year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the cheapest Austin, TX car insurance companies.
As the rates illustrate above, if you are a customer of Germania Mutual and switched to USAA, you might realize savings of in the vicinity of $128. Customers with Esurance might save as much as $251 a year, and California Casualty customers might realize rate reductions of up to $254 a year.
Remember that these prices are averaged across all drivers and vehicles and are not factoring in a vehicle location for teenagers. So the company that can offer you the best price may not even be in the top 23 companies in the list above. That underscores the importance of why you need to get auto insurance quotes using your own personal information and vehicle type.
For teen drivers, one of the big factors that determine the amount you pay for auto insurance is where you keep your vehicle. More populated areas tend to have higher rates, whereas areas with less congestion can boast about having cheaper rates.
The information below sorts the highest-priced areas in Texas for teenagers in which to buy car insurance. Austin is ranked #16 with an annual rate of $1,659 for the average insurance policy, which is approximately $138 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,908 |
| 3 | Dallas | $1,855 |
| 4 | Houston | $1,853 |
| 5 | Laredo | $1,851 |
| 6 | Amarillo | $1,840 |
| 7 | Mesquite | $1,807 |
| 8 | Garland | $1,778 |
| 9 | Irving | $1,772 |
| 10 | Pasadena | $1,758 |
| 11 | Grand Prairie | $1,757 |
| 12 | Lubbock | $1,733 |
| 13 | San Antonio | $1,722 |
| 14 | Arlington | $1,709 |
| 15 | Beaumont | $1,702 |
| 16 | Austin | $1,659 |
| 17 | Fort Worth | $1,653 |
| 18 | Carrollton | $1,647 |
| 19 | McKinney | $1,625 |
| 20 | Plano | $1,608 |
| 21 | Corpus Christi | $1,588 |
| 22 | El Paso | $1,584 |
| 23 | Waco | $1,537 |
| 24 | Killeen | $1,518 |
| 25 | Abilene | $1,515 |
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Rates are comparative as the vehicle garaging location can change premiums greatly.
The type of vehicle you are insuring is probably the largest consideration when comparing quotes for the most economical auto insurance for teenagers. Vehicles with economical engines, advanced safety features, or low incidents of liability claims will cost substantially less to insure than fast, unsafe models. The next table presents auto insurance rates for some of the most budget-friendly automobiles to buy insurance for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $3,636 |
| Hyundai Elantra GLS Touring Station Wagon | $3,642 |
| Volkswagen Jetta S 2.5 Station Wagon | $3,899 |
| Ford Escape Limited 4WD | $3,904 |
| Toyota Prius | $3,935 |
| Ford Explorer XLT 4WD | $4,084 |
| Ford F-150 XLT Crew Cab 2WD | $4,089 |
| Chevrolet Impala LS | $4,280 |
| Honda Odyssey EX W/Rear Entertainment | $4,290 |
| Jeep Grand Cherokee Laredo 2WD | $4,314 |
| Toyota RAV4 Limited 4WD | $4,320 |
| Chevrolet Malibu LS | $4,314 |
| Toyota Camry LE | $4,323 |
| Compare Cheap Rates Go | |
Data assumes single female driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in Austin, TX location which can affect price quotes considerably.
Based upon the table data, we can expect cars like the Honda CR-V, Hyundai Elantra, Volkswagen Jetta, and Ford Escape are most likely going to be the most budget-friendly vehicles to insure for teen drivers. The price of auto insurance will be more costly because there is more liability exposure for teenagers, but in general those makes and models will most likely have the lowest prices compared to other types of vehicles.
Reckless driving habits raise insurance rates
The ideal way to enjoy good insurance premiums in Austin for teen drivers is to be a cautious driver and avoid accidents and traffic violations. The illustration below illustrates how traffic citations and at-fault accidents can increase insurance premiums for different insured age categories. Data assumes a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are applied to the premium.
The data charted above shows the average cost of car insurance in Texas per year with no accidents and a clean driving record is $2,095. Factor in one speeding ticket and the average cost increases to $2,373, an increase of $278 each year. Then add in two accidents along with the one speeding ticket and the annual cost of insurance for teenagers increases to an average of $4,700. That’s an increase of $2,605, or $217 per month, just for not being a responsible driver!
The chart below demonstrates how choosing different deductibles can impact premium costs when trying to find cheap insurance for teenagers. The costs are based on a married male driver, full coverage, and no other discounts are factored in.
As shown above, a 40-year-old driver could pocket $264 a year by increasing from a $100 deductible to a $500 deductible, or save $402 by choosing a $1,000 deductible. Younger drivers, like the 20-year-old example, could reduce their rates as much as $884 or even more just by using higher deductibles. If you do raise deductibles, it will be important to have enough in a savings account to enable you to pay the extra out-of-pocket expense, which deters some people from using high deductibles.
Get discounts on Austin car insurance rates
Insurance providers that provide policies for teenagers may also give you discounts that could potentially reduce rates by as much as 35% if you qualify for them. Companies and some of their more popular discounts are outlined below.
- State Farm policyholders can earn discounts including good driver, defensive driving training, multiple policy, multiple autos, Steer Clear safe driver discount, and accident-free.
- Farmers Insurance may have discounts that include multi-car, bundle discounts, alternative fuel, early shopping, and homeowner.
- GEICO has discounts for good student, driver training, five-year accident-free, multi-vehicle, defensive driver, daytime running lights, and seat belt use.
- American Family may include discounts for early bird, multi-vehicle, good driver, bundled insurance, air bags, and accident-free.
- Nationwide has savings for business or organization, family plan, Farm Bureau membership, accident-free, and multi-policy.
- Progressive includes discounts for multi-policy, good student, continuous coverage, homeowner, online signing, online quote discount, and multi-vehicle.
The information below shows the comparison of insurance prices with and without policy discounts. The data is based on a male driver, no violations or accidents, Texas state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with continuous coverage, good student, anti-theft, passive restraint, vehicle safety, and paperless filing discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on insurance for teenagers is 28% or $871.