Determining which insurers offer the most affordable insurance rates for first-time drivers will involve more work than just comparing a company or two. Each auto insurer has their own guidelines for establishing rates, so let’s look at the rankings for the insurance companies with the overall best prices in Texas.
We do need to point out that Austin, TX insurance rates are influenced by many factors that may substantially change the price you pay. Improving your credit rating, buying a home instead of renting, or getting a ticket for careless driving can trigger changes in premium resulting in some companies being cheaper than others.
Best Car Insurance Prices for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,379 |
| 6 | California Casualty | $1,382 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,506 |
| 9 | Safe Auto | $1,549 |
| 10 | Nationwide | $1,585 |
| 11 | Allstate | $1,667 |
| 12 | Progressive | $1,715 |
| 13 | Amica | $1,757 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,183 |
| 17 | Encompass | $2,324 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,594 |
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Travelers quotes some of the most affordable car insurance rates in Austin at around $1,021 a year. This is $883 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance would also make the list of some of the most economical Austin, TX insurance companies.
As shown above, if you buy coverage from USAA and switched to Travelers, you might see a yearly savings of upwards of $63. Policyholders with Texas Farm Bureau could save as much as $214 a year, and Germania Mutual policyholders might cut rates by $273 a year.
To compare your rates to other Texas insurance companies, click here to start your custom quote or quote prices from the following companies.
Remember that these rates are averages across all ages of drivers and types of vehicles and and are not calculated with an exact zip code location for first-time drivers. So the car insurance company that is best suited for you may not even be in the list above. That illustrates why you need to get car insurance quotes using your own driver and vehicle profiles.
For new drivers, one of the largest considerations that help determine the amount you pay each year for auto insurance is the neighborhood you call home in Austin. Regions with more people or even just more weather-related claims tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims have the luxury of lower rates.
The table below lists the priciest cities in Texas for first-time drivers to buy auto insurance in. Austin comes in at #15 with an annual cost of $1,676 for the average policyholder, which is about $140 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Brownsville | $1,927 |
| 3 | Dallas | $1,911 |
| 4 | Laredo | $1,889 |
| 5 | Amarillo | $1,858 |
| 6 | Houston | $1,853 |
| 7 | Garland | $1,796 |
| 8 | Pasadena | $1,794 |
| 9 | Grand Prairie | $1,793 |
| 10 | Irving | $1,789 |
| 11 | Beaumont | $1,772 |
| 12 | Mesquite | $1,771 |
| 13 | San Antonio | $1,739 |
| 14 | Lubbock | $1,733 |
| 15 | Austin | $1,676 |
| 16 | Fort Worth | $1,653 |
| 17 | Carrollton | $1,647 |
| 18 | Arlington | $1,642 |
| 19 | Corpus Christi | $1,620 |
| 20 | El Paso | $1,616 |
| 21 | McKinney | $1,609 |
| 22 | Plano | $1,608 |
| 23 | Waco | $1,537 |
| 24 | Killeen | $1,533 |
| 25 | Abilene | $1,499 |
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Prices are approximated as the garaging address in Austin can modify rates significantly.
Discounts on Austin insurance rates
Auto insurance companies that provide coverage for first-time drivers may provide special discounts that may potentially lower prices by as much as 35% or more if you are eligible to receive them. Companies and the discounts they provide are included below.
- Progressive offers discounts for continuous coverage, homeowner, multi-policy, good student, and online signing.
- Farmers Insurance may offer discounts for alternative fuel, good student, pay in full, multi-car, business and professional, switch companies, and electronic funds transfer.
- Farm Bureau policyholders can earn discounts including driver training, multi-policy, renewal discount, 55 and retired, multi-vehicle, good student, and youthful driver.
- State Farm includes discounts for defensive driving training, student away at school, Drive Safe & Save, accident-free, multiple policy, and multiple autos.
- GEICO discounts include daytime running lights, driver training, military active duty, anti-lock brakes, seat belt use, multi-vehicle, and defensive driver.
- SAFECO has discounts for safe driver, accident prevention training, anti-theft, teen safe driver, drive less, and anti-lock brakes.
- Liberty Mutual may have discounts that include newly married, new move discount, multi-policy, hybrid vehicle, and exclusive group savings.
The information below shows the difference between premium costs with and without discounts being applied to the rates. The premiums assume a male driver, no claims or violations, Texas state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with paid-in-full, passive restraint, vehicle safety, good student, continuous coverage, and paperless filing discounts applied. When these discounts are applied to the policy premium, theaverage amount saved on insurance for first-time drivers is 28% or $853.
Finding the right insurer can be a challenge considering how many different companies there are to choose from in Austin. The ranking information displayed below can help you pick which companies you want to consider comparing prices from. The ratings below are for companies who write in the majority of U.S. states, so companies that focus mainly on Texas business will not be included in this list.
Top 10 Large Auto Insurers in Austin Ranked by Claims Service
- Travelers
- Nationwide
- Allstate
- State Farm
- Liberty Mutual
- GEICO
- American Family
- Esurance
- Titan Insurance
- AAA Insurance
Top 10 Large Auto Insurers in Austin Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Titan Insurance – A+
- Esurance – A+
- Progressive – A+
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
Poor driving habits will raise your insurance rates
The ideal way to get affordable insurance prices in Austin for new drivers is to drive carefully and avoid tickets and accidents. The diagram below highlights how traffic violations and at-fault accidents can impact annual premium costs for different age categories. The costs are based on a married male driver, comprehensive and collision coverage, $250 deductibles, and no additional discounts are factored in.
In the prior example, the average cost of auto insurance in Texas per year with no accidents or violations is $1,708. Get written up for one speeding ticket and the average cost increases to $1,961, an increase of $253 each year. Next add two accidents along with the one speeding ticket and the yearly cost of insurance for first-time drivers increases to an average of $4,147. That’s an increase of $2,439, or $203 per month, just for not being more responsible behind the wheel!