You have most likely watched the captivating commercials from insurers like State Farm and Farmers that say if you switch you’ll get big savings. So you just need to choose any of them, right?
That is not the case, however, as there are a whole slew of unknown elements such as how much you actually drive in a year, whether or not you own a home, whether you are male or female, and any tickets or violations. We will attempt to cover the causes of high insurance rates and should give you some help in finding cheaper rates.
For minors, one of the more important factors that are used to help calculate auto insurance rates is where you live in Austin. Areas with a lot of weather claims or more people tend to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates tend to receive cheaper rates.
The table below lists the most costly cities in Texas for drivers under 21 in which to buy car insurance. Austin shows up at #18 with an annual premium of $1,627 for coverage, which is about $136 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Houston | $1,909 |
| 3 | Laredo | $1,907 |
| 4 | Dallas | $1,893 |
| 5 | Brownsville | $1,851 |
| 6 | Amarillo | $1,840 |
| 7 | Grand Prairie | $1,811 |
| 8 | Garland | $1,796 |
| 9 | Irving | $1,772 |
| 10 | Mesquite | $1,771 |
| 11 | Pasadena | $1,740 |
| 12 | Lubbock | $1,733 |
| 13 | San Antonio | $1,722 |
| 14 | Arlington | $1,709 |
| 15 | Beaumont | $1,702 |
| 16 | Fort Worth | $1,670 |
| 17 | Carrollton | $1,664 |
| 18 | Austin | $1,627 |
| 19 | El Paso | $1,616 |
| 20 | Corpus Christi | $1,588 |
| Quote Best Rates Go | ||
Premium amounts are approximated as zip code location can revise premium rates substantially.
Deciding which companies have the cheapest auto insurance rates for drivers under 21 takes a bit more work in order to find the lowest price quote. Every insurance company has a different formula for establishing rates, so let’s take a look at the overall cheapest auto insurance companies in Austin, TX.
It’s important that readers know that Texas auto insurance rates are calculated based on many things that can increase the price you have to pay for coverage. Simply turning a year older, buying a home, or getting caught speeding can cause premium changes resulting in some companies being more affordable than others.
Best Car Insurance Prices for Minors
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,128 |
| 3 | Texas Farm Bureau | $1,247 |
| 4 | Germania Mutual | $1,256 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,424 |
| 7 | State Farm | $1,465 |
| 8 | Mercury | $1,521 |
| 9 | Safe Auto | $1,597 |
| 10 | Nationwide | $1,600 |
| 11 | Allstate | $1,667 |
| 12 | Progressive | $1,715 |
| 13 | Amica | $1,723 |
| 14 | GEICO | $2,135 |
| 15 | Home State | $2,155 |
| 16 | MetLife | $2,227 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,301 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,672 |
| Find Your Rate Go | ||
Travelers generally has some of the most affordable car insurance rates in Austin at around $1,010 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance would also be considered some of the most economical Austin, TX car insurance companies.
In the above example, if you are currently insured with USAA and switched to Travelers, you could see a yearly price reduction of about $118. Texas drivers with Texas Farm Bureau might save as much as $237 a year, and Germania Mutual policyholders might realize rate reductions of up to $246 a year.
These premium estimates are averages for all ages of drivers and types of vehicles and and are not calculated with a vehicle location for drivers under 21. So the auto insurance company that can offer you the lowest price may not even be in the top 23 companies in the list above. That illustrates why you need to get auto insurance quotes using your own driver and vehicle profiles.
Violations and accidents raise rates
The common sense way to score affordable auto insurance premiums in Texas for minors is to pay attention while driving and avoid traffic citations and accidents. The illustration below highlights how traffic violations and accidents can impact auto insurance costs for each different age group. The premiums are based on a single male driver, comp and collision included, $250 deductibles, and no discounts are factored in.
In the chart above, the average cost of car insurance in Texas per year with no accidents or violations is $2,000. Factor in one speeding ticket and the average cost hikes up to $2,252, an increase of $252 each year. Now get two accidents along with the one speeding ticket and the annual cost of auto insurance for drivers under 21 increases to an average of $4,437. That’s an increase of $2,438, or $203 per month, just for not driving attentively!
Texas auto insurance companies
Buying coverage from the right insurance company is difficult considering how many different companies there are to choose from in Texas. The information displayed below may help you pick which coverage providers to look at purchasing a policy from.
These ratings only include companies that insure vehicles nationwide, so smaller companies will not be included in these rankings. To get rate quotes and find the cheapest rates for drivers under 21, click here.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| Mercury Insurance | 97 | 96 | 88 | 89% | A+ | 93.4 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
How to find economical insurance for drivers under 21
The list below shows many penny-pinching suggestions that can help Texas drivers get low-cost car insurance.
- Avoid accidents
- You will pay more if you get tickets or have at-fault accidents
- Avoid filing small claims
- Clean up your credit rating
- Buy vehicles with good safety ratings
- Compare rates regularly and switch companies to save money
That last piece of advice is extremely necessary, as was pointed out in this piece. Rates in Austin can change considerably based on profitability, so you should be ready to switch to a new company if a cheaper rate is available.
Having a favorite company is fine, but it’s not recommended if your bullheadedness ends up costing you money that could be going to better use. Now is a great time to shop around to find cheaper auto insurance for drivers under 21.
The agents below can most likely help you determine which auto insurance coverages would be the best in your situation, as lots of drivers aren’t clear which coverage they need and would like to have professional advice when comparing insurance rates for drivers under 21. It’s not always easy to find the cheapest car insurance policy, and a professional agent can give you comfort knowing you have decent coverage if you have a claim.
To locate an agency closest to you, click the button at the bottom of the list.
Central Insurance Agency, Inc.
6000 N Lamar Blvd – Austin, TX 78752 – (512) 451-6551
Allstate Insurance: Richard Harper
1807 W Slaughter Ln Ste 400 – Austin, TX 78748 – (512) 292-7410
State Farm: Dick Clay
3006 Bee Cave Rd Suite B170 – Austin, TX 78746 – (512) 328-2340
AUSTIN AREA INSURANCE AGENCY
8711 Burnet Rd – Austin, TX 78757 – (512) 253-8726
Karen Easterling – State Farm Insurance Agent
2711 W Anderson Ln #201 – Austin, TX 78757 – (512) 454-4784