Figuring out which companies have the cheapest insurance rates for 16 year olds will require a bit more work than just getting one or two price quotes. Every auto insurer uses their own formula to set their prices, so we’ll go over the insurance companies with the overall cheapest rates in Austin, TX.
It’s important to understand that Austin insurance rates are determined by lots of factors which can substantially decrease or increase the price you have to pay. Improving your credit rating, moving to a new city, or getting into an accident can cause premium changes that can cause some rates to be more affordable than before.
Cheap Insurance Rates for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,041 |
| 2 | USAA | $1,128 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,244 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,382 |
| 7 | State Farm | $1,510 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,597 |
| 11 | Allstate | $1,701 |
| 12 | Progressive | $1,715 |
| 13 | Amica | $1,757 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,135 |
| 16 | Unitrin | $2,241 |
| 17 | MetLife | $2,249 |
| 18 | Encompass | $2,255 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,568 |
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Travelers may offer some of the best car insurance rates in Austin at around $1,041 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also make the cut as some of the lowest-priced Austin, TX car insurance companies.
As shown in the table above, if you are insured with Germania Mutual and switched to USAA, you might see annual savings of upwards of $116. Policyholders with Esurance could save as much as $237 a year, and California Casualty policyholders might reduce prices by as much as $254 a year.
To see how much you can save, click here to start your custom quote or quote prices from the following companies.
Remember that these premiums are averaged for all types of drivers and the different vehicles they drive and and are not calculated with a specific location for 16 year olds. So the insurer that is best suited for you may not even be in the top 23 companies in the list above. That underscores the importance of why you need to compare rates from multiple companies using your own individual information.
The vehicle model requiring insurance is one of the biggest factors when trying to find cheaper insurance for 16 year olds. Vehicles with higher performance, a lack of safety features, or high incidents of liability claims will cost much more to insure than more economical and safe models.
The next list estimates coverage rates for a handful of the cheapest automobiles to buy insurance for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX-P 4-Dr Sedan | $4,021 |
| Honda CR-V EX 4WD | $4,059 |
| Ford Escape XLT 4WD | $4,064 |
| Toyota Prius | $4,345 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $4,487 |
| Ford F-150 XLT Crew Cab 2WD | $4,526 |
| Toyota Tacoma 4WD | $4,532 |
| Dodge Grand Caravan CV | $4,526 |
| Ford Explorer XLT 4WD | $4,533 |
| Ford Edge Limited 2WD | $4,734 |
| Chevrolet Impala LS | $4,739 |
| GMC Sierra SLE Regular Cab 2WD | $4,773 |
| Toyota RAV4 Limited 2WD | $4,783 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $4,811 |
| Chevrolet Malibu LT | $4,818 |
| Ford Focus SES 4-Dr Sedan | $4,979 |
| Hyundai Elantra Blue 4-Dr Sedan | $4,986 |
| Honda Odyssey EX-L W/Rear Entertainment | $5,017 |
| Toyota Camry XLE | $5,023 |
| Toyota Corolla LE | $5,017 |
| Jeep Grand Cherokee Limited 2WD | $5,056 |
| Chevrolet Equinox LTZ AWD | $5,064 |
| GMC Sierra 2500HD SLE Regular Cab 4WD | $5,056 |
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Prices above based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in vehicle garaging location which can raise or lower premiums noticeably.
Based upon the rates shown, we can presume that vehicles like the Honda Accord, Honda CR-V, Ford Escape, and Toyota Prius are likely to be a few of the most budget-friendly vehicles to insure for new drivers. Car insurance rates will trend higher because of the fact that there is more risk for 16 year olds, but in general those particular models will tend to have the least expensive rates compared to all other vehicles.
Violations and accidents raise rates
A great way to snag good insurance premiums in Austin for new drivers is to be a safe driver and avoid accidents and traffic violations. The information below highlights how speeding tickets and fender-benders can increase insurance costs for each age group. The premium estimates are based on a married male driver, full physical damage coverage, $1,000 deductibles, and no discounts are applied to the premium.
The chart shows that the average cost of a car insurance policy per year with no accidents or violations is $1,834. Add in one speeding ticket and the average cost surges to $2,112, an increase of $279 each year. Then add one accident along with the one speeding ticket and the yearly cost of insurance for 16 year olds jumps again to an average of $2,885. That’s an increase of $1,052, or $88 per month, just for not being attentive to the road!
Liability-only versus full coverage
Lowering the price of insurance is probably important to most drivers, and one of the easiest ways to lower the cost of insurance for 16 year olds is to only pay for liability coverage. The information below illustrates the comparison of yearly insurance costs when comparing full coverage to liability only. The rates are based on no violations or claims, $250 deductibles, drivers are not married, and no discounts are applied.
As an overall average, full coverage costs an extra $2,671 per year over having just liability coverage. That brings up the question if buying full coverage is worth the money. There is no specific rule of when to stop paying for comprehensive and collision coverage on your policy, but there is a guideline you can use. If the annual cost of coverage is more than around 10% of the settlement you would receive from your company, then you might consider buying liability only.
For example, let’s assume your vehicle’s replacement cost is $4,000 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $3,000 after paying the physical damage deductible. If premiums are more than $300 annually to have full coverage, then you may need to consider dropping full coverage.
There are some situations where dropping full coverage is not in your best interest. If you still owe money on your vehicle, you are required to maintain full coverage as part of the loan requirements. Also, if you can’t afford to buy a different vehicle if your current one is damaged, you should keep full coverage.
Get discounts on Austin car insurance rates
Insurers that offer quotes for 16 year olds may also offer special discounts that could potentially reduce rates by as much as 25% or more if you are eligible. Popular insurance companies and some of their more popular discounts include:
- AAA discounts include good driver, multi-policy, good student, pay-in-full, education and occupation, and anti-theft.
- Progressive has discounts for online quote discount, online signing, multi-policy, continuous coverage, multi-vehicle, and homeowner.
- State Farm includes discounts for defensive driving training, driver’s education, student away at school, good driver, anti-theft, Steer Clear safe driver discount, and good student.
- Esurance has savings for anti-theft, DriveSense, multi-policy, multi-car, Pac-12 alumni, and safety device.
- Nationwide offers discounts for business or organization, multi-policy, family plan, good student, and defensive driving.
The example below shows the comparison of premium costs with and without discounts applied. The data is based on a female driver, no claims or driving violations, Texas state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with anti-theft, passive restraint, paperless filing, continuous coverage, paid-in-full, and good student discounts applied. When discounts are factored in, theaverage yearly reduction on insurance for 16 year olds is 28% or $742.
If you prefer to have a professional recommendation when comparing insurance rates for 16 year olds, the insurance agencies listed below can most likely answer your questions and help you decide which coverages and limits you need. To locate an agency by location nearest to you, click the button after the list.
- Stanley Insurance Agency
512 W Stassney Ln #113 – Austin, TX 78745 – (512) 445-5555 - Stuart Butts Agency Nationwide – Lezam insurance
700 Rio Grande St c – Austin, TX 78701 – (512) 837-5000 - Allstate Insurance: Richard Harper
1807 W Slaughter Ln Ste 400 – Austin, TX 78748 – (512) 292-7410 - Allstate Insurance: Fleming and Conway Agency
3435 Greystone Dr Ste 107 – Austin, TX 78731 – (512) 345-0005 - Greater Austin Insurance Inc
11824 Jollyville Rd # 202 – Austin, TX 78759 – (512) 250-1777
View map of Austin, TX insurance agents
How to find cheaper auto insurance for 16 year olds
The list below shows a few money-saving ideas that can help you buy lower-cost car insurance.
- Pay lower rates with good credit
- Prevent rate increases by staying accident-free
- Drive safely
- Buy vehicles with good safety ratings
- Try to remain claim-free
- Compare prices as often as possible
That last piece of advice is highly valuable, as was stressed in the prior information. Coverage rates go up and down frequently, so don’t be unwilling to change insurance companies if a lower price can be found. Brand loyalty is great, but it’s not a great idea if that inflexibility results in costing you lots of hard earned cash every month. Take a few minutes and compare prices to find cheaper auto insurance for 16 year olds in Austin.