This would be a much shorter article if we could simply give you the name of the company that has the cheapest policy rates in Texas. That is not the case, however, as there are a lot of unknown aspects like whether or not you have had gaps between policies, the type of vehicle you drive, and if you have any tickets or accidents. The content below will cover the causes of high insurance rates and should give you a good start in finding the cheapest insurance.
For teen drivers, one of the big components that are looked at to determine the price you pay for insurance is the neighborhood you call home. Regions with larger populations or more claims likely pay more, whereas less populated areas receive better rates.
The following table lists the highest-priced areas in Texas for 18 year olds to buy auto insurance in. Austin shows up at #17 with an annual cost of $1,627 on average, which is approximately $136 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Laredo | $1,907 |
| 3 | Dallas | $1,893 |
| 4 | Amarillo | $1,858 |
| 5 | Houston | $1,853 |
| 6 | Brownsville | $1,851 |
| 7 | Mesquite | $1,825 |
| 8 | Pasadena | $1,812 |
| 9 | Garland | $1,796 |
| 10 | Grand Prairie | $1,793 |
| 11 | Irving | $1,789 |
| 12 | San Antonio | $1,722 |
| 13 | Beaumont | $1,720 |
| 14 | Lubbock | $1,665 |
| 15 | Arlington | $1,642 |
| 16 | El Paso | $1,632 |
| 17 | Austin | $1,627 |
| 18 | Corpus Christi | $1,620 |
| 19 | McKinney | $1,609 |
| 20 | Fort Worth | $1,604 |
| 21 | Carrollton | $1,598 |
| 22 | Plano | $1,576 |
| 23 | Waco | $1,522 |
| 24 | Killeen | $1,518 |
| 25 | Abilene | $1,499 |
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Prices are estimated as the specific geographic location can revise prices substantially.
Determining which company quotes the most affordable auto insurance rates for 18 year olds requires a little more effort in order to find the lowest price quote. Every car insurance company has a unique approach for determining rates, so let’s take a look at the auto insurance companies that tend to be cheaper in Texas.
Find Cheaper Auto Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,117 |
| 3 | Texas Farm Bureau | $1,247 |
| 4 | Germania Mutual | $1,256 |
| 5 | California Casualty | $1,382 |
| 6 | Esurance | $1,407 |
| 7 | Mercury | $1,476 |
| 8 | State Farm | $1,495 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,613 |
| 11 | Progressive | $1,698 |
| 12 | Allstate | $1,718 |
| 13 | Amica | $1,775 |
| 14 | Home State | $2,092 |
| 15 | GEICO | $2,135 |
| 16 | MetLife | $2,161 |
| 17 | Encompass | $2,232 |
| 18 | Unitrin | $2,264 |
| 19 | 21st Century | $2,494 |
| 20 | Titan | $2,672 |
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Travelers may offer some of the cheapest car insurance rates in Austin at around $1,010 each year. This is $894 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty are also some of the more affordable Austin, TX car insurance companies.
In this example, if you buy coverage from USAA and switched to Travelers, you could earn an annual premium reduction of in the vicinity of $107. Insureds with Texas Farm Bureau could save as much as $237 a year, and Germania Mutual policyholders might lower prices by $246 a year.
Understand that those estimates are averaged across all types of insureds and vehicles and do not take into consideration an exact location for 18 year olds. So the company that is most affordable for your situation may not even be in the top 23 companies shown above. That emphasizes why you need to quote rates from as many companies as possible using your own specific driver information and vehicle.
The information below shows how choosing a deductible can influence insurance costs when getting quotes for cheap insurance for 18 year olds. The rate quotes are based on a single female driver, comprehensive and collision coverage, and no discounts are applied.
A 50-year-old driver could lower their car insurance rates by $302 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $456 by selecting a $1,000 deductible. Young drivers, like the Age 20 category, could roll back prices $766 annually by using higher deductibles when buying full coverage.
If you do decide to increase your deductibles, it will be required to have additional funds squirreled away to enable you to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Which auto insurance company is best in Austin?
Finding a highly-rated auto insurance provider is hard considering how many companies are available to choose from in Texas. The rank data displayed below can help you choose which auto insurance companies you want to consider when comparing rate quotes.
The rankings below are only comprised of large, nationwide insurance companies, so smaller companies that only insure vehicles in Texas will not be included in the list. If you’d like to compare prices from these companies and more, follow this link.
| 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 |
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Data Source: Insure.com Best Car Insurance Companies
Safe drivers Austin pay cheaper rates
In a perfect world, the best way to receive affordable auto insurance prices in Texas for teen drivers is to drive cautiously and maintain a clean driving record. The example below highlights how traffic violations and at-fault claims drive up insurance costs for different age groups of insureds. The premiums assume a married male driver, full coverage, $100 deductibles, and no discounts are taken into consideration.
The data charted above shows the average cost of a car insurance policy in Austin per year with a clean driving record and no accidents is $1,864. Get written up for two speeding tickets and the average cost surges to $2,579, an increase of $715 each year. Next add two accidents along with the two speeding tickets and the annual cost of auto insurance for 18 year olds goes up to an average of $5,112. That’s an increase of $3,247, or $271 per month, just for not being attentive to the road!
Why are you paying too much for Austin car insurance?
Texas auto insurance rates are influenced by many factors that can increase your annual premium. Simply turning a year older, getting married, or getting a ticket for running a stop sign can trigger rate changes that can cause some rates to be cheaper than before. In addition, insurance companies modify rates without warning to reflect underwriting profits or losses. Unexpectedly high claims can result in additional premium costs, while profitable underwriting may cause cheaper Austin car insurance rates.
For example, the data below shows which company has the cheapest car insurance in Austin, TX for a 45-year-old male driver with no accidents or violations, and good financial standing. Based on his current risk profile, Travelers has the most affordable car insurance rates in Austin at $1,139 a year. This is $765 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remainder of the most affordable Austin, TX auto insurance companies.
In the next rate comparison, we’ll give the driver from the above example a chargeable claim, less-than-perfect credit, and a blemish on his driving record. Due to the fact that each insurance company has a proprietary formula for setting rates, comparing rates may now present a different set of affordable companies as shown below.
State Farm now has the best insurance rate in Austin, TX with Mercury, Nationwide, Safe Auto, and USAA also being competitive. This example proves why it is crucial to perform a complete rate comparison to find the best insurance quotes for 18 year olds. Insurance rates are influenced by many factors and change dramatically, so the lowest-price company three years ago may now be priced much higher than other options.