Cheapest Auto Insurance for Teen Drivers in Texas (10 Most Affordable Companies in 2024)

If you’re a teenage driver living in Texas, you’re probably wondering, “Why is auto insurance for teens in Texas so expensive?” No matter where you live, teens often pay thousands of dollars more for auto insurance than their older driving counterparts.

While a lack of driving experience is the main reason why teens pay more for auto insurance, there are still ways to minimize your monthly payments. Here are the cheapest auto insurance for teen drivers in Texas. Keep reading to discover some tips for securing the best Texas auto insurance.

Our Top 10 Company Picks: Cheap Auto Insurance for Teen Drivers in Texas

Before learning more about why auto insurance for Texas teens is so expensive, enter your ZIP code into our FREE tool above to find Texas teen auto insurance quotes near you.

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#1 – Geico: Best Rate Discounts

Pros

• Low Rates: Geico is known for offering some of the lowest rates in the industry, making it an attractive option for budget-conscious drivers.
• User-Friendly Website and App: Geico’s online platform is highly user-friendly, allowing customers to easily manage their policies, make payments, and file claims, potentially saving time and hassle.
• Numerous Discounts: Geico offers a wide range of discounts, including discounts for good drivers, vehicle safety features, and bundling policies, helping customers maximize savings.

Cons

• Limited Local Agents: Geico primarily operates online and over the phone, so customers who prefer face-to-face interactions with local agents may find their service model lacking.
• Less Personalized Service: Due to its large customer base and primarily digital interface, some customers may find Geico’s customer service less personalized compared to other insurers, potentially impacting overall satisfaction and savings.

#2 – USAA: Cheapest for Military Families

Pros

• Competitive Rates: USAA is known for offering competitive rates, especially for military members and their families, potentially resulting in significant savings.
• Military Discounts: USAA provides various discounts for military members and their families, including discounts for vehicle storage during deployments and discounts for garaging vehicles on military bases, helping military personnel save money.
•  Flexible Payment Options: USAA offers flexible payment options, including monthly, quarterly, or semi-annual payments, allowing customers to choose the payment schedule that best fits their budget.

Cons

•  Limited Eligibility: USAA membership is limited to military members, veterans, and their families, excluding a significant portion of the population from accessing their services.
•  Limited Local Agents: USAA primarily operates online and over the phone, so customers who prefer face-to-face interactions with local agents may find their service model lacking.

#3 – State Farm: Best for Students

Pros

• Competitive Rates: State Farm often offers competitive rates, especially for drivers with clean records and bundled policies.
• Multiple Discounts: They provide a variety of discounts, such as safe driving discounts, multi-policy discounts, and discounts for vehicle safety features, which can help customers save money.
• Extensive Coverage Options: State Farm offers a wide range of coverage options, allowing customers to tailor their policies to their specific needs and potentially save on unnecessary coverage.

Cons

• Limited Online Tools: State Farm’s online tools and resources for managing policies and claims are not as extensive as some other insurers, which may inconvenience tech-savvy customers.
• Average Customer Satisfaction: While State Farm generally has good customer service, some customers have reported average satisfaction with claim handling and resolution, which could potentially affect overall savings if claims aren’t processed efficiently.

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#4 – American Family Insurance: Cheapest Teen Programs

Pros

•  Loyalty Discounts: American Family Insurance rewards long-term customers with loyalty discounts, providing savings for those who stay with the company.
•  Bundling Discounts: Customers can save money by bundling auto insurance with other policies such as home or life insurance, thanks to American Family’s bundling discounts.
•  Teen Safe Driver Program: American Family offers a Teen Safe Driver Program, which uses technology to monitor and improve young drivers’ behaviors, potentially reducing premiums over time.

Cons

• Limited Availability: American Family Insurance operates in fewer states compared to some other major insurers, potentially limiting options for some customers.
• Average Claims Satisfaction: Some customers have reported average satisfaction with American Family’s claims handling process, which could impact overall savings if claims are not resolved efficiently.

#5 – Nationwide: Cheapest for Safe Drivers

Pros

• Vanishing Deductible: Nationwide offers a Vanishing Deductible program, which reduces deductibles for safe driving over time, potentially leading to significant savings for careful drivers.
• Multi-Policy Discounts: Nationwide provides discounts for bundling auto insurance with other policies such as home insurance, allowing customers to save on overall premiums.
•  Accident Forgiveness: Nationwide offers accident forgiveness, which means rates may not increase after the first at-fault accident, providing potential savings in the long run.

Cons

• Higher Rates for Young Drivers: Nationwide tends to have higher rates for young and inexperienced drivers, which may limit savings opportunities for this demographic.
• Limited Availability of Discounts: While Nationwide offers some discounts, they may not have as many options compared to other insurers, potentially limiting savings opportunities for some customers.

#6 – Allstate: Cheapest for Teen Education

Pros

•  Safe Driving Bonus: Allstate offers a Safe Driving Bonus for every six months of accident-free driving, providing potential savings for safe drivers.
•  Claim Satisfaction Guarantee: Allstate offers a Claim Satisfaction Guarantee, promising customers a refund if they’re not satisfied with their claim experience, potentially ensuring efficient claims processing and savings.
•  Drivewise Program: Allstate’s Drivewise program tracks driving habits and rewards safe driving behaviors with discounts, potentially reducing premiums for careful drivers.

Cons

•  Higher Premiums for Some Drivers: Allstate’s rates may be higher for drivers with less-than-perfect driving records, potentially limiting savings opportunities.
•  Limited Discounts: While Allstate offers some discounts, they may not have as many options compared to other insurers, potentially limiting savings opportunities for some customers.

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#7 – Travelers: Cheapest for Driver Training

Pros

•  Safe Driver Discounts: Travelers offers discounts for safe driving habits, such as maintaining a clean driving record and completing defensive driving courses, potentially lowering premiums for careful drivers.
•  Multi-Policy Discounts: Customers can save money by bundling auto insurance with other policies such as home or renters insurance, thanks to Travelers’ multi-policy discounts.
•  IntelliDrive Program: Travelers’ IntelliDrive program uses telematics to monitor driving behaviors and offers discounts based on safe driving habits, potentially reducing premiums for careful drivers.

Cons

•  Limited Availability: Travelers operates in fewer states compared to some other major insurers, potentially limiting options for some customers.
•  Average Claims Satisfaction: Some customers have reported average satisfaction with Travelers’ claims handling process, which could impact overall savings if claims are not resolved efficiently.

#8 – Liberty Mutual: Policy Customization

Pros

• Accident Forgiveness: Liberty Mutual offers accident forgiveness, which means rates may not increase after the first accident, potentially saving customers money in the long term.
•  New Car Replacement: Liberty Mutual provides new car replacement coverage, which replaces totaled vehicles with new ones of the same make and model, potentially saving customers from depreciation costs.
•  Better Car Replacement: Liberty Mutual offers better car replacement coverage, which replaces totaled vehicles with newer models if they’re less than a year old and have fewer than 15,000 miles.

Cons

•  Higher Premiums for Some Drivers: Liberty Mutual’s rates may be higher for drivers with less-than-perfect driving records, potentially limiting savings opportunities.
•  Limited Discounts: While Liberty Mutual offers some discounts, they may not have as many options compared to other insurers, potentially limiting savings opportunities for some customers.

#9 – Farmers Insurance: Cheapest for All Young Drivers

Pros

•  Customizable Policies: Farmers Insurance offers customizable policies, allowing customers to tailor their coverage to their specific needs and potentially save money by avoiding unnecessary coverage.
•  Multi-Policy Discounts: Farmers Insurance provides discounts for bundling auto insurance with other policies such as home or life insurance, helping customers save on overall premiums.
•  Signal App: Farmers offers the Signal app, which tracks driving behaviors and offers discounts based on safe driving habits, potentially reducing premiums for careful drivers.

Cons

•  Average Customer Service: Some customers have reported average satisfaction with Farmers Insurance’s customer service, particularly regarding claims handling, which could impact overall savings if claims are not resolved efficiently.
•  Limited Availability of Discounts: While Farmers Insurance offers some discounts, they may not have as many options compared to other insurers, potentially limiting savings opportunities for some customers.

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#10 – Progressive: Snapshot Savings

Pros

• Usage-Based Insurance: Progressive offers usage-based insurance programs like Snapshot, which tracks driving behavior to potentially lower rates for safe drivers, promoting savings. Also, learn more here: Best Pay-As-You-Go Auto Insurance in Texas.
• Name Your Price Tool: Progressive’s Name Your Price tool allows customers to input their budget and find a policy that fits within it, providing transparency and potential savings.
• Variety of Discounts: Progressive offers a wide range of discounts, including multi-policy, safe driver, and multi-car discounts, helping customers save on premiums.

Cons

• Average Rates: While Progressive offers competitive rates, they may not always be the lowest available, especially for drivers with less-than-perfect driving records, potentially impacting overall savings.
• Complex Claims Process: Some customers have reported difficulties with Progressive’s claims process, citing delays and complications, which could potentially impact savings if claims are not resolved efficiently.

Insurance for teens has always been notoriously high. Here’s 4 outrageous cases of teen driver auto insurance, if you don’t believe us. To determine why insurance is so expensive for teenage drivers, we have to understand how insurance companies think. When an insurance company issues a policy, they assess how risky that driver will be to insure.

In other words, insurance companies ask themselves, what are the chances that the driver will get into an accident? Teenagers have very limited driving experience. They also do not have the same level of responsibility as older adults. The data doesn’t lie: teenagers are more likely to be involved in an accident than older, more experienced drivers.

According to the CDC, in 2017, an average of six teens aged 16-19 died every day from an automobile accident. Eight percent of all accidents involved teenage drivers. Take a look at the following table, which displays data from 2017 about traffic offenses involving teenagers, recorded by the Texas Department of Transportation’s C.R.I.S. Query Database.

While the best full coverage auto insurance in Texas is more expensive, it often pays itself off after a covered claim and is the best auto insurance for new drivers.

Texas Teenager Vehicle Incident Statistics

To insurance companies, these numbers prove that teenagers are more likely to make poor choices while driving and cause an accident. That accident will cost the insurance company money. This is why insurers charge higher insurance rates to teenage drivers. But how much is car insurance for a teenager in Texas?

Your rates will vary drastically depending on a wide variety of factors, including your age, driving record, and ZIP code. To help you get the cheapest auto insurance for teenage drivers in Texas, keep reading. We’ll discuss what factors are used to determine your rates, plus discounts offered by insurance companies that could help you save money.

Determining Auto Insurance for Teens

Let’s go into more detail about how insurers determine Texas auto insurance rates. Companies primarily look at age, gender, driving records, credit history, and ZIP codes when setting your auto insurance rates. Of course, teenagers do not have credit histories, which sets them at a disadvantage.

Without insight into your credit history, how can an insurance company know you’re able to reliably pay for your policy? Instead, they largely base your rates on your age. The older you get, the less companies will charge you for auto insurance. The biggest shift happens when you hit 25. Take a look at the table below, which shows the average rates people pay for auto insurance in the state of Texas by age.

Texas Average Annual Auto Insurance Rates by Age and Gender

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While 25-year-olds and 35-five-year-olds are paying substantially less than Texas teens, the age bracket that pays the least are those aged 60 and above. Your driving record also drastically impacts your auto insurance rates. Companies are particularly watchful of teenage drivers.

One traffic incident could result in a huge increase in your insurance rates, and you could also lose your license. Take a look at the following table to see how just one driving incident might affect your auto insurance rates in the state of Texas. However, teens with poor driving records have higher rates. Accidents, tickets, and DUIs are some of the many reasons auto insurance costs more for young drivers.

Texas Average Annual Auto Insurance Rates by Driving Record

Driver Record	Avearge Annual Auto Insurance Rates
Clean record	$3,328.16
One accident	$4,303.39
One DUI	$4,464.00
One speeding ticket	$3,617.80

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Safe driving is critical, especially if you’re a teen driver. According to the National HighwayTraffic Safety Administration, automobile accidents are the leading cause of death for teenagers. A clean driving record will not only help you save money on auto insurance, but it could also save lives.

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Males Pay More Than Females for Car Insurance

Unfortunately, in Texas, gender does affect your auto insurance rates. Why do male teens pay more on average than their female counterparts? Insurance companies assume that men are more likely to drive recklessly than women. Therefore, they believe men are riskier to insure. While it may seem unfair, insurance companies do base their risk assessment for teenage men on statistics. The Cagle Law Firm reports that in Texas, male drivers between the ages of 16-19 are three times more likely to be involved in a fatal car crash than drivers over 20.

The teenage male demographic also had the highest number of car accidents in 2017. While not all men are dangerous drivers, year after year the data still shows that they are the drivers with the highest risk on the road. Some states have banned using gender as a means for determining auto insurance rates, but not Texas. What is considered a lot for auto insurance for a male teen? Take a look at the table below to see average rates teenagers in Texas pay for auto insurance by gender.

Texas Teenager Average Annual Auto Insurance Rates by Gender

Driver Demographics	Average Annual Auto Insurance Rates
17-year-old female	$6,808.57
17-year-old male	$8,122.15
Average	$7,465.36

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While the difference between men and women is big, it isn’t as striking as the differences between age brackets. Unfortunately, this does mean that male teenagers are the group who pay the most for auto insurance in the state.

How can teens easily compare auto insurance rates in Texas?

Teenagers can compare auto insurance rates in Texas just as easily as any other demographic. Some companies do charge less when insuring teens than others. Take a look at the following table, which shows how much the leading auto insurance companies charge for teen drivers in Texas on average. They’re ordered from cheapest rates to most expensive and are separated by gender.

Texas Teenager Average Annual Auto Insurance Rates by Company

Companies	Driver Gender	Average Annual Rates
USAA	Female	$4,423.33
State Farm	Female	$4,814.71
USAA	Male	$4,827.05
Geico	Female	$5,298.09
Geico	Male	$5,502.21
State Farm	Male	$6,130.76
Nationwide	Female	$6,856.66
The General	Female	$7,713.17
Nationwide	Male	$8,817.88
Allstate	Female	$9,359.61
The General	Male	$10,116.84
Progressive	Female	$10,406.29
Allstate	Male	$11,309.20
Progressive	Male	$11,607.15

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Who has the best rates for teen drivers in Texas? Definitely USAA. However, not everyone is eligible to purchase insurance through USAA, only active and retired military personnel and their families. If that’s not you, Geico and State Farm also offer competitive rates for teenagers.

Who has the worst rates for teen drivers in Texas? Progressive and Allstate, regardless of your gender. If you’re a male, you should also avoid using The General. All three of these companies charge over $10,000 annually to insure teenagers. As we’ve seen, better, more competitive rates are out there. Don’t pay extra when you don’t have to.

How do rates in Texas compare to the rest of the country?

Rates for teen drivers in Texas are relatively comparable to what teenagers pay across the country. What is the average cost of car insurance in Texas? On average, drivers pay $92.42 per month. However, teenagers pay $622.11 per month on average. While auto insurance rates do vary drastically by state, teenagers across the board always pay more.

Cheapest Way to Get Auto Insurance for a Teen

You’ve seen the different Texas teen auto insurance prices, now let’s help you find some teen auto insurance discounts to see if we can lower your rates. Remember, the average cost of teen auto insurance in Texas is  $622.11 monthly or $7,465.36 annually. With the following tips and tricks, we can help you lower that rate and secure cheap car insurance.

How Parent Policies Save Teens Money

How can teens save money on auto insurance? Adding yourself to a parent’s policy can help you save money. Keep in mind, though, that policy prices usually reflect the highest risk driver. While the teen will save money by being added to their parents’ policy, the parents will ultimately end up paying more.

To counteract the higher rates teenage drivers pay, look out for different discounts companies offer that younger drivers qualify for. These often include safe driver discounts. State Farm and Nationwide both provide discounts for clients who pass a driver safety course.

Check out some safe driving techniques for teens in this teen driver safety guide to help you ace those discount driving courses in the following video from BrightSide.

You might also qualify for good student discounts. That’s right, some companies will reward teenage drivers for their good grades. For example, Nationwide rewards students who maintain a B average with up to a 10 percent auto insurance discount.

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 Shopping Around for Better Teen Auto Insurance Rates

Regardless of your age, shopping around for better auto insurance rates is always a good idea. If cheap teen auto insurance is your goal, comparison shopping is your best bet. When you compare teen auto insurance rates from multiple companies, it’s easier to find discounts and bundling options that you might not have realized you qualify for.

Cheapest Way to Get Car Insurance for a Teenager

The cheapest way for a teenager to get auto insurance is by joining their family’s policy. Maintaining a clean driving record will also help, as even one minor driving incident can increase premiums by hundreds of dollars.

Another easy way to save on teen auto insurance is by qualifying for discounts. Discounts include good student discounts or safe driver discounts, which we covered earlier in the article. The following video from CBS News offers a few more tips for families insuring teenage drivers.

Adding a teenager to an already existing family policy is always going to be the most affordable way to insure them. Whatever you do, don’t drive without insurance. If you get into an accident without insurance to protect you, you could end up paying thousands. As a teenager, getting into an accident without insurance could also mean having your driver’s license revoked.

Shopping Online vs Shopping With an Agent

Depending on your situation, it may make sense for you to work with an independent agent to help secure your best auto insurance rates. Independent agents have contracts with multiple different insurance companies. You provide them with your details, and they help find you a competitive policy.

Know that because an independent agent is contracted by specific companies, they will act in the best interest of the company they work for. That may not always be compatible with your needs as a client. Ready to buy Texas teen auto insurance? Enter your ZIP code below to being comparing Texas teen auto insurance rates.

Looking for affordable Texas teen auto insurance? Now that you know more about why auto insurance is so expensive for teens in Texas, enter your ZIP code into our FREE tool below to find your best auto insurance rates from top Texas teen auto insurance companies.

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Frequently Asked Questions

Why is auto insurance for Texas teens so expensive?

Auto insurance for Texas teens is expensive due to their lack of driving experience and higher likelihood of being involved in accidents compared to older, more experienced drivers. Insurance companies assess the risk of insuring a driver and charge higher rates to compensate for the increased risk. This is reflected in the average car insurance Texas teens pay, which can be significantly higher than the rates for other age groups.

What factors determine auto insurance rates for teens in Texas?

Auto insurance rates for teens in Texas are determined by various factors, including age, gender, driving records, credit history, and ZIP codes. Teenagers, especially 16-year-olds, face steep premiums due to their limited driving experience and higher risk of accidents. This contributes to the overall average cost for car insurance for a 16-year-old in Texas being notably higher compared to older age groups.

Do male teens pay more for auto insurance than females in Texas?

Yes, in Texas, male teens typically pay more for auto insurance than their female counterparts. Statistics show that male teens tend to have higher accident rates, leading insurance companies to consider them riskier to insure. Consequently, the average cost of car insurance for 16-year-old males in Texas is higher than that for females of the same age.

How can teens easily compare auto insurance rates in Texas?

Teens in Texas can compare auto insurance rates by utilizing online tools and websites that provide free quote comparisons from multiple insurance companies. This allows them to find the best rates and discounts available. By exploring different options, they can find policies that offer the best coverage at the most affordable rates.

How do auto insurance rates in Texas compare to the rest of the country for teens?

While auto insurance rates for teens in Texas may seem high, they are relatively comparable to the national average. However, it’s essential to note that the average cost of auto insurance for teenagers, including 16-year-olds, varies across states due to differences in regulations, demographics, and driving conditions.

How Annual Mileage Affects Your Auto Insurance Rates: What You Should Know (2024)

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Written by:

Brandon Frady

Licensed Insurance Producer

Brandon Frady has been a licensed insurance agent and insurance office manager since 2018. He has experience in ventures from retail to finance, working positions from cashier to management, but it wasn’t until Brandon started working in the insurance industry that he truly felt at home in his career. In his day-to-day interactions, he aims to live out his business philosophy in how he treats hi...

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Written by Brandon Frady

Licensed Insurance Producer

Reviewed by:

Heidi Mertlich

Licensed Insurance Agent

Heidi works with top-rated insurance carriers to bring her clients the highest quality protection at the most competitive prices. She founded NoPhysicalTermLife.com, specializing in life insurance that doesn’t require a medical exam. Heidi is a regular contributor to several insurance websites, including FinanceBuzz.com, Insurist.com, and Forbes. As a parent herself, she understands the need ...

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Reviewed by Heidi Mertlich

Licensed Insurance Agent

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