Why is auto insurance for Texas teens so expensive?
Why is auto insurance for teens in Texas so expensive? Teenage drivers in Texas pay $622.11 per month. The average rate older Texas drivers pay is $92.47 monthly. To help your teenage driver save, look for safe driver and good student discounts. Start comparison shopping today.
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UPDATED: Feb 2, 2022
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- Teenage drivers pay more for auto insurance because of their lack of driving experience.
- Auto insurance companies feel inexperienced drivers pose more risk.
- Discounts and bundling can help teenage drivers minimize their monthly payments.
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. Keep reading to discover some tips for securing the best Texas auto insurance.
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.
Why is auto insurance for a teen in Texas so expensive?
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.
|Cell phone use||2,075|
|Alcohol related offense||5,198|
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.
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.
What determines auto insurance rates 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.
|Companies||Average Annual USAA Rates||Average Annual State Farm Rates||Average Annual Geico Rates||Average Annual Nationwide Rates||Average Annual The General Rates||Average Annual Allstate Rates||Average Annual Progressive Rates|
|Married 60-year-old male||$1,516.79||$1,797.39||$2,649.67||$2,275.09||$3,109.48||$3,520.01||$2,262.84|
|Married 60-year-old female||$1,522.66||$1,797.39||$2,340.42||$2,146.15||$2,712.68||$3,520.01||$2,219.05|
|Married 35-year-old female||$1,594.84||$2,020.71||$2,433.73||$2,430.55||$2,918.37||$3,564.65||$2,496.28|
|Married 35-year-old male||$1,608.07||$2,020.71||$2,622.73||$2,473.88||$3,249.14||$3,599.14||$2,372.24|
|Single 25-year-old female||$2,125.64||$2,195.23||$2,632.39||$2,851.87||$4,191.50||$4,410.14||$2,956.93|
|Single 25-year-old male||$2,286.61||$2,262.71||$2,627.86||$3,088.49||$4,782.23||$4,599.76||$2,997.99|
|Single 17-year-old female||$4,423.33||$4,814.71||$5,298.09||$6,856.66||$7,713.17||$9,359.61||$10,406.29|
|Single 17-year-old male||$4,827.05||$6,130.76||$5,502.21||$8,817.88||$10,116.84||$11,309.20||$11,607.15|
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.
|Driver Record||Avearge Annual Auto Insurance Rates|
|One speeding ticket||$3,617.80|
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.
Do male teens pay more for auto insurance than females?
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.
|Driver Demographics||Average Annual Auto Insurance Rates|
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.
|Companies||Driver Gender||Average Annual Rates|
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.
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What is the 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.
Can going on a parent’s policy save teens money on insurance?
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.
Should teens shop around for better 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.
What’s the 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.
Is it better to shop online or with an independent 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.
Frequently Asked Questions: Why is auto insurance for teens in Texas so expensive?
Now you know how to think like an auto insurance company. Armed with this knowledge, you’re ready to secure your best rates as a teenage driver in Texas. Refer back to this guide as much as you need to while shopping around.
Did you think of something we missed? Check out our frequently asked questions below.
#1. How much is auto insurance for a teenager in Texas?
On average, auto insurance for a teenage driver in Texas costs $622.11 per month or $7,465.36 annually. Following the tips in the article above can help you lower that rate.
#2. What is the cheapest insurance state for teen drivers?
Teens will always pay more for auto insurance, regardless of what state they’re in. However, Ohio is usually the cheapest state to add a teenager to an already existing auto insurance policy.
#3. What is the most expensive insurance state for teen drivers?
No matter where you live, teenagers always pay the most for auto insurance. However, these five states tend to charge the most for adding a teenager to an auto insurance policy: Rhode Island, Arizona, New Hampshire, West Virginia, and Maine.
#4. Why is car insurance more expensive in Texas?
Auto insurance rates vary by state. Higher rates are a result of riskier drivers on the road. If drivers are more likely to be in an accident in a certain state, their auto insurance rates will be higher.
Living in an area with higher crime rates, like vehicle thefts, can also raise auto insurance costs.
#5. What is the best car insurance in Texas?
Best is a relative term. Your best auto insurance depends on your specific demographics and your needs. Comparison shopping will help you find which company works best for you.
#6. What is Texas Farm Bureau Insurance?
Texas Farm Bureau Insurance is an auto insurance company in the state of Texas. They have relatively high customer satisfaction ratings and offer competitive rates.
#7. How much is Texas auto insurance by county?
Your ZIP code can impact what you pay for auto insurance. If you live in a county with higher crime rates, you may be paying more for your auto insurance than your neighbors.
#8. What is State Farm Insurance?
State Farm is an auto insurance company that many people are familiar with. They offer competitive rates in the state of Texas. To learn more, read our State Farm auto insurance review.
#9. What is USAA auto insurance?
USAA often has the cheapest auto insurance rates, but this company only sells policies to retired or active-duty military personnel and their families.
Texas has a large population of military families. If you’re a member of the military, or one of your parents is, then you may qualify for USAA’s 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.