The words “affordable” and “insurance” really should not be used together, specifically when shopping around for the best price on coverage for 16 year olds. Because of the high cost, let’s lead off by showing you some situations that have an effect on insurance premiums, and find out if we can help you shave a little off your next policy.
For new drivers, one of the more important factors that are looked at to help calculate insurance cost is where your car is garaged in Houston. Areas with high crime rates or more dense population tend to pay slightly more, whereas areas that tend to be more rural benefit from lower prices.
The next table ranks the most expensive areas in Texas for 16 year olds to buy car insurance in. Houston is ranked #4 with an annual premium of $1,891 for car insurance, which is about $158 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,996 |
| 2 | Brownsville | $1,927 |
| 3 | Dallas | $1,893 |
| 4 | Houston | $1,891 |
| 5 | Laredo | $1,889 |
| 6 | Garland | $1,850 |
| 7 | Amarillo | $1,840 |
| 8 | Pasadena | $1,812 |
| 9 | Beaumont | $1,772 |
| 10 | Mesquite | $1,771 |
| 11 | Grand Prairie | $1,757 |
| 12 | Irving | $1,736 |
| 13 | San Antonio | $1,722 |
| 14 | Arlington | $1,692 |
| 15 | Lubbock | $1,665 |
| 16 | Carrollton | $1,664 |
| 17 | Fort Worth | $1,653 |
| 18 | El Paso | $1,632 |
| 19 | Austin | $1,610 |
| 20 | Corpus Christi | $1,588 |
| 21 | Waco | $1,584 |
| 22 | McKinney | $1,561 |
| 23 | Plano | $1,560 |
| 24 | Killeen | $1,533 |
| 25 | Abilene | $1,499 |
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Table data uses estimated as specific Houston garaging address can impact rates substantially.
The car, truck, or SUV you are buying coverage for is one of the largest factors that determines if you can find affordable car insurance for 16 year olds. Vehicles with lower performance, good crash test ratings, or a low likelihood of liability claims will cost much less to insure than adrenaline junky models. The list below illustrates car insurance costs for a selection of the most affordable automobiles to insure in Texas.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 4WD | $5,352 |
| Honda CR-V EX-L 4WD | $5,362 |
| Toyota Prius | $5,729 |
| Ford Explorer XLT 2WD | $5,964 |
| Dodge Grand Caravan SE | $5,973 |
| Ford F-150 STX Super Cab 4WD | $6,016 |
| Honda Odyssey EX W/Rear Entertainment | $6,240 |
| Toyota RAV4 4WD | $6,289 |
| Jeep Grand Cherokee Laredo 4WD | $6,296 |
| Toyota Tacoma Double Cab 4WD | $6,289 |
| Chevrolet Impala LT | $6,295 |
| Chevrolet Malibu LS | $6,289 |
| GMC Sierra SL Extended Cab 2WD | $6,299 |
| Chevrolet Equinox LT 2WD | $6,289 |
| Hyundai Elantra Blue 4-Dr Sedan | $6,566 |
| Toyota Camry SE | $6,615 |
| Ford Edge Sport 2WD | $6,621 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $6,657 |
| Toyota Corolla XRS | $6,667 |
| Chevrolet Silverado LTZ Crew Cab 4WD | $6,677 |
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Prices 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 safe-driver, and claim-free. Price estimates do not factor in your specific Houston, TX location which can affect insurance rates significantly.
Based upon the rates shown, we can assume that makes and models like the Ford Escape, Honda CR-V, Toyota Prius, and Ford Explorer are most likely to be some of the cheaper vehicles to insure for new drivers. Car insurance rates will tend to be higher because there is more liability risk for 16 year olds, but overall those particular models will most likely have the lowest insurance prices compared to other types of vehicles.
Full coverage versus liability only rates
Saving on car insurance is probably important to the majority of people, and a great way to pay lower rates for insurance for 16 year olds is to only pay for liability coverage. The illustration below shows the difference between premium costs with full physical damage coverage compared to only buying liability only. The premium estimates are based on no violations or accidents, $500 deductibles, drivers are not married, and no discounts are factored in.
If we average the cost for ages 20 through 70, physical damage coverage on your policy costs an additional $1,793 per year over having just liability coverage. That amount may make you wonder if buying full coverage is worth the expense. There is no specific rule to delete comp and collision coverage, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
For example, let’s say your vehicle’s claim settlement value is $4,500 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, the most you would get paid by your company is $3,500 after you pay the deductible. If it’s costing you more than $350 annually for comprehensive and collision coverage, then you might want to consider buying only liability coverage.
Picking a highly-rated car insurance provider is difficult considering how many choices there are in Houston. The ranking data in the next section could help you choose which insurers you want to consider when buying insurance for 16 year olds. The rankings below are only made up of companies with a nationwide focus, so companies that only write business in Texas or surrounding areas are not factored into this list.
Top 10 Major Auto Insurance Providers in Houston Ranked by Customer Service
- USAA
- Travelers
- Mercury Insurance
- AAA Insurance
- Nationwide
- Safeco Insurance
- Progressive
- State Farm
- The Hartford
- The General
The illustration below illustrates how your choice of deductibles can affect premium costs when getting quotes for cheap insurance for 16 year olds. The data is based on a married male driver, full coverage, and no policy discounts are applied.
A 50-year-old driver could reduce rates by $264 a year by changing from a $100 deductible to a $500 deductible, or save $402 by using a $1,000 deductible. Even younger drivers, such as the Age 20 example, could lower their rates up to $884 every year by choosing a larger deductible amount. If you do make the decision to raise your deductibles, it will be important to have emergency funds available to enable you to pay the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.