Establishing which companies quote the lowest-priced insurance rates for young drivers may require a bit more work in order to find the best policy. Each insurance company used slightly different criteria for determining rates in each state, so to begin we’ll rank the overall cheapest insurance companies in Texas.
It’s important that readers know that Texas insurance rates are impacted by many factors that control the price of coverage. Turning one year older, buying a different vehicle, or having an accident can trigger changes in premium resulting in some companies being affordable when they were higher priced.
Cheap Insurance Rates for Teens
Travelers may offer some of the cheapest car insurance rates in Houston at around $1,021 per year. This is $883 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the most economical Houston, TX car insurance companies.
As shown in the rates above, if you currently have a policy with USAA and switched to Travelers, you might achieve a yearly savings of in the neighborhood of $107. Insureds with Texas Farm Bureau could save as much as $190 a year, and Germania Mutual insureds might reduce prices by as much as $223 a year.
If you want to see how much you could save, click here to begin a quote or quote rates from the companies below.
Remember that these premium estimates are averaged across all drivers and vehicles in Texas and do not take into consideration a specific location for young drivers. So the insurer that is most affordable for your situation may not even be in the list above. That helps illustrate why you need to compare rates from as many companies as possible using your own personalized driver profile and vehicle information.
For youthful drivers, one of the largest considerations that determine car insurance rates is where you live in Houston. Areas with more people or even just a higher incidence of claims will most likely pay more, whereas areas with lower crime rates and fewer weather claims profit from lower rates.
The table below sorts the priciest cities in Texas for young drivers to purchase a policy in. Houston shows up at #5 costing $1,853 on average, which is about $154 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | McAllen | $1,936 |
| 2 | Brownsville | $1,927 |
| 3 | Dallas | $1,893 |
| 4 | Laredo | $1,889 |
| 5 | Houston | $1,853 |
| 6 | Garland | $1,832 |
| 7 | Mesquite | $1,825 |
| 8 | Amarillo | $1,804 |
| 9 | Pasadena | $1,794 |
| 10 | Grand Prairie | $1,757 |
| 11 | San Antonio | $1,739 |
| 12 | Irving | $1,719 |
| 13 | Beaumont | $1,702 |
| 14 | Arlington | $1,692 |
| 15 | Austin | $1,676 |
| 16 | Lubbock | $1,665 |
| 17 | Corpus Christi | $1,620 |
| 18 | El Paso | $1,616 |
| 19 | Fort Worth | $1,604 |
| 20 | Carrollton | $1,598 |
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Rate quotes are approximated as the garaging address in Houston can alter insurance rates significantly.
How to get discounts on Houston auto insurance rates
Car insurance companies that provide coverage for young drivers could also offer price discounts that could reduce prices by as much as 30% if you qualify for them. The best insurance companies and the discounts they provide are:
- Progressive discounts include homeowner, continuous coverage, multi-vehicle, online signing, and good student.
- The Hartford policyholders can earn discounts including driver training, bundle, air bag, defensive driver, anti-theft, and vehicle fuel type.
- Mercury Insurance may have discounts that include location of vehicle, professional/association, accident-free, annual mileage, low natural disaster claims, and good student.
- GEICO may offer discounts for anti-lock brakes, anti-theft, federal employee, multi-policy, good student, and driver training.
- AAA offers discounts including anti-theft, multi-car, education and occupation, good student, AAA membership discount, pay-in-full, and good driver.
- State Farm offers discounts for multiple autos, passive restraint, defensive driving training, good driver, safe vehicle, and anti-theft.
The illustration below shows the comparison of auto insurance costs with and without policy discounts. The premiums assume a male driver, no violations or accidents, Texas state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with vehicle safety, anti-theft, continuous coverage, paid-in-full, paperless filing, and passive restraint discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on insurance for young drivers is 28% or $768.
Best insurance company in Texas
Choosing the top auto insurance provider is difficult considering how many companies there are in Texas. The company ratings in the lists below could help you select which providers to look at buying from.
The rankings below only include companies with a nationwide focus, so companies that have a smaller presence are not factored into the list. To get rate quotes from these and other companies in Texas, simply click here.
| 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 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| Titan Insurance | 86 | 82 | 92 | 86% | A+ | 86.5 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Full coverage or liability only
Saving on insurance should be important to the majority of drivers, and one great way to pay lower rates for insurance for young drivers is to buy only liability coverage. The illustration below compares auto insurance rates with and without physical damage coverage. The premiums are based on no claims or driving citations, $500 deductibles, drivers are single, and no discounts are taken into consideration.
Averaged for all age groups, physical damage coverage costs $1,793 per year more than just buying liability only. At some point, about every driver wonders if paying for full coverage is worth it. There is no specific rule of when to phase out comprehensive and collision coverage on your policy, but there is a general guideline. If the yearly cost of full coverage is 10% or more of replacement cost minus your deductible, then it’s probably a good time to buy liability coverage only.
For example, let’s pretend your vehicle’s claim settlement value is $9,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $8,500 after the policy deductible has been paid. If you are currently paying more than $850 annually for full coverage, the it may be a good time to stop paying for full coverage.