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Car insurance in Texas costs an average of $165 per month, according to Compare.com data. And if you’re a young driver, you’re likely paying much more. On average, Texas teens pay monthly premiums of $322.
Insurance companies see young drivers as high risk because of their limited driving experience and statistically higher accident rates. In fact, drivers ages 16 to 19 are three times more likely to get in fatal crashes than drivers age 20 and older, according to the Centers for Disease Control and Prevention (CDC).[1]
Fortunately, you have options to find cheap car insurance, starting with insurers like State Farm and GEICO. This article breaks down the most affordable insurers based on your coverages, driving history, and where you live — plus tips to save even more.
Texas teens pay an average monthly premium of $229 for liability coverage and $416 for full coverage.
Staying on a parent’s policy, maintaining a clean driving record, and driving a safe vehicle can lower premiums for young drivers.
Rates and discounts vary from insurance company to insurance company, so shopping around and comparing quotes can help you find the best deal.
Age is one of the biggest factors influencing the cost of car insurance. Drivers younger than 25 typically pay the highest rates because they’re more likely to get into accidents. Crash rates per mile driven are highest among drivers between ages 16 and 24, according to the Insurance Institute for Highway Safety (IIHS).[2]
The table below shows average monthly car insurance rates for young drivers in Texas compared to national averages, according to Compare.com data.
Average Monthly Premium: Liability | Average Monthly Premium: Full Coverage | Average Monthly Premium: All Policies |
|---|---|---|
| $303 | $552 | $427 |
Keep in mind these averages only offer a rough estimate. Your actual rate depends on your age, driving history, the kind of car you drive, and more.
Compare quotes side by side and lock in cheaper rates.
The coverage levels you choose affect your insurance costs. For young drivers looking for the lowest rates, a liability-only policy at the state-minimum limits is the cheapest option. Liability coverage pays for injuries and property damage you cause others, but it doesn’t cover your own vehicle.[3]
Texas requires the following minimum-coverage limits:
$30,000 in bodily injury liability per person
$60,000 in bodily injury liability per accident
$25,000 for property damage
The table below shows the five cheapest insurance companies for state-minimum liability coverage for young drivers in Texas, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| State Farm | $149 |
| GEICO | $209 |
| Progressive | $210 |
| Allstate | $211 |
| Mile Auto | $227 |
| Root | $240 |
| USAA | $249 |
| Clearcover | $257 |
| Mercury | $276 |
| The General | $281 |
| First Acceptance | $287 |
| GAINSCO | $290 |
| Dairyland | $296 |
| Bristol West | $299 |
| Alinsco | $303 |
| Lone Star | $308 |
| Commonwealth Casualty | $313 |
| Nationwide | $327 |
| Covercube | $337 |
| Mendota | $347 |
| Excepsure | $357 |
| Sun Coast | $357 |
| Elephant | $361 |
| Safeco | $367 |
| Direct Auto | $378 |
| AssuranceAmerica | $385 |
| Loop | $388 |
| National General | $400 |
| Trexis One | $451 |
| Chubb | $469 |
| 21st Century | $473 |
| Hugo | $494 |
| Insurify Car | $510 |
| Liberty Mutual | $535 |
While the insurers above offer the lowest rates for liability coverage in the state, insurance experts recommend purchasing more than the state-minimum limits for more financial protection. If you cause a serious accident, damages can exceed the minimum limits, and you’ll have to pay the difference out of pocket.
Full-coverage car insurance includes liability insurance as well as comprehensive and collision coverage. It covers damage you cause to others and protection for your vehicle if you get into an accident, someone steals your vehicle, or weather-related damage occurs.
A full-coverage policy is more expensive, but it offers broader protection. It’s optional unless you lease or finance your car. Lenders and leasing companies typically require it to protect their investment.[4]
Here are the cheapest insurance companies in Texas for full-coverage policies for young drivers, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| State Farm | $293 |
| Progressive | $373 |
| Root | $397 |
| Allstate | $413 |
| GEICO | $446 |
| Clearcover | $450 |
| Mercury | $451 |
| USAA | $491 |
| Mile Auto | $496 |
| Safeco | $546 |
| Elephant | $554 |
| GAINSCO | $561 |
| Bristol West | $585 |
| Alinsco | $601 |
| Direct Auto | $605 |
| The General | $625 |
| Nationwide | $643 |
| National General | $670 |
| Mendota | $676 |
| Commonwealth Casualty | $698 |
| Dairyland | $706 |
| Sun Coast | $712 |
| First Acceptance | $720 |
| Loop | $728 |
| Lone Star | $730 |
| AssuranceAmerica | $734 |
| Covercube | $764 |
| Liberty Mutual | $780 |
| Trexis One | $914 |
| Chubb | $922 |
| 21st Century | $929 |
Remember, your actual rate depends on many different factors, including your driving record, which we’ll cover next.
Getting a ticket can drive up the cost of car insurance. Our research shows even a single speeding ticket causes average rates to increase by 29% nationwide. In Texas, drivers with a ticket pay an average of $207 per month.
Insurance companies view tickets — especially ones for speeding or reckless driving — as indicators of risky behavior. So, you can expect higher premiums. You might also lose your safe driver discount if you have one.
The chart below shows the cheapest car insurers in Texas for young drivers with a ticket, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| State Farm | $190 |
| Progressive | $263 |
| Allstate | $274 |
| GEICO | $274 |
| Mile Auto | $276 |
| Root | $287 |
| USAA | $322 |
| Clearcover | $329 |
| GAINSCO | $348 |
| First Acceptance | $360 |
| Dairyland | $368 |
| Commonwealth Casualty | $373 |
| The General | $377 |
| Bristol West | $378 |
| Alinsco | $380 |
| Mercury | $382 |
| Lone Star | $386 |
| Covercube | $422 |
| Nationwide | $424 |
| Elephant | $435 |
| Mendota | $435 |
| Excepsure | $448 |
| Sun Coast | $448 |
| Direct Auto | $476 |
| Safeco | $482 |
| Loop | $487 |
| AssuranceAmerica | $492 |
| National General | $499 |
| Trexis One | $565 |
| Chubb | $599 |
| 21st Century | $623 |
| Hugo | $630 |
| Insurify Car | $640 |
| Liberty Mutual | $682 |
Causing a car accident will raise your car insurance rates. Texas drivers pay an average of $198 per month after an at-fault accident, according to our research.
Insurance companies raise rates for drivers who cause an accident because it signals a higher risk of future claims. Our data shows that a single at-fault accident causes average rates to increase by 33% nationwide.
Here are the cheapest car insurance companies in Texas for young drivers with an accident, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| State Farm | $199 |
| GEICO | $276 |
| Progressive | $279 |
| Allstate | $284 |
| Root | $303 |
| Mile Auto | $307 |
| USAA | $337 |
| Clearcover | $368 |
| GAINSCO | $373 |
| First Acceptance | $382 |
| The General | $389 |
| Dairyland | $393 |
| Bristol West | $397 |
| Alinsco | $403 |
| Lone Star | $410 |
| Mercury | $415 |
| Commonwealth Casualty | $416 |
| Nationwide | $442 |
| Covercube | $448 |
| Mendota | $461 |
| Elephant | $473 |
| Excepsure | $475 |
| Sun Coast | $475 |
| Safeco | $512 |
| AssuranceAmerica | $514 |
| Loop | $516 |
| Direct Auto | $517 |
| National General | $534 |
| Trexis One | $599 |
| Chubb | $629 |
| 21st Century | $647 |
| Hugo | $659 |
| Insurify Car | $678 |
| Liberty Mutual | $713 |
Driving under the influence (DUI) can lead to a drastic increase in car insurance costs. Our research shows that a single DUI conviction leads to an average 61% increase in rates nationwide.
Insurers consider DUI offenses extremely risky because impaired driving increases the chance of serious accidents.[5] Texas drivers pay an average of $229 per month after a DUI. But even young drivers can find more affordable car insurance after a DUI.
The chart below highlights the cheapest insurance companies in Texas for young drivers with a DUI, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| State Farm | $211 |
| Progressive | $291 |
| GEICO | $294 |
| Allstate | $298 |
| Mile Auto | $321 |
| Root | $340 |
| Clearcover | $349 |
| USAA | $353 |
| The General | $386 |
| First Acceptance | $399 |
| GAINSCO | $410 |
| Mercury | $417 |
| Dairyland | $419 |
| Alinsco | $420 |
| Bristol West | $424 |
| Lone Star | $428 |
| Commonwealth Casualty | $432 |
| Nationwide | $462 |
| Covercube | $467 |
| Mendota | $481 |
| Excepsure | $496 |
| Sun Coast | $496 |
| Elephant | $510 |
| Direct Auto | $536 |
| Loop | $539 |
| AssuranceAmerica | $546 |
| Safeco | $552 |
| National General | $566 |
| Trexis One | $625 |
| 21st Century | $645 |
| Chubb | $665 |
| Hugo | $699 |
| Insurify Car | $708 |
| Liberty Mutual | $757 |
Texas car insurance rates can also vary from city to city. Factors like population density, traffic congestion, accident rates, and local crime statistics can influence how much you pay. That’s why drivers in urban areas tend to pay higher premiums than in smaller towns.
The table below shows the average rates and cheapest insurance companies for young drivers in a few of Texas’ most notable cities.
City  | Citywide Average Monthly Premium | Cheapest Insurer | Insurer’s Average Monthly Premium |
|---|---|---|---|
| Austin | $334 | State Farm | 116 |
| Dallas | $363 | State Farm | 127 |
| Fort Worth | $320 | State Farm | 112 |
| Houston | $432 | State Farm | 151 |
| San Antonio | $338 | State Farm | 118 |
State Farm is the cheapest insurer in Houston, Texas’ largest city. But that doesn’t mean it’ll be the cheapest company for you. Always compare quotes from multiple insurance companies to find the lowest rate based on your specific situation.
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One of the easiest ways for young drivers to reduce car insurance costs is by taking advantage of discounts. But keep in mind that not all discounts are available from every insurance company or in every state.
Some of the most common discounts young drivers in Texas may qualify for include:
Good student discount: Maintaining good grades — usually a B average or higher — can pay off. With some insurers, you can save as much as 35% on your premiums.
Driver’s education discounts: Completing an approved driver’s education course may get you a discount. You can expect to save up to 15% on your car insurance.
Good driver discount: Insurance companies often reward drivers for safe driving — meaning no tickets or accidents on their record. Potential savings may be as much as 40% with some insurers.
Multi-policy discount: Some insurers may give you a discount worth up to 25% for bundling car insurance with another policy such as renters or homeowners insurance.
Pay-in-full discount: Consider paying your policy up front rather than in monthly installments to save up to 15% on your insurance costs.
Now, let’s look at some other ways to lower car insurance costs.
Here are some options for young drivers in Texas to lower car insurance beyond discounts.
The make and model of your car can lower or drive up car insurance. A car with high safety ratings and low repair costs usually results in lower insurance rates.
Stay on your parent’s car insurance policy as long as possible. It’s usually much cheaper than buying your own coverage.
Avoiding tickets and accidents helps you qualify for lower rates over time.
Choosing a higher deductible can lower your comprehensive and collision premiums by 40% or more, according to the Insurance Information Institute (Triple-I).
Rates change frequently, so comparing quotes from several insurance companies every six to 12 months helps you find the best deal. Use an insurance comparison site to quickly compare multiple insurance all in one place.
Get cheaper coverage for your young driver in minutes by comparing rates from top insurance companies.
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Doing your research can pay off when it comes to shopping for auto insurance — especially for teen drivers. Here are answers to some of the most common questions people ask about car insurance for young drivers.
Liability-only car insurance at the state-minimum limits is usually the cheapest option for young drivers. Texas liability coverage costs an average of $229 per month for teens, according to our data. Companies like State Farm and GEICO often offer the lowest rates, but your costs will depend on factors like your driving record, ZIP code, and coverage level.
Yes. Teenage males typically pay more for car insurance. Statistically, male drivers are more likely to engage in risky driving behaviors, which leads insurance companies to charge higher premiums, according to Triple-I.
Car insurance companies like GEICO, State Farm, Allstate, and USAA (if you’re eligible) offer some of the most affordable rates for 16-year-olds, according to our data. Families with teen drivers can take advantage of teen-related discounts, stick with state-minimum coverage if it fits their needs, and add the teen to the family policy to keep rates low.
It’s possible. Car insurance rates may decrease slightly at age 18 but typically remain high until age 25. Insurance companies consider drivers younger than 25 high risk, though maintaining a clean record can help lower premiums over time.
Yes. If your teenager has a driver’s license and lives in your household, generally have to add them to your policy or get them their own car insurance coverage. If you don’t, and they cause an accident, the insurance company could deny your claim and cancel or non-renew your policy.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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