What Auto Insurance is Cheapest for Young Drivers in Austin?

For youthful drivers, one of the largest criteria that are used to help calculate the amount you pay each year for auto insurance is where you call home in Austin. Areas with more people or even just a higher incidence of claims will most likely have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims benefit from having to pay less for coverage.

The table below lists the highest-priced places in Texas for young drivers to purchase a policy in. Austin ranks #19 with an annual rate of $1,610 for the average policy, which is approximately $134 per month.

How much does auto insurance cost in Austin?
Rank City Annual Premium
1 McAllen $1,996
2 Dallas $1,893
3 Laredo $1,889
4 Brownsville $1,870
5 Amarillo $1,858
6 Houston $1,853
7 Mesquite $1,825
8 Pasadena $1,812
9 Garland $1,796
10 Grand Prairie $1,740
11 Irving $1,736
12 Lubbock $1,733
13 Beaumont $1,702
14 San Antonio $1,688
15 Fort Worth $1,653
16 Arlington $1,642
17 El Paso $1,632
18 Plano $1,624
19 Austin $1,610
20 Carrollton $1,598
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Premium amounts are approximated as the specific zip code location can influence prices greatly.

The type of vehicle requiring coverage is a large factor when consumers are trying to find the cheapest auto insurance for young drivers. Vehicles with limited speed and performance, advanced safety features, or a positive history of liability claims will cost much less to insure than high performance models. The next list showcases coverage prices for the cheaper vehicles to insure.

Cheapest Vehicles to Insure in Austin, TX
Vehicle Make and Model Estimated Cost for Full Coverage
Honda CR-V EX 2WD $3,742
Ford Escape Limited 4WD $4,025
Toyota Prius $4,064
Honda Odyssey LX $4,157
Ford F-150 STX Regular Cab 2WD $4,164
Jeep Wrangler Rubicon 4WD 2-Dr $4,196
Ford Edge SEL 2WD $4,400
Chevrolet Equinox LS 2WD $4,439
GMC Sierra SL Extended Cab 2WD $4,445
Toyota Camry LE $4,439
Chevrolet Impala LT $4,449
Toyota RAV4 4WD $4,439
Toyota Tacoma Double Cab 4WD $4,446
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Prices above based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in specific location which can increase or decrease price quotes significantly.

Looking at the numbers, we can presume that vehicles like the Honda CR-V, Ford Escape, and Toyota Prius are a few of the most affordable vehicles to insure for youthful drivers. The price for an auto insurance policy will be more expensive just due to the fact that there is more exposure for young drivers, but in general those specific models will have the best insurance prices that you’ll find.

Establishing which company has the cheapest car insurance rates for young drivers involves more time in order to find the best policy. Each company uses their own calculation for setting rates, so we’ll take a look at the most affordable car insurance companies in Austin.

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Cheapest Texas car insurance ranked by price
Rank Company Cost Per Year
1 Travelers $1,052
2 USAA $1,117
3 Texas Farm Bureau $1,211
4 Germania Mutual $1,282
5 Esurance $1,379
6 California Casualty $1,438
7 Mercury $1,461
8 State Farm $1,495
9 Safe Auto $1,565
10 Nationwide $1,585
11 Progressive $1,698
12 Allstate $1,718
13 Amica $1,757
14 Home State $2,155
15 GEICO $2,156
16 MetLife $2,249
17 Encompass $2,255
18 Unitrin $2,333
19 21st Century $2,396
20 Titan $2,594
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Travelers normally has some of the lowest car insurance rates in Austin at around $1,052 annually. This is $852 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the more affordable Austin, TX insurance companies.

In the above example, if you currently buy coverage from Germania Mutual and switched to USAA, you might see an annual savings of around $165. Customers with Esurance might save as much as $262 a year, and California Casualty insureds might reduce rates by $321 a year.

Be aware that those policy rates are averaged for all ages of drivers and types of vehicles and and are not calculated with an exact location for young drivers. So the insurer that has the cheapest rates for you may not even be in the top 23 companies shown above. That emphasizes why you need to get quotes using your own driver data and vehicle information.

Get discounts on Austin auto insurance

Discounts on car insurance for young driversInsurers that offer quotes for young drivers may also offer policy discounts that may potentially lower prices by as much as 40% or more if you meet the requirements. A list of car insurance companies and the discounts they provide are shown below.

The chart below illustrates the comparison of yearly insurance costs with and without discounts applied to the rates. The costs are based on a female driver, no driving violations, no at-fault accidents, Texas state minimum liability limits, comp and collision included, and $250 deductibles.

The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with continuous coverage, paperless filing, paid-in-full, passive restraint, vehicle safety, and anti-theft discounts applied. When taking advantage of discounts, the average amount saved each year on car insurance for young drivers is 28% or $902.

Cautious Austin drivers save money

The best way to score the cheapest car insurance premiums for youthful drivers is to drive cautiously and not get tickets or have accidents. The information below highlights how speeding tickets and at-fault fender-benders impact insurance premiums for different insured age categories. The data is based on a married female driver, full physical damage coverage, $500 deductibles, and no additional discounts are factored in.

In the previous example, the average cost of auto insurance in Texas per year with no violations or accidents is $1,380. Factor in two speeding tickets and the average cost swells to $1,955, an increase of $575 each year. Then add in two accidents along with the two speeding tickets and the yearly cost of car insurance for young drivers goes up to an average of $4,203. That’s an increase of $2,823, or $235 per month, just for not being attentive to the road!

How to find budget-friendly auto insurance for young drivers

Lowering your rates is not difficult, and here are some of the recommended thrifty ideas that can help Texas drivers get cheaper car insurance.

The last idea is especially critical, as we pointed out in this write-up. Coverage rates vary greatly, so don’t be afraid to buy a policy from a new company if a cheaper rate is available. Having a favorite company is great, but it’s not a good idea if that devotion results in you overpaying major coinage every year. It takes less than five minutes to shop around to find cheaper car insurance for young drivers in Austin.

The agencies below are willing to help you make a decision which car insurance company is the best fit, as some drivers wish to have some advice when comparing insurance rates for young drivers. It’s not always easy to find the cheapest car insurance policy, and getting advice from a licensed Texas insurance agent can add comfort knowing you have adequate coverage if you have an accident or claim. To locate an agency close to you, click the link after the list.

Higginbotham/William Gammon Insurance
1221 S MoPac ExpyAustin, TX 78746(512) 477-6745

Larry Evins – State Farm Insurance Agent
4534 West Gate Blvd #202Austin, TX 78745(512) 327-0303

Bennie Council – State Farm Insurance Agent
6448 US-290 f110Austin, TX 78723(512) 454-4524

J B Ruebsahm – State Farm Insurance Agent
1901 W William Cannon Dr #131Austin, TX 78745(512) 444-1845

View more Austin, TX insurance agents