Who Has Cheap Auto Insurance for a 20 Year Old Male in Austin?

Ideally, we could just tell you the one auto insurance company that has the best car insurance rates in Texas. It’s not quite that easy, unfortunately, as there are a whole slew of unknown aspects like your financial responsibility, any tickets or violations, and whether you are single or married, that all go into determining the rate you pay. This article should teach you a little about the best ways to avoid high prices and will hopefully give you a good start in finding the cheapest insurance in Austin.

Figuring out which company has the best auto insurance rates for 20 year old guys requires a little more effort in order to find the lowest price quote. Every insurance company used slightly different criteria for setting prices, so let’s take a look at the auto insurance companies that tend to be cheaper in Austin.

It’s a good idea to be aware that Austin auto insurance rates are influenced by many factors which can substantially decrease or increase the price you have to pay for coverage. Simply having another birthday, increasing liability limits, or getting a couple of tickets can trigger rate changes that can cause some rates to be cheaper than before.

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Cheapest auto insurance in Texas ranked by cost per year
Rank Company Cost Per Year
1 Travelers $1,052
2 USAA $1,128
3 Texas Farm Bureau $1,235
4 Germania Mutual $1,256
5 Esurance $1,407
6 California Casualty $1,424
7 State Farm $1,450
8 Mercury $1,506
9 Safe Auto $1,565
10 Nationwide $1,600
11 Progressive $1,715
12 Allstate $1,718
13 Amica $1,757
14 Home State $2,092
15 GEICO $2,156
16 MetLife $2,249
17 Unitrin $2,264
18 Encompass $2,301
19 21st Century $2,421
20 Titan $2,568
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Travelers normally has some of the cheapest car insurance rates in Austin at around $1,052 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the cheapest Austin, TX insurance companies.

As shown in the table above, if you buy coverage from Esurance and switched to USAA, you could earn an annual savings of about $279. Drivers with California Casualty could save as much as $296 a year, and State Farm policyholders might lower prices by $322 a year.

If you want to see how much you could save, click here or feel free to get quotes from the companies below.

It’s important to note that these prices are averaged across all insureds and vehicles and do not factor in a vehicle location for 20 year old guys. So the insurer that is best for you may not even be in the list above. That emphasizes why you need to quote rates from as many companies as possible using your own specific driver and vehicle information.

One of the more important components that help determine the annual cost of car insurance is where you keep your car in Austin. Cities with larger populations will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.

The following table rates the priciest cities in Texas for 20 year old guys to buy car insurance in. Austin ranks #20 with an annual premium of $1,610 for the average policy, which is approximately $134 each month.

Car insurance prices in Austin
Rank City Premium Per Year
1 McAllen $1,996
2 Dallas $1,911
3 Laredo $1,907
4 Houston $1,891
5 Brownsville $1,851
6 Pasadena $1,812
7 Mesquite $1,807
8 Amarillo $1,804
9 Garland $1,796
10 Grand Prairie $1,740
11 San Antonio $1,722
12 Irving $1,719
13 Beaumont $1,702
14 Lubbock $1,665
15 Arlington $1,642
16 El Paso $1,632
17 Fort Worth $1,621
18 Corpus Christi $1,620
19 Carrollton $1,615
20 Austin $1,610
21 McKinney $1,577
22 Plano $1,576
23 Waco $1,537
24 Killeen $1,533
25 Abilene $1,515
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Rate quotes are estimated as vehicle location can increase or decrease rates noticeably.

The diagram below shows how choosing a deductible can increase or decrease insurance prices when trying to find cheap insurance for 20 year old guys. The data assumes a married male driver, full physical damage coverage, and no additional discounts are factored in.

A 40-year-old driver could save $264 a year by switching from a $100 deductible up to a $500 deductible, or save $402 by using a $1,000 deductible. Younger drivers, like the Age 20 category, could roll back prices as much as $884 every year just by using higher deductibles.

If you make the decision to raise deductibles, it is essential to have enough funds in savings to cover the extra out-of-pocket expense associated with higher deductibles.

Full coverage versus liability-only in Austin

Saving money on auto insurance is probably important to most vehicle owners, and one of the quickest ways to save on the cost of insurance for 20 year old guys is to only buy liability coverage. The diagram below illustrates the difference between car insurance rates with full physical damage coverage compared to only buying the minimum liability limits required in Texas. The costs are based on a clean driving record, no at-fault accidents, $100 deductibles, marital status is single, and no additional discounts are factored in.

As an average for all age groups, comp and collision coverage costs $2,922 per year more than just buying liability insurance. That brings up the question if buying full coverage is worth the money. There isn’t a written rule of when to stop paying for full coverage on your policy, but there is a general school of thought. If the yearly cost of full coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.

For example, let’s assume your vehicle’s replacement cost is $4,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $3,000 after the deductible is paid. If it’s costing in excess of $300 a year to have full coverage, then you might want to think about dropping full coverage.

There are a few cases where dropping physical damage coverage is not recommended. If you still have a loan on your vehicle, you have to keep full coverage to protect the lienholder’s interest. Also, if you don’t have enough money to buy a different vehicle in the even your car is totaled, you should not remove full coverage.

Drive responsibly or pay higher rates

The ideal way to snag low auto insurance prices in Texas for young men is to drive safe and maintain a clean driving record. The information below demonstrates how traffic citations and fender-benders raise car insurance costs for each age group. The premium estimates are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are applied to the premium.

In the previous example, the average cost of an auto insurance policy in Austin per year with no accidents and a clean driving record is $2,535. Receive one speeding ticket and the average cost increases to $2,875, an increase of $340 each year. Then include two accidents along with the one speeding ticket and the yearly cost of auto insurance for 20 year old guys increases to an average of $5,829. That’s an increase of $3,294, or $275 per month, just for not paying attention while driving!

How to find cheaper car insurance for 20 year old guys

It is possible to find better rates, and here are a few money-saving suggestions that can help drivers locate more affordable car insurance.

The last item on the list is highly critical, as we noted in this article. Insurance rates in Austin vary greatly, so don’t hesitate to change insurance companies if you can find a cheaper rate.

Many consumers stick with the same company and that’s fine, but is isn’t recommended if your bullheadedness ends up costing you hundreds every year. It takes less than five minutes to shop around and find cheaper car insurance for 20 year old guys.