The make and model of vehicle requiring coverage is probably the largest consideration that determines whether or not you find cheap insurance for drivers under 25. Vehicles with higher performance, a lack of advanced safety features, or an increased likelihood of liability claims will cost more to insure than safer models.
The list below showcases insurance prices for a number of the most economical vehicles to insure in Texas.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$2,533|
|Ford Escape XLS 2WD||$2,543|
|Honda CR-V LX 4WD||$2,533|
|Honda Accord EX-L 4-Dr Sedan||$2,758|
|Ford Explorer XLT 4WD||$2,821|
|Dodge Grand Caravan SE||$2,827|
|Toyota Tacoma 4WD||$2,821|
|Honda Odyssey EX W/Rear Entertainment||$2,970|
|Toyota RAV4 Sport 4WD||$3,008|
|Chevrolet Silverado LT Extended Cab 4WD||$3,013|
|Volkswagen Jetta S 4-Dr Sedan||$3,008|
|Chevrolet Equinox LS 2WD||$3,014|
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Data rating is based on single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in specific Austin, TX garaging location which can modify prices considerably.
Based on these rates, we can presume that models like the Hyundai Elantra, Ford Escape, Honda CR-V, and Honda Accord are going to be some of the more affordable vehicles to insure for drivers age 25 and younger. Auto insurance rates will tend to be more expensive anyway just because there is more inherent risk for drivers under 25, but generally speaking those specific models will tend to have the least expensive rates compared to other types of vehicles.
Establishing which company has the cheapest car insurance rates for drivers under 25 takes more time than just picking a company at random. Every insurance company has a proprietary formula to set their prices, so let’s take a look at the most competitive car insurance companies in Texas.
It’s a good idea to be aware that Texas car insurance rates are calculated based on many things that may substantially change the price you pay for coverage. Simply getting older, moving to a new city, or getting a ticket for careless driving can trigger rate changes that can make some companies more affordable than competitors.
Find Cheaper Car Insurance for Young Drivers
|Rank||Company||Cost Per Year|
|3||Texas Farm Bureau||$1,235|
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Travelers quotes some of the lowest car insurance rates in Austin at around $1,021 each 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 make the cut as some of the most economical Austin, TX car insurance companies.
In this example, if you currently buy coverage from USAA and switched to Travelers, you may see an annual savings of roughly $107. Texas drivers with Texas Farm Bureau could save as much as $214 a year, and Germania Mutual customers might realize rate reductions of up to $223 a year.
To get a quick, customized rate comparison, click here to get a free quote or click several companies below for low rates.
These policy rates are averaged for all types of insureds and vehicles and do not factor in an exact vehicle garaging location for drivers under 25. So the car insurance company that can offer you the lowest price may not even be in the top 23 companies shown above. That is why you need to get rate quotes from many companies using your own driver data and vehicle information.
The diagram below shows how choosing a deductible can impact yearly insurance costs when researching cheap insurance for drivers under 25. The rate quotes are based on a single male driver, comp and collision included, and no discounts are factored in.
The chart above illustrates that a 40-year-old driver could lower their policy premium by $426 a year by increasing from a $100 deductible up to a $500 deductible, or save $638 by changing to a $1,000 deductible. Even younger insureds, such as the 20-year-old example, could possibly save as much as $1,414 or even more just by choosing higher deductibles when buying full coverage. When using a larger deductible, it will be important to have additional funds in a savings account to enable you to pay the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Best car insurance in Austin
Finding the right auto insurance company can be challenging considering how many different companies there are to choose from in Austin. The ranking data listed below could help you select which auto insurers you want to consider when shopping your coverage around.
These ratings only include the largest companies in America, so companies that may only write in Texas are not included in these rankings. If you’d like to compare prices from these and other companies in Texas, simply click here.
Top 10 Large Auto Insurance Companies Overall in Austin
- Mercury Insurance
- AAA Insurance
- State Farm
- The Hartford
- Safeco Insurance
Who has the cheapest Austin car insurance?
Texas car insurance rates are influenced by many factors which can significantly increase or decrease the policy premium. Improving your credit score, adding a teenager to your policy, or having an accident can trigger rate changes resulting in some rates now being cheaper than others.
In addition, insurers amend premium rates multiple times each year to reflect underwriting profits or losses. Significantly higher claims can result in higher prices, while a lower level of claims can produce more affordable Austin car insurance rates.
To help illustrate this point, the bar chart below compares the cheapest car insurance in Austin, TX for a 30-year-old female driver with a clean driving record, no accidents, and a good credit rating. When comparing rates based on her personal risk profile, Travelers might quote the cheapest car insurance rates in Austin at $1,161 a year. This is $743 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty also make the list of the best Austin, TX auto insurance companies.
In the next rate comparison, we’ll give the driver from the first rate comparison an accident surcharge, a little lower credit rating, and a couple of points charged on her driving record. Because each company uses their own calculation for filing rates in each state, getting updated rate quotes could now result in a slightly different list of affordable Austin car insurance companies as shown below.
Mercury now has the best price in Austin, TX with State Farm, Safe Auto, Nationwide, and USAA also having competitive pricing. This illustrates why it is important to compare lots of rates when trying to get cheap insurance quotes for drivers under 25. Rates can be determined by many different factors and can increase or decrease at any time, so the cheapest rate two years ago may now be costing you a lot of money.
How to find budget-friendly car insurance for drivers under 25
The list below summarizes some money-saving solutions that can help Texas drivers quote cheap coverage.
- Lower rates by purchasing a safer vehicle
- If possible, pay for small claims out-of-pocket
- Maintain a safe distance and avoid accidents
- Save money by insuring your home and auto with the same company
- Just one traffic violation will increase your rates
- Compare rate quotes often
The last tip is incredibly crucial, as was pointed out in the prior article. Car insurance rates can change in a short period of time, so don’t be afraid to buy a policy from a new company if a more affordable rate is found.
Having brand loyalty is commendable, but it isn’t a good idea if that devotion results in you overpaying a lot of money. In just a couple of minutes you could compare rates and find cheaper auto insurance for drivers under 25 in Austin.
If you like to get some professional input when comparing insurance rates for drivers age 25 and younger, the professional agents shown below can probably help you decide which coverage fits your budget. To find an Austin insurance agency near you, click the button at the bottom.
Tony Reyes – State Farm Insurance Agent
9811 S IH 35 Frontage Rd #120 – Austin, TX 78744 – (512) 851-2539
Nationwide Insurance: James Gary Howe
3720 Far West Blvd #114 – Austin, TX 78731 – (512) 346-7645
Jane McQuiggin-Hutson – State Farm Insurance Agent
2307 W Parmer Ln – Austin, TX 78727 – (512) 973-8501
4301 W. William Cannon Dr., Ste. B-120 – Austin, TX 78749 – (512) 263-4333
David Simmons – State Farm Insurance Agent
1910 W Braker Ln #400 – Austin, TX 78758 – (512) 837-8825