Cheapest Car Insurance in Texas for Young Drivers (2025)

Teen drivers typically pay the highest rates for car insurance, but cheaper rates are possible if you know where to look. State Farm, GEICO, and Allstate offer some of the lowest rates for young drivers in Texas.

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Janet Berry-Johnson
Janet Berry-JohnsonPersonal Finance Writer

Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.

Lequita Westbrooks
Lequita WestbrooksSenior Editor

Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.

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Car insurance in Texas costs an average of $176 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 $337.

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.

Key Takeaways
  • Texas teens pay an average monthly premium of $234 for liability coverage and $439 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.

Average Cost of Car Insurance for Young Drivers in Texas

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.

The below rates are estimated rates current as of: Tuesday, April 1 at 12:00 PM PDT
Average Monthly Premium: Liability
Average Monthly Premium: Full Coverage
Average Monthly Premium: All Policies
$300$562$432
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

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Cheapest State-Minimum Coverage in Texas for Young Drivers

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:

The table below shows the five cheapest insurance companies for state-minimum liability coverage for young drivers in Texas, according to Compare.com data.

Liability Rates by Company

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

Cheapest Full-Coverage Insurance in Texas for Young Drivers

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.

Full-Coverage Rates by Company

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Remember, your actual rate depends on many different factors, including your driving record, which we’ll cover next.

Cheapest Car Insurance in Texas for Young Drivers With a Ticket

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 $239 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.

Average Rates With a Ticket

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest Car Insurance in Texas for Young Drivers With an Accident

Causing a car accident will raise your car insurance rates. Texas drivers pay an average of $222 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.

Average Rates With an Accident

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

Cheapest Car Insurance in Texas for Young Drivers With a DUI

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 $282 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.

Average Rates With a DUI

Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

The Cheapest Texas Insurers for Young Drivers by City

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
sort ascsort desc
Citywide Average Monthly Premium
sort ascsort desc
Cheapest Insurer
sort ascsort desc
Insurer’s Average Monthly Premium
sort ascsort desc
Austin$345State Farm77
Dallas $380GEICO84
Fort Worth$335State Farm75
Houston$462State Farm102
San Antonio$341State Farm75
Disclaimer: Table data sourced from real-time quotes from Compare.com's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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.

Texas Car Insurance Discounts for Young Drivers

Two women sitting outdoors on a ledge, smiling and looking at a laptop. They are surrounded by greenery and street lamps in the background.

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.

5 Ways to Get Cheaper Car Insurance in Texas for Young Drivers

Here are some options for young drivers in Texas to lower car insurance beyond discounts.

  • illustration card https://a.storyblok.com/f/295508/150x150/2f32cca9a8/compare-icons-green-96x96-013-car-insurance.svg

    Choose a safe, affordable vehicle

    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.

  • illustration card https://a.storyblok.com/f/295508/150x150/5dc6f5b188/compare-icons-96x96svg-001-family.svg

    Stay on a parent’s policy

    Stay on your parent’s car insurance policy as long as possible. It’s usually much cheaper than buying your own coverage.

  • illustration card https://a.storyblok.com/f/295508/150x150/49b83a2f07/compare-icons-96x96014-file.svg

    Keep a clean driving record

    Avoiding tickets and accidents helps you qualify for lower rates over time.

  • illustration card https://a.storyblok.com/f/295508/150x150/b507b12919/compare-icons-96x96004-circular-economy.svg

    Consider higher deductibles

    Choosing a higher deductible can lower your comprehensive and collision premiums by 40% or more, according to the Insurance Information Institute (Triple-I).

  • illustration card https://a.storyblok.com/f/295508/150x150/27b37fa348/compare-icons-96x96016-shopping.svg

    Shop around regularly

    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.

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Texas Auto Insurance for Young Drivers FAQs

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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.

  • Which car insurance is the cheapest 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 $234 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.

  • Do teenage males pay more for car insurance?

    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.

  • What is the cheapest car insurance for a 16-year-old?

    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.

  • Do car insurance rates go down at 18?

    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.

  • Do you have to add your teenager to your car insurance in Texas?

    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.

Methodology

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.

Sources

  1. Teen Drivers. "Risk Factors for Teen Drivers."
  2. Insurance Institute for Highway Safety. "Teenagers."
  3. Texas.gov. "Tips to help you shop for auto insurance."
  4. III. "Auto insurance basics—understanding your coverage."
  5. III. "Do auto insurance premiums go up after a claim?."
About Compare.com

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Learn more about us, our team, and what makes us tick.

Janet Berry-Johnson
Janet Berry-JohnsonPersonal Finance Writer

Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.

Lequita Westbrooks
Edited byLequita WestbrooksSenior Editor
Lequita Westbrooks
Lequita WestbrooksSenior Editor

Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.

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