Best Cheap Car Insurance for Drivers Under 25 in Texas

Shopping around for cheap insurance is challenging, and determining which company offers the cheapest auto insurance rates for drivers under 25 takes a bit more work. Premiums will more than likely be a little bit more than the average price in Texas, with the higher price attributed to the potential for higher claims that goes along with selling coverage for drivers age 25 and younger, but competitively-priced insurance should be possible if you do a thorough comparison.

Each insurance company has their own process to determine premium rates, so we’ll go over the auto insurance companies that tend to have lower prices in Texas.

Find the Cheapest Auto Insurance for Young Drivers

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Travelers may have some of the most affordable car insurance rates in Texas at around $1,041 each year. USAA, Germania Mutual, Texas Farm Bureau, and Esurance also qualify as some of the best Texas auto insurance companies.

As the rates illustrate above, if you are a policyholder with Texas Farm Bureau and switched to USAA, you could see an annual savings of in the vicinity of $119. Drivers with Esurance may save as much as $293 a year, and California Casualty customers might lower prices by up to $296 a year.

Be aware that those prices are averages for all drivers and vehicles and and are not figured with a price surcharge for drivers under 25. So the car insurance company that is most affordable for your situation may not even be in the company chart above. That underscores the importance of why you need to quote rates from as many companies as possible using your own driver data and vehicle information.

The cost and performance of the vehicle on the policy is probably the most important factor when quoting low-priced auto insurance for drivers under 25. Vehicles with high performance features, a lack of safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than safer models. The information below presents insurance premiums for a handful of the most cost-effective automobiles to insure.

Data assumes single female driver age 20, no speeding tickets, no at-fault accidents, $500 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate quotes do not factor in specific garaging location which can influence premium rates considerably.

Prices above based on single female driver age 20, no speeding tickets, no at-fault accidents, $500 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in specific zip code location which can influence price quotes significantly.

Above prices assume single female driver age 20, no speeding tickets, no at-fault accidents, $500 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Rates do not factor in the specific area where the vehicle is garaged which can lower or raise premium rates significantly.

One of the many things that car insurance companies take into consideration when calculating the annual cost of car insurance is the neighborhood you call home in Texas. Areas with a lot of weather claims or more people like McAllen, Dallas, and Amarillo tend to have more expensive auto insurance rates, whereas areas with less congestion tend to receive cheaper rates.

The table below displays the priciest cities in Texas for drivers under 25 to purchase car insurance in.

Price information shown is estimated as specific Texas garaging address can raise or lower premiums greatly.

Does full coverage make sense?

Finding the best cheap car insurance for drivers under 25 in Texas is important to most people, and one great way to reduce the cost of insurance is to only buy liability insurance. The illustration below compares premium costs when comparing full coverage to liability only. The data is based on no claims or driving violations, $100 deductibles, single status, and no discounts are taken into consideration.

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If averaged for all ages, physical damage insurance costs $2,429 per year over having just liability coverage. That amount may make you wonder if it’s a good idea to buy full coverage. There is no clear-cut formula for eliminating comprehensive and collision coverage on your policy, but there is a general convention. If the annual cost of comprehensive and collision coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you may want to consider only buying liability coverage.

For example, let’s pretend your vehicle’s replacement value is $6,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $5,500 after the policy deductible has been paid. If premiums are more than $550 a year for full coverage, then you may need to consider dropping full coverage.