Compare Texas Auto Insurance for Teen Drivers

Texas-Auto-Insurance-for-Teens

Becoming a teen driver is a major milestone for anyone. You’re gaining freedom and responsibility on a scale that is unparalleled for many first-time drivers at such a young age. But teenagers behind the wheel come with risks and auto insurance for teens can be quite costly.

The best auto insurance for teens will provide adequate coverage at the lowest price on the market. You’ll want to be prepared for a variety of possibilities as teenagers, even more so for males, are the leading demographic for car accidents in the state of Texas.

Teens entering the driving world may not command the same buying power or knowledge about how auto insurance works as their older counterparts. Cheap car insurance for teens is not impossible to find, but overall, you can expect to pay higher premiums as a newer driver. Get to know everything you need to know about the coverage teen drivers need and how to save more for your policy.

How Much Is Car Insurance for Teens in Texas?

In Texas, an auto insurance policy may cost thousands of dollars per year on average. Many Texans pay around $1,500-$2,000 per year. Adding more coverage will also raise your rates, though it could save you money down the line. But because there are so many different factors to consider, the price of your coverage will vary. At Freedom Insurance Group, the average teen driver saves 40% on their car insurance policy providing hefty savings without cutting protection.

Why Is Auto Insurance for Teen Drivers So Expensive?

By a large margin, teenage drivers cause the most automobile accidents. There are many reasons for this including inexperience, but the fact remains that because this demographic is more accident-prone, you can expect your teenage auto insurance policy to be more expensive.

The way any driver’s auto insurance premium is calculated is by identifying various risk factors to determine how risky it is to insure the driver. If you have more risk then you will pay more in premium and vice versa. The data supports the fact that teens are riskier by default and age is one of the top risk factors assessed by every auto insurance provider in the market. Here are some of the other factors that will go into crafting your rate:

  • Age.
  • Gender.
  • Marital status.
  • The amount of coverage you need.
  • Where you live.
  • Your driving record.
  • Your deductible.
  • Your claims history.

Each of these common risk factors may be different for each driver, but they are assessed by virtually every brand. Auto insurance companies take these risk factors into consideration and then devise a rate based on their own algorithms and calculations. For these reasons, drivers will often find themselves with different car insurance rates depending on where they shop. It is important to compare your coverage among many different auto insurance brands before signing up to be sure that you are receiving the best possible price for your coverage.

Car Insurance for Permit Drivers

According to the Texas Department of Insurance (TDI), teen drivers with a permit are not required to have a separate car insurance policy. This, however, does not mean there aren’t steps you’ll need to take to stay protected against losses.

If you are adding a teen driver to your family and they will be behind the wheel, you are going to need to inform your auto insurance provider. Failure to do so can result in denied claims in the event of an accident, your policy being voided, or having your renewal refused by your insurance company. Always inform your insurer if a teen with a permit will be operating your vehicle beforehand.

Teen Car Insurance Discounts in Texas

Although the cost of auto insurance for teen drivers is high in Texas, teens and their guardians have options to combat these costs. Discounts are a great way for any driver to save money and teen drivers need every advantage they can get. Take a look at some of the most common teen car insurance discounts available in the state of Texas:

Bundling and Multi-Policy Discounts

When you bundle your car insurance with a homeowners insurance policy, you can receive great savings and better protection. Most teens aren’t homeowners, however, but if you are a guardian of a teen, adding them to your insurance policy and bundling it with your home insurance coverage can be a much cheaper option than having a standalone policy for just your teenage driver.

Furthermore, you can save on auto insurance for teen drivers by adding their vehicles to additional policies. In a similar way that insurance companies reward their customers for purchasing more than one policy, a multi-policy discount allows you to add multiple vehicles and drivers for better coverage at a lower overall rate.  We can also try quoting your teen on their own policy.

Good Grades Discount

Good students are seen as less of a risk to insure and good grades can equal serious rewards from auto insurance companies. Many prominent car insurance brands offer discounts based on academic success. Teens that improve their GPAs can also enjoy more savings for their coverage.

Telematics Discount

As technology grows, so too do the ways insurance providers are gathering data. A telematics discount is offered from a variety of auto insurance providers to clients who install small electronic devices into their vehicles. The devices will track the number of miles you drive, how hard you apply the brakes, how long you drive, your average and peak speeds, etc. Teens who use the device and exhibit safe driving behaviors can enjoy a discount for doing so.

Low Mileage Discount

The more you drive, the more likely it is that you are going to be in an automobile accident. Teen drivers don’t often travel too far from home and taking advantage of this can put money back in your pocket and save you money.

Discounts for Taking a Driving Course

Auto insurance for teens is pricier in part because they are inexperienced. Learning to drive takes time, and while learning from one’s mistakes is often the best teacher, driving affords no such luxury. Enrolling teens in driver safety courses not only equips them to handle more scenarios while on the road but can lead to discounts on car insurance for new drivers.

Distant College Student Discount

Teens that are heading off to college are stuck between being a kid and entering adulthood. There are still high insurance rates that will follow and obviously money will be tight. Many auto insurance providers offer discounts for college students that are moving away from home for the first time. When this discount is combined with the good grades discount, substantial savings can be found. Note: distance requirements may apply.

Choose a Higher Deductible

Paying a higher deductible is a great way to save on insurance premiums, as lower deductibles also come with higher rates. It is important, however, that new drivers may be more likely to get into an accident. Raising your deductible means that you’ll have to pay more out-of-pocket when suffering a loss and if you are more likely to get in an accident, you’re also more likely to have to pay this cost multiple times.

Every driver is unique and this means that the discounts you may qualify for will also be unique. The best course of action is to discuss potential teen car insurance discounts with a licensed agent. They can help you pinpoint the best ways for you to save based on the coverage you deserve and the discounts you qualify for.

Auto Insurance Coverages for Teen Drivers in Texas

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Auto insurance for new drivers is complex and necessary. There are many different approaches to take, however, your auto insurance policy should be enough coverage to handle whatever may come your way without overpaying for the protection you don’t need. You may be tempted to stick with less coverage to simply keep your teen legal while on the road, but as teens are more prone to accidents, additional coverage can help you save in the long run. Take a look at the auto insurance options available to teens in Texas:

Liability Coverage

New driver car insurance starts with liability coverage as all drivers are required to hold a minimum amount of liability coverage to be legally driving on the road in Texas. There are two types of liability coverage. Property damage coverage protects against damage to another party’s personal property during an accident and bodily injury coverage helps restore losses to another party’s injuries in the aftermath of an accident.

Minimum coverage can save you money on premiums but because all teens are more likely to get in an accident with some teens are statistically three times more likely, having only the state minimum can cost you more after an accident.

Comprehensive Coverage

When you enroll your teen in comprehensive coverage, you are protecting them from the harm that may come from various things outside of driving. A comprehensive policy protects when a tree falls on your vehicle or should your teen follow an 18-wheeler too closely and damage their windshield from flying rocks. Comprehensive coverage requires a deductible.

Collision Coverage

Liability coverage restores the losses of the party that is not at fault. So, if your teen driver gets in a wreck but is at fault, you’ll need more coverage to restore the loss to their vehicle. This is where collision coverage comes in. It helps you restore physical damage to your vehicle after an accident regardless of who is at fault.

Full Coverage

Simply put, full coverage combines liability, collision, and comprehensive coverage together into a single form of coverage. You receive a lower rate and better protection from a variety of potential losses. Full coverage isn’t for everyone, but it can be a great option for teen drivers who are exposed to more risks than experienced drivers.

Additional Coverage Options

If you are looking for other coverage options for your teen driver, there are more options available. These options will vary from brand to brand and speaking with your insurance agent can help you best understand what coverage options are available for your needs. Here are a few additional considerations to get you started:

  • Accident Forgiveness is a great option for teens as they are more likely to be in need of a second chance after an automobile accident. This will help you avoid skyrocketing rates after a teen driver on your policy is at fault for a wreck.
  • Medical Payments or Personal Injury Protection (PIP) provides coverage to help you pay for medical bills regardless of fault and may even cover things such as funeral costs, lost wages, and the cost of rehab after an accident when applicable.
  • Uninsured/Underinsured Motorist policies are an extra layer of protection that can help you restore a loss if you are hit by an underinsured motorist or one who lacks insurance altogether. Your teen will also be protected from damage stemming from a hit-and-run.
  • Gap Insurance will give you cash to pay off a vehicle after an accident if it is totaled but you still have a note to pay. The amount you’ll receive in this reimbursement is equal to the difference between the debt owed and your car’s actual cash value (ACV).

Best Auto Insurance for Teens in Texas

Finding cheap auto insurance for teens doesn’t have to be a hassle. The best way to find an affordable rate is to compare your coverage among many different auto insurance providers. This way, you can see a range of prices for the exact coverage you need and find the lowest price available.

But this can be time-consuming. It doesn’t take much time to realize how many different insurance brands are available throughout Texas. On top of this, you have to be sure that you aren’t just signing with a big name with flashy marketing or a smaller company that isn’t financially strong enough to have you as a client and may not be able to pay your claim.

At Freedom Insurance Group, we only work with the best insurance carriers available to drivers in Texas. All of our auto insurance providers are financially sound and capable of providing a variety of coverage options that will fit your needs and your budget. Our insurance center is home to more than 25 top-rated auto insurance brands.

By having these established auto insurance partnerships, we are able to quickly compare your coverage among respected insurance carriers to deliver you an accurate quote and customized protection through our auto insurance quote tool.

Since 2005, we’ve been helping teen drivers stay safe across Texas through dedicated customer service, comparative shopping, and expert knowledge. Auto insurance for teens doesn’t have to break the bank and our agents are here to help you find the protection you need for the lowest price possible. Contact us today.

Contact Us

Freedom Insurance Group
3861 Long Prairie Rd Ste 110
Flower Mound, TX 75028
Phone: (972) 798-3769

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