You’ve seen the ads from insurers like Farmers, GEICO, and Nationwide that claim big savings. So you just need to pick one at random, right?
It’s not that simple, unfortunately, as there are a lot of unknown elements like if you own a home, the number of miles you drive each year, and if you are married or single. The content below covers the best ways to avoid paying too much and will give you a good beginning to your search for cheaper coverage.
For teenagers, one of the more important criteria that determine the annual cost of car insurance is where you normally keep your vehicle. Cities with larger populations tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims profit from lower rates.
The following table rates the most costly cities in Texas for high school students to buy auto insurance in. Houston makes the list at #6 with the yearly price of $1,853 on average, which is around $154 monthly.
|Rank||City||Average Per Year|
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Annual rates are approximated as the specific zip code location can change premiums noticeably.
The vehicle model that needs insurance is one of the largest factors when comparing the most economical coverage for high school students. Vehicles with higher performance characteristics, a lack of modern safety features, or a history of substantial liability claims will cost substantially more to insure than safer, lower-performance models.
The next table presents coverage rates for a handful of the most affordable automobiles to insure.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$5,303|
|Ford Escape XLS 2WD||$5,310|
|Honda CR-V EX 4WD||$5,352|
|Ford F-150 XL Regular Cab 2WD||$5,591|
|Jeep Wrangler Sport 4WD 2-Dr||$5,600|
|Volkswagen Jetta S 2.5 Station Wagon||$5,678|
|Honda Odyssey LX||$5,914|
|Dodge Grand Caravan CV||$5,964|
|Ford Focus SE 4-Dr Sedan||$6,240|
|Chevrolet Impala LS||$6,248|
|Ford Edge SEL AWD||$6,240|
|Ford Fusion S 4-Dr Sedan||$6,289|
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Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include claim-free, and safe-driver. Estimates do not factor in your specific Houston, TX location which can modify prices significantly.
Based upon these rates, makes and models like the Hyundai Elantra, Ford Escape, and Honda CR-V will be a few of the more affordable vehicles to insure for teenagers. The price for car insurance will tend to be more expensive because of the fact that there is more liability exposure for high school students, but in general those particular models will tend to have the lowest prices compared to all other vehicles.
Deciphering which companies offer the best auto insurance rates for high school students takes a bit more work in order to find the lowest price. Each auto insurer uses their own calculation for determining rates in each state, so let’s examine the auto insurance companies that tend to have lower prices in Texas.
It’s a good idea to be aware that Texas auto insurance rates are based on many factors that can increase the price you have to pay for coverage. Simply improving your credit, buying a home instead of renting, or getting a DUI can trigger changes in premium that can now make some companies cheaper than competitors.
Cheapest Insurance Rates for Students
Travelers may offer some of the cheapest car insurance rates in Houston at around $1,041 annually. This is $863 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also qualify as some of the best Houston, TX car insurance companies.
As the example above demonstrates, if you have coverage with Germania Mutual and switched to USAA, you could see an annual savings of upwards of $199. Drivers with Esurance could save as much as $270 a year, and California Casualty insureds might cut rates by $329 a year.
To see if your current coverage is too expensive, click here to start a quote or quote rates from the companies below.
Bear in mind that those premium estimates are averages across all ages of drivers and types of vehicles and do not take into consideration a specific vehicle garaging location for high school students. So the auto insurance company that is best suited for you may not even be in the top 23 companies shown above. That underscores the importance of why you need to get car insurance quotes using your own individual information.
Discount Houston insurance
Insurance companies that offer quotes for high school students may additionally offer policy discounts that may potentially lower prices by as much as 30% if you meet the requirements. A list of companies and their possible discounts include:
- GEICO has savings for federal employee, defensive driver, seat belt use, military active duty, and multi-policy.
- MetLife offers discounts including multi-policy, good driver, accident-free, defensive driver, claim-free, and good student.
- Progressive may have discounts that include online quote discount, multi-policy, continuous coverage, multi-vehicle, and online signing.
- Travelers discounts include home ownership, multi-car, driver training, new car, and save driver.
- SAFECO may include discounts for safe driver, teen safety rewards, homeowner, accident prevention training, anti-theft, bundle discounts, and drive less.
- AAA offers discounts for good student, pay-in-full, education and occupation, multi-policy, good driver, anti-theft, and AAA membership discount.
The example below visualizes the comparison of annual premium costs with and without discounts applied. The information is based on a female driver, a clean driving record, no claims, Texas state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the price with no discounts. The second shows the rates with paid-in-full, anti-theft, paperless filing, continuous coverage, good student, and vehicle safety discounts applied. When taking advantage of discounts, the average amount saved each year on auto insurance for high school students is 28% or $553.
Full coverage versus liability-only in Houston
Paying less for auto insurance is probably important to most vehicle owners, and one great way to find cheap insurance for high school students is to not buy full coverage. The example below illustrates the difference between insurance rates when comparing full coverage to liability only. The prices are based on no violations or accidents, $100 deductibles, single status, and no policy discounts are applied.
If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs $2,181 per year over having just liability coverage. At some point, every insured wonders if paying for full coverage is a waste of money. There is no written rule of when to stop paying for physical damage insurance, but there is a general guideline you can use. If the annual cost of coverage is about 10% or more of replacement cost minus your deductible, then it could be time to drop full coverage.
There are some cases where dropping full coverage is not a good idea. If you still have a loan on your vehicle, you have to keep full coverage in order to satisfy the requirements of the loan. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should maintain full coverage.
Shop around and save
Houston auto insurance rates are impacted by many factors which can substantially change the policy premium. Simply having another birthday, increasing liability limits, or getting a driving violation may cause policy rate changes that may make certain companies cheaper than competitors. Not only may your situation change, but car insurance companies change premium rates at least once a year in order to remain profitable. Unexpectedly high claims may result in price increases, while a better loss history can cause more affordable Houston car insurance rates.
The chart below shows the companies that have the cheapest car insurance in Houston, TX for a 45-year-old male driver with no violations or accidents, and good credit. Based on his current risk profile, Travelers might quote the cheapest car insurance rates in Houston at $1,297 annually. This is $607 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance round out the rest of the top five cheapest Houston, TX auto insurance companies.
The chart below compares rates after we give the driver from the first set of rates a chargeable accident, slightly worse credit, and a speeding citation. Due to the fact that every insurance company has their own guidelines for setting rates, analyzing rate quotes may result in a substantially altered list of companies as shown below.
State Farm now has the cheapest rate in Houston with Mercury, Nationwide, Safe Auto, and USAA also being competitive. This shows why it is critical to shop around when trying to find affordable auto insurance rates for high school students.
Insurance prices consist of many things and change frequently, so the best option two years ago may now not even be in the top five.
Tips for finding economical car insurance for high school students
Below you’ll find some of the better money-saving solutions that can help drivers find cheap coverage.
- Pay for small claims rather than turning them in to your insurance company
- Buying home and auto insurance together can earn discounts
- Do not get tickets or violations
- Buy vehicles with good safety ratings
- Avoid at-fault accidents and claims
- Look for cheaper rates once a year by shopping around
The last suggestion is particularly crucial, as was noted in the prior information. Prices charged by companies in Houston can change considerably in a year, so don’t be afraid to switch to a new company if a cheaper rate is available.
Many drivers tend to have loyalty to a certain company, but it’s not a good idea if that faithfulness ends up costing you a lot of money. Take a few minutes and compare prices to find cheaper car insurance for high school students.
If you prefer to have a little guidance when comparing insurance rates for high school students, the insurance agencies listed below are a good start to help you determine which coverages are best.
To find an auto insurance agency closest to you, click the button link following the list or click here to compare price quotes now.
- Champions Insurance Agency
15327 Gulf Fwy b – Houston, TX 77034 – (281) 484-4870
- Lucrecia Jasminoy – State Farm Insurance Agent
223 Cavalcade St – Houston, TX 77009 – (713) 884-1442
- Memorial Insurance Agency, LLC
13624 Memorial Dr – Houston, TX 77079 – (713) 461-8272
- Pasadena Insurance Agency, Inc.
99 Detering St #280 – Houston, TX 77007 – (713) 869-6991
- Texas General Insurance Agency
2500 West Loop S #210 – Houston, TX 77027 – (713) 622-5977