Cheapest Car Insurance for New Drivers in Texas (2024)

Insurance is essential for new drivers. But finding affordable coverage can be a challenge for younger drivers with little driving history.

While rates vary by location, teen drivers are the group that costs the most to insure. On average, teen drivers in Texas pay $215 per month for liability coverage and $443 for full coverage.

New drivers can lower their rates by comparing quotes and focusing on companies that offer discounts geared toward students and younger drivers.

Who’s considered a new driver in Texas

The term “new driver” typically refers to teen drivers between the ages of 15 and 17 with provisional licenses. In addition, a new driver may also refer to immigrants with their first U.S. driver’s license. Many insurance companies view drivers with less than three years of experience as new drivers.

Parents or policyholders can add young drivers to their policy only after the driver obtains a driver’s license. Texas doesn’t legally require teen drivers with a permit to have an insurance policy, but it’s always a good idea to let your insurance company know when you have a young driver in your home.

Once someone obtains their driver’s license (provisional or otherwise), they should have auto insurance. New drivers only have to provide proof of insurance on vehicles they own when they receive their license.^[3]

Best car insurance for new drivers in Texas

Cost will be a significant factor when shopping for an insurance policy for new drivers because the age and experience of a driver affect the policy’s premium.

Insurance companies view new drivers as posing a high risk for accidents and incidents, according to the Insurance Institute for Highway Safety.^[4] A lack of experience on the road contributes to higher accident rates and, consequently, higher insurance rates.

When shopping around, these three companies are excellent car insurance options for new drivers in Texas.

Liberty Mutual: Best for custom auto policies

State Farm: Best for low-cost policies

Progressive: Best for unique discounts

Cheapest car insurance for new Texas drivers

When you purchase a car insurance policy for new drivers, especially teenage drivers, you may notice that the rates are much higher. On average, teen drivers between 16 and 19 are involved in more accidents than any other age group, and auto accidents are the No. 1 cause of death for U.S. teenagers.^[5] Lack of driving experience is a major contributing factor to an auto accident.

Experts typically recommend purchasing a full-coverage policy when you have a teenage driver. Full-coverage policies can help protect you against damage to your car and damage to other vehicles, property, and people.

You might consider liability-only coverage if the vehicle’s value is extremely low and you need the cheapest auto insurance. To save money, consider adding your teen driver to an existing policy instead of getting them their own policy.

The table below outlines some of the cheapest car insurance rates available for teen drivers in Texas.

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Liability rates for teen drivers start at $64 per month

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What type of car insurance should new drivers in Texas buy?

Texas law requires drivers to carry liability auto insurance to operate a motor vehicle. Liability insurance covers damages and bodily injuries to the other party in an accident when you’re at fault. It doesn’t cover your injuries or damages to your vehicle.

Texas requires drivers to have the following minimum coverages:

• $30,000 in bodily injury liability per person

• $60,000 in bodily injury liability per accident

• $25,000 in property damage liability

In addition to liability coverage, you may opt to purchase additional coverages, including:^[6]

• 

  Collision coverage

  Collision insurance pays for damages to your vehicle in an accident when you’re at fault.

• 

  Comprehensive coverage

  Comprehensive insurance covers you if you’re involved in a non-collision incident, such as fire, flood, hail, or vandalism.

• 

  Medical payments coverage

  Medical payments coverage pays for the medical expenses for you or your passengers.

• 

  Uninsured/underinsured motorist coverage

  Uninsured/underinsured motorist coverage protects you if you’re hit by a driver without insurance or who doesn’t have policy limits high enough to cover all your damages.

• 

  Roadside assistance coverage

  With roadside assistance coverage, you can get help if your car breaks down or you lock your keys in your vehicle.

Car insurance discounts for new drivers in Texas

When you add a new driver to your policy, your insurance bill will likely increase. Fortunately, you can take advantage of some discounts for new drivers that could help reduce your rates:

• Good student discount: Drivers may qualify for a good student discount if they maintain at least a B average in their classes. You may need to provide report cards to prove your student’s good grades.

• Defensive driving course discount: Many companies offer discounts to drivers who participate in a defensive driving course. These classes teach skills to help avoid accidents and increase awareness on the road.

• Student away at school discount: If your student driver will be away at college and won’t be driving while at school, you could qualify for discounted rates while they’re away and are driving less frequently.

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How to get cheap car insurance as a new driver in Texas

Finding affordable insurance coverage can be tricky if you have a first-time driver, a spotty driving history, or an expensive car. In addition to a driver’s age, insurance companies look at a person’s driving history, ZIP code, marital status, and other factors when setting rates.

Texas drivers of all ages can do several things to help them find the best rate possible:

• Compare rates from multiple companies. The best way to save money on your auto insurance is to compare insurance coverage and rates from at least three companies to ensure you get the best coverage for the best price.

• Bundle policies. Bundling multiple insurance products — like home, auto, and life insurance — can often qualify you for lower rates and simplify premium payments.

• Choose a vehicle with good safety features. Most insurance companies offer lower rates for cars with high safety ratings and safety features, like backup cameras and anti-lock brakes.

• Improve your credit. In Texas, insurers can consider your credit history when setting car insurance rates. They view drivers with poor credit as more likely to file a claim, so they raise rates to account for the added risk. Improving your credit can help you get lower car insurance rates over time.

• Drive safely. People with a good driving record typically pay the lowest rates for coverage. Practicing safe driving habits can help keep your premiums low.

Car insurance for new drivers in Texas FAQs