Texas legally requires all drivers to have car insurance, including college students. The best insurance policy for college students in Texas depends on whether you plan to stay on your parents’ insurance policy or get a separate policy. Most college students stay on a parent’s policy since it’s often cheaper.1
Whether you’re moving to Texas to attend school or already a resident and planning to attend college locally, you have a lot of insurance options. Here’s how to find the best insurance company for college students in the Lone Star State.
Best car insurance for college students in Texas
Consider your priorities when choosing the best car insurance for college students in Texas. Determine whether you’re looking for low rates, discounts, or the best overall experience. The following car insurance companies are Insurify’s top picks in each category for college drivers in Texas.
State Farm: Best for teens on their parents’ policy
Travelers: Best for student discounts
USAA: Best for military families
Cost of car insurance for Texas college students
Due to their inexperience behind the wheel and risky behaviors, teens and young drivers are more expensive to insure. The cost of coverage decreases with every additional year of age, but not by much. By the time you graduate from college, you’ll spend about $30 less per month for coverage. Once you’re age 25, you should see more affordable rates.2
The chart below shows how monthly liability quotes in Texas change based on different ages.
What to know about staying on your parents’ car insurance
It’s usually cheaper to stay on your parents’ auto insurance as a teen driver. The average cost of full coverage for a teen driver is $372 per month, Insurify data shows. Insuring a teen driver on a family policy costs an average of $303, nearly $70 cheaper.
If you plan to live at home while you attend school or share a car, staying on your parents’ policy usually makes sense since it’s more convenient and cost-effective. Plus, you can qualify for additional discounts, like a multi-vehicle discount.
But staying on your parents’ policy isn’t always practical or possible. If you’re attending school out of state or plan to keep your car on campus, it might be easier to have a separate insurance policy. Here’s how much you might pay depending on whether you have your own policy or stay on your parents’ policy.
Car insurance for college students out of state
When attending school out of state, you have extra car insurance considerations. Some car insurance companies require out-of-state students to have separate insurance policies. But regardless of how you decide to handle coverage, students must meet the minimum-coverage requirements for Texas.3
Here are a few considerations for Texas college students from out of state:
You’re not bringing a car to school. You might want to maintain coverage even if you’re not bringing a car to school. It makes driving your parents’ car easier when you’re home during breaks. And you can often qualify for student-away discounts to reduce costs.
Your parents’ house is still your permanent address. You can typically stay on your parents’ car insurance when you bring a car to college. But if you move out permanently, you’ll need to get your own insurance.
Your parent(s) owns the car you’re bringing to school. You can usually stay on your parents’ car insurance if they own the vehicle you’re bringing to school.
Car insurance for international students
You must have car insurance if you’re an international student attending college in Texas and you plan to drive. International students must have a valid driver’s license to get coverage. Depending on where you’re from, you might be able to use your international license in the U.S. If not, you can apply for an international driving permit, which lasts for six to 12 months.
It’s common for international students to need car insurance. Most companies issue policies to international students with foreign licenses. The only downside is that insurers consider your driving record when determining rates. So if you don’t have a U.S. driving history, you’ll usually pay more for coverage.
5 ways for college students to get cheaper insurance
Car insurance for college students can be expensive. Here are some easy ways to get cheaper coverage:
Texas car insurance requirements
All Texas drivers, including college students, must have liability-only car insurance. The state requires that drivers have at least $30,000 in bodily injury liability per person, $60,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident.
Liability insurance pays for the other driver’s injuries and repairs when you cause an accident. But it doesn’t protect you, your passengers, or your car. Because of that, most insurance experts recommend full-coverage car insurance, which includes liability, comprehensive, and collision coverage. Full coverage costs more, but it often pays for itself if you’re in a serious accident.