How Much is Insurance for a 16-Year-Old in Texas?

The average teenage driver in Texas pays around $243 per month for liability-only coverage, while the national average across all ages for liability insurance is $198. But not everyone will pay the same rate. Insurance companies consider several factors when determining your premiums.

Learn about the factors that affect teen driver car insurance costs, as well as some ways to save money on teen insurance policies in Texas.

Average cost of insurance for 16-year-olds in Texas

Parents of 16-year-old drivers can expect to pay higher premiums than average, as insurers consider teens to be high-risk drivers. This table outlines the average cost of liability-only policies from some top insurers in Texas.

Cost of adding a teen to parent’s policy vs. their own policy

Parents or guardians have two options when paying for insurance to protect their teen driver. They can add the young driver to their own policy, or they can purchase a separate car insurance policy for their teen. Each option has its benefits and disadvantages.

In many cases, it’s more convenient to add a teenager to your family policy. Many insurance companies offer discounts for student drivers and multi-car policies. Additionally, it’s typically cheaper to add a driver to your existing policy than to pay for separate coverage.

Some parents may prefer to purchase a separate policy to facilitate the teen driver’s transition when they leave home or to allow the young driver to pay for their own coverage, but that’s often more expensive, as you can see in the table below.

Factors affecting insurance rates for 16-year-olds in Texas

Insurance companies consider multiple factors when determining car insurance rates for teenage drivers, including:

• Age and gender: One major factor auto insurance companies consider is a driver’s age and gender. The Centers for Disease Control and Prevention (CDC) reports that teen drivers are at a higher risk for auto accidents, with 16-year-old male drivers in particular at the highest risk of death in car accidents.1 The CDC also reports that crash risks are higher during the first few months after a teen gets their driver’s license.

• Driving experience: Younger drivers have less experience, but they can take safe driving courses to boost their knowledge and potentially earn some auto insurance discounts. Parents can help their teens by taking them out for practice routes once they have a learner’s permit.

• Vehicle type: Car insurance companies often offer discounts for owners who choose vehicles with extra safety features like backup cameras and lane alerts.2

• Geographic location: Your ZIP code can also affect the average cost of car insurance. Drivers in more urban areas with busier roads will likely pay higher rates than drivers who spend less time on high-traffic roads.3 Bigger cities also have a higher risk of vandalism and theft.

• Driving record: Your driving record shows insurance companies how likely you are to file claims. The average cost of your auto insurance correlates with the number of incidents on your record compared with your experience on the road. The more incidents on your record in a short amount of time, the higher your insurance premiums will be.

• Coverage type: Liability-only policies are cheaper than full-coverage policies. But liability coverage only protects other drivers and passengers involved in an accident with your teen driver. Liability provides minimum coverage and doesn’t cover medical expenses or property damage to your vehicle. Full-coverage car insurance may be more expensive, but it offers more protection for your young driver, including collision coverage.

• Discounts and bundles: One of the easiest ways to save money on an insurance policy is to look at discount and bundle options. For example, many auto insurers offer discounts for good grades in high school and safe driving course completion.4

How Texas teen car insurance rates compare to nearby states

Teen drivers in Texas pay considerably more per month than the national average of $198 per month for liability coverage. But Texas teens pay less than young drivers in Louisiana.

Here, you can see how the average rate for liability coverage for Texas teens compares to those in bordering states.

Comparing teen driver rates in Texas with other age groups

Young drivers pay the highest insurance coverage rates due to their lack of driving experience. The good news is those rates will go down as teens age into adulthood before climbing again once drivers reach their 70s.

The following table shows the average monthly liability coverage rate for people in different age groups.

How to reduce insurance costs for 16-year-olds 

Texas drivers can spend thousands of dollars per year on auto insurance coverage. But taking a few minutes to put in extra work can help lower that cost substantially. Whether you’re looking for the cheapest car insurance or the most coverage for the best price, these tips can help you find what you need.

Cost of insurance for a 16-year-old in Texas FAQs