Car insurance in Texas for a 25-year-old costs $997 per year, on average, for minimum coverage. Drivers who are 25 years old pay less for car insurance coverage than the average driver in Texas because they have a few years of driving experience in order to prove they are not risky drivers.
Average Cost of Car Insurance in Texas by Age
Age | Yearly Premium | Monthly Premium |
25-year-old | $997 per year | $83 per month
|
16-Year-Old | $3,930 per year | $323 per month |
20-Year-Old | $1,981 per year | $165 per month |
35-Year-Old | $808 per year | $67 per month
|
45-Year-Old | $773 per year | $64 per month |
55-Year-Old | $731 per year | $61 per month
|
65-Year-Old | $797 per year | $66 per month
|
People living in Texas tend to pay more for car insurance than the average American, regardless of age. Drivers in Texas pay an average of $1,689 per year for minimum coverage, while the national average is $1,407 per year. When looking for car insurance, you should compare quotes from at least three different companies to find the cheapest price to fit your needs.
To learn more check out WalletHub's picks for the cheapest car insurance in Texas.
This answer was last updated on 07/08/24 and it was first published on 09/27/23. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Car insurance in Texas for a 25-year-old costs $997 per year, on average, for minimum coverage. Drivers who are 25 years old pay less for car insurance coverage than the average driver in Texas because they have a few years of driving experience in order to prove they are not risky drivers.
How much does a 25 year old spend on insurance? ›
Average premium decrease for 25-year-olds by state
| State | Premium for 24-year-olds* | Premium for 25-year-olds* |
|---|
| California | $3,599 | $3,366 |
| Colorado | $3,954 | $3,449 |
| Connecticut | $3,353 | $,2,927 |
| Delaware | $3,376 | $2,897 |
47 more rowsBest car insurance for new drivers over 25
State Farm has the cheapest full-coverage car insurance for new drivers over 25 years old. New drivers with State Farm pay $117 per month. That would save $83 per month from the nationwide average.
Will your car insurance costs typically be lower once you turn 25? ›
Usually, yes. At Progressive, rates drop by 9% on average at age 25. But there are other cost factors impacting your car insurance, such as your claims history.
Who is the cheapest car insurance in Texas? ›
According to our research, the cheapest car insurance companies in Texas are Texas Farm Bureau, State Farm, Geico, Redpoint County Mutual and USAA.
Why is car insurance so expensive under 25? ›
Insurance companies often see young drivers as a greater risk because they are more prone to accidents and poor decision-making — both of which raise the potential cost of claims that need to be paid out by insurers. As a result, these added risks lead to higher premiums when insuring teen drivers.
How to lower car insurance when you turn 25? ›
Here are some ways to save on car insurance1
- Increase your deductible.
- Check for discounts you qualify for.
- Compare auto insurance quotes.
- Maintain a good driving record.
- Participate in a safe driving program.
- Take a defensive driving course.
- Explore payment options.
- Improve your credit score.
Car insurance rates tend to be lowest for drivers in their 50s, averaging $703 for a six-month policy. Drivers with accidents or other violations on their driving records usually see higher rates for a period of three years, though this may vary by how your state handles certain violations.
Who typically has the cheapest car insurance? ›
Cheapest Car Insurance Company
| Cheapest Car Insurance Company | Average Monthly Minumum Coverage Rate | Average Monthly Full Coverage Rate |
|---|
| 1. USAA | $39 | $145 |
| 2. Central Insurance | $36 | $156 |
| 3. Travelers | $58 | $141 |
| 4. Auto-Owners | $42 | $158 |
6 more rowsSep 4, 2024
Insurers usually weigh several factors when it comes to car insurance rates. Common among them are speeding tickets, DUIs, credit and moving violations. But beyond that, insurers also consider specific risks like the rates of accidents, vandalism and theft in your area, which result in higher claim rates.
If your policy has a no-claims discount, how much car insurance goes down after one year of no claims is usually between 10% and 15%.
Does having good grades lower car insurance? ›
Good student: Many car insurance companies offer discounts to full-time students who get an average grade of B or higher, have high standardized test scores, or make the honor roll or dean's list.
At what age is car insurance the cheapest? ›
Car insurance rates tend to be lowest for drivers in their 50s, averaging $703 for a six-month policy. Drivers with accidents or other violations on their driving records usually see higher rates for a period of three years, though this may vary by how your state handles certain violations.
Why is car insurance so high in Texas? ›
Car insurance in Texas is expensive because the state has three of the top 10 largest cities in the country and large, growing populations across the state. In Texas, you can expect to pay approximately $5,335 per year for full coverage car insurance or $1,689 per year for minimum coverage.
What is the minimum car insurance coverage in Texas? ›
Legally, in the state of Texas you're only required to have the state Liability minimums of 30/60/25. For leased or financed cars, most lenders require having Comprehensive and Collision Coverage.
