How Much is Car Insurance in Texas for a 25-Year-Old? (2024)

FAQs

How Much is Car Insurance in Texas for a 25-Year-Old? ›

Although 25-year-olds tend to pay higher premiums than 40- and 50-year-old drivers, you can usually expect lower average premiums than teens and younger adults. Generally, you'll see a drop in premium at the first renewal after you turn 25. Your policy renewal is the end of your policy term and the start of a new term.

Although 25-year-olds tend to pay higher premiums than 40- and 50-year-old drivers, you can usually expect lower average premiums than teens and younger adults. Generally, you'll see a drop in premium at the first renewal after you turn 25. Your policy renewal is the end of your policy term and the start of a new term.

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.

The primary reason for inflating insurance prices is the increasing number of claims in recent years. The payouts connected to these claims mean that insurance companies are increasing prices to offset costs. Government data show that 2023 was a record-breaking year for damaging weather and climate events.

Car insurance is the cheapest for drivers between the ages of 35 and 55. Car insurance is very expensive for teens because they have a high risk of accidents, and then it decreases sharply as drivers age into their 20s and develop more reliable driving habits.

Young drivers ages 16 to 24 tend to have the most expensive car insurance. Drivers in this age group are often inexperienced and are more likely to get into car accidents and file insurance claims. As a result, car insurance companies often charge higher premiums to young drivers.

Why do men pay more for auto insurance? Men pay more for auto insurance on average because they're statistically more likely to get into accidents and to have major injuries. However, male drivers only pay about $51 more per year than their female counterparts on average.

Who typically has the cheapest car insurance? ›

The best and cheapest car insurance

State Farm is the cheapest national car insurance company, at $50 per month for liability-only coverage. American Family and Geico also have affordable quotes, averaging $61 per month. USAA has the cheapest rates overall, charging $34 per month.

Erie has the cheapest full coverage car insurance for 23-year-olds, at $155 per month. Erie offers rates that are 17% cheaper than an average insurer. Geico is the cheapest car insurance company for 23-year-olds that is available nationwide, at $208 per month.

Bottom line: Not everyone is paying a grand every month for a new car. But payments amounts are substantial. Experian shows the average monthly payment in the second quarter of 2023 was $729 for new and $528 for used.

The average cost of liability-only car insurance for Texas drivers is $119 per month, or $1,428 per year. Drivers who buy full-coverage car insurance pay an average of $250 per month, or $3,003 per year. As a driver, your exact insurance costs will depend on various factors.

Texas law requires you to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage. This is called 30/60/25 coverage.

So it's important to understand insurance groups – after all, there are 50 of them in total. Cars in group 1 are the least risky from an underwriter's perspective and the cheapest to insure. Those in group 50 are the riskiest and most expensive – usually higher performance models and luxury SUVs.