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Teen Drivers' Frequently Asked Questions:

1.  Can I get a driver's license if I don't have an auto insurance policy?

No.  All applicants for a Texas driver's license must show proof of insurance to get a driver's license.  You'll have to show proof of insurance regardless of whether you're getting a driver's license for the first time, renewing your driver's license, or getting a Texas driver's license after moving from another state.

2.  How are auto insurance rates determined?

In general, companies base their rates on their estimate of the likelihood that you will be involved in an accident.  Statistics show that younger drivers are more likely to be involved in accidents than older, more experienced drivers.    Therefore, rates for younger drivers will usually be more expensive.  If you have collision and comprehensive coverage on your policy, the kind of car you drive will also affect your rates. 

3.  How do insurance companies decide what kind of risk I might pose for an accident?

Each company evaluates risk differently.  All companies generally use some type of formula that considers a variety of "risk factors."  These factors include:  Driving History, Age, Gender, Lifestyle (married, single, children, etc), and Credit history. 

4.  How can I lower my premium?

The best way to lower your premium is to be a safe driver.  Insurance Companies offer the best rates to drivers without accidents, speeding tickets, and other traffic violations.  Also, ask about discounts.  Insurance companies may offer discounts if you make good grades in school or drive a car with safety and anti-theft features.

5.  If I have an accident while driving a friend's car, will my policy pay?

In most cases, the vehicle owner's insurance pays for losses, regardless of who was driving.  This means that if you're in a wreck while driving a friend's car, your friend's policy will usually pay.  Your insurance policy would pay any remaining amount that exceeds your friend's policy limits.  If your friend does not have insurance and you're involved in an accident while driving his or her car, your policy will pay.