Auto Insurance Information for Kids

It's never too early to learn about car insurance. When you start driving, you will have to get car insurance. It's the law in Texas. Most other states also require you to have car insurance.

What kinds of things can happen to your car?

  • Tedi's Wrecked CarYou could have a wreck.
  • Someone could steal it.
  • Hail could dent it.
  • A flood could wash it away.

Car insurance can help you fix your car. And if you have a wreck, car insurance will pay to fix the other person's car too. It will even pay for people who are hurt in a wreck to go to the doctor.

If you don't have car insurance and something happens to your car, you will have to pay to fix it yourself. The great thing about insurance is that it will help you pay!

How much does car insurance cost?

CarThe cost of car insurance is different for different people. Insurance companies ask you questions when you buy insurance. This tells them things about you that helps them know how much to charge. They will want to know where you live. If you live in a big city you will pay more for insurance. That's because there are more people in cities. If there are more people driving, then it's easier to have a wreck. The insurance company will ask you what kind of car you drive. Insurance costs more for a really fast car than for a slow one. The company will also want to know how old you are.

If you're still in school, the insurance company might ask about your grades. Some companies charge less for students with good grades. Make good grades now to save money later!

Shop for insurance

Shopping for car insurance can save you money. Print out these booklets. They can help you find good deals. Give them to your parents and to people you know who need insurance:
Shopping Smart
You Could Save $100 in an Hour

Car OutlineHere's an activity that can help your parents save money on their car insurance!

What area of the state do you live in? If you're not sure, ask you parents. Choose your area in the list below. This will give you names of insurance companies and their prices. Print it out. Read all the information, then answer these questions:

  • Which company has the lowest price?
  • What is the difference between the lowest price and the highest one?
  • Which companies have the best financial rating?
  • Which one has the lowest complaint index?
  • What is a complaint index and why is it important?

Show the list to your parents and talk about what you learned. Can they save money by shopping around?

Where do you live?

For a brochure on Automobile Insurance Sample Rate Comparisons in your area, click the region you live in from the the map below or choose the region from the the list.

Texas Regional Map Panhandle and Plains Permian Basin and Concho Valley Texas Big Country North Texas Central Texas Southeast Texas West Texas South Texas & Rio Grande Valley Coastal Texas

Are you ready to save more money? Do the same thing for home insurance.