Like most other states, Texas requires that drivers have an auto insurance policy. The average cost of car insurance in Texas is $524 annually for minimum coverage and $1,823 annually for full coverage, which includes liability plus collision and comprehensive coverage.
Like many savvy consumers, you may be searching for auto insurance coverage at the cheapest price. Bankrate has analyzed the average Texas auto insurance premiums using data from Quadrant Information Services. This information was sorted by company, location, driving record, and age to help you make informed decisions about your insurance needs.
What is the cost of Texas car insurance?
What is the average monthly cost of Texas car insurance? Texas drivers pay $524 per year on average for minimum coverage. Full coverage costs $1,823 per annum at $1,823. This is roughly $44 and $152 respectively per month. The average annual premium for U.S. drivers is $565 for minimum coverage, and $1,674 to cover full coverage. Your individual rating factors and the coverages that you select will affect how much your premium.
Texas car insurance rates are determined by many factors including your driving record, gender, ZIP code and vehicle type. You can also be rated on your credit history and how often you drive each year.
Texas car insurance rates by firm
Texas auto insurance rates can vary greatly from one company to the next. Fred Loya’s full coverage averages at $2,889 per annum, while Geico’s is $1,339 per annum. Finding the best car insurance in Texas involves understanding your specific wants and needs. You may need to consider what features are most important to you when searching for insurance companies. Are you looking for the lowest price, great customer service reviews or a company with digital claim tools? You can request quotes from multiple companies to get a comparison of your interests.
To give you an idea of how some of the major auto insurers in the Lone Star State compare, we have compiled a list of average annual car insurance rates in Texas for minimum and full coverage.
Keep in mind that insurance premiums for car are a combination many factors. Therefore, the quotes you get from these companies may be different than the average premiums.
Texas car insurance rates by location
Due to increased traffic, auto insurance can be more expensive in urban areas than it is in rural areas. This leads to more accidents and insurance claims. Drivers in Houston pay 18% more on average than Texas’s average full-coverage premium, while those in Lubbock or Tyler pay 3% less.
Your individual ZIP code will affect your premiums. Although rates will vary within cities, knowing the average rate in your area can help you make an informed decision when looking for auto insurance.
Cost of living in Texas, and car insurance
Texas drivers spend an average of 2.70% of their annual income on car insurance, which is higher than the national average of 2.44%. It can help you to find the best Texas car insurance rates by taking into account your other expenses. Below is a graph that shows Texas’s average annual cost of living, which includes the average cost for car insurance. This graph can be used to determine your annual expenses and help you decide on the best insurance rates for your budget.
Texas car insurance rates based on age
Texas’ average car insurance rates vary widely based on age. Eighteen-year-old drivers pay an average of $5,778, the highest of any age group, likely due to the high likelihood that teens have of getting into accidents.
As drivers get more experience behind the wheel, premiums tend to drop after 25. But as drivers reach their senior years, premiums can start to increase again, as insurance companies view older drivers as being at a greater risk for accidents.
Texas car insurance rates for driving record
Your Texas premium can be increased by tickets, accidents, DUI convictions, and other factors depending on how serious your offense is. Your insurer may offer a discount if you maintain a clean driving record.
How to Save on Texas Car Insurance
Many people wish to save money on auto insurance because it is an expensive expense. Here are some options that can help you save money on auto insurance in Texas:
- Discounts: Many car insurance companies offer discounts. There are many ways to save money: You can agree to receive paperless documents, drive low-mileage, have multiple policies with the same company, or participate in a usage-based driving programme. You may be able to save more by reviewing your policy with an agent and determining if any discounts have been applied.
- Compare prices: Every auto insurance company has its own rating system. This means that the same coverage will have a different price. Comparing multiple quotes can help you to find the right coverage at a cheaper price.
- Increase your deductible: Full coverage policies have a comprehensive and collision deductible. You will be responsible for your comprehensive deductible or your collision deductible if you file a claim to repair damage to your vehicle. A lower premium is often due to increasing one or both your deductibles. Before you make any changes to your policy, be sure you have the funds to pay the deductible.
- Improve your credit history: In general, insurance companies view a low credit score as an indication that you may be more likely to file a claim. You may be able to reduce your auto insurance premium if you improve your credit score.
Questions frequently asked
Which company offers the lowest car insurance in Texas
Some companies may offer low average rates. However, your rating factors will determine which company is the most affordable. Comparing rates from different companies may help you to find a rate that is competitive.
What amount of Texas auto insurance do you need?
The state minimum limits are 30/60/25, which means you need to carry at least $30,000 in bodily injury per person coverage, $60,000 in bodily injury per accident coverage and $25,000 for property damage liability coverage. Insurance experts agree that it’s worth purchasing higher levels of liability if you have the funds. This will ensure that you are financially protected in the event that an accident occurs.
What is the best way to get collision and comprehensive insurance in Texas?
Collision coverage is optional and pays for vehicle damage after an accident. Comprehensive, which is an optional coverage, provides additional protection against theft, vandalism and cracked windshields, fire, hail, and water damage. These optional coverages will be required by your lender if you have a loan or lease on your vehicle. Even if you don’t have a lease or loan on your vehicle, it is possible to carry full coverage if the car is older or more valuable. If you are unsure how much coverage you need, talking to an agent or a representative from your insurance company might be a good idea.