Like most states in the U.S., Texas requires its drivers to carry an insurance policy on their vehicles. The average premiums for auto insurance in Texas are $524 annually for minimum coverage and $1,823 annually for full coverage, which includes liability plus collision and comprehensive coverage.
Like many, you may be searching for the auto insurance coverage you need at the cheapest price possible. Bankrate has analyzed average Texas auto insurance premiums, obtained from Quadrant Information Services, by company, city, age and driving record so that you can make an informed decision about your insurance needs.
How much does car insurance cost in Texas?
Auto insurance companies, including those in Texas, use a number of factors to determine your rate, including your age and gender, your driving record, your city and ZIP code, the type of car you drive, your annual mileage and even your credit score.
Drivers in the U.S. pay an annual average premium of $565 for minimum coverage and $1,674 for full coverage. Texas drivers pay a lower amount for minimum coverage, at $524 annually, but a higher amount for full coverage, at $1,823 per year. The quotes you receive will vary based on your individual rating factors as well as the coverages you choose to purchase.
Texas car insurance rates by company
Finding the best car insurance in Texas depends on your specific wants and needs. When searching for an insurance company, you will want to decide what features matter most to you. Are you looking for the lowest price, great customer service reviews or a company with digital tools? Once you know what you are interested in, you can request quotes from several different companies to compare them.
To give you an idea of how some of the major auto insurers in Texas compare, we have compiled a list of average annual minimum and full coverage premiums.
| Car insurance company | Average annual premium for minimum coverage | Average annual premium for full coverage |
|---|---|---|
| Allstate | $557 | $1,705 |
| AmTrust Financial | $573 | $2,008 |
| California Casualty | $678 | $2,824 |
| Chubb | $638 | $2,250 |
| Delek | $665 | $1,553 |
| Fred Loya | $449 | $2,889 |
| Geico | $391 | $1,339 |
| Kemper | $669 | $3,129 |
| Mercury | $526 | $1,722 |
| MetLife | $662 | $2,375 |
| Nationwide | $499 | $1,362 |
| Sentry | $721 | $2,669 |
| State Auto Insurance | $628 | $2,508 |
| State Farm | $518 | $1,411 |
| USAA | $395 | $1,344 |
| White Mountains | $424 | $1,533 |
Remember that car insurance premiums are a combination of multiple factors, so the quotes you receive from the companies above are likely to be different from the average premiums.
Texas car insurance rates by city
Car insurance is often more expensive in cities than in rural areas due to the increased traffic, which leads to more car accidents and insurance claims. As you can see below, most of the top 20 cities in Texas have average insurance rates that are higher than the average for the state. By using discounts, however, you may be able to lower the premium you pay.
| City | Average annual premium for full coverage | Percentage difference in average annual premium |
|---|---|---|
| Houston | $2,146 | 18% |
| San Antonio | $1,837 | 1% |
| Dallas | $2,093 | 15% |
| Austin | $1,796 | -1% |
| Fort Worth | $1,856 | 2% |
| El Paso | $1,830 | 0% |
| Arlington | $1,915 | 5% |
| Corpus Christi | $1,806 | -1% |
| Plano | $1,819 | 0% |
| Lubbock | $1,771 | -3% |
| Laredo | $2,015 | 11% |
| Spring | $1,923 | 5% |
| Katy | $1,930 | 6% |
| Garland | $2,047 | 12% |
| Amarillo | $1,895 | 4% |
| Irving | $1,989 | 9% |
| Brownsville | $2,026 | 11% |
| Grand Prairie | $1,968 | 8% |
| Pasadena | $2,027 | 11% |
| Tyler | $1,769 | -3% |
Keep in mind that your individual ZIP code affects your premiums. Rates will likely vary even within individual cities, but knowing what the average is in your city may help you feel more confident when shopping for auto insurance.
Cost of living in Texas and car insurance
When shopping for the best car insurance rates in Texas, it’s important to factor in your other expenses so that you’re looking at your total living costs. The graph below shows the average annual cost of living in Texas, including the average cost of car insurance. Use this graph as a guide to help determine your overall expenses so that you can decide what insurance rates fit in your budget.
Texas car insurance rates by age
Your age plays a significant role in determining your car insurance premium. Since teen drivers statistically have the most accidents, their rates are the highest of any age group.
| Age | Average annual premium in Texas |
|---|---|
| Age 16* | $2,860 |
| Age 18 | $5,778 |
| Age 20 | $4,452 |
| Age 25 | $2,350 |
| Age 30 | $2,072 |
| Age 40 | $1,823 |
| Age 50 | $1,775 |
| Age 60 | $1,703 |
| Age 70 | $1,835 |
*16-year-olds on their parents’ policy
After 25, premiums generally start to decrease as drivers gain more experience behind the wheel. 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 by driving record
Your insurer may reward you for good driving by giving you a discount. The opposite is also true: if you have incidents like tickets, accidents or a DUI on your driving record, you will probably pay more for car insurance.
| Driving incident | Average annual full coverage premium in Texas | % increase in average annual premium |
|---|---|---|
| Speeding ticket | $2,057 | 13% |
| Accident | $2,739 | 50% |
| DUI | $2,831 | 55% |
Every company has its own regulations, but most insurance companies will charge your policy for incidents on your driving record for three to five years.
How to save on car insurance in Texas
Since auto insurance is a necessary expense, many people want to save as much money as possible. Here are some options that can save you money on your auto insurance in Texas:
- Discounts: Most car insurance companies offer discounts. You might save for agreeing to receive paperless documents, for having air bags or other safety features on your car or for insuring multiple policies with the same company. Reviewing your policy with your agent to see if all possible discounts have been applied may help you find additional savings.
- Shop around: Since every insurance company has its own rating system, the same coverage will generally be a different price with each company. Getting several quotes to compare prices, coverage offerings and discounts may help you find the coverage you need for a lower price.
- Raise your deductible: Your deductible is the amount of money you pay out of pocket for damage to your vehicle before the insurance company will begin to pay your repair bills. Increasing your deductible often results in a lower premium. Just be sure that you can afford to pay the deductible before you make this change to your policy.
- Improve your credit rating: In general, insurance companies view a low credit score as an indication that you may be more likely to file a claim. If you are able to increase your credit score, you may see a reduction in your auto insurance premium.
Frequently asked questions
What company has the cheapest car insurance in Texas?
No one company will always have the cheapest rates for everyone. To find the company that gives you the best rates, you may want to start your search with Bankrate’s Cheapest Car Insurance Companies of 2021. Our chosen companies are the ones who are consistently writing some of the cheapest policies in the U.S. Obtaining multiple quotes to compare coverages and premiums is one of the best ways to find the coverage you need for a price that fits your budget.
How much insurance do I need in Texas?
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. Most insurance experts agree that it is worth buying higher levels of liability, if you can afford to do so, so that you will have a greater level of financial protection in the event of an accident.
Do I need collision and comprehensive coverage in Texas?
Collision coverage and comprehensive coverage are optional coverages that pay for damage to your car following an accident. If you have a lease or loan on your vehicle, you will probably be required by your lender to carry them. If not, you may still want to consider them if your car is newer or of higher value. 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.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
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