What is the average cost of minimum coverage in Texas?

Minimum coverage costs an average of $724 per year in Texas. If you’re looking for the cheapest car insurance in Texas, minimum coverage insurance is typically much cheaper than full coverage insurance, although it may leave you with insufficient financial protection in the event of an accident. Texas law requires drivers to purchase at least a minimum coverage for liability of 30/60/25, but rest assured that no reputable insurance company will sell you a policy that doesn't meet state requirements.

What is the best car insurance company in Texas?

There is no single company that is best for all drivers. Texas is a highly diverse state in terms of geography and urban-rural contrast, so drivers are going to have very different demands from their car insurance provider. Instead of randomly requesting quotes, consider starting your search by outlining your coverage preferences and budget limits. This will provide a useful reference for comparing and identifying the best car insurance companies in Texas that suit your needs.

What is the cheapest car insurance company in Texas?

Although there are a number of insurers known for writing cheap insurance policies in Texas, there's no single company that is always the most inexpensive. Your rate will be influenced by multiple factors, from your ZIP code to your vehicle's age, so the company that is cheapest for your neighbor might not be the same for you. Based on average rate data, Geico, USAA and State Farm offer some of the cheapest full coverage rates in Texas.

How much auto 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, to provide a greater level of financial protection in the event of an accident.

How much is car insurance per month in Texas?

For those considering monthly payments, the average cost of car insurance in Texas is $208 for full coverage and $60 for minimum coverage. It's essential to remember that individual rates vary based on several factors, so these are general benchmarks to guide potential policyholders.

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Average cost of car insurance in Texas for 2024

Written by

Grace Kim

Edited by

Natasha Cornelius, CLU

Edited by

Natasha Cornelius, CLU

Updated Nov 13, 2024

In Texas, the average annual cost stands at $2,492 for full coverage car insurance, while minimum coverage averages at $724.

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How much is car insurance in Texas?

Fortunately, the “everything is bigger in Texas” motto doesn’t have too strong of a grip on car insurance rates in the state. Full coverage policies average $2,492 annually, compared to the national average of $2,458, while minimum coverage costs $724 per year, only slightly above the national average of $678. However, as Bankrate’s insurance team explains, your rate will vary from these averages since insurance providers have different risk evaluations of certain personal factors such as age and ZIP code, along with factors more within your control, like your vehicle type, driving record and credit rating.

Key takeaways

If you opt for monthly insurance payments in Texas, car insurance averages at $208 for full coverage and $60 for minimum coverage.
Teen drivers pay some of the highest average rates in Texas: 16-year-old drivers on their parents' policies pay an average of $5,255 per year for full coverage.
Texas drivers with excellent credit pay an average of $2,135 yearly for full coverage; those with poor credit average $5,840.

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Texas car insurance rates by city

The average car insurance rate in Texas varies based on where you live. City dwellers often pay more for premiums than rural residents due to a higher likelihood of insurance claims from traffic density, crime rates and other factors. Local weather patterns can also influence rates by ZIP code, especially for Gulf Coast cities threatened by tropical storms and hurricanes.