Texas requires its drivers to carry an auto insurance policy on their vehicles, like most states in the U.S. 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 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.
- Texans pay an average of $524 annually for minimum coverage and $1,823 annually for full coverage car insurance.
- Houston residents pay some of the highest rates in Texas, with an average full coverage premium of $2,146 per year.
- 18-year-olds pay the highest auto premiums on average, at $5,778 per year for full coverage.
Table of contents
- How much is car insurance in Texas?
- What is the cheapest auto insurance company in Texas?
- Which Texas city pays the most for car insurance?
- Does cost of living affect auto insurance prices?
- Do young drivers pay more for Texas car insurance?
- Will my auto insurance go up after a ticket or accident?
- How can I lower my car insurance bill?
- How were the rates on this page calculated and obtained?
How much is car insurance in Texas?
How much is car insurance in Texas per month? Texas drivers pay an average of $524 annually for minimum coverage and $1,823 per year for full coverage, which breaks down to about $44 and $152 per month, respectively. For comparison, drivers in the U.S. pay an annual average premium of $565 for minimum coverage and $1,674 for full coverage. Your premium will vary based on your individual rating factors as well as the coverages you choose to purchase.
Texas car insurance rates are determined using numerous rating factors, including your age and gender, driving record, ZIP code, vehicle type, how many miles you drive each year, and even your credit history.
Texas car insurance rates by company
Texas auto insurance rates vary significantly by company. For example, full coverage costs an average of $2,889 per year from Fred Loya but $1,339 per year from Geico. Finding the best car insurance in Texas involves understanding your specific wants and needs. When searching for an insurance company, you may 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 claim 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 the Lone Star State compare, we have compiled a list of average annual car insurance rates in Texas for minimum and full coverage.
| 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 | $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
Auto 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. Houston drivers pay an average of 18% more than the average full coverage premium in Texas, while drivers in Lubbock and Tyler pay 3% less than the state average.
| City | Average annual premium for full coverage | Percentage difference in average annual premium from state average |
|---|---|---|
| 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 the average in your city may help you feel more confident when shopping 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%. When shopping for the best car insurance rates in Texas, factoring in your other expenses — so that you are looking at your broader financial picture — can be helpful. 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
Average car insurance rates in Texas vary greatly by 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.
| Age | Average annual premium for full coverage |
|---|---|
| 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 |
*Rate reflects the increase to add a 16-year-old driver to their parents’ policy, not the full policy premium.
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
Tickets, accidents and DUI convictions can increase your premium by an average of 10-51% in Texas, depending on the severity of your offense. If you can maintain a clean driving record, your insurer may reward you for good driving by giving you a discount.
| Driving incident | Average annual premium for full coverage | % increase in average annual premium |
|---|---|---|
| Speeding ticket | $2,004 | 10% |
| Accident | $2,589 | 42% |
| DUI | $2,756 | 51% |
Every company has its own regulations, but most insurers will increase your premium for incidents on your driving record that occurred during the past three to five years.
How to save on car insurance in Texas
Because auto insurance is a necessary expense, many people want to save as much money as possible. Here are some options that can help you save money on auto insurance in Texas:
- Discounts: Most car insurance companies offer discounts. You might save for agreeing to receive paperless documents, driving low annual miles, insuring multiple policies with the same company or participating in a usage-based driving program. Reviewing your policy with your agent to see if all possible discounts have been applied may help you find additional savings.
- Shop around: Because every auto insurer has its own rating system, the same coverage will typically 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: If you have full coverage, your policy has a comprehensive deductible and a collision deductible. If you file a claim for damage to your vehicle, you will pay either your comprehensive or your collision deductible, depending on what caused the damage. Increasing one or both of your deductibles 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 history: In general, insurance companies view a low credit score as an indication that you may be more likely to file a claim. If you can improve 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?
While some companies offer cheap average rates, the cheapest company will vary based on your individual rating factors. Getting quotes from several companies to compare the premium and discounts might help you find a competitive rate.
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, 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 is an optional coverage that pays for damage to your vehicle following an accident. Comprehensive is also an optional coverage that provides protection for additional damage situations such as theft, vandalism, cracked windshields and fire, hail and water damage. If you have a lease or loan on your vehicle, your lender will likely require you to carry these optional coverages. If not, you may still want to consider carrying full coverage 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.
These are sample rates and should only be used for comparative purposes.
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