- Is auto insurance required in Texas?
- How much is car insurance in Texas?
- Texas car insurance rates
- Texas car insurance laws
- Texas car insurance discounts
- Factors that affect auto insurance premiums in Texas
- How to compare car insurance companies in Texas
- Compare auto insurance rates by city in Texas
- Car insurance premium trends in Texas
- Methodology
- Texas car insurance guide: Frequently asked questions
- Compare Texas car insurance rates with other states
Is auto insurance required in Texas?
Auto insurance is required by law in Texas. All drivers are required to carry minimum coverage of:
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
How much is car insurance in Texas?
The average cost of car insurance in Texas is $2,043 annually for full coverage. However, these rates vary considerably based on factors like age, coverage levels, driving record and the make and model of the vehicle.
For example, younger drivers and males pay higher insurance rates, as do drivers with poor driving records.
Texas drivers who only want to carry the minimum car insurance can expect to pay an average of $572. However, collision and comprehensive coverages aren't included, so any damage to your vehicle in an at-fault accident would be paid out of pocket.
"While most of us are reviewing our household budgets to see where we may be able to cut corners, your car insurance policy shouldn't be one of them. If you are considering saving money buying a liability-only auto insurance policy, the minimum legal coverage in most states, think first about what it will cost you when you need to file a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. for any injuries or damage to your vehicle other than those of the other victims when you cause a crash," says Carole Walker, executive director of the Rocky Mountain Insurance Association, a nonprofit consumer insurance information organization.
| Average annual premium | $2,043 |
| Average monthly premium | $170 |
Texas car insurance rates
Every car insurance company uses its own criteria for determining rates. For example, while some emphasize age, others look closely at driving records. Because of this, Texas car insurance rates vary significantly from company to company.
The table below compares average Texas car insurance rates from top-rated companies for different coverage levels. On average, Texas Farm Bureau is the cheapest car insurance company in Texas.
| Company | State minimum | Liability-only | Full coverage |
|---|---|---|---|
| Texas Farm Bureau | $363 | $462 | $1,301 |
| State Farm | $419 | $624 | $1,956 |
| Geico | $445 | $650 | $1,644 |
| Allstate | $560 | $843 | $2,941 |
| Auto Club Enterprises (AAA) | $564 | $825 | $1,983 |
| Nationwide | $596 | $748 | $1,502 |
| Redpoint Insurance | $656 | $905 | $1,681 |
| Progressive | $665 | $977 | $3,032 |
| Farmers | $1,122 | $1,543 | $4,127 |
| USAA | $446 | $602 | $1,812 |
Texas car insurance laws
In Texas, there are some specific laws in place for particular driver categories:
Texas car insurance laws for high-risk drivers
Although there are no different insurance requirements for high-risk drivers in Texas, you will be required to file an SR-22 if convicted of certain traffic violations. An SR-22 is a document filed by your insurance company that indicates you have the legally required insurance.
You may need an SR-22 after:
- A license suspension
- Driving without insurance
- A DUI
- Multiple tickets
Texas car insurance laws for teen drivers
Texas uses a graduated licensing program for teen drivers that eases them into the responsibilities of driving over time. There are rules teen drivers must follow at every stage.
- Learner's permit. Must be accompanied by a licensed adult driver when behind the wheel, and must hold a permit for at least six months before applying for a provisional license.
- Provisional license. May not have more than one passenger under 21 with the exception of family, may not drive between midnight and 5 a.m. unless for work or school, and may not use a mobile device, even hands-free.
- Full license. All restrictions are lifted at age 18.
Texas car insurance laws for senior drivers
There are no insurance laws that apply to senior drivers in Texas, but seniors over the age of 79 must renew their license every eight years, and every two years after age 85.
Texas car insurance discounts
Which car insurance discounts are available and how much savings drivers can expect depend on the state and the company. So, savings may vary considerably from company to company in Texas.
Check out the available car insurance discounts in Texas below and see how much you can save on average.
| Discount type | Premium before discount | Premium after discount | $ Saving |
|---|---|---|---|
| Air Bags | $1,895 | $1,861 | $34 |
| Anti-Theft Device | $1,895 | $1,875 | $20 |
| Daily Commute | $1,895 | $1,787 | $108 |
| Days Advanced Purchase | $1,895 | $1,774 | $121 |
| Days Per Week Driven | $1,895 | $1,726 | $169 |
| Education | $1,895 | $1,790 | $105 |
| Electronic Funds Transfer | $1,895 | $1,806 | $89 |
| Electronic Signature | $1,895 | $1,736 | $159 |
| Homeowner | $1,895 | $1,806 | $89 |
| Lower Annual Mileage | $1,895 | $1,784 | $111 |
| Loyalty - Years Renewal With Company | $1,895 | $1,686 | $209 |
| Marital Status | $1,895 | $1,704 | $191 |
| Multi Policy | $1,895 | $1,725 | $170 |
| Paperless/Electornic Documents | $1,895 | $1,854 | $41 |
| Payment Type | $1,895 | $1,711 | $184 |
| Primary Use | $1,895 | $1,735 | $160 |
| Profession | $1,895 | $1,709 | $186 |
| Safety Devices | $1,895 | $1,815 | $80 |
| Telematics | $1,895 | $1,705 | $190 |
| Vehicle Ownership | $1,895 | $1,806 | $89 |
| Years Insured | $1,895 | $1,596 | $299 |
| Years Licensed | $1,895 | $1,530 | $365 |
Factors that affect auto insurance premiums in Texas
Many factors affect car insurance costs in Texas. They include:
- Where you live in the state
- The type of car you drive
- Your driving record
- Your credit history
- Your age and gender
How to compare car insurance companies in Texas
To compare car insurance in Texas and find the best fit for your needs, follow these steps:
- Review your current policy. Note what coverage you are carrying and decide if you want to make any changes.
- Request quotes at your desired coverage levels. Make sure you are requesting the same coverage levels on each quote. If you're looking to change your coverage, ask your current insurance company to provide a quote with those limits as well.
- Review the quotes and note any added benefits. Some car insurance companies include extras at no additional charge. Is roadside assistance included? Are there other perks like a diminishing deductible program?
- Research the car insurance companies you're considering. Cheap car insurance isn't everything. Make sure you are also looking at each insurance provider's reputation to make sure you find not just the cheapest car insurance but also the best car insurance companies in Texas.
Compare auto insurance rates by city in Texas
Auto insurance rates vary not just by state, but also by city. Cities have different levels of risk based on factors like accident rates, claim costs, weather and more. That means where you live in Texas will impact what you pay. Below, we've gathered Texas car insurance rates by city for comparison.
| City | Annual insurance premium |
|---|---|
Beaumont | $2,149 |
Bishop | $1,925 |
Bowie | $1,831 |
Crystal City | $1,950 |
Dallas | $2,278 |
Higgins | $2,004 |
San Antonio | $2,181 |
Car insurance premium trends in Texas
Car insurance rates change regularly, influenced by changes in the cost of repairs, claim rates and other factors. Recent years have seen car insurance rates rise across the country, but not every state has seen the same increases.
We've tracked car insurance premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. trends in Texas to show you how things have changed and help you prepare for potential changes in the future. Take a look at the chart below.
Methodology
Insurance.com commissioned car insurance rates from Quadrant Data Systems in late 2023 for all 50 states and Washington, D.C. Base rates were fielded based on a 40-year-old driver with a clean record and good credit, driving a 2023 Honda Accord LX. Additional rates were fielded for multiple driver profiles including tickets, accidents and various credit tiers. Coverage levels include state minimum, 50/100/50 liability only, and full coverage at 100/300/100 liability limits with $500 deductibles. Rates were fielded from 34,588 ZIP codes and 170 insurance companies.
Car insurance premium trends are based on limits of 100/300/50 with $500 deductibles. This methodology is used to track trends to ensure the accuracy of the data comparison year-over-year.
Texas car insurance guide: Frequently asked questions
What company offers the cheapest full coverage auto insurance in Texas?
Texas Farm Bureau has the cheapest car insurance in Texas for both state minimum and full coverage car insurance.
Will I have difficulty in getting insurance with a bad driving record in Texas?
A bad driving record will make it harder to find affordable car insurance. If you have multiple tickets, accidents or a DUI or other major violation on your record, you may need to shop with a high-risk car insurance company.
Compare Texas car insurance rates with other states
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