How Much Does Car Insurance Cost in Texas? Average Rates and Money-Saving Tips
Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
Looking for car insurance in Texas? You're not alone. Car insurance is necessary for drivers, but rates can vary significantly depending on various factors. This guide provides an overview of the average car insurance cost in Texas and tips on saving money and finding the coverage that fits your needs.
Average Car Insurance Costs in Texas
Car insurance rates in Texas are typically higher than the national average. According to a 2022 National Association of Insurance Commissioners study, the national average is $1,258 per year for full coverage or about $105 monthly. Full coverage includes liability, comprehensive, and collision protection. The average car insurance cost in Texas per month is $122.50, or $1,470 annually for full coverage.
Key Factors Affecting Car Insurance Rates in Texas
Why are car insurance costs different for everyone? Here are the biggest factors impacting your rates:
- Age: Younger drivers — particularly teenagers — have higher premiums due to their lack of experience and higher chance of accidents.
- Driving history: Drivers with accidents, traffic tickets, and other violations, such as DUIs, will pay more than drivers with a clean history.
- Credit score: Drivers with poor credit tend to pay more since insurers view people with lower credit scores as riskier.
- Location: Populated areas like Dallas and Houston will have higher rates since more cars are on the road, crime rates are higher, and there is a higher chance of accidents.
- Vehicle type: Certain cars are more expensive to insure because they are more likely to be stolen and need repairs.
- Coverage level: The more coverage you have, the higher your premium since insurers must pay more in the event of a claim.
- Deductible: A lower deductible means you pay less out-of-pocket if an accident occurs, but it also means a higher premium. On the flip side, a higher deductible can mean lower premiums.
- Gender, occupation, and marital status: Teenage boys often pay more than teenage girls. Married drivers may have to pay less since they tend to share driving responsibilities. Some insurance companies offer special discounts to people with jobs considered less risky for driving or if you're part of a professional group.
How To Lower Your Car Insurance Costs in Texas
The steps below can help lower your rate:
- Compare quotes: Use online resources like EverQuote to quickly compare insurance quotes from various companies.
- Improve your credit score: You can increase your credit score by paying your bills on time, paying down debt, and disputing inaccurate information on your credit report.
- Maintain a clean driving record: Practice safe driving to prevent accidents and help you qualify for good driver discounts.
- Bundle policies: Combine your homeowners, renters, and other insurance policies. Insurers often give discounts for bundling.
- Increase your deductible: Change your deductible for a higher amount to lower your monthly premium.
- Take advantage of discounts: Don't leave money on the table! Ask your insurer what discounts they offer. You may get one for belonging to an organization, insuring multiple vehicles, or installing safety features in your car.
Shopping Around for the Best Car Insurance Rates
Texas auto insurance can be expensive. One of the top ways to save on rates is to shop around and compare quotes from multiple providers. You may miss insurers offering lower rates if you only consider one or two insurers. In addition, insurers calculate premiums differently, meaning the same coverage could differ widely in price.
The Importance of Coverage Levels and Choosing What's Right for You
When purchasing car insurance, carefully consider the right type of coverage. While liability-only insurance is more affordable, at $690.88 a year in Texas, it may not provide enough protection in the event of an accident.
Texas law requires you to have liability coverage of at least $30,000 for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage.
Full coverage, including liability, collision, and comprehensive insurance, offers greater peace of mind but comes at a higher cost. Other types of auto coverage include medical payments, uninsured/underinsured motorists, rental reimbursement, and medical payments coverage.
When deciding which type of coverage is right for you, consider the type of car you have, your driving habits, your financial situation, and other factors.
Get a Personalized Quote Today: Find Your Best Car Insurance Rate!
Insurance prices vary widely based on factors like where you live and your driver profile. The best way to get the right insurance for the right price is to compare custom options.
Getting started is simple! Visit EverQuote for a free, personalized comparison of rates. It takes just a few minutes to find cheap car insurance in Texas that fits your needs. Don't wait — insurance prices change daily, so act now to lock in the best deals.