With so many options and factors influencing your rates, obtaining car insurance in Texas can be difficult. According to 2021 data from The Zebra, an insurance comparison site, the average cost of car insurance in Texas is $1,579 per year, or about $132 per month. Rates, however, can vary greatly depending on where you live in Texas, your driving record, the type of vehicle you drive, your age, and other factors. Here’s a detailed breakdown of what you can expect to pay and how to find the best car insurance rates in Texas.
What Factors Affect Car Insurance Costs in Texas?
Car insurance rates in Texas are determined by a variety of factors, including:
Where you live: Insurance rates in urban areas such as Houston and Dallas are higher than in rural areas of the state. Living in an area with a higher rate of accidents, crime, and fraud may cause your premiums to rise.
Your driving history: Getting tickets, being at fault in an accident, or being convicted of DUI will significantly raise your rates. Multiple violations can cost policies a lot of money.
Your gender and age: Statistics show that young and male drivers have more accidents. Drivers under the age of 25 and over the age of 70 will pay more.
Your car: Insuring luxury cars, sports cars, and vehicles with high repair costs is typically more expensive. Newer vehicles also have higher insurance premiums.
To whom it is due: Texas is one of only a few states that allows credit-based insurance scores to be used to set rates. Lower interest rates can be obtained with better credit.
Your coverage is as follows: Choosing the minimum required liability coverage is less expensive than adding comprehensive and collision coverage. Higher deductibles can also help to lower premiums.
Average by City
Car insurance rates in Texas can vary greatly depending on where you live. According to The Zebra’s benchmark data for 2021, the following are some average full coverage car insurance rates by city for Texas drivers with good driving records:
- Houston: $1,869 per year
- $1,963 per year in Dallas
- $1,299 per year in Austin
- San Antonio: $1,529 annually
- Fort Worth: $1,722 per year
- $1,473 per year in El Paso
- Arlington costs $1,722 per year.
- $1,876 per year in Corpus Christi
- $1,892 per year in Plano
- Laredo: $2,045 per year
As a result, drivers in Austin and El Paso have some of the lowest average car insurance rates in Texas, whereas drivers in Houston, Dallas, and Laredo have higher average premiums. Keep in mind that these are only estimates. Your own rates will be determined by personal factors.
What is Minimum Coverage in Texas?
To drive legally in Texas, you must have the following liability insurance coverage:
- bodily injury liability of $30,000 per person
- bodily injury liability of $60,000 per accident
- Property damage liability of $25,000
This coverage compensates others for injuries or property damage caused by you in an accident in which you are at fault. However, minimum liability insurance does not cover your own vehicle.
Many experts advise adding the following to your protection:
Comprehensive coverage pays for damage to your vehicle caused by events other than collisions, such as fire, hail, flooding, and vandalism.
Collision coverage pays for repairs to your vehicle if you collide with another vehicle or a tree. This protects your vehicle regardless of who is at fault.
Uninsured motorist coverage: Covers your medical bills and vehicle repairs if you are hit by a driver who does not have insurance.
Personal injury protection: Covers medical expenses incurred by you and your passengers in an accident up to your policy limits, regardless of fault.
Factors That Lower Car Insurance Costs
While some factors are beyond your control, there are numerous ways to become a lower risk driver in the eyes of insurers and enjoy lower Texas auto insurance rates.
Look around: Get quotes from several insurance companies to find the best deal. Rates can vary by more than 50% between insurers.
Inquire about discounts: Defensive driving, setting up automatic payments, having multiple policies with one provider, or insuring multiple vehicles could all result in lower premiums.
Raise your deductible: Choosing a higher deductible, such as $500, $750, or $1,000, can significantly lower your rates. Just make sure you have enough money set aside to cover the deductible if you need to file a claim.
Improve your credit: Insurance companies may offer a discount for good credit or an increase in premiums for bad credit. Pay your bills on time and reduce your debt to improve your credit score.
Attend a safety course: Completing a Texas Education Agency-approved defensive driving course can earn you up to a 10% discount.
Keep a clean driving record: Avoiding accidents, traffic violations, and DUI/DWI convictions can significantly raise your insurance premium. Checking your driving record for errors can help you avoid an unfair surcharge.
Reduce your mileage: If you drive less than 10,000 miles per year, you may be eligible for a low-mileage discount.
Inquire about usage-based options: Some insurers provide low-cost coverage if you use a program that tracks mileage driven and safe driving habits via a mobile app or device plugged into your vehicle.
Shopping for the Best Car Insurance Rates in Texas
Follow these steps to find the best deal on Texas auto insurance tailored to your needs:
- Determine the coverages and limits that you require.
- Gather information such as driver information, VIN, mileage, and driving history.
- Obtain quotes from a variety of traditional and online insurance providers.
- Compare rates for comparable coverage.
- Look for discounts that you are eligible for.
- To save money, consider usage-based programs.
- Choose a deductible that you can afford if you need to file a claim.
- Choose an insurer that provides dependable service and excellent customer satisfaction.
With a little research, you can find significant savings on Texas car insurance while still receiving adequate coverage. Paying attention to your location, driving record, and the types of discounts and coverage you select can help you find the best rate and start saving right away.
