Car insurance costs in Texas are slightly higher than the national average, with drivers paying $683 per year for a liability policy or $2,205 for full coverage
Updated:
Mar 11, 2024
Written by:
Daniel Robinson
Daniel Robinson
Writer
Edited by:
Rashawn Mitchner
Rashawn Mitchner
Senior Editor
Although most things are bigger in Texas, the cost of car insurance isn’t necessarily one of them. In this article, we at the MarketWatch Guides team look at the average cost of car insurance in Texas for different driver profiles. We’ve also completed a thorough industry-wide review of the country’s best car insurance companies to spotlight the most affordable providers for Lone Star State residents.
Key Takeaways:
- The average cost of liability-only insurance in Texas is $683 per year, and the average cost of full-coverage insurance is $2,205 a year.
- Insurance rates in Texas are slightly higher than the national average.
- Many factors affect the cost of car insurance in Texas, including where you live, the vehicle you drive and whether you have violations on your driving record.
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Car Insurance Costs in Texas
Car insurance costs in Texas hover around the national average. For a minimum-coverage policy, Texas drivers pay about $57 per month or $683 per year. That price is about $5 more per month than the national average ($52 per month) and $56 more a year than the national average per year ($627 per year).
Full-coverage car insurance is a bit more expensive for Texans, costing an average of $184 per month or $2,205 annually. The national average for full coverage is $167 per month or $2,008 per year. All cost data in this article comes from Quadrant Information Services.
Texas Minimum Car Insurance Requirements
Texas requires drivers to carry at least:
- $30,000 in bodily injury liability insurance per person
- $60,000 in bodily injury liability insurance per accident
- $25,000 in property damage liability insurance per accident
In insurance documents, you’ll see these coverage limits written as 30/60/25.
To have full protection, we recommend drivers carry full-coverage car insurance. In addition to liability insurance, full-coverage policies include:
- Collision coverage: This covers damage to your vehicle for an accident you cause.
- Comprehensive coverage: This covers damage to your car from non-collision incidents like vandalism, theft, fire or a natural disaster.
- Uninsured motorist coverage: This helps pay medical and repair costs if you get hit by a driver who doesn’t carry any or enough auto insurance.
- Personal injury protection (PIP): This helps pay medical expenses for you and your passengers after an accident, regardless of who’s at fault.
- Medical payments coverage (MedPay): This helps pay medical bills, ambulance fees and funeral expenses for you and your passengers after an accident.
Affordable Texas Car Insurance
In the sections below, we look at average costs of state-minimum coverage and full-coverage policies for Texas motorists. Prices are based on the driver profile of a 35-year-old with a clean driving record and good credit.
Cheapest Minimum-Liability Coverage in Texas
Among national carriers, we found that Allstate, Auto Club and Geico are among the companies offering the cheapest liability insurance in Texas. Allstate is the only large insurer offering rates below the national average. Among all insurers, Texas Farm Bureau, State Farm and USAA have the least expensive minimum-liability coverage.
| Texas Insurance Provider | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| State Farm | $27 | $325 |
| Texas Farm Bureau Insurance | $31 | $374 |
| Geico | $40 | $474 |
| USAA | $40 | $481 |
| Allstate | $50 | $594 |
| Redpoint Insurance Group | $55 | $657 |
| Auto Club Enterprises | $55 | $682 |
| Nationwide | $64 | $764 |
| Progressive | $65 | $784 |
| Farmers | $141 | $1,690 |
| National Average | $53 | $635 |
Cheapest Full-Coverage Car Insurance in Texas
Allstate, Auto Club and Geico also have the cheapest full-coverage car insurance in Texas among the large national insurance companies. However, all three have rates that are higher than the national average. Overall, the least-expensive policies for Texans are from Texas Farm Bureau, State Farm and USAA.
| Texas Insurance Provider | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| Texas Farm Bureau Insurance | $100 | $1,205 |
| State Farm | $114 | $1,364 |
| Geico | $124 | $1,490 |
| Redpoint Insurance Group | $137 | $1,642 |
| Nationwide | $144 | $1,732 |
| USAA | $161 | $1,927 |
| Auto Club Enterprises | $195 | $2,335 |
| Allstate | $237 | $2,839 |
| Progressive | $238 | $2,850 |
| Farmers | $389 | $4,672 |
| National Average | $167 | $2,008 |
Texas Car Insurance Cost by City
Your location has a lot to do with how you pay for auto coverage. The table below shows average car insurance rates for a full-coverage policy in the top 25 most populated cities in Texas. Again, these averages are based on the profile of a 35-year-old with a clean driving history and a good credit score.
| City in Texas | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| Houston | $167 | $1,998 |
| San Antonio | $147 | $1,769 |
| Dallas | $161 | $1,927 |
| Austin | $136 | $1,635 |
| Amarillo | $157 | $1,885 |
| Arlington | $146 | $1,754 |
| Brownsville | $136 | $1,632 |
| Carrollton | $142 | $1,707 |
| Corpus Christi | $134 | $1,604 |
| Denton | $130 | $1,561 |
| El Paso | $133 | $1,594 |
| Fort Worth | $143 | $1,718 |
| Frisco | $134 | $1,614 |
| Garland | $155 | $1,859 |
| Grand Prairie | $155 | $1,866 |
| Irving | $145 | $1,742 |
| Killeen | $120 | $1,444 |
| Laredo | $148 | $1,781 |
| Lubbock | $150 | $1,805 |
| McAllen | $152 | $1,818 |
| McKinney | $139 | $1,669 |
| Mesquite | $152 | $1,819 |
| Pasadena | $151 | $1,812 |
| Plano | $141 | $1,693 |
| Waco | $121 | $1,450 |
Texas Car Insurance Cost: Drivers With Violations
Texans with an at-fault accident, speeding ticket or a DUI or DWI conviction on their driving record pay significantly higher rates than drivers with clean driving histories. Below are the average costs for each of these violations.
Cheapest Car Insurance for Texas Drivers With One Speeding Ticket
These rates are for drivers with a speeding violation of 16 mph to 20 mph over the speed limit. Texas Farm Bureau offers the lowest rates to Texas motorists in this situation. Full-coverage plans from the provider cost an average of $220 per month ($2,637 per year).
| Texas Insurance Provider | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| Texas Farm Bureau Insurance | $100 | $1,205 |
| State Farm | $114 | $1,364 |
| Redpoint Insurance Group | $137 | $1,642 |
| Geico | $147 | $1,763 |
| USAA | $182 | $2,182 |
Cheapest Car Insurance for Texas Drivers With a Single-Vehicle Accident
State Farm typically offers the cheapest rates for drivers with a recent accident on their record, costing an average of $131 per month or $1,568 per year. Texas Farm Bureau and Redpoint Insurance Group also offer rates to drivers that fit this profile.
| Texas Insurance Provider | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| State Farm | $131 | $1,568 |
| Redpoint Insurance Group | $137 | $1,642 |
| Texas Farm Bureau | $158 | $1,898 |
| Geico | $191 | $2,295 |
| Nationwide | $239 | $2,873 |
Cheapest Car Insurance for Texas Drivers With a DUI
Redpoint Insurance Group offers the lowest rates for full-coverage car insurance for drivers with a DUI conviction. On average, Texas policies for someone with a DUI on their driving record cost $264 per month or $3,168 per year for full coverage.
| Texas Insurance Provider | Average Monthly Cost Estimate | Average Annual Cost Estimate |
|---|---|---|
| Redpoint Insurance Group | $136 | $1,642 |
| State Farm | $175 | $2,096 |
| USAA | $183 | $2,198 |
| Texas Farm Bureau Insurance | $185 | $2,215 |
| Geico | $209 | $2,513 |
Factors That Determine Car Insurance Costs
Your driving record is only one of the determinant factors in how much you’ll pay for car insurance.
The other key factors companies use to calculate your rates are:
- Location: If you live in a more populated urban area, you’ll likely pay more for car coverage than if you live in a rural area.
- Age: Young drivers, especially teens, typically pay much more for car insurance than more experienced drivers.
- Credit history: Drivers with a poor credit history usually pay higher rates than those with good credit.
- Gender: Male drivers have a statistically higher chance of getting into an accident, so they often pay more for auto insurance than female drivers.
- Marital status: Married drivers tend to pay less for coverage than single drivers.
- Vehicle type: Cars that are costlier to repair, like luxury and exotic vehicles, are usually more expensive to insure.
Your car insurance deductible helps determine how much you pay. The higher your deductible (the amount you pay out of pocket before your insurer pays your claim), the lower your annual premium will be.
How To Save Money on Car Insurance
Comparing car insurance quotes from different providers is one of the best ways to find cheap car insurance. Here are other ways to save money on your auto insurance policy.
These tips can help you lower your car insurance costs:
- Inquire about discounts. Most providers offer a variety of car insurance discounts to help you save money. Typical discounts include savings for insuring multiple vehicles on the same policy, keeping an accident-free record, being a good student and bundling auto coverage with homeowners or renters insurance.
- Look at smaller local providers. In some cases, the largest insurance providers might not be the best fit for your needs — or your budget. A smaller company might have more insurance agents in your area that can provide more hands-on service.
- Drop unnecessary coverage. Your state or your lender may require you to have a full-coverage policy if you finance or lease your car. If not, you could save money by dropping unnecessary coverage. If you drive an older car, for instance, having comprehensive and collision coverage may not make financial sense.
- Increase your deductible. A higher deductible yields a lower car insurance premium because you’ll have to pay more out of pocket before your policy pays a claim. Review your budget and see if you’re able to pay more for repairs.
- Take a defensive driving course. Some auto insurers offer discounts to those who complete authorized defensive driving courses. Even if you have a clean record, taking a defensive driving class could help significantly lower your rates.
Average Cost of Car Insurance in Texas: The Bottom Line
Auto insurance rates in Texas are right at the national average. The state only requires that drivers carry bodily injury and property damage liability insurance to drive legally. Among large national carriers, Allstate, Auto Club and Geico offer the cheapest insurance rates in the Lone Star State for both liability-only and full-coverage policies.
Top Auto Insurance Recommendations
To find the best rates that satisfy your insurance needs and wallet, we recommend getting quotes from several providers. That way, you can get a better sense of what you’re likely to pay based on the coverage options you need. Based on our insurance industry analysis, we found Geico and Progressive to be two of the top providers of affordable car insurance in Texas.
Compare: Geico vs. Progressive
Geico: Best for Budget-Conscious Drivers
If you’re looking for low-cost car insurance, Geico is a wise company to start with during a search. The insurer has a reputation for offering some of the best rates on the market. In addition, Geico has an assortment of discounts available to policyholders looking to cut costs even further.
Teen drivers can save money by maintaining good grades. There’s also a discount for good drivers who keep an accident-free record, and old drivers can take an approved defensive driving course for even more savings.
Read more: Geico Insurance Reviews
Progressive: Low Rates for High-Risk Drivers
If you’re a young driver or have any blemishes on your driving record, you may want to consider getting a quote from Progressive. The company is known for offering low rates to drivers considered high-risk. It routinely ranks among the top large providers in the country in terms of cost, but the company’s Snapshot® telematics insurance program rewards drivers for developing and maintaining good driving habits.
Read more: Progressive Insurance Reviews
Average Cost of Car Insurance in Texas FAQs
Below are frequently asked questions about average cost of car insurance in Texas:
The average cost of car insurance in Texas is $54 per month (for a state minimum policy) and $146 per month (for full coverage).
Texas auto insurance rates are barely higher than the national average. Car insurance rates in the state are lower than in other highly populated states.
Texas requires drivers to hold minimum liability coverage limits of 30/60/25. To drive legally, you must carry $30,000 in bodily injury liability insurance per person, $60,000 in bodily injury liability per accident and $25,000 in property damage liability per accident.
Texas is not a no-fault state. It is an at-fault state, which means that the driver responsible for causing a car accident will be using their liability insurance to cover as much of the bodily injuries and property damages to the affected parties as possible.
Our Methodology
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
- Cost: Auto insurance rate estimates generated by Quadrant Information Services and discount opportunities were both taken into consideration.
- Coverage: Companies that offer a variety of choices for insurance coverage are more likely to meet consumer needs.
- Reputation and experience: Our research team considered market share, ratings from industry experts and years in business when giving this score.
- Availability: Auto insurance companies with greater state availability and few eligibility requirements scored highest in this category.
- Customer experience: This score is based on volume of complaints reported by the NAIC and customer satisfaction ratings reported by J.D. Power. We also considered the responsiveness, friendliness and helpfulness of each insurance company’s customer service team based on our own shopper analysis.
Our credentials:
- 800 hours researched
- 45 companies reviewed
- 8,500+ consumers surveyed
*Data accurate at time of publication.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
