Table of Contents
Car insurance is a must for every resident of Texas. Whether you opt for minimum liability insurance or decide to extend your budget for full coverage, insurance is compulsory for every car owner. But how do you manage it, and where can you find the best auto insurance for your car? Texan drivers often wonder about and spend money on multiple insurance providers as they are unsure about which one to choose.
In this article, you will explore various averages of insurance premiums paid by Texans and decide which type of insurance suits your needs the best. With more details regarding how much to pay for such insurance, you can decide which coverage will fulfill your needs.
How Much Does Average Cost of Car Insurance In Texas?
Texan auto insurance rates are not far from the national average. For a minimum coverage auto insurance policy, drivers pay around $600-$700 annually; for full coverage insurance policies, drivers pay around $2200-$2300 annually. All these averages are a few dollars higher than the national average, but still around it. One can select the type of coverage and insurance provider by comparing them.
Average Cost of Car Insurance Per Month
The average auto insurance premium a car owner pays in Texas is around $60 monthly for minimum liability coverage. Similarly, if a driver selects full coverage insurance, they may have to pay around $190 a month. The exact insurance premium depends on many other factors, such as the vehicle, age, gender, and driving history. Some insurance providers also consider credit score a determining factor in premium rates.
Who Offers The Best Car Insurance Costs in Texas
In Texas, car insurance rates can vary significantly depending on the company and specific circumstances such as driving history, age, and coverage needs. Here are some of the best options based on different criteria:
Overall Cheapest Rates:
- Texas Farm Bureau: Offers the lowest rates for many driver profiles, with average annual premiums around $1,301 for full coverage​ ​.
- State Farm: Also provides competitive rates, averaging about $1,956 per year for full coverage​.
- Geico: Another affordable option with an average annual premium of $1,644 for full coverage​.
Best for Military Members:
- USAA: Provides excellent rates for current and former military members and their families, with average costs around $1,812 annually for full coverage.
Best for High-Risk Drivers:
- Redpoint County Mutual: Known for offering affordable rates to high-risk drivers, including teens and those with poor driving records​.
Best for Minimum Liability Coverage:
- Texas Farm Bureau: Offers the cheapest rates for minimum liability coverage at approximately $33 per month​​.
- Geico: Offers competitive minimum liability coverage at around $37 per month​​.
Average Cost of Minimum Liability Coverage in Texas
Texas residents must have a minimum liability coverage to drive a car penalty-free. This minimum coverage includes damage liability for the victim party in case of an accident. This includes:
- $30,000 for a bodily injured person in liability insurance
- $60,000 for bodily injury in case there is more than one person in the liability insurance per accident
- $25,000 for property damage in liability insurance per accident
The Average Cost of Full Coverage Car Insurance in Texas
The average cost of full coverage car insurance depends on a lot of factors. Full coverage insurance includes collision, comprehensive, PIP, MedPay, and various other forms of coverage that one might select for maximum protection. The more coverage one opts for, the higher the premium cost. Also, premium costs for luxury or heavy vehicles go up. The average cost for full coverage auto insurance revolves around $2000-$2500 annually. One can find other more affordable options if they select lesser protection for their vehicle.
Read related blog: Which Gender Pays More for Car Insurance in 2025? The Answer Will Surprise You
Factors That Influence Car Insurance Costs in Texas
A variety of factors decide what your car insurance will be. You might be surprised to find out how your location, vehicle type, and driving history impact your premium rate. Here are the factors that might affect the price of vehicle insurance in Texas:
Location: The city you live in also affects your car insurance. The insurance costs vary with the crime level and congestion in the cities.
Vehicle: The insurance premiums depend on the vehicle’s year, make, and model. Cars with better safety features and financial loss attributes, such as lower repair costs, tend to attract lower premiums. Similarly, luxury or imported vehicles have higher insurance rates.
Gender, Age, and Marital Status: Your age and driving experience always determine your premium rates. Youngsters and male drivers are usually charged higher auto insurance premiums because they are considered high-risk. People who are married and have children are also charged higher auto insurance, which is an attempt to keep prices low for drivers.
Driving Record: Insurance premiums for less risky or safe drivers who have not been involved in accidents are relatively low compared to drivers with accident and traffic violation records. Safe drivers also have fewer traffic violations and are considered better drivers, hence being charged a lower premium.
Credit Score: With greater financial awareness, credit scores have also become essential to auto insurance. Credit ratings are a risk assessment tool that insurers use to assess risk. Auto insurance providers also offer discounts to individuals with higher credit ratings.
Coverage Options: This area is more sensitive to the type and level of coverage, such as liability, collision, or comprehensive.
Deductible: This involves choosing an enhanced deductible for the insurance company, meaning customers’ monthly premiums will be cheap. However, this comes with a disadvantage: people will be forced to dig deeper into their pockets when a claim is made.
Read related blog: What is the Cost of Living in Texas?
Texas Car Insurance Costs by City
One must also consider a variation of insurance premiums with defense in location. You might be surprised, but car insurance premiums can differ as you move to a new city. This might be due to changes in local government and local laws. Here are some Texas cities with their monthly and annual full coverage premium rates:
| City | Monthly Full Coverage | Annual Full Coverage |
| Austin | $191 | $2292 |
| Arlington | $209 | $2507 |
| Corpus Christi | $196 | $2351 |
| Dallas | $225 | $2698 |
| El Paso | $195 | $2336 |
| Fort Worth | $201 | $2418 |
| Houston | $232 | $2785 |
| Lubbock | $194 | $2322 |
| Plano | $199 | $2384 |
| San Antonio | $204 | $2448 |
Texas Car Insurance Costs by Age and Gender
Texas auto insurance companies factor in age to determine your appropriate premium rate. This is because young drivers, especially teenagers, are considered beginner drivers, and thus, they are more likely to be involved in an accident, increasing their premiums.
Gender is also a factor in Insurance premiums, especially for young drivers, in their beneficial interest. It is a fact that male insurance premiums are always higher than female premiums, despite their age differences. This is so because young male dealers are more likely to be involved in collisions and naked aggressive behavior than any group of women, and this has been evidenced by studies done on road traffic accidents.
Car Insurance Costs in Texas by Credit Score
Credit ratings heavily influence auto insurance in Texas and can be charged differently for different credit scores. Insurance providers look at their credit score to decide a driver’s degree of financial responsibility and risk. Premiums are lowest for drivers with good Credit and highest for those with bad Credit. The following factors impact a person’s yearly premiums:
- Poor Credit: $4,541
- Average Credit: $2,533
- Good Credit: $2,490
- Excellent Credit: $1,938
Texas Car Insurance Costs by Vehicle Type
Texan residents with different types of vehicles pay different auto insurance premiums. Your insurance premiums are heavily impacted by the car type you drive. Cars with better safety ratings and less expensive repairs usually have cheaper insurance rates. Here are some yearly insurance costs in Texas for various car types is as follows:
Midsize Sedans:
In Texas, midsize vehicle owners should expect to pay around $1,794 in annual premiums. These vehicles’ performance, fuel economy, and safety features make them popular choices. Their dependable safety scores and reasonable repair costs help keep insurance rates low.
Full-size pickup truck:
In Texas, a citizen owning a full-size pickup truck will be expected to pay approximately $1,453 annually on auto insurance. These vehicles are not necessarily expensive and safe; they attract few claims and generally have low maintenance costs. The popularity of financial guarantees with pickup trucks has made it possible to issue insurance policies for various risks.
Minivans:
Minivans have the lowest insurance costs, averaging $1,466 yearly. Since they are built for families, these vehicles always have additional safety features and a high safety rating. Insurance companies consider minivans safer, making them much more affordable for auto insurance premiums.
Luxury Sedans:
The sedans typically cost a lot of money; the insurance cost is approximately $2,187 for one year. This is because, due to the sophisticated features that some of these vehicles have and the high horsepower, you will find that the premium and repair expenses will be high. Luxury automobiles are also more likely to be stolen, so insurers will have to charge for the insurance more likely to be stolen.
Hybrid Vehicles:
Hybrid vehicle owners pay approximately $1,778 on auto insurance annually. Thus, the premiums of these specific vehicles may be slightly higher. This is due to the costs of fixing the unique parts and imported technology. However, hybrid vehicles come with extra advantages such as safety measures and fuel efficiency. Due to their safety features and favorable environmental impact, hybrid vehicles are slowly being accepted as new developments.
How to Save Money on Car Insurance in Texas
The best way to save money is to properly research and compare your car insurance. Texan residents can get various tips. Taking the following proactive measures will help you save money on Texas auto insurance:
Take Advantage of Discounts: You must look for an insurance provider with maximum discounts. Look for other opportunities to apply for savings, such as those related to package insurance, outstanding academic achievements, and safe driving.
Reduce Your Driving: You must minimize your driving, as your mileage also affects your insurance premiums. To enjoy low mileage savings, you must minimize the miles driven per annum.
Work on Your Credit: Your higher credit score can help you get a lower premium rate. Therefore, you should improve your credit score to reduce your premiums.
Get Multiple quotations: The more you research, the more you understand how multiple providers quote insurance premiums. You should review quotations from different insurers in detail to ensure you obtain the maximum value at the best price.
Combine Your Policies: Car insurance is top-rated when you own or rent your homes, and it can often lead to financial savings when both insurance plans are combined.
Raise Deductibles: Reduce your chances of paying high monthly premiums by increasing your deductibles; ensure you have cash to meet the costs whenever they are due.
Read related blog: Can You Buy a Car With a Learner’s Permit? The Complete Guide
Conclusion
The best way to save the most on insurance is to properly research your local insurance providers. You must start by consulting various insurance providers to establish which insurance providers offer the best rate. You can find a better insurance policy with an excellent credit score or a safe driving history.
You can also use AI-powered Beem to compare premium rates for the best auto insurance policy. Beem can help you make better financial decisions and boost your credit score. The app also helps you track your credit score and manage your bills on time.
FAQs (Average Cost of Car Insurance In Texas)
Why Is Texas Car Insurance Getting More Expensive?
Inflation rates are going up and up every coming year. Due to high inflation, insurance premiums and other necessary things are getting expensive daily. Most Texans drive trucks and prefer heavy vehicles over safe cars, which makes their auto insurance premiums higher than the rest of the states. Other factors, such as climate, age of drivers, and government policies, also make auto insurance higher than ever before.Â
Is it better to pay car insurance in full or monthly?
It depends on the driver how he wants to pay for his car insurance. One can opt for either monthly or annual insurance payments. Monthly payments allow drivers to customize their insurance plans more often and manage their expenses better. However, sometimes insurance providers offer significant discounts for drivers who pay their annual premiums all at once.Â
How much is car insurance in Texas for a 20-year-old?
The minimum insurance coverage for a 20-year-old in Texas is about $1700, and full coverage insurance costs around $5600. The average insurance premium is higher for a 20-year-old than a 25-year-old due to their lack of driving experience and maturity. As they age, adults become more responsible about money and their driving skills, making them less risky.
