When shopping for the cheapest car insurance in Texas, it’s important to do your research, and compare rates and policies across a wide selection of companies before settling on an insurance provider.
Fully understanding exactly who and what each policy covers is important.
Different insurance companies may use different factors to determine their rates or have inconsistent information regarding the make and model of your vehicle.
Although insurance providers may price their policies differently, most will take into account your age, gender, make and model of your vehicle, and accident history when determining your rate.
Additionally, where you live has a large impact on the insurance rates available to you.
Companies with the Cheapest Car Insurance in Texas
Here are the top 4 companies that offer the cheapest car insurance in Texas:
Progressive Car Insurance
Founded in 1937, Progressive has since become one of the largest insurance corporations in the United States, serving over 18,000,000 drivers. It offers insurance policies for both private and commercial vehicles.
Progressive has been granted A ratings by a number of third-party institutions.
It offers competitive rates and discounts including safe-driver discounts, multi-car and multi-driver rates, and bundled discounts for insuring your auto and property on the same policy.
Roadside assistance, online quotes, and a “Name Your Price” tool make Progressive a convenient and highly recommended insurance option.
Liberty Mutual Insurance
Liberty Mutual has been in the insurance business since 1912 and is headquartered in Boston, Massachusetts.
It is the fourth-largest insurance provider in the United States, claiming that drivers who switch to its insurance policies from another provider save an average of $509. Liberty Mutual Insurance offers a 12-month rate guarantee as well as several insurance discounts. Its policies include specialty insurance and new car replacement.
Esurance by Allstate
This insurance company is the oldest publicly held personal lines insurer in the US.
It’s been in the industry for over 80 years, providing its customers access to reliable account management tools that allow them to make minor changes to their accounts, enroll in discount plans, and track their savings.
Esurance offers competitive premiums, accident forgiveness, and flexible payment options.
MetLife Auto Insurance
This company is one of the oldest and largest insurance providers in the world, operating in over 50 countries. The company was founded in New York in 1868.
MetLife has excellent consumer ratings for its convenient account management options, low rates and full-service insurance policies. Roadside and towing assistance are also available to policyholders.
How Cheap Is Car Insurance in Texas, On Average?
In Texas, the average cost of car insurance is slightly above the national average for some of the cheaper providers.
However, when compared with surrounding states, the cost of car insurance in the state is midrange.
Insurance premiums have increased since 2011, but the increase in Texas is in keeping with increases in other areas of the country.
|Average Cost of Car Insurance in Texas||$1,109.66|
|Average Cost of Car Insurance in New Mexico||$ 937.59|
|Average Cost of Car Insurance in Louisiana||$1,405.36|
|Average Cost of Car Insurance in Oklahoma||$1,005.32|
|Countrywide Average Cost of Car Insurance||$1,009.38|
What Factors affect the Cost of Car Insurance in Texas?
Car insurance premiums in Texas may be affected by a number of factors related to location.
These can include traffic patterns, crime rates, population density, and disposable income.
1. Traffic Conditions in Texas
When determining auto insurance premiums, companies usually take into account traffic conditions such as accident rates and traffic.
High incidences of fatal accident rates in the state typically result in higher average insurance premiums.
In Texas, fatal accident rates per 100 million vehicle miles have been among the highest in the country for the past several years, and this has resulted in an increase in insurance premiums. Per 1,000 registered vehicles, Texas has fatal accident rates that are slightly higher than average but not among the country’s highest.
Traffic density is measured in vehicle miles per highway mile and vehicle miles per registered vehicle.
Texas is very near the nationwide average for both of these.
2. Vehicle Theft Rates in Texas
When searching for the cheapest car insurance in Texas, it’s not uncommon to find that rates may be higher than the national average due to vehicle theft rates.
According to the FBI’s 2016 Crime in the United States report, auto theft in Texas is among one of the highest rates in the country, second only to California.
If you’re driving a vehicle with a higher than average theft rate, you’ll also find that quotes may be on the higher end of the spectrum. Some of the most commonly stolen vehicles in America include:
- 1997 Honda Accord
- 1998 Honda Civic
- 2006 Ford pickup
- 2004 Chevrolet pickup
- 2016 Toyota Camry
- 2015 Nissan Altima
- 2001 Dodge pickup
- 2015 Toyota Corolla
- 2008 Chevrolet Impala
- 2000 Jeep Cherokee
3. Population Density in Texas
Although population density doesn’t have a direct effect on insurance premiums, many insurance companies do analyze population density statistics when calculating rates and policy requirements.
Higher population density contributes to the possibility of more vehicles and therefore, to higher traffic density and an increased risk of car accidents.
Population density is measured in persons per square mile.
In Texas, the population density is 103 persons per square mile, slightly above the national average of 90 persons per square mile, but far below the highest population density, which is 10,803 in the District of Columbia.
4. Disposable Income in Texas
When it comes to finding the cheapest car insurance, Texans might find their rates slightly lower than the national standard, due to the disposable income average in the state.
At $41,090, the average disposable income in Texas is slightly higher than the national average of $40,859.
Insurance companies take this metric into account when calculating rates because it’s assumed that a higher average disposable income will result in people buying higher-priced luxury vehicles, with a need to protect assets with higher than state minimum insurance limits.
What Is Mandatory Coverage in Texas?
When registering a vehicle and searching for the cheapest car insurance, Texans should be aware of the state’s requirements regarding insurance minimums and accident responsibility.
In Texas, drivers are required to carry liability insurance with the following minimums:
- $30,000 for each injured person
- $60,000 for injuries per incident
- $25,000 for property damage
Texas requires drivers to be capable of paying for any injuries or damages incurred by accidents they’ve caused, which is why liability insurance is required.
Regardless of this law, it’s estimated that 20 percent of drivers don’t have valid insurance. Drivers are also required to carry comprehensive and collision insurance for leased and financed cars.
Drivers must always carry proof of liability insurance in their vehicles.
This must be presented in the following scenarios:
- A police office requests proof of valid insurance
- You get into a car accident with another driver
- When registering a new vehicle or renewing current registration
- When applying for a new driver’s license or renewing a current license
- When having a car inspected
Texan sheriffs and police officers, as well as other government agencies, use TexasSure to verify insurance when required.
TexasSure allows government agents to use the vehicle’s VIN number to search a statewide database, confirming that the driver has up-to-date liability insurance.
Drivers with a poor history may have a difficult time obtaining liability insurance. Any driver who has been refused insurance by two or more providers may qualify for insurance through the Texas Automobile Insurance Plan Association, however.
To qualify, drivers must meet the following criteria:
- Apply for or currently possess a valid driver’s license
- Live in Texas or own a car registered in Texas
- Sign an affidavit certifying that two car insurance companies have rejected your application in the last 60 days
Failure to carry valid insurance in Texas comes with hefty fines that range from $175 to $350 for the first conviction, and up to $1,000 for additional convictions. Multiple convictions may also result in suspension of your driver’s license or in having your car impounded.
How to Get Cheaper Car Insurance in Texas (If You’re Already Insured)
When you’re shopping for the cheapest car insurance in Texas, it’s important to keep in mind that there are certain things you can do to help reduce monthly premiums.
While you’ll never be able to obtain your insurance for nothing, some of these options can leave you with a much lower rate:
- Offer to increase your deductible
- If you’re driving an older car, reduce optional insurance such as comprehensive and collision coverage
- Bundle your home, auto, life, and any other insurance into the same policy
- Take advantage of discounts offered by your insurance provider such as safe driver or low mileage discounts
- Identify and incorporate safety features that will reduce the cost of monthly premiums
When searching for quotes from different insurance providers, you’ll need to provide some details about your vehicle, household, and drivers that most insurers ask for in their applications.
These include the following:
- Make, model, and year of your vehicle
- Vehicle identification number
- Safety features included in your vehicle (anti-lock brakes, stabilization systems, and passive restraint systems, for example)
- Anti-theft devices you have installed in the vehicle (GPS tracking, steering column locks, alarm)
- An estimation of how many miles the vehicle will be driven each year
- Where you live
- Where and how you’ll be parking your car
- How much liability coverage you need/want
- The deductible you’d like to pay
- The number of drivers in your household
- Driving record
- Driver education
- Grades for student drivers
What Can Increase the Cost of Your Car Insurance in Texas?
Several factors may contribute to higher car insurance rates. Beyond your age, gender and driving record, other considerations are the crime rates and the population density of where you live. Some things that can reduce your chances of finding the cheapest car insurance in Texas include:
- Poor driving record: A history of excessive tickets or accidents increases the risk to your insurance provider and may , therefore,result in a higher insurance premium being applied to your policy.
- Age: Younger drivers are less experienced than older drivers, and this is a major factor in determining insurance premiums. The younger the driver, the higher the rate.
- Gender: In younger drivers, men are usually considered higher risk and may be assigned higher insurance premiums.
- Make and model of vehicle: Some cars cost more to insure than others. This depends on a number of factors, including the overall cost of the vehicle, whether or not specialty repairs may be required in the event of accidents or other damages, and how often the make and model is targeted by car thieves.
Shopping For the Cheapest Car Insurance in Texas
When shopping for the cheapest car insurance in Texas, it’s important to do your research and compare not only different companies’ rates but also their policies, ratings, and reviews, as well as the history and financial solidity of the insurance providers you’re considering.
Getting quotes from a minimum of three companies ensures that you’ve armed yourself with enough information to find the right insurance policy to suit your needs.*While we make every effort to keep our site updated, please be aware that "timely" information on this page, such as quote estimates, or pertinent details about companies, may only be accurate as of its last edit day. Huntley Wealth & Insurance Services and its representatives do not give legal or tax advice. Please consult your own legal or tax adviser.