When you need to find the best car insurance in Texas, set aside time to look into the type of coverage you need to obtain, any additional options that can add peace of mind, and what various carriers can offer for your situation.
The cost of car insurance is based on many different factors, including your age and gender, where you park your vehicle at home and work, what is listed on your driving history, and the kind of vehicle you need to insure.
By comparison shopping, you can see how different companies price the levels of coverage Texas requires you to maintain your car to be street legal.
With multiple quotes, you can negotiate to obtain the best car insurance while not spending any more than you have to.
Use this guide to answer the question “how much is car insurance in Texas?” and to understand the various elements of the quotes you’ll receive.
The Best Car Insurance In Texas: Starting With The Average Cost
Though Texas car insurance rates are a bit higher than the U.S. average, they’re fortunately not among the top 10 highest priced states.
According to the National Association of Insurance Commissioners (NAIC), which provides yearly reports on insurance pricing and trends, in 2015 the average yearly cost of car insurance in Texas was $1,109.66, which is almost exactly $100 higher than the national average of $1,009.38.
In Texas, the cost of car insurance has risen by about $150 since 2011.
Here’s how Texas compares to her neighbors when it comes to the average cost of car insurance:
|Average Cost of Car Insurance in Texas||$1109.66|
|Average Cost of Car Insurance in Oklahoma||$1005.32|
|Average Cost of Car Insurance in Louisiana||$1405.36|
|Average Cost of Car Insurance in New Mexico||$937.59|
|Countrywide Average Cost of Car Insurance||$1009.38|
While Texas is more expensive than Oklahoma and New Mexico, Texans can save quite a bit of money versus their neighbors to the east in Louisiana.
Many different factors have contributed to the overall cost of car insurance in Texas, apart from the rise in rates over the past several years.
These include traffic conditions and fatalities, an increase in claims filed due to distracted driving and weather damage, and a high number of uninsured motorists.
1. High Fatality Rate on Texas Roads
According to the NAIC, Texas has a rate of 1.46 fatal accidents per year per 100 million vehicle miles. That’s a very high rate – among the top 10 worst fatality states in the country.
Similarly populated New York and California have rates of 0.8 and 0.92 respectively, significantly lower than the Lone Star State.
2. Rising Rates Due to Distracted Driving and Weather-Related Claims
A major news station in Texas reported in 2017 that one large factor in the rising cost of car insurance in Texas was a continuing huge uptick in the number of accidents caused by distracted driving – people who are more concerned with their cell phones than the cars they share the roads with.
In addition, natural disasters such as flooding from hurricanes, as well as seasonal issues like hail have caused increasing numbers of insurance claims to be filed.
This trickles down to higher premium rates for most consumers.
3. High Number of Uninsured Motorists
Although Texas drivers are compelled by law to maintain financial responsibility for their vehicles as well as any crashes they cause, more than 14 percent of Texans drive uninsured – that’s 1 in every 7 drivers on the road.
The cost of sharing the road with so many uninsured drivers is then felt by every driver who chooses to drive legally and with appropriate insurance coverage.
Companies With the Best Car Insurance Policies in Texas
When you’re trying to determine how much car insurance is in Texas, comparison shopping is your best strategy.
You should obtain quotes from at least three separate carriers before you make a decision on which is best for your budget and vehicle.
Consider companies that are well established in the field while you’re both comparison shopping and making your decision.
While discount carriers may offer significantly lower rates, you may also experience a corresponding drop in quality for coverage and support, as well as a lack of access to additional services when you need them.
1. Progressive Car Insurance
Flo’s company and her Name Your Price tool have been looking out for the best interests of drivers in Texas for 80 years and is one of the best known and most trusted carriers in the country.
2. Liberty Mutual Insurance
Liberty Mutual is one of the oldest, largest and most reputable car insurance companies in the country.
It’s well known for its New Car Replacement program, which helps consumers so that they aren’t forced to buy an inferior replacement if their current car is totaled.
A division of Allstate, Esurance began as a discount carrier and is now backed by one of the largest insurance companies in the world.
They were pioneers in mobile apps for insurance consumers and price comparison tools to find the best rates.
With iconic Snoopy as its longtime icon, many consumers only associate MetLife with life and health insurance products.
However, they are also a leader in the car insurance field, offering a wide variety of policy options as well as roadside assistance and towing.
What is Mandatory for Car Insurance in Texas?
The Texas Department of Insurance (TDI) oversees car insurance coverage in Texas.
When you obtain car insurance in Texas, you receive a coverage card either in the mail in a physical form, or through your email or app as an electronic proof of coverage.
You must be able to show this proof of coverage at various times while driving or performing car-related transactions.
As a minimum, Texas auto insurance policies must include three components :
- $30,000 for a single person injured in an accident
- $60,000 for multiple people injured in an accident
- $25,000 for damage to property caused by an accident
Together, these three types of coverage are the minimum liability insurance requirements, but the TDI warns that although they keep you street legal, they won’t cover you if you in case of an accident since they only apply to others you harm in an accident you cause.
If your vehicle is under financing, your lender may also require that you carry collision or comprehensive coverage so that both your own car and any injuries are also covered in the event of an accident.
Finally, insurance carriers in Texas are also required to provide uninsured motorist coverage, with a mandatory deductible of $250.
While drivers aren’t required to invest in this coverage, it may be a good idea to include in your policy because of a large number of uninsured drivers in the state.
Other add-ons to consider include Personal Injury Protection, coverage for roadside assistance, towing, and rental cars.
How to Reduce the Cost of Your Car Insurance Rates
While the best car insurance in Texas isn’t necessarily the cheapest policy, you still shouldn’t have to pay any more than you absolutely must for your coverage.
There are a variety of programs and offerings to help ensure that you’re snapping up every possible available discount.
Let’s take a deeper dive into those areas so you can save as much money as possible.
Discounts for Multiple Vehicles or Cars
Most insurers offer discounts when you bundle together multiple types of coverage. Whether you have several vehicles to cover or prefer to piece together your home, life, and car insurance, this is a great opportunity to save a significant amount of money.
Larger insurance companies offer a greater variety of insurance products – investigate them carefully to maximize your savings.
Save Money Through Organizational Affiliations
Many larger schools, employers and civic organizations choose an “official” insurance carrier to represent them.
When that happens, all employees, alumni or affiliated individuals could experience generous discounts in premiums. As you’re comparison shopping, you may see lists of possible organizations during the process of applying for a quote.
If you don’t, ask your employer and alma mater directly if they’ve partnered with a carrier for discounts.
Take Advantage of Your Safe Driving History
Safe drivers pay less for insurance – that’s simply a statistical fact.
While carriers will run a check into your driving history, make sure you have it available as well to dispute any inaccuracies. More importantly, do everything you can to drive safely daily so that your good history can continue.
Also, check with potential carriers to see if they offer transponders or apps that will track your driving and apply discounts if you follow their safety guidelines.
Change Up Your Deductible, Coverage Amounts and Add-Ons
As long as you maintain minimum coverage requirements in Texas, you have wide latitude in how your policy is comprised.
- First, look at your deductibles. If it makes sense financially, increasing your deductible will make your premium decrease. Be careful not to jump it too high, however, or you could be in a bad spot if you need to use your policy.
- Next, look at your coverage amounts. While you may feel safer at amounts higher than the minimums, if you need to save money upfront, you can reduce coverage levels.
- Finally, check out your add-ons. Specifically, do you need coverage for rental or roadside assistance? You may have other options to help you obtain either of these, such as through your car warranty or other affiliations.
When you begin the actual process of collecting quotes, make sure you have all the required information.
Bring along complete details on your vehicle including its make and model, year, VIN, and safety features.
Also note where you store your car, how far you drive daily, and who the primary drivers on your account will be. If you have proof of safety courses or good grades, add those to your file as well.
The more information your agent has, the better chance you have to receive the best car insurance in Texas.
What Can Increase the Cost of Your Car Insurance in Texas?
A combination of factors can lead to higher insurance costs, and unfortunately, not all are within your control.
Understanding them can help you find the best car insurance in Texas while working to lessen the impact of factors you do control.
- Gender and Age: Younger drivers typically pay higher insurance premiums, especially if they are teenagers with new licenses. Rates don’t usually begin to abate until about age 25. In addition, women often pay lower premiums than men.
- Driving History: Car accidents and legal infractions all go on your driving history and remain there for several years. When you apply for coverage, you even have to list accidents that were not your fault. While you cannot change that, you can ensure that your own driving habits always meet the highest safety standards.
- Financial Credit: It’s important to know that in Texas, car insurance carriers can look at your credit score while pricing your policy. Work to maintain good credit history and dispute any inaccuracies on your credit report so you can reap the reward of less costly insurance.
- Your Vehicle: Newer and higher priced vehicles also command higher premium pricing. In addition, vehicles that remain under financing require higher coverage which leads to higher premiums. Certain vehicle types, like sports cars, may also lead to higher costs because of their statistical probability of being linked to accidents and unsafe driving.
As you look for the best car insurance in Texas, make sure you take enough time to thoroughly comparison shop, control the factors you can to minimize costs, and look for all available discounts.
Then you’ll be well covered without having to spend too much money.*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.