INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Texas for 2024

Updated Sept. 20, 2023
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Farmers is generally the cheapest car insurance in Texas for full coverage policies.

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Everything is bigger in Texas. Except, evidently, car insurance premiums. The annual cost of auto coverage in Texas is $1,467, compared to the national average of $1,582. That’s partially because of Texas’ lower cost of living, but also because of its low state-required coverage minimums.

However, you could pay significantly more based on your age, credit history, and driving record. Learn more about the average cost of car insurance in Texas and what you can do to save money on your policy.

In this article

Key takeaways

  • The average cost of full coverage car insurance in Texas is $1,467.
  • Drivers pay an average of $643 per year for state-minimum coverage.
  • Young drivers average $4,621 per year for car insurance.

How much does car insurance cost in Texas?

For full coverage insurance that includes collision, comprehensive, and liability protection, the average cost is $1,467. For those looking to save money, state-minimum coverage is significantly cheaper; the average annual premium is just $643.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,467/year $643/year Farmers
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$4,621/year $2,095/year $2,499/year

Average cost of car insurance in Texas by provider

There are several insurance providers in Texas. Some, such as Allstate or State Farm, are large companies that offer insurance products nationwide. Others, such as Mercury, are smaller regional companies that operate in select states.

We found that Farmers has the lowest rates for full coverage insurance, with an average premium of just $821.

Provider Full coverage Minimum liability coverage
Allstate
$1,852/year
$573/year
Farmers $821/year $420/year
GEICO $1,287/year
$528/year
Mercury $1,441/year $722/year
State Farm
$1,160/year $495/year
Nationwide $1,245/year $678/year
USAA
$1,248/year $424/year

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How does credit score affect car insurance rates in Texas?

In Texas, insurers can use your credit history and score to determine your rates. However, they cannot deny you coverage solely based on your credit.

Because insurers look at your credit score, excellent credit can help you save money on car insurance. The average premium for someone with excellent credit is $1,817. By contrast, the average premium for those with poor credit is $2,732.

Credit health Avg. annual premium
Poor (550-649) $2,732/year
Average (650-699) $2,390/year
Good (700-749) $2,108/year
Excellent (750+) $1,817/year

Average car insurance rates for high-risk drivers in Texas

Unfortunately, Texas has a high incidence rate of drivers getting behind the wheel after drinking. In fact, the U.S. DUI Report ranked Texas as the fifth worst state in the country for drunk driving.

But driving under the influence (DUI) will cost you. On average, insurance premiums after a DUI conviction increase by $1,032. Speeding tickets and accidents can also have a significant impact on your premiums. One at-fault accident could increase your premium by $1,306.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,467/year $2,773/year $1,306
DUI $1,467/year $2,499/year $1,032
Speeding ticket $1,467/year $2,169/year $702

*Assumes clean driving record with good credit

How does age affect car insurance rates in Texas?

While most states have higher average premiums for those in their 20s or 30s, Texas is different; a 25 or 30-year-old will pay less than someone who is 40 or even 60. However, teen drivers should expect to pay much higher rates. The average premium for teens was around three times the average rate for older drivers.

Age Avg. annual premium
18 $5,110/year
25 $1,730/year
30 $1,862/year
40 $1,957/year
60 $1,957/year

Texas car insurance rates by city

Where you live (and park your car) affects your premiums. Living in cities like Austin or Houston will cause you to pay a higher premium than if you lived in rural or suburban areas.

At $2,389, Houston has the highest average premium in the state. That figure is unsurprising, considering that according to NeighborhoodScout, Houston has one of the highest crime rates in the country.

City Avg. annual full-coverage premium
Austin $1,928/year
Dallas $2,229/year
Fort Worth $1,953/year
Houston $2,389/year
San Antonio $1,987/year

TX's minimum car insurance requirements

Texas requires all drivers to prove they can pay for any accidents they cause. For the majority of drivers, that law means they need liability insurance. Texas has the following minimum coverage requirements:

  • $30,000 liability coverage per person ($60,000 per accident)
  • $25,000 property damage coverage

How to save money on car insurance in Texas

You can save money on your car insurance premiums in Texas by using the following tips:

  • Raise the deductible: Your deductible is how much you have to pay after an accident before your insurance will cover damages or injuries. You can lower your premiums by increasing the amount of deductible.
  • Shop around: Rates vary by company, so contact multiple car insurers and request quotes. You may find that some insurers are significantly cheaper than others for the same amount of coverage. We identified some of the best car insurance companies to help you get started.
  • Ask about discounts: Reach out to your insurance agent and ask about available discounts. You may qualify for discounts if you pay your premiums annually, if you have a homeowners or renters policy, or if you complete a safe driving course.
  • Boost your credit: In Texas, excellent credit can help you save money. Improve your score by making payments on your recurring obligations on time, limiting new credit inquiries, and reducing the amount of debt you carry.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in TX

Is car insurance expensive in TX?

The average cost of car insurance in Texas is slightly lower than the national average. The average annual premium for full coverage is $1,467.

How much is car insurance per year in TX?

The average for full coverage insurance in Texas is $1,467 per year. If you opt for state-minimum coverage, the average yearly cost is $643. 

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.