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The average cost of basic liability car insurance in Texas is $1,958 per year. Opting for full-coverage car insurance in Texas will leave you with an average cost of $2,543 per year. In comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
The average cost of basic liability car insurance in Texas is $1,958 per year. Opting for full-coverage car insurance in Texas will leave you with an average cost of $2,543 per year. In comparison, the national average is $1,627 per year to buy basic liability car insurance and $2,297 per year to buy full-coverage car insurance.
Compare best car insurance quotes in Texas
Car insurance rates are highly personalized, meaning that insurance companies want to know a lot about you before they’ll issue a quote. We’re talking driving history, credit score, age, gender, ZIP code, and more.
Check out the real quotes from Texas drivers who saved money on insurance with Jerry:
| Quote Date | Car | Before Jerry | After Jerry | City | Name | Age | Insurance Company |
|---|---|---|---|---|---|---|---|
| March 18, 2023 | Honda Civic EX | $277/mo. | $201/mo. | Cypress | Polly B. | 62 | Progressive |
| March 12, 2023 | Toyota Camry L | $500/mo. | $351/mo. | Tyler | Ora G. | 64 | Bristol West |
| March 6, 2023 | Chevrolet Camaro Ss | $135/mo. | $85/mo. | Los Fresnos | Jorge Q. | 42 | National General |
| March 3, 2023 | Toyota Corolla L | $128/mo. | $117/mo. | Houston | Jon B. | 36 | Progressive |
| February 27, 2023 | Ford Focus SE | $200/mo. | $92/mo. | Portland | Ethan T. | 33 | Progressive |
Best car insurance companies in Texas
The best car insurance company is different for every Texan. After all, car insurance quotes are highly individualized—and so are car insurance companies.
Each insurer uses its own system for setting your rate—you might get a great policy from State Farm or GEICO, or find a lower quote from Allstate or Nationwide!
Some companies, like USAA, might not even issue you a quote if you don’t fit the profile of customers they serve (e.g. military members and their families). The only way to find the best rate is to compare quotes.
| Insurance Company | Average Cost | Annual Savings with Jerry | |
|---|---|---|---|
| Dairyland | $3,272 | $1,000 | |
| National General | $3,126 | $929 | |
| Kemper | $2,488 | $885 | |
| Clearcover | $2,706 | $797 | |
| Progressive | $2,607 | $795 | |
| Safeco | $2,530 | $765 | |
| Allstate | $2,635 | $759 | |
| Travelers | $2,638 | $726 | |
| State Auto | $2,502 | $701 | |
| Nationwide | $2,890 | $686 | |
| Compare Prices | |||
Texas car insurance FAQs
Is insurance in Texas expensive?
Compared to the national average, Texas car insurance runs just a tad higher.
Are cars tax free in Texas?
No—Texas’ 6.25% sales tax applies to car sales, as well. Your county generally adds about 1.67% of local sales tax on top of this. Because of this, the average sales tax rate for vehicles in Texas comes to about 7.93%, with the highest car sales tax rates coming from major cities like Houston and Dallas.
Why is Texas insurance so expensive?
Texas car insurance can get expensive, primarily thanks to the state’s bad traffic, high uninsured driver rates, and damaging weather.
Texas highways actually rank in the top 10 for worst congestion in the country, while one in five Texas drivers (around 14%) don’t have insurance. Throw in tornados, hurricanes, blizzards, and several other types of catastrophic weather and you can understand why insurers (and you) pay more for vehicular damages in the Lone Star State.
How much does car insurance cost in Texas?
Everything’s bigger in Texas—but car insurance premiums might be an exception! In fact, the average annual rate in the Lone Star State is fairly close to the national average.
You see, Texas contains multitudes: while some parts of the state are densely populated, with a high risk of accidents, violations, theft, and vandalism, others are remote and (mostly) peaceful. While higher speed limits can lead to higher rates in areas where rural highways see a lot of fatal accidents, there’s a big range in car insurance premiums across the state.
Texas also has fairly high minimum car insurance requirements, which increases the cost of even basic liability insurance.
Check out the links below for more information on how Texas’s insurance rates compare to neighboring states—and how Jerry can help you save.
Texas car insurance requirements
Texas drivers need to meet the state's minimum coverage limits in order to legally hit the road. Your auto insurance policy must include at least $30,000 of bodily injury liability coverage per person, $60,000 of bodily injury liability per accident, and $25,000 of property damage liability coverage per accident.
How much insurance do I need in Texas?
Texas requires $30,000 per person for bodily injury liability, $60,000 of bodily injury liability per accident, and $25,000 of property damage liability per accident.
What do you need if you’re pulled over?
If you get pulled over, you are required to show your driver’s license, proof of insurance, and registration. Thankfully, digital insurance ID cards are accepted by police and the DMV so you will always have your stored proof of insurance available 24/7 in the Jerry app.
Is Texas a no-fault state?
No, Texas is an at-fault state that gives you the option of buying no-fault coverage. If you purchase personal injury protection (PIP), and are involved in an accident, you and your passengers will have medical expenses paid for immediately, regardless of who is at fault for the accident or if you have health insurance.
If you do not opt for this coverage, the at-fault driver’s insurance will pay for you and your passengers' injuries, once their insurance company accepts liability and confirms that there is enough coverage.
Texas only requires liability insurance. In the event of an at-fault accident, that coverage will pay out to cover medical expenses and vehicle repairs for other drivers up to your policy’s limits. But you won’t be able to file a claim for damage to your own vehicle or for your own hospital bills.
Full coverage auto insurance, on the other hand, includes comprehensive coverage and collision insurance. A full coverage policy will pay for repairs to your vehicle due to a range of incidents, from car theft to a crash.
Take a look at the graph below to understand how much you’re paying for each.
Cheap car insurance with a DUI or speeding ticket in Texas
Your driving history impacts your auto insurance quotes. If insurance companies notice a history of violations, they’ll see you as a higher risk and charge a steeper rate.
A single speeding ticket shouldn’t have a big impact on your premium—but repeated speeding will, especially if it comes with a reckless driving charge. And just one serious violation like a DUI can cause a huge increase in your Texas car insurance rates.
But high-risk drivers still need the same coverage—in fact, after major violations, you might have to file a form called an SR-22 that certifies your insurance coverage.
Luckily, Jerry users can still save on insurance, even with past violations.
| Driving Violation | Average Cost | Annual Savings with Jerry |
|---|---|---|
| Clean Record | $2,246 | $664 |
| Seat Belt | $3,254 | $1,452 |
| Illegal Turn | $3,120 | $1,227 |
| Improper Passing | $3,037 | $996 |
| Speeding over 15 | $3,078 | $982 |
| Cell Phone | $2,573 | $939 |
| Failure to Obey Traffic Sign | $2,799 | $918 |
| Defective Equipment | $2,736 | $851 |
| Careless Driving | $2,935 | $842 |
| Speeding under 15 | $2,707 | $830 |
Insurance Cost With a DUI in Texas
If you get a DUI in Texas, you can expect your car insurance to increase by an average of $238 per month.
Read More
Insurance Cost With a Speeding Ticket in Texas
If you have a reckless driving citation, you should expect your insurance to increase to an average of $62 per month.
Read More
Texas auto insurance rates by age
It’s a fact of life: young drivers have less experience behind the wheel, and statistics show they have a higher rate of both car accidents and violations.
That doesn’t mean a teen driver can’t be a good driver, but it does mean that auto insurance companies charge drivers under 25 years old higher average car insurance rates than any other age group. Building good credit, maintaining a clean driving record, or qualifying for car insurance discounts can lower those rates.
How can young drivers save money on car insurance in Texas?
- Build a good credit score (remember, poor credit can raise your rates)
- Practice safe driving behaviors to achieve a clean driving record
- Maintain a B average or better in school for a good student discount
- Build a good credit score (remember, poor credit can raise your rates)
- Practice safe driving behaviors to achieve a clean driving record
- Maintain a B average or better in school for a good student discount
Average cost of car insurance in Texas by city
Texas is the country’s second-largest state, both by area and by population. It’s home to over 29 million people, almost 18 million of whom are licensed drivers.
But not all of those drivers pay the same rate for car insurance. In general, urban drivers pay higher rates, but not all cities have the same average premiums. For instance, Austin car insurance costs are fairly low for a major city, while Dallas car insurance costs and Houston car insurance costs are both higher.
Differences in population density, accident rates, crime statistics, and even weather patterns can all influence these averages—and you’ll even see variation within each city!
Want to see how different Texas cities compare? Check out the features below.
| City | Average Cost | Annual Savings with Jerry |
|---|---|---|
| Arlington | $2,192 | $781 |
| Austin | $2,067 | $737 |
| Dallas | $2,164 | $731 |
| El Paso | $1,995 | $696 |
| Fort Worth | $2,091 | $695 |
| Houston | $2,227 | $732 |
| Katy | $2,161 | $756 |
| Lubbock | $2,069 | $716 |
| San Antonio | $2,154 | $734 |
| Spring | $2,084 | $682 |
Least Expensive Cities in Texas
Lubbock and Austin have some of the cheapest average auto insurance rates in the state.
Cities with Highest Rates of Accidents in Texas
Flower Mound has the highest accident rates in Texas, with 13.18% of drivers having a prior at-fault accident on their record—and it’s no secret that high accident rates means high premiums.
Read More
Cities with the Longest Commute Times in Texas
Houston, Dallas-Fort Worth, and Garland have the highest commute times in Texas. Longer driving times and more traffic put you at greater risk of an accident, and you’ll be adding more miles to your car—all of which raise premiums.
Read More
Average cost of car insurance in Texas by vehicle type
Finally, the vehicle you drive can have an impact on your car insurance premiums. Toyota Camry insurance costs are fairly low, which is good news for Texans since it’s the most popular car in the state! But if your ride is something expensive, like a Mercedes-AMG G63 or Audi A8 Quattro, be prepared for higher rates.
It’s not just the value of your vehicle that determines your rate—insurers will also look at your ride’s safety ratings, engine size, and other factors. Compare rates for popular Texas vehicles below!
| Car | Average Cost | Annual Savings with Jerry |
|---|---|---|
| Honda Civic LX | $2,015 | $752 |
| Toyota Corolla L | $2,172 | $743 |
| Chevrolet Equinox LT | $2,086 | $743 |
| Nissan Altima 2.5 | $2,204 | $697 |
| Ford F150 Supercrew | $2,105 | $685 |
Most Popular Car in Texas
The most popular vehicle in Texas is the Ford F-150. The average F-150 owner pays $1,180 a year in car insurance.
Read More
Do you need more than the minimum coverage in Texas?
If you’re trying to find the cheapest car insurance in Texas, you might wonder—do you really need to go beyond minimum liability?
The short answer: yes, if you can afford it. Remember, your liability insurance only pays for other drivers’ expenses after an accident, and only up to your policy’s limits. If you’re in an accident that causes more than $25,000 of property damage or leads to steep medical bills for anyone involved, you might find that you’re actually underinsured if you only have minimum coverage.
If you can, it’s a good idea to purchase $100,000 per person/$300,000 per accident in bodily injury liability and $100,000 per accident in property damage liability.
And liability is just the beginning! A car insurance policy that includes collision coverage and comprehensive insurance is often called “full coverage car insurance” because it ensures that your own vehicle is covered in addition to other drivers’ vehicles. Other add-ons for a full coverage policy include uninsured motorist coverage (UIM) and personal injury protection (PIP), both of which can help with your medical bills.
Full coverage costs more, but it’s worth the extra price in most cases—take a look at the common risk factors faced by Texas drivers.
Texas highways rank in the top 10 for worst traffic congestion. It's important to have collision insurance to protect your car against negligent drivers in stop-and-go situations.
Read more about Texas Traffic:
View details
Texas has similar rates of motor vehicle theft as the national average. It’s a good idea to get comprehensive insurance so your car is protected from vehicle theft and other mischiefs like vandalism.
One-fifth of drivers in Texas do not have car insurance. If an uninsured driver causes an accident, you could end up in financial trouble. Uninsured/underinsured motorist coverage will help pay if you’re in an accident with someone who doesn’t have liability insurance.
Read information about uninsured drivers:
View details
With Texas ranking 17th for the worst road infrastructure in the country,roadside assistance is highly recommended. Roadside assistance can provide you with peace of mind knowing that your vehicle is covered for towing, flat tires, and more during poor road conditions.
How to save money on car insurance in Texas
No matter your situation, there are numerous ways for you to bring down the cost of your car insurance in Texas.
Shop around for quotes
Comparing quotes from multiple insurance companies is the best way to save on auto insurance, hands down. Experts recommend comparing quotes from at least three insurance providers every six months.
Look for discounts
No, it’s not just bundling homeowners or renters insurance with your auto policy that could save you money.
In fact, most insurance companies offer an array of discounts based on you, your driving habits, and your vehicle. Here are some of the most popular discounts in Texas:
Defensive Driving Discounts
Defensive Driving Discounts
State law requires that insurance companies offer a discount to drivers above the age of 50 who have completed an approved defensive driving course.
Bundling Discounts
Bundling Discounts
Customers who bundle their car insurance policy with other vehicles, home, or renters insurance at the same company can save money.
Good Student Discounts
Good Student Discounts
Young drivers who maintain a “B” average or higher in their courses can qualify for a good student discount. This can save student drivers anywhere from 5 to 20 percent on their premium.
Usage-based Discounts
Usage-based Discounts
Some insurers will offer a discount if you let a telematics device record your driving habits. You could get a discount up to 30% for low mileage or safe driving practices.
Increase your deductible
Increasing your deductible—the amount you pay before insurance—is another way to keep monthly premiums low if your policy includes collision or comprehensive insurance.
A higher deductible means that you’ll pay more out of pocket if you make a claim, but you could save money if you don’t think that’s likely. With that being said, it’s important to make sure that you can afford to pay the full deductible each time you would need to file.
By R.E. Fulton
Updated on Mar 23, 2023
Reviewed by Kathleen Flear, Director of Content.
Compare best car insurance quotes in Texas
Best car insurance companies in Texas
Texas car insurance FAQs
How much does car insurance cost in Texas?
Texas car insurance requirements
Cheap car insurance with a DUI or speeding ticket in Texas
Texas auto insurance rates by age
Average cost of car insurance in Texas by city
Average cost of car insurance in Texas by vehicle type
Do you need more than the minimum coverage in Texas?
How to save money on car insurance in Texas
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