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Average Cost Of Car Insurance In Texas

by Gacee Ezekiel

If you are considering buying a car insurance policy in Texas, there are several variables that determine how much premium you’ll pay. Texas has an average car insurance cost of $2,019. However, you’re likely to pay more or less of this amount based on a number of factors such as your driving record, insurer, age and credit score. 

Understanding how these variables affect the cost of insurance will definitely help you make the right decision when choosing an insurer. To learn more on the cost of insurance in Texas, keep reading. 

Why are Some Cars More Expensive to Insure than Others?

There is a popular myth that your car’s colour can affect the rate of your insurance cost but in reality, it doesn’t. However, other factors such as the size of the vehicle, body design, cost of repairs and the safety ratings of your vehicle will have a considerable impact on your insurance bill. 

Vehicles that have a coupe-design-often associated with sport cars, attract a higher rate of insurance cost. This is because such cars are designed for faster speeds and are often associated with risky driving behaviours. 4-door sedans also tend to attract higher insurance premiums with statistics showing that they are more likely to be involved in accidents compared to other vehicle types. 

In contrast, van owners pay less for their car insurance based on the consideration that vans are less likely to be involved in accidents. The damage to the vehicle is also considerably less in vans and SUVs after an accident.  Insurance companies also take into consideration the cost of repairs with certain cars attracting premium rates for their expensive parts, some which are difficult to obtain and install. 

How Much Does Car Insurance Cost in Texas

All states have their respective minimum car insurance coverage limits. In Texas for example, you’re only required to have liability coverage. Liability coverage in the state covers bodily injury and property damage. You are required to have at least $30,000 coverage for bodily injury and a minimum of $25,000 coverage for property damage. 

Texas is ranked 15th among the most expensive states when it comes to auto insurance. On average, you’re likely to pay $2,029 annually on your car insurance. Michigan is the most expensive state in auto insurance averaging $4,589 annually for full coverage car insurance. 

Average Car Insurance Rates in Texas by City


Average annual full coverage premium

Percentage change from Texas average annual full coverage premium




San Antonio









Fort Worth



Average Car Insurance Rates in Texas by Vehicle Type


Average annual full coverage premium

Average annual minimum coverage premium

Toyota Prius



Tesla Model 3



Honda Civic



Honda Odyssey



Ford F-150



BMW 330i



Subaru Outback



Jeep Wrangler



Nissan Rogue



Dodge Challenger



Audi Q5



Ford Escape



Dodge Ram



Dodge Challenger



Toyota Tundra



Cadillac Escalade



Choosing the Right Car Insurance Company in Texas

Choosing the right insurer is an important part of ensuring that you get your money’s worth when it comes to service delivery. With so many options to choose from, most people tend to get overwhelmed by the selection process. Here are a few tips on how you can choose the right car insurance company in Texas. 

Cost: This is one of the main factors that should define your selection when searching for a car insurance company. Choose a firm with the most competitive rates and discounts in order to keep your insurance cost low. 

Coverage: Having the right liability coverage is vital in any insurance policy. Liability coverage determines whether you are liable for damages and to what extent.  You can still be held liable for damages that exceed your liability coverage. 

Service delivery: people will tend to go where they feel wanted. When choosing a car insurance company in Texas, customer service on the part of the company matters a lot. How responsive are their customer representatives? Have all your concerns been addressed? Do they offer discounts?

Variables Used to Calculate Car Insurance Premiums

While computing the amount of premiums you’re supposed to pay, insurers combine a number of factors that determine higher or lower premiums. Generally, being a good driver is one of the key considerations in computing your car insurance cost but that is not all there is to it. 

Low-risk drivers tend to enjoy lower car insurance costs compared to high-risk drivers who are assumed to be at greater risk of accidents when behind the wheel. Here are some of the key factors most insurers consider when calculating your car insurance premiums in Texas. 

Type of coverage: in almost every state in the United States, you are required to have liability insurance that covers the cost of damage to other drivers after an accident. Car owners however are at liberty to extend their coverage by paying higher premiums to include things such as medical payments. 

Claims history: This is among the key determiners of car insurance premiums in Texas. Insurers often review your motor vehicle report (MVR) and comprehensive loss underwriting exchange (CLUE) before determining the cost of insurance premiums. Drivers with low accident rates often enjoy low premium rates and are sometimes considered for a safe driving discount.

Personal information: personal information such as your age, driving history, credit score, marital status and gender can be used to determine how much in premiums you’re likely to pay in most states. Young drivers are considered to be less experienced while behind the wheel. For this reason, they pay more in insurance premiums as they are more likely to be involved in an accident. 

While some states prohibit insurance companies from using one’s credit score to determine insurance premiums, Texas is not one of those states. Having a low credit score will see you pay more in premiums for your car’s insurance.

Location and zip code: there are certain areas that are considered more dangerous to drive in Texas than others. For example, you are likely to pay more on your policy if you live downtown Houston compared to relatively smaller towns in Texas such as Fredericksburg. Geo-statistically, the population density, crime rates and car crashes are higher in Houston, Dallas and Austin compared to other cities in Texas.

Car type and model: unlike the popular belief that older cars are more expensive to insure, it is new car models that attract higher premiums. New car models cost higher than old cars when it comes to repairs because of their advanced features and technology.

Use of vehicle: vehicle use affects car insurance rates in the sense that drivers who drive more are more likely to be involved in accidents than low-mileage drivers. 

How to Save on Car Insurance in Texas

A safe driving history: Safe driving is one of the ways that can keep your car insurance cost low as it makes you eligible for a safe driving discount. 

Ask about discounts: Most insurance companies in Texas offer discounts on car insurance as an incentive to current and potential clients. Make sure that you ask about any discounts you are eligible for when choosing an auto insurance company. Take quotes from different companies and their discounts then select the most competitive firm on your list of insurance companies. 

Maintain high deductibles: the rule of thumb when it comes to deductibles is that the higher your deductibles are, the lower the rate of premiums paid to the insurer. Deductibles are generally what out-of-pocket payments made after a claim so it is important that you can afford the amount quoted as deductibles. 

Take advantage of bundling discounts: you can save on your insurance cost by taking your car insurance and homeowners insurance from the same company through what is referred to as bundling discount. 

Take advantage of the telematics discount: some insurance companies can offer to install a telematics device that records your driving habits and reports them to the insurer. A demonstration of safe driving habits can make you eligible for a telematics discount. 

Installing a telematics device in your car works both ways if you exhibit unsafe driving habits as it will ultimately lead to an increase in your insurance cost. 


What is the cost of minimum insurance coverage in Texas?

The average cost for minimum insurance coverage in Texas is $565 annually. Keep in mind although minimum coverage is much cheaper than full coverage, it leaves you financially exposed in the event of an accident. 

What is the cheapest car to insure in Texas?

There are a wide range of factors that affect the cost of car insurance in Texas. However, the Subaru Outback is one of the cheapest cars to insure in Texas attracting an average full coverage premium of $1,603.

What is the best way to keep car insurance costs low in Texas?

There are so many ways that you can keep your insurance cost low such as maintaining a good driving record, bundling and increasing deductibles. However, taking quotes from different companies and their discounts is one of the best ways to get the most competitive insurance rates in Texas.


It is not uncommon that Texans pay more for auto insurance than most states. If your car insurance cost is higher than the state average, then it could be as a result of your location and personal attributes such as your driving history. 

To learn more on how you can save on your car insurance, contact us.