Looking to learn more about Texas car insurance? From premium breakdowns to Texas' unique vehicle laws -- car insurance discounts to registration fees in the Lonestar State, we've got you covered.
Don’t have time to read through it all? No problem. You can take a shortcut and just start getting quotes for cheap car insurance on Compare.com.
What Are the Texas Auto Insurance Requirements?
If you want to drive in Texas, you have to have insurance. The minimum requirements are:
- $30,000 in bodily injury liability per person and $60,000 per accident: Bodily injury liability pays for injuries suffered by other people in an accident you’re legally responsible for
- $25,000 in property damage liability: This pays for damage to other people’s property — like their cars — in an accident you’re responsible for
You’ll often see these limits abbreviated as “30/60/25 coverage.”
Is the State Minimum Coverage Enough or Should I Carry More?
If you have few assets to protect from lawsuits, and if you drive an old car that doesn’t need collision/comprehensive coverage, you might be able to get away with minimum coverage. However, it’s always a good idea to buy more, if you can afford it.
Think of all the possible (and very common) scenarios. What if you cause an accident with serious injuries, and you get sued by the other driver because you don’t have enough insurance to cover their hospital bills? What if your car gets smashed by a tree, and you can’t afford to replace it? What if you get hurt in a hit-and-run accident? Carrying better insurance can protect you in situations like these.
Which Direction are Car Insurance Rates Heading in Texas?
|Year||Average Monthly Premium|
Car insurance rates in Texas have been a bit all over the place for the past few years. Most recently, they took a big jump up to $72 a month for 2021. If you’re worried about another big rate hike, compare rates today and get your price for the next year locked in before the jump. Just enter your ZIP code below to get your rates for free!
Why is Texas Auto Insurance So Expensive?
Texans hate paying so much for car insurance. And who can blame them? In 2015, Texas had the 13th highest average annual expenditure on auto insurance — and rates have only gone up since then. A J.D. Power survey found that of all 50 states, Texas saw the biggest drop in price satisfaction in 2017.
Why is Texas auto insurance expensive? For one thing, people drive a lot of pickup trucks and SUVs, which are pricier to insure. Also, insurance rates have been going up nationwide because people are driving more and high-tech cars are getting more expensive to fix. But that’s not the whole story.
Texas saw two big disasters in recent years that cost insurers a lot of money. In 2016, record hailstorms pelted several big urban areas, including Fort Worth, Arlington, El Paso and San Antonio. The damage to cars from hail and floods in Texas totaled around $2 billion that year. Then in 2017, Hurricane Harvey destroyed half a million cars in Southeast Texas. Considering the high cost of repairing hail damage and hurricane damage, you can see why insurance companies are jacking up their rates.
How Do I Find Cheap Auto Insurance in Texas?
Car insurance is an extremely personalized product. The amount you pay depends on factors like where you live, your age, your driving record and the type of vehicle you drive. That’s why the best way to find a policy you can afford is to compare auto insurance quotes for Texas side by side.
Compare.com makes it really easy. Begin by entering some basic information, such as your address, your occupation, and your vehicle. Then, select the level of coverage you want: state minimum, Basic, Plus or Premium.
To get the absolute cheapest Texas car insurance quotes, choose state minimum coverage. We’ll show you quotes from multiple companies for a 30/60/25 policy with no extra frills. Then, you can pick the lowest one.
Which Texas City has the Cheapest Car Insurance Rates?
We’ve done the hard work for you and compared rates from over 200 Texas cities. So, how does your city stack up to its neighbors or the rest of Texas?
As you can see, rates can vary from city to city by a lot more than you might expect. Big Spring drivers pay an average of only $41 a month for their car insurance, while drivers in Ft. Hood and Fresno pay double that.
To find out why, click on the name of each city in the table above to find detailed breakdowns on all the factors that go into calculating your monthly premium. Here, you’ll find all the information you need on how things like driving record, age, gender, vehicle make and model, and more will affect how much you pay for car insurance in each locality.
And if you want to jump right in and see how much you’ll pay, simply enter your ZIP code below and find your best rate in minutes!
What Kind of Car is the Cheapest to Insure in Texas?
|Vehicle Type||Average Monthly Premium|
Trucks and vans tend to be the cheapest vehicles to insure in Texas, but the difference between vehicles is somewhat minor. Cars are the most expensive vehicle type to insure in Texas, at $65 a month.
|Vehicle Age||Average Monthly Premium|
|1 year old or newer||$62|
|2-3 years old||$62|
|4-5 years old||$63|
|6-7 years old||$67|
|8-10 years old||$67|
|11-14 years old||$66|
|15+ years old||$59|
Typically, the newer your vehicle is, the more it will be worth. Because of that, new cars are generally more expensive to insure than ones that are a few years old. In Texas, that difference is relatively small until your car is 15 years old or so, where the average rate ends up dropping below $60 a month.
Which Age Group Gets the Cheapest Car Insurance in Texas?
|Age Range||Average Premium|
|Less than 18||$242|
|18-24 years old||$103|
|25-34 years old||$60|
|35-44 years old||$55|
|45-54 years old||$51|
|55-64 years old||$47|
|65 or older||$52|
How old you are can have a serious impact on how much you’ll end up paying for car insurance. As you can see in the table above, a teenager can end up paying more than four times the amount someone in their mid-twenties might get billed.
Generally, you’ll see a big drop around 25 and can expect your rates to slowly decrease as you get older and more experienced behind the wheel. However, you might see them start to go back up again once you near retirement.
How Much Does Your Driving Record Affect Insurance Prices in Texas?
|Infractions||Average Monthly Premium|
To no one’s surprise, drivers with a clean record will get cheaper car insurance. But how much does a ticket or accident bump your rates in Texas?
As you can see in the table above, a single accident can bump rates up by almost 30% compared to the overall average in Texas. A speeding ticket or other moving violation can raise it even more.
One of the keys to getting cheap car insurance in Texas is to drive safe and keep as clean a driving record as possible. And if it’s been several years since your last infraction, you might see it drop off your record entirely, which would lead to big savings.
Whether you recently got a ticket for speeding or have seen an old ticket drop of your record, it’s always a good idea to compare rates to see if you’re getting the best deal. Find out how much you can save by just entering your ZIP code below.
How Does Gender Affect Texas Car Insurance Rates?
|Gender||Average Monthly Premium|
In general, women drivers get into fewer accidents and are therefore seen as a lower risk to insurance companies. This means they tend to get slightly lower rates than men. In Texas, female drivers will see a monthly bill that’s about 5-10% cheaper than their male counterparts.
Do Married Drivers get a Discount on Car Insurance in Texas?
|Status||Average Monthly Premium|
|Single (never married)||$69|
Married drivers end up paying quite a bit less for their car insurance than those who are single in Texas. This is often because married drivers will have multiple vehicles on their policy, which can lead to discounts from many insurance companies. As you can see in the table above, that discount can be as much as $14 a month — that’s more than 20% in total savings!
Do Homeowners get a Discount on Car Insurance in Texas?
|Status||Average Monthly Premium|
|Live with Parents||$96|
Generally, car insurance companies will offer cheaper rates to drivers who own their own home. This is often because homeowners are seen as more financially stable, which means they’re more likely to pay their bill on time. Additionally, you can bundle your home insurance with your auto insurance to unlock even more of a discount.
Texas Car Insurance Comparison Charts
Insurance companies have a lot of leeway in Texas when it comes to setting rates for drivers throughout the Lonestar State. That’s why we created a series of car insurance comparison charts to give you an idea of what different drivers might pay.
Each of the three profiles below are real, actual Compare.com customers with 100% real quotes:
As you can see, Allison Allclear is a 44-year-old female driver in Texas who is a low-risk driver with a clean driving record. She owns her own Chevrolet Malibu, as well as her house, and has a Master’s Degree. Because she has a relatively appealing profile for insurance companies, she’s offered some competitive rates after getting a quote.
Robby Racer’s profile, as you can see, is quite different. Robby finances a Honda Civic, rents an apartment, and has a few blemishes on his record, including two speeding tickets. Because he’s young and has some moving violations, Robby’s rates are significantly higher than Allison’s — some insurance companies won’t even offer him a quote.
James & Julia Average
Julia and James are a 41-year-old married couple from Texas. They have multiple vehicles on their policy, both have bachelor’s degrees, and have a minor tarnish on their driving record. These two lovebirds showcase the average Texas policyholder, and their rates reflect that.
Which Profile is Most Like You?
Each one of these are actual quotes obtained by real Compare.com customers. All we’ve changed are the names of the people and the carriers. But what causes these huge differences in Texas car insurance rates? Let’s take a closer look.
- Car insurance rates are affected by your driving history. Having an at-fault accident, speeding ticket, or other moving violation on your record will undoubtedly raise your premiums. On our Texas car insurance comparison chart, you can see that the two profiles with a blemished record are seeing much higher premium quotes. Even so, the Averages’ lowest monthly installment quote is a whopping $332 less than the highest quoted premium. That’s why it’s so important to shop around for car insurance.
- Insurers consider how you use your car. Car insurance rates are typically lower for people who drive only for pleasure, like Allison Allclear. If you use your car regularly to commute to work or conduct business, like James and Julia Average, your rates will be higher.
- Your consumer credit affects your car insurance rates. Texas prohibits insurance companies from refusing to sell you insurance or canceling your policy because you have bad credit. However, Texas does allow insurers to consider consumer credit history. Bad credit can lead to higher rates.
- Age and marital status affect Texas car insurance premiums. The highest rates, on average, are paid by men under 25 and unmarried women under 21, according to the Texas Department of Insurance. This may not seem fair, but that’s how it works. Age is one of the biggest reasons Robby Racer sees such high premium quotes.
So, which profile is most like you? To find out exactly what insurance companies might charge you for car insurance in Texas, simply enter your ZIP code below and you’ll be well on your way to comparing personalized quotes for free.
Your Options for Auto Insurance in Texas
Don’t resign yourself to paying a lot for your insurance. Our Texas car insurance comparison chart reveals that some insurers will offer you much lower rates than others — even if you have a few tickets or an accident on your record. As you can see, Robby Racer’s highest monthly installment quote is two and a half times his lowest quote. And with a clean record, Allison Allclear sees rates as low as $77 per month.
Keep in mind that cost shouldn’t be the only factor you consider when you’re shopping for auto insurance rates. Check your coverage levels, the reputation of the insurer and the perks, like roadside assistance, that may be included with your policy. For an easy and accurate way to compare insurance quotes before you buy, try Compare.com.
What Happens if I Drive Without Car Insurance in Texas?
First of all, you’ll probably get caught — even if police don’t pull you over. Texas uses a car insurance verification system called TexasSure that identifies uninsured drivers. If the system can’t match your registered vehicle to an active insurance policy, the state will notify you.
A conviction for driving without insurance means a fine of up to $350, plus court costs. Subsequent offenses carry fines of up to $1,000 plus a two-year driver license suspension. Texas also has a system of surcharges: if you’re convicted of certain offenses, you’ll have to pay the state a penalty every year. The surcharge for driving without insurance is $250 each year for three years.
Read More about Driving Uninsured.
Will Texas Car Insurance Cover Me in Mexico?
We’re glad you asked because the answer is probably not. Mexico does not recognize U.S. auto liability policies. If you’re involved in an accident south of the border, police will require you to prove you have insurance that can cover any injuries or judgments against you.
If you frequently travel to Mexico for work, pleasure or visiting family, call your insurance company. You may be able to purchase an endorsement (or get one for free) that covers shorter or infrequent trips across the border. You also may be able to purchase a separate Mexican liability insurance policy from an authorized agent in Texas.
What Fees Can I Expect When Buying a Car in Texas?
If you’re in the market for a new or used car, you’ll need to budget for more than just the vehicle’s sticker price. You’ll be on the hook for basic DMV fees like title, license plate, and registration fees no matter where and how you purchase your new car, truck or SUV, as well as buying a new car insurance policy for your car. But some buyers will find themselves with additional fees such as sales tax, documentation fees, personal property tax, emissions and inspection fees, hybrid and electric vehicle fees, lien recording fees and a slew of other costs.
Check out Compare.com’s comprehensive vehicle costs breakdown to make sure you account for all the added fees you might be on the hook for when buying a car in Texas.