Is Car Insurance Cheaper in California or Texas?
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Written byMandy Sleight
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Mandy SleightInsurance Writer
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Edited byMatthew Gross
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Matthew GrossEditor
Updated
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California and Texas have almost identical minimum liability limits,[1] but the two states differ in several ways when it comes to auto insurance. For example, Texas requires $10,000 more in property damage liability[2] and uses standard rating factors to determine car insurance rates. California, on the other hand, focuses on driving records, annual mileage, and years of driving experience[3] and prohibits using factors like credit history and gender.[4]
Despite these differences, the two states have relatively similar insurance rates. Texas drivers pay an average of $165 monthly, while California’s average monthly rate is $143, according to our data.
Here’s a closer look at the costs for various coverage types and the cheapest car insurance companies in each state.
California vs. Texas: How Auto Insurance Rates Differ
California and Texas have the most licensed drivers in the U.S.[5] But when it comes to your insurance rates, factors like your age, gender, credit history, ZIP code, and vehicle usage matter more in Texas than in California.
Still, both states have severe weather events, like hurricanes, floods, and wildfires, that could damage your vehicle and may affect your coverage choices and personal rates.
Check out the table below for the average insurance rates in California and Texas, according to Compare.com data.
State  | Average Monthly Premium |
|---|---|
| California | $143 |
| Texas | $165 |
We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on .
Average liability insurance rates
Liability-only car insurance covers injuries and property damage you cause in an accident, but it doesn’t cover your injuries or vehicle.
California and Texas have similar state-minimum insurance requirements — 30/60/15 and 30/60/25, respectively. That means you can likely expect to pay similar rates if you move from one of these states to the other.
The table below compares liability-only insurance rates for drivers in each state, according to our data.
State | Average Monthly Premium |
|---|---|
| California | $95 |
| Texas | $117 |
We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on .
Average full-coverage insurance rates
Full-coverage car insurance consists of liability insurance plus comprehensive and collision coverage. It may also include personal injury protection (PIP) or uninsured motorist coverage, which pays if an uninsured or underinsured driver hits your car.
Most experts recommend adding full coverage if you can’t afford to repair or replace your car out of pocket. And if you finance or lease your car, your lender likely requires it anyway.
Check out the table below to see the average rates for a full-coverage insurance policy in California and Texas, according to Compare.com data.
State | Average Monthly Premium |
|---|---|
| California | $192 |
| Texas | $213 |
We sourced this data by analyzing real quotes from Compare.com's 100-plus partner insurance companies alongside rate filings collected and distributed by Quadrant Information Services. Actual quotes may vary. Data updated on .
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Comparing Texas’ and California’s Car Insurance Laws and Requirements
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Auto insurance is regulated at the state level, meaning each state makes its own laws and determines its minimum coverage requirements. Almost all states require drivers to purchase liability insurance to protect others in an accident. But some states also require additional coverage, like personal injury protection or uninsured motorist coverage.
Let’s look at the minimum insurance requirements for California and Texas.
Coverage Type | California | Texas |
|---|---|---|
| Bodily injury liability (per person) | $30,000 | $30,000 |
| Bodily injury liability (per accident) | $60,000 | $60,000 |
| Property damage liability | $15,000 | $25,000 |
| Personal injury protection (PIP) | N/A | N/A |
Texas and California have the same bodily injury liability limit requirements — $30,000 per person and $60,000 per accident. But Texas’ property damage liability requirement is $10,000 more than California’s.
Although these limits are the minimum amounts of coverage California and Texas require for you to drive legally, you may need more to protect your finances if you cause an accident. California and Texas are both at-fault states, meaning other drivers can sue you for damages if you cause a crash. You’ll also be responsible for paying any damages that exceed your insurance policy limits.
Cheapest Car Insurance Companies in California
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Coverage options and insurance rates can vary by company. You should shop around and compare quotes from multiple companies to ensure you get the best price for your coverage needs.
If you’re looking for the most affordable rates, these are the five cheapest insurance companies in California, according to Compare.com data.
The below national rates are estimated rates current as of: Wednesday, June 24 at 5:00 PM PDT.
Average Rates in California
Company | Average Monthly Premium |
|---|---|
| USAA | $83 |
| Aspire General | $86 |
| Sun Coast | $90 |
| GEICO | $92 |
| Mercury | $93 |
| National General | $94 |
| Dairyland | $102 |
| Root | $110 |
| Direct Auto | $113 |
| Allstate | $115 |
| Farmers | $118 |
| Anchor | $120 |
| Bristol West | $128 |
| State Farm | $128 |
| Kemper Special | $132 |
| Travelers | $135 |
| Kemper Rsvp | $145 |
| 21st Century | $147 |
| Nationwide | $181 |
| Chubb | $229 |
Cheapest Car Insurance Companies in Texas
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One of the best ways to save money on car insurance in an expensive state is to compare quotes from several companies. Though you can get quotes from each insurer individually, you may find using a car insurance comparison site easier.
The following chart shows the five cheapest auto insurance companies in Texas, according to Compare.com data.
The below national rates are estimated rates current as of: Wednesday, June 24 at 5:00 PM PDT.
Average Rates in Texas
Company | Average Monthly Premium |
|---|---|
| State Farm | $56 |
| Allstate | $79 |
| Mile Auto | $81 |
| Progressive | $81 |
| GEICO | $89 |
| USAA | $100 |
| Mercury | $110 |
| First Acceptance | $111 |
| The General | $114 |
| Alinsco | $116 |
| Lone Star | $119 |
| GAINSCO | $123 |
| Commonwealth Casualty | $124 |
| Nationwide | $125 |
| Clearcover | $127 |
| Bristol West | $128 |
| Covercube | $129 |
| Dairyland | $130 |
| Root | $130 |
| Mendota | $135 |
| AssuranceAmerica | $136 |
| Sun Coast | $138 |
| Excepsure | $139 |
| Safeco | $141 |
| Direct Auto | $144 |
| National General | $149 |
| Loop | $150 |
| Elephant | $153 |
| Chubb | $169 |
| Trexis One | $175 |
| Insurify Car | $195 |
| 21st Century | $196 |
| Hugo | $202 |
| Liberty Mutual | $234 |
| Foremost | $276 |
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California vs. Texas Car Insurance FAQs
We tackled some common questions drivers ask about California vs. Texas car insurance. Check out the answers below.
Can you use California insurance in Texas?
Yes, you can use your California auto insurance in Texas. But if you move to Texas from California, you must get Texas car insurance and register your vehicle in the Lone Star State within 30 days.[6]
What’s the most expensive state for car insurance?
Louisiana and New York are the most expensive states for car insurance, according to our data. Louisiana’s average monthly rate is $143, while New York’s is $155.
Can you insure your vehicle in a different state?
No, your vehicle registration and auto insurance policy must be in the same state since each state has its own set of laws and insurance requirements. When you move to a different state, you typically have 30 to 90 days to purchase an insurance policy, register your vehicle, and get a new driver’s license.
Sources
- California DMV. "Auto Insurance Requirements."
- Texas.gov. "Auto insurance guide."
- California Code of Regulations. "Section 2632.5 - Rating Factors."
- California Department of Insurance. "Automobile Insurance Comparison Tool."
- Federal Highway Administration. "Table DL-201 / Highway Statistics 2022 - Policy."
- Texas DMV. "New to Texas."
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Mandy SleightInsurance Writer
Matthew GrossEditor