How To Find Cheap Auto Insurance in Texas for 2020

You may have heard that everything is bigger in Texas; well, unfortunately, that also applies to their auto insurance premiums. Texans pay almost 27% more than that national average in some cities, so it’s very important that you compare and shop to find the cheapest insurance possible that fits your needs.

Nobody loves shopping for auto insurance or paying the bill that comes with it; the only way to feel good about it is to do your research and have peace of mind that you got the best deal possible. It might take some digging and some time to get quotes to compare, but the results are well worth it. You can even have an insurance broker help you. That will save you time and keep your junk mail and spam calls to a minimum.

In order to get an accurate quote, you’ll need to provide personal information including demographics, credit score, and driving history. These might feel like personal information, but your insurance company uses it to calculate their risk and, ultimately, the rates you will pay.

Why Is Auto Insurance So Expensive In Texas?

On average, Texans pay $1,810 a year for full-coverage while the national average is closer to $1,426. These rates will fluctuate quite a bit, though, depending on where you live, what you drive, and many demographic factors.

There are many reasons why Texas has higher than average insurance costs. The first reason is population density. Texas is the second-most populous state in the US, right behind California. That means more crowding and more people on the roads. A large percentage of that population lives in “the triangle” that is made up of Dallas-Fort Worth, Houston, and San Antonio-Austin. If you live in the triangle, expect your rates to be even higher.

With a larger state comes more time on the road. Texans spend more time driving and have long commutes than other states. While they are on the road, they enjoy higher speed limits to help them get from point A to point B faster, but that also causes more high-speed accidents that make insurance rates skyrocket. Texas often has the highest rank for fatal car crashes per year.

Finally, while other states have their fair share of bad weather, Texas is ranked #1 for both frequency and variety of natural disasters. When you live in a state that is prone to wildfires, hurricanes, flooding, and hail storms, you can expect higher rates for car insurance.

Cheapest Full-Coverage Auto Insurance In Texas

When people talk about getting rates for car insurance, they are often by default talking about full-coverage. If you own a car, the chances are you bought it using a loan from a bank and therefore are required by that bank to take out full-coverage insurance. Even if your car is fully paid for, full-coverage offers you the most protection in the event of an accident or in situations where your car is damaged.

Keep in mind that rates change due to a multitude of factors, from person to person. So while most averages are listed to give you a general idea of where to start looking, you need a personalized quote from each company to get an accurate estimate.

The following are some examples of things that cause a change in insurance prices from one person to the next living in the same state:

Let’s take a look at how some of these things can affect your rates for a single person seeking full-coverage in Texas.

Cheap Car Insurance Rates For Good Drivers With Poor Credit

Poor credit is a red flag to insurance companies who will see you as a high-risk client. Sometimes bad enough credit can prevent you from getting insurance with the company of your choosing and can raise your rates even more than having accidents on your record.

Cheap Insurance in Texas After Speeding Tickets

We can’t all be perfect. You might find yourself with a speeding ticket or two at some point in your life. Speeding tickets can raise your rates and continue to make an impact for up to five years. Driving at higher speeds increases the chance of accidents and fatalities.

Cheap Prices When Adding A Teen To Your Policy

Teenage drivers will increase your rates like nothing else. Teen drivers are very high risk because they are inexperienced and take more risks like driving at higher speeds. Teen drivers cause a majority of fatal accidents in most states.

What Is Covered Under Full Coverage Auto Insurance?

Full coverage isn’t an actual type of insurance; it’s a way to quickly say that a person has liability, collision, and comprehensive coverage all in one plan. Liability is insurance that pays the bills of the other party in an accident you cause, while collision and comprehensive coverage protect your own vehicle and interests.

Collision coverage is what will cover your own costs after an at-fault accident. You’ll need collision coverage to avoid paying out of pocket for your own property damage bills after an at-fault accident.

Comprehensive coverage is very important, especially in states like Texas, where severe weather often causes damage to property. Wildfires, rain, hail, and hurricanes are all damaging weather conditions that could have you racking up body shop bills. Comprehensive coverage will also cover you for things like vandalism, theft, and other things that put your car at risk for damage.

Watch this video to see what having full coverage insurance is preferable in Texas.

Highest And Lowest Insurance Rates In Texas By City:

Even though the areas surrounding the largest metropolitan areas have higher insurance, if you break it down by city, you’ll be surprised at the results. The cities everyone knows by name don’t even make either list (highest or lowest insurance costs).

According to one study, the following five cities, on average, have the most expensive annual auto insurance rates in Texas:

Meanwhile, the following five cities, on average, have the cheapest auto insurance rates in the state:

The reason you don’t see cities like Dallas on the most expensive list is that small poorer community tend to have the highest rates because they have poor credit, more crime, and more tickets.

Top Rated Car Insurance Companies In Texas

You can rank them on many factors, but most people will choose their car insurance company based on the cheapest rates and the best customer service. Here are some recent rankings found by Carinsurance.net.

Overall Winner: Geico Insurance

Runner Up: MetLife Insurance

Best for the Military: USAA Insurance

Cheapest & Best for High-Risk Drivers: Progressive Insurance

Best for Optional Coverages: AAA Insurance

Best for Customer Service: Texas Farm Bureau

How To Find The Cheapest Auto Insurance In Texas

One way to aggressively lower your monthly premium is to take a risk and raise your deductible. The deductible is the amount of money you will pay out of pocket for each claim before insurance kicks in. Deductibles help curb costs and stop fraudulent claims. The lower your deductible, the higher your premiums will be. Opt for a deductible that makes you comfortable with both your risk and your monthly payment.

You can also lower your premiums by prepaying your auto insurance six months or one year at a time or setting up an auto-draft from your bank account for monthly payments. Make sure to do a new side-by-side comparison of local insurance plans each time your policy is up for renewal as prices and situations can change.

All insurance companies look at risk in roughly the same way, but how they choose to spread that risk and what types of customers they want to attract will lead each company to have their own price structure. This is why your neighbor with a similar car and lifestyle to you could have different rates than you at the same company. One small difference, for example, an accident in the last few years, could mean a sizable difference in rates. If you choose an insurance company with accident forgiveness, you could avoid the rate increase. This is just one example of how using a company’s discount plan can impact your rates.

You can get discounts for military service, good grades, a specific profession, membership in a club or union, having safety mechanisms on your car, or having a clean driving record. There are many other small discounts you could be eligible for, so make sure to take them into account when you are shopping for car insurance.

If times are tough, call your insurance agent or insurance broker to talk about payment options, changes in deductibles, or other ideas that could help you keep your car insurance. The last thing you want is a lapse in car insurance, even if you temporarily won’t be driving. A lapse in insurance will lead to higher rates.

New to Cheapest Auto Insurance?

The most accurate way to compare insurance companies is to get a personalized quote from each one. You can use this portal to get quotes from the best insurance companies in your area all at once or if you prefer to speak with a live agent you can call us at 214-760-4883!