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.
Cheapest Rates After One At-Fault Crash In Texas
If you’ve never had an at-fault crash before, make sure to check for accident forgiveness as a discount deal with your new auto insurance company. Even a minor, first-time accident can cause a big increase in rates with some companies. Accidents will stay on your driving record for 3 to 5 years.
Learn how to purchase car insurance in Texas after you’ve had an accident on your record in this article.
Cheap Auto Insurance In Texas After A DUI
The worst thing you can do for your car insurance rates is to drink and drive. A DUI citation can not only risk your life and the lives of others but can make it difficult to keep your driver’s license and find affordable insurance. The averages below provide some insight as to what your new rates might be but keep in mind these companies might not accept you as a customer after a DUI at all.
What Happens To Your Auto Insurance Rates When You Get Married In Texas?
On a happier note, married couples usually enjoy much lower rates for car insurance. Marriage is a sign of responsibility and stability that is reflected in lower premiums by insurers. The following rates are for a married couple (covering both people) in Texas. Couples that have lived together for years but are not legally married can still get the same discount in rates with a multi-car discount for their household.
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.
Cheap Auto Insurance Prices For Young Adults In Texas
All of the information above was a best-case scenario using a standard middle-aged driver as the subject. We talked about how expensive it is to insure teen drivers, but what about the young adults that fall between these two groups? Drivers in their 20’s are no longer teens but are still seen as medium-risk because of their youth, inexperience, and lifestyles. They are kind of a class of their own when it comes to car insurance averages.
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.
Cheap Liability Auto Insurance In Texas
What if you only need liability insurance? If you don’t own your own car, or your car is a junker that’s already paid for, and you can’t afford full-coverage on it, you have the much cheaper option of taking out minimum liability coverage.
In order to drive a car in Texas, you must, by law, carry minimum liability insurance that covers the following:
It is probably in your best interest to opt for higher liability limits so that you are not personally sued if you cause a high-dollar accident. Having liability-only insurance does reduce your rates quite a bit.
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
FAQs About Car Insurance In Texas
When Should I obtain Car Insurance In Texas?
You’ll need proof of insurance before you can register a vehicle in Texas. You can purchase the car, then get an auto insurance policy or add that car to an existing policy, and finally go to register that vehicle. Even if you already have a policy, you must notify your insurance company about your new car purchase within 20 days. Here is a great article for getting insurance in Texas for the first time.
What Happens If I Don’t Carry Minimum Liability Insurance In Texas?
Punishment for not having the required minimum insurance in TX include fines between $350 and $1,000. Your license could be suspended for up to two years.
Do I Have To Take Out Uninsured Motorist Coverage In Texas?
While insurance companies must, by law, offer it to you, drivers are not required to take out the optional uninsured motorist coverage. It can be helpful additional protection for you in case you are ever hit by a person that doesn’t have insurance or carries only minimum coverage that doesn’t cover all your expenses.
What Are Some Common Texas Driving Laws?
Besides having up to date insurance, there are other laws you need to be aware of in order to be a safe and legal driver. Having a clean driving record helps keep your insurance costs low.
Seat belts are mandatory for drivers and passengers in TX with fines of around $250.
You might also be fined up to $200 for texting or emailing while driving.
Some cities have more specific laws about cell phone usage while driving as well.
Drivers under 21 cannot drive a car with any amount of drugs or alcohol in their system. This is called the zero-tolerance law.
Drivers over 21 cannot have a BAC of 0.08 or higher. You can have fines, license suspension, and jail time for violations.
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!