As you review these rates, you may be wondering, “why is Texas car insurance so expensive?”
Well, there are many contributing factors to Texas’ high premiums. Car insurance companies charge more in Texas to insulate themselves against these Texas-specific risks:
#1 High Population Density
After California, Texas is the most populated state in the country. And Texas has plenty of densely populated cities.
Highly-populated areas have more drivers on the road and more traffic. As a result, these areas are more prone to car accidents. In fact, Texas had the most fatal car accidents in the country in 2017. Cities, in general, also have higher rates of vandalism and car theft.
Together, these risk factors result in more car insurance claims. As a result, car insurers raise their Texas rates in response.
#2 High Speed Limits
Another reason why Texas has so many car accidents is its high speed limits.
While most highways in the United States have a speed limit of 65 miles per hour, Texas is home to the fastest highway in the nation. This highway has a speed limit of 85 miles per hour!
Driving fast may be fun, but it’s also dangerous. Higher speed limits are correlated with a higher frequency of car accidents and worse accidents at that. Due to this risk factor, Texas car insurance providers raise their premiums.
#3 Many Uninsured Drivers on the Road
Despite the steep penalties for driving uninsured, many people still choose to forgo car insurance—14.1% of Texans to be exact.
With so many uninsured drivers on the road, car insurance companies raise their premiums in response.
#4 High Frequency of Natural Disasters
Texas is the number one state for natural disasters. Texas experiences many:
Natural disasters can damage your car and cause accidents. Thus, Texas car insurance companies raise their premiums in response.
#5 High Minimum Car Insurance Coverage Requirements
Lastly, car insurance rates are relatively high in Texas because the state has higher required coverage minimums.
Many other states only require drivers to have Bodily Injury Liability Insurance for $25,000 per person and $50,000 per accident. In Texas, these minimums increase to $30,000 per person and $60,000 per accident.
This increased coverage is costlier, and therefore, it results in higher Texas car insurance premiums.