They say everything’s bigger in Texas, and that applies to car insurance premiums.
Texas is the largest state in the continental U.S. You can expect to find enormous cities, rolling prairies, and gigantic portions of food on your plate in the Lone Star State. Unfortunately, the cost of auto insurance in Texas is higher than average as well — 4 percent higher than the rest of the country, in fact. If you’re a driver in Texas, here’s how to save money on insurance rates.
Commonwealth Casualty is the cheapest car insurance provider in Texas for both men and women, although it’s cheaper for women. The average cost for men is $708 a year, while the average annual cost for women is $684. Allstate is the cheapest car insurance provider for teenagers in Texas, with annual averages of $1,511 for female teens and $1,749 for male teens. Texas is one of the many states where men pay more for car insurance than women.
Married people in Texas pay lower rates than single people, even if they’re single due to divorce, separation, or death of a spouse. Commonwealth Casualty is the cheapest option for both married and single people, but married people could pay as little as $612 a year, while $720 is the low end for single people.
USAA offers military personnel in Texas car insurance for $424 a year, which is the lowest rate we’ve found.
If you want to get only the minimum coverage Texas requires, look into GEICO, which offers policies for as little as $372 a year. For full coverage, Farmers offers policies for $821 annually.
Texas is one of the states where car insurance companies can base premiums on credit scores. If you have a good credit score, you’ll find the lowest rate — $1,756 per year — at State Farm, while Clearcover is the best option for those with bad credit scores. The lowest cost we’ve seen from Clearcover is $612 a year.
The cost of auto insurance for teens is higher than the rates for any other age group due to their lack of driving experience. Here are the cheapest prices we’ve found for any age.
|Age||Cheapest company||Lowest annual rate|
|20s||Texas Farm Bureau||$843|
If you have a good driving record, Clearcover is an excellent option, with policies available for as little as $468 per year.
You need car insurance for registration in Texas. To drive legally, you’ll need $30,000 of bodily injury coverage per person, $60,000 per accident, and $25,000 of property damage coverage.1 However, this coverage only applies to the other party’s losses in at-fault accidents. If you only have minimum coverage, you’ll have to pay for your bodily injuries and property damage out of pocket.
We recommend buying as much liability insurance as you can afford, plus collision coverage and personal injury protection (PIP) for your losses following an at-fault collision. Of course, not all damage comes from collisions; your car could also be damaged by everything from vandalism to hurricanes, so get comprehensive coverage for these damages as well.
From 1851 to 2020, Texas experienced 64 hurricanes, 19 of which were considered major. If you lack comprehensive coverage and a hurricane hits, you’ll have to pay for your car’s damage out of pocket.2
We also recommend uninsured motorist coverage for accidents caused by uninsured drivers. Your liability coverage, PIP, and uninsured motorist coverage should have limits up to $500,000, while your collision and comprehensive coverage should have limits equal to your car’s fair market value. That way, if a hurricane renders your car a total loss, your insurance company will reimburse you for the car’s worth so you can replace it.
The only alternative to buying personal auto insurance in Texas is to self-insure. However, you’ll have to prove you can meet the minimum car insurance requirement in Texas, a combined liability limit of $115,000. To do this, you’ll need to let the insurance department determine your net worth and self-insurance program using any of these considerations:
You must also prove your compliance with federal safety regulations. Self-insurance doesn’t make sense for most people, but if you have a high enough net worth and are willing to create a self-insurance program, it could be an option for you.
While car insurance in Texas isn’t exorbitant on average, everyone wants to save money where they can. Besides, car insurance is required in Texas, so if you get caught driving without it, you could face fines up to $1,000, license and registration suspension, and vehicle impoundment. In other words, driving without insurance isn’t worth the risk, so find auto insurance within your budget.
These are some of the cheapest cars to insure in Texas:
Yes, GEICO is cheap in Texas. It costs $1,047.33 a year on average, ranging from $603 to $1,339 on the low end.
On average, car insurance in Texas costs around $90 monthly, based on 2020 data from the National Association of Insurance Commissioners. This cost is 4 percent higher than the national average of $87 per month.
USAA car insurance in Texas costs an average of $183 a month.
Automobile insurance guide. Texas Department of Insurance. (2022).
Hurricanes Frequently Asked Questions. NOAA’s Atlantic Oceanographic and Meteorological Laboratory. (2022).
Texas Administrative Code. Texas Register. (2015).