Average Cost of Car Insurance in Texas

By Coverage Level

As in every state, minimum coverage car insurance in Texas is cheaper than full coverage. Minimum liability coverage — which only includes bodily injury and property damage liability — costs 66 percent less than full coverage.

These companies have the cheapest car insurance rates in Texas for different demographics.

Here are some actions you can take to save money on car insurance in Texas. Of course, every situation is unique, so not all of them may apply.

• Shop the market: The easiest way to keep your auto insurance premium low is to get the lowest rate to begin with. You can do that by comparing insurance quotes from multiple companies.
• Improve your credit score: You can improve your credit score over time by regularly reviewing credit reports, paying bills on time, keeping your credit utilization low, and keeping credit lines open while limiting applications for new accounts.
• Drive safely: Accidents, speeding tickets, DUIs, and other convictions will increase your rate.
• Take a defensive driving course: Whether or not you have a driving violation on your record, you may be able to get a discount on your auto insurance for taking a defensive driving course.
• Ask about discounts: Your auto insurance provider may offer a variety of discounts. Ask an agent which ones apply.
• Only pay for minimum coverage: Opting for minimum coverage will get you a lower rate, but keep in mind that this could cost you in the long run if you have an at-fault accident or damage your vehicle and need to file a claim.
• Raise your deductibles: If you have collision and comprehensive coverages, raising your deductibles will lower your monthly cost. However, make sure you can pay the deductible out of pocket if you need to file a claim.

You need to purchase the required car insurance to register your vehicle in Texas. State law mandates that drivers carry the following liability coverage limits at a minimum:

• Bodily injury liability per person: $30,000
• Bodily injury liability per accident: $60,000
• Property damage liability per accident: $25,000

The minimum coverage in Texas is not enough for most drivers. We recommend increasing your limits to at least 100/300/100, but you may opt to get even higher limits if you can afford to. Other optional coverages we recommend for Texas drivers are as follows:

• Comprehensive coverage: This covers damage unrelated to collisions, including auto vandalism, auto theft, and damage from weather.
• Collision coverage: Collision coverage provides financial assistance if you damage your car in an accident where you are at fault, or if a pothole/rolling car damages your vehicle.
• Uninsured/underinsured motorist coverage: This covers bodily injury and property damage caused by drivers who are not insured or lack enough coverage if you get into an accident.
• Medical payments coverage: Medical payments coverage pays for health insurance deductibles, copays, doctor and hospital visits, surgery, X-rays, prostheses, ambulance and emergency medical technician fees, and professional nursing services for you or your passengers after a car accident causes injuries.

Texas is an at-fault state, which means the at-fault party pays for property damage and medical expenses. Texas has a modified comparative negligence law, meaning the accident victim’s percentage of fault reduces the damages they can recover. For example, if they are 30 percent at fault, they can only recover 70 percent of their damages. If the injured party’s fault is 51 percent or more, they are not allowed to recover damages.

Texas requires a financial responsibility insurance certificate known as an SR-22 to verify you maintain liability insurance under the following circumstances:

• Your driving privileges are suspended after an accident.
• You received a second or subsequent conviction for driving without motor vehicle liability insurance.
• Someone filed a civil judgment against you.
• You placed a security deposit with the Department of Public Safety to comply with a crash or crash default suspension.

You are required to maintain this document on file for two years from the date of your conviction that requires an SR-22, or two years from the date judgment was rendered against you due to a crash. An insurance provider will notify the Texas Department of Public Safety automatically if an SR-22 is canceled, terminated, or lapsed².

Each driver’s circumstances — age, gender, marital status, ZIP code, credit score — impact the rates available to them for car insurance. In Texas, the average annual cost of full coverage car insurance is $2,821, while minimum coverage costs around $960 per year. However, the minimum liability coverage is not enough for many drivers. To find the right amount of coverage for the right prices, shop around for auto insurance and be honest about your particular circumstances. A good place to start is our list of the best car insurance companies in Texas.

We analyze average premiums in Maine for full and minimum coverage for good drivers with good credit as well as various driver profiles, including those with DUIs, at-fault accidents, speeding tickets, low credit and households with teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible