Texas Car Insurance

There are many things drivers need to know about Texas car insurance. The following data will help Texas drivers find car insurance policies at the lowest possible rates available in their zip codes.

The population of the state of Texas was estimated at 27,862,596 in 2016. Once again, Texas was the 2^nd most populous state in America, not to mention the 2^nd largest state in land area. The resident median age of the population in Texas is about 34.4 years.

Car insurance premium rates are based on statistical demographics: For instance, roughly 15.9 percent of Texas residents are surviving at or below the poverty level, as compared to the U.S. Average poverty rate of 13.5 percent. Yet, the unemployment rate in Texas as of 2017 hovered right around the national average of 4.7 percent. Also an issue is that roughly 15 percent of vehicles owned in the state of Texas are uninsured.

Texas drivers often try to guess their premium rates based on some sort of statewide average annual premium for Texas car insurance. Unfortunately, statewide averages on auto insurance premiums provide little in the way of useful information for the vast majority of American drivers. The issue is that statewide averages are normally based on the demographics of an “average” driver.

So, a “statewide average” may be useful if you are, let’s say, a 35-year-old married male with a clean driving record, a full time job, and a 2016 Jeep Cherokee Sport with dual airbags and antilock brakes, which you drive less than 25,000 miles a year. Unfortunately, hypothetical drivers just don’t fit the descriptions of most drivers. A statewide average is just an example. Overall, statewide averages do not provide much useful information.

Instead, a Texas car owner might try searching online for cheap Texas car insurance by comparing zip codes within the state of Texas. You can even get free quotes for several zip codes in your area, such as your home zip code and your work zip code, for instance. Doing this should provide a more accurate assessment of the car insurance premium options available to you.

If you must know, the statewide “average” annual premium on car insurance in Texas was around $1,510 in 2016, according to statistical reports from researchers. This figure was clearly above the national “average” annual quote for car insurance, which was about $1,325 at that time. Still, Texas is by no means the priciest state in the nation to buy car insurance.

This page offers a detailed analysis of Texas car insurance. It includes a descriptive breakdown of both the cheapest and the priciest zip codes in Texas to buy an auto insurance policy. Also included is a list of the most popular auto insurance carriers in Texas, the largest auto insurance carriers in Texas, the types of car insurance Texas drivers need, some quirky Texas state laws, and other must-have details about Texas car insurance.

Best Car Insurance Companies in Texas

It has recently been noted that the top ten car insurance companies in the whole United States are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual, 21^st Century Insurance, GMAC, and AIG, in that order. In this study, insurance companies were ranked by revenue, which is a determinant of their market value.

In 2016, we ran a research study in which insured drivers from every state, including Texas, were asked to rank car insurance companies based on customer service, premium rates, and payouts. The results showed that the favorite auto insurance providers in Texas for customer service are USAA, State Farm Insurance, Allstate Insurance, Nationwide Group, and Geico, in that order. For claims service, the favorites among Texans are USAA, Liberty Mutual Insurance, Geico, Progressive Insurance, and State Farm Insurance, in that order. In terms of best value for the cost, the Texas favorites are USAA, Progressive Insurance, State Farm Insurance, Nationwide Insurance, and Geico, in that order.

On that note, here are the top ten auto insurance companies in Texas, based on market share:

Sometimes, car insurance companies are ranked based on the dollar amount of written premiums, although this could possibly only mean that they spend more money on advertising than other companies do. In any case, here’s an ordered list of the “top” ten Alabama car insurance companies, in terms of premiums written (i.e. market share):

What Types Of Car Insurance Do Texas Drivers Need?

Texas state law requires that all drivers in Texas purchase the “state minimum” liability coverages on auto insurance. That means $30,000 in personal injury protection, $60,000 in bodily injury liability, and $25,000 in property damage liability.

However, insurance analysts across America suggest that car owners in every state buy more than the minimum amount of car insurance coverage required by state law. The recommended coverage amounts are $100,000 for personal injury protection, $300,000 in liability for injury to others, and at least $50,000 insurance against property damage.

Also a smart idea is buying uninsured / underinsured motorist insurance (UMI), since roughly one out of seven drivers on Texas roads is operating an uninsured vehicle. Countless others are underinsured, mainly because of state minimums being set too low.

Finally, if your car is less than 10 years old, you might want to consider buying comprehensive and collision coverage. Texas drivers might especially want comprehensive coverage, since Texas has more hailstorms than any other state.

Unusual Texas Car Insurance Laws

• Texas state law requires a five percent discount for drivers who complete a drug and alcohol awareness class.
• Texas has no age restriction for the ownership and registration of a car, but proof of financial responsibility is required.
• In Texas, motorcycle helmets are mandatory only for people who are under 21 or do not have health insurance.
• In Galveston, it is illegal to drive a motor car down Broadway before noon on Sundays.
• In Lubbock, it is illegal to drive within arm’s length of alcohol, even if the alcohol is in someone else’s bloodstream.

Best And Worst Zip Codes For Texas Car Insurance

Any number of factors may affect auto insurance premium costs. For one thing, each car insurance company has its own way of calculating premiums, based on the zip code where the vehicle is most often parked, the driving record of the vehicle owner, various state laws, and other considerations.

Premium rates are similarly affected by population density, climate, and crime statistics (particularly car theft, DUI, speeding, and vandalism). Another factor being considered by insurance underwriters is the percentage of uninsured drivers on local roads. These are just a few of the elements involved in calculating car insurance premiums. Even within the same zip code, premium rates will run from high to low, often by more than a thousand dollars a year, depending entirely on the demographics of the driver.

Here is a breakdown of some of the most expensive zip codes in Texas to buy car insurance.

Houston is the most populous city in Texas, not to mention the 4^th largest city in the United States. Houston is located in Harris County, near the Gulf of Mexico, about 50 miles northwest of Galveston. Across the entire city of Houston, the average population density is 3,500+. So it should come as no surprise that Houston zip codes have some of the priciest car insurance premium rates in all of Texas. In some cases, premium rates can reach more than $3,000 a year.

Unemployment in this zip code is more than three times the state and national average. The poverty rate is twice the state average. The population density is relatively high, so Texas car insurance premiums are also high, sometimes as high as $3,000.

The average annual premiums in this zip code are about the same as they are in the other three Houston zip codes mentioned here. Again, poverty and unemployment are much higher than state average in this neighborhood.

Unemployment may be very low in this zip code, but poverty is still very high, as is the cost of car insurance.

Unemployment here is well over 3 times the state average, with poverty also well above the norm. This can help explain the higher premium costs on Texas car insurance.

The cheapest zip codes for Texas car insurance are listed below. Annual premium rates can be as low as $780 or as high as over $1,700, according to comparisons of Texas zip codes. Here is a list of four of the cheapest zip codes to purchase Texas car insurance.

Grape Creek is near San Angelo, which is a city of almost 100,000 people. It is located in central Texas, about 100 miles southwest of Abilene. The poverty rate in this zip code is below the state average of 15.9, and unemployment is also lower than the state average. Population density is also extremely low.

Winters is a town in Runnels County, about half way between Abilene and San Angelo. The population of Winters is about 2,500. Unemployment is strikingly low, although the poverty rate exceeds the state average. The population density of this zip code is on the low side.

Wall is an unincorporated community in central Texas, near San Angelo. Poverty here is below state average, while unemployment hovers right near the state average. The population density is so light it is hardly worth mentioning.

Goodfellow Air Force Base is adjacent to San Angelo, which is situated in Tom Green County. Since this zip code is an Air Force Base, the median resident age here is 20.8 years, and everybody is employed by the AFB. This zip code features some super low premium rates on Texas car insurance, probably through USAA.

Altogether, the BIG state of Texas is home to 2,596 zip codes in 1,470 cities stretched out over 254 counties, from Abbott to Zavalla and all towns in between. Annual car insurance premium rates can vary by as much as $2,300 or more between the cheapest zip code and the priciest zip code in the Lone Star state of Texas.

Hopefully, this information will give Texas drivers some idea of the cost of auto insurance in Texas. To learn more about your own specific Texas car insurance premium rates, hop online and compare a few quotes.

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