Cheap Car Insurance Companies In Texas

The average semiannual cost of car insurance in the state of Texas is $938.58. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Texas across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/3/2024

The Texas car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in TX. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Texas Minimum Liability Coverage

Texas requires all drivers to carry a minimum of $30,000 in bodily injury liability coverage per accident and $15,000 in property damage liability coverage per accident. This is known as 30/15 liability coverage in Texas.

The bodily injury liability coverage covers medical expenses and lost wages for other drivers or passengers injured in an accident you caused. The $30,000 per accident means that this coverage will pay up to $30,000 total for all people injured in a single accident that you caused.

The property damage liability coverage covers damage to other people’s vehicles and property resulting from an accident you caused. The $15,000 limit means your insurance will pay up to $15,000 total for damage to other people’s property in a single accident.

If you want higher coverage limits, you have that option. Many insurance agents recommend at least $50,000 in bodily injury coverage per person, $100,000 per accident and $50,000 in property damage coverage. This is known as 50/100/50 coverage. Higher limits provide more financial protection in serious accidents.

However, the minimum 30/15 coverage is required by law in Texas. If you get into an accident and your insurance limits are exceeded, you will be responsible for paying any remaining costs yourself. So having the minimum coverage does carry risk if a serious accident occurs.

Penalties for Driving Without Insurance in Texas

Driving without insurance in Texas comes with serious penalties and risks. The state requires all drivers to carry auto liability insurance to help cover costs if you’re involved in an accident. Failing to do so could result in fines, license suspension, and even jail time.

If you’re caught driving without insurance in Texas, you’ll likely receive a citation with a fine between $175 to $350. You’ll also receive two points on your driver’s license. After 90 days, if you still don’t provide proof of insurance to the state, your license will be automatically suspended.

To get your license reinstated after a suspension for no insurance, you’ll need to pay a $175 reinstatement fee and show proof of current auto insurance. You’ll likely have higher insurance rates for the next three years due to the violation.

If you cause an accident while driving uninsured, you could face misdemeanor charges with punishments of up to one year in jail and a fine of up to $4,000. If injuries resulted from the accident, you could face a state jail felony charge with punishments of up to two years in jail and a fine of up to $10,000.

Driving without insurance is extremely risky. Not only could you face hefty fines and jail time, you’ll be fully responsible for all costs resulting from an accident you cause. Even a minor fender bender could leave you with thousands of dollars in damages to pay out of pocket. The smart choice is to ensure you and your vehicle are properly insured before driving in Texas.

Auto Insurance Rates in Texas

Auto insurance rates in Texas can vary significantly from one driver to the next based on a number of factors. Here are some of the most important things that impact your rates:

Driving History: Your driving history, including any accidents or violations on your record, is a major factor in determining your rates. Drivers with a clean driving history typically qualify for lower premiums.

Credit History: Insurers often use your credit score as a factor in setting rates since it can be indicative of your overall risk level. In general, those with better credit tend to pay lower premiums.

Age: Younger drivers, especially those under 25, typically pay the highest auto insurance rates due to their inexperience and higher risk of accidents. Rates tend to decrease as you grow older and become a more experienced driver.

Vehicle: The make, model, age and features of your vehicle can impact your rates. Insurers view certain vehicles as higher risk than others based on factors like repair costs, frequency of theft and claims data.

Mileage: The more you drive, the higher your premiums tend to be since you have a greater chance of being in an accident or filing a claim. Some insurers offer lower rates for drivers with low annual mileages.

Gender: While gender-based rates are now illegal in many states, some insurers still charge men higher premiums since statistics show they tend to file more claims than women.

Low Cost Car Insurance Programs and Discounts in Texas

There are a number of ways to lower your car insurance premiums in Texas. Comparing rates from multiple insurers is a good place to start, as rates can vary significantly between companies. You’ll also want to review the following programs and discounts available from most major auto insurers in the state:

• Good Student Discount – If you’re a high school or college student with a B average or higher, ask your insurer about a discount for good grades. You’ll typically need to provide report cards or transcripts as proof.
• Multi-Policy Discount – Bundling your auto and home insurance with the same company can save you 5% to 20% on both policies.
• Defensive Driving Course – Completing an approved driver safety course in Texas could earn you up to 10% off for three years. Some insurers even offer online courses.
• Anti-Theft Devices – Having anti-theft devices like an immobilizer, alarm system or GPS tracking installed can earn you a discount of 5% to 10%.
• Low Mileage Discount – If you drive fewer than 7,500 to 10,000 miles per year, you may qualify for a low-mileage discount of up to 20%.
• Pay in Full Discount – Some insurers offer a discount of up to 5% if you pay your full annual premium at once instead of in installments.

Texas Car Insurance Statistics

Texas has some of the highest car insurance rates in the country, with the average annual premium costing around $1,800. There are a few key statistics that help explain these high rates:

• Traffic fatalities. There were over 3,600 traffic fatalities in Texas in 2019, the highest number of any state. The high rate of accidents and deaths contributes to higher insurance costs.
• Uninsured drivers. Around 15% of drivers in Texas do not carry insurance, the highest uninsured motorist rate in the nation. When uninsured drivers cause accidents, insured drivers foot the bill through higher premiums.
• Urban areas. Cities like Houston, Dallas, San Antonio, and Austin have some of the worst traffic congestion in the U.S. More vehicles on the road means more potential for accidents and claims.
• High vehicle theft. Texas ranks 3rd in the nation for vehicle theft, with over 100,000 vehicles stolen each year. Theft claims increase insurance costs for all drivers.
• Hail damage. Hailstorms are common in parts of Texas, resulting in costly damage claims that insurers pass on to customers.
• Limited public transit. With limited public transportation options in many areas, Texans rely heavily on personal vehicles, contributing to high traffic volumes and insurance costs.

The 10 Largest Texas Car Insurance Companies

The Lone Star State of Texas is known for its size, hospitality, and unique culture. It also has one of the largest vehicle populations in the country, making car insurance an important financial consideration for Texas drivers. Here are the 10 largest car insurance companies in Texas based on the number of insured drivers in the state:

1. State Farm – State Farm has the most insured drivers in Texas, covering over 2.2 million vehicles. The company is known for affordable rates and a wide range of coverage options.
2. Allstate – Allstate has a large presence in Texas, insuring over 1.3 million vehicles. The company offers discounts for good drivers, multi-policy, and more.
3. Farmers – Farmers Insurance Group insures over 1 million vehicles in Texas. The company has been in business for over 80 years and is known for personalized service.
4. Progressive – Progressive is one of the fastest growing insurance companies in Texas, covering more than 900,000 vehicles. The company is well-known for its name your price tool and simple online shopping experience.
5. Texas Farm Bureau – As its name suggests, Texas Farm Bureau primarily serves rural Texans. It insures over 800,000 vehicles in the state and offers members-only benefits and discounts.
6. Liberty Mutual – Liberty Mutual provides auto insurance for over 500,000 Texas drivers. The company offers coverage for classic and antique vehicles as well as rideshare insurance.
7. USAA – USAA provides insurance exclusively for military members, veterans, and their families. In Texas, the company covers over 400,000 vehicles.
8. The Hartford – The Hartford covers more than 300,000 vehicles in Texas, primarily offering insurance to AARP members. The company also provides rideshare insurance and coverage for antique and classic vehicles.
9. National General – National General insures over 200,000 vehicles in Texas. The company specializes in non-standard auto insurance for drivers with a suspended license, DUI, or other issues.
10. Mercury – Mercury, which is part of the Nationwide Insurance group, covers over 100,000 vehicles in Texas. The company offers several usage-based insurance programs to help lower premiums.