Updated: March 21, 2025
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Texas drivers pay 31% more for minimum coverage and 28% more for full coverage car insurance than the national averages of $595 and $1,296, respectively.
State-specific factors like large urban population, higher-than-average theft rate and frequent natural disasters contribute to higher car insurance costs in Texas.
Due to personal factors like driving record, age or credit scores, you may find car insurance in Texas expensive.
Texas drivers pay higher car insurance premiums than the national average due to factors that increase crash and claim risks. Learn more below.
Texas drivers face higher car insurance premiums due to the state's heavy traffic, dense highways and long roadways. Spending more time on crowded roads increases the likelihood of crashes, making drivers in Texas a higher risk for insurers.
Car insurance rates in Texas are often higher due to the state's large urban population. Urban areas tend to have more accidents, thefts and vandalism, leading to more claims. Insurers charge higher premiums to account for the increased risk.
Texas has a higher vehicle theft rate than the national average. Insurers consider theft rates when setting premiums because they affect the number of claims. Higher theft rates lead to increased car insurance costs.
High speed limits in Texas contribute to higher car insurance rates. The state has the highest speed limits in the U.S., reaching 85 mph, compared to the national average of 69.8 mph. Faster speeds increase the risk of crashes, leading insurers to charge higher premiums to account for the added risk.
Frequent natural disasters in Texas, such as wildfires, hurricanes, winter storms and tornadoes, increase the risk of vehicle damage and lead to more claims. This contributes to higher car insurance costs in the state.
Car insurance rates in Texas depend on state-specific factors you can't control and personal factors you can influence. While the state-specific issues discussed earlier impact premiums statewide, the following individual factors also play a role in determining your costs.
Car insurance rates in Texas differ significantly based on location. Where you live within the state impacts your premiums. The table below highlights average costs across various Texas cities.
| Abilene | $436 | $1,016 |
| Allen | $571 | $1,158 |
| Amarillo | $512 | $1,209 |
| Arlington | $576 | $1,174 |
| Austin | $571 | $1,159 |
| Beaumont | $623 | $1,242 |
| Brownsville | $622 | $1,276 |
| Carrollton | $617 | $1,257 |
| College Station | $500 | $1,032 |
| Corpus Christi | $578 | $1,140 |
| Dallas | $640 | $1,314 |
| Denton | $558 | $1,132 |
| El Paso | $495 | $1,093 |
| Fort Worth | $563 | $1,168 |
| Frisco | $574 | $1,159 |
| Garland | $657 | $1,322 |
| Grand Prairie | $630 | $1,287 |
| Houston | $699 | $1,436 |
| Irving | $606 | $1,251 |
| Killeen | $503 | $1,052 |
| Laredo | $557 | $1,249 |
| League City | $607 | $1,221 |
| Lewisville | $572 | $1,151 |
| Lubbock | $499 | $1,095 |
| McAllen | $668 | $1,364 |
| McKinney | $573 | $1,171 |
| Mesquite | $639 | $1,302 |
| Midland | $461 | $1,037 |
| Odessa | $490 | $1,128 |
| Pasadena | $630 | $1,274 |
| Pearland | $645 | $1,298 |
| Plano | $596 | $1,207 |
| Richardson | $620 | $1,256 |
| Round Rock | $542 | $1,098 |
| San Angelo | $410 | $1,001 |
| San Antonio | $601 | $1,220 |
| Sugar Land | $623 | $1,242 |
| The Woodlands | $639 | $1,267 |
| Tyler | $554 | $1,135 |
| Waco | $491 | $1,038 |
| Wichita Falls | $426 | $965 |
To find affordable car insurance in Texas, compare quotes from multiple providers, as rates vary by company. Prioritize affordability and excellent customer service to secure the best option. The table below compares rates from different insurers in Texas.
| Texas Farm Bureau | $339 | $760 |
| Mercury | $423 | $1,577 |
| State Farm | $434 | $1,015 |
| Progressive | $592 | $1,196 |
| AAA Texas | $658 | $1,387 |
| National General | $715 | $1,580 |
| Allstate | $772 | $1,532 |
| GEICO | $788 | $1,454 |
| Chubb | $942 | $1,821 |
| Foremost | $1,041 | $2,120 |
| Nationwide | $1,061 | $2,065 |
| Dairyland | $1,621 | $3,474 |
In Texas, car insurance rates vary by age. Younger drivers often pay higher premiums because insurers consider them high risk due to inexperience. The table below shows how rates change with age.
| 25 | $1,033 | $2,171 |
| 40 | $782 | $1,665 |
| 65 | $792 | $1,594 |
A poor driving record is a major factor in higher car insurance costs in Texas. Violations like DUIs or at-fault accidents can lead to significant rate increases, as insurers classify drivers with violations as high risk. The table below shows average car insurance rates in Texas for various violations.
| At-Fault Accident | $1,314 | $2,694 |
| DUI | $1,210 | $2,441 |
| Ticket | $930 | $1,997 |
Drivers in Texas with good credit scores often pay less for car insurance, as insurers consider them lower risk. The table below shows average annual rates in Texas by credit score.
| Poor | $925 | $2,668 |
| Below Fair | $671 | $1,956 |
| Fair | $555 | $1,628 |
| Good | $450 | $1,307 |
| Excellent | $370 | $1,063 |
Your car’s make and model can greatly influence insurance costs. High-value vehicles have higher premiums due to increased repair or replacement expenses. Sports cars often cost more to insure because they’re at higher risk for accidents. Older cars, with depreciated value, are typically cheaper to insure than newer models.
Companies calculate car insurance premiums differently. To find the best and most affordable options, compare quotes from multiple providers. Use MoneyGeek's calculator below to get accurate estimates based on your profile.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Apr 18, 2025
| Insurance Carrier | MoneyGeek Score | Average Monthly Payment | |
|---|---|---|---|
| 1 | 92 /of 100 | $64 | |
| 2 |  GEICO | 74 /of 100 | $94 |
| 3 |  Nationwide | 88 /of 100 | $104 |
| 4 | 67 /of 100 | $127 | |
| 5 |  Foremost | 70 /of 100 | $138 |
| 6 | 71 /of 100 | $155 |
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If your car insurance in Texas is expensive, there are several ways to save on premiums, including:
Car insurance rates vary widely depending on the insurer, so compare quotes from different providers to find the most affordable rates. Use Moneygeek’s quote tool to get estimates.
Most insurers provide discounts for bundling car and home insurance. Reduce premiums by finding the best companies for bundled policies.
Depending on your profile, you may qualify for discounts like claim-free or safe driving incentives, which can lower your car insurance premiums.
A deductible is the amount you pay out of pocket when filing a claim. Policies with higher deductibles usually have lower premiums.
If you drive less than 12,000 miles annually, pay-per-mile car insurance is a more economical option since it charges based on how much you drive.
Dropping comprehensive insurance can save money if premiums exceed 10% of your car's value, but ensure it won’t leave you underinsured.
Car insurance in Texas is costly due to dense highways, high vehicle theft rates, high speed limits, dense urban areas and frequent natural disasters. These factors increase accidents and claims, driving up premiums. This article explores these issues and offers strategies to help Texas drivers save on car insurance.
We answer common questions about car insurance rates in Texas to help you understand why your premiums are costly.
Car insurance in Texas is expensive due to dense highways, high car theft rates, high speed limits, urban congestion and frequent natural disasters, all of which increase crash and claim risks. Insurers adjust premiums to account for these factors.
The average annual auto insurance cost in Texas is $782 for minimum coverage and $1,665 for full coverage. Rates vary depending on your profile and the provider you choose.
Car insurance in Texas may be expensive due to factors like a bad driving record, poor credit, age or location.
You need to have car insurance to drive your car in Texas legally.
Texas car insurance laws require all drivers to carry insurance with $30,000 liability coverage per person, $60,000 per accident and $25,000 in property damage liability.
MoneyGeek analyzed 328,384 auto insurance quotes sourced from the Texas Department of Insurance and Quadrant Information Services, covering 14 providers across 370 ZIP codes in Texas. The analysis included minimum and full coverage policies, as well as home and auto bundling scenarios.
Texas Driver Profile
Our analysis used a standard driver profile to identify the cheapest auto insurance companies in Texas:
To find the cheapest option for various driver backgrounds, we adjusted this sample profile by age, driving record, credit score, car make and model and military service where specified.
Standard Coverage Levels in Texas
Mandatory coverage limits in the state include:
For full coverage rates, the study used these limits:
Home and Auto Coverage Levels in Texas
In addition to the full coverage rates noted above, we also analyzed rates for a homeowners insurance policy that includes the following limits and coverage:
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
