Why Is Car Insurance So Expensive in Texas?


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Key Takeaways

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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.

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State-specific factors like large urban population, higher-than-average theft rate and frequent natural disasters contribute to higher car insurance costs in Texas.

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Due to personal factors like driving record, age or credit scores, you may find car insurance in Texas expensive.

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Reasons Why Car Insurance Is Expensive for Texas Drivers

Texas drivers pay higher car insurance premiums than the national average due to factors that increase crash and claim risks. Learn more below.

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    Higher-than-average highway density

    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.

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    High urban population density

    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.

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    Higher-than-average vehicle theft rate

    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.

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    High speed limits

    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.

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    Frequent natural disasters

    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.

Factors That Affect Texas Car Insurance Rates

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.

Specific Texas Locations and ZIP Codes

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

Car Insurance Companies in Texas

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

Driver Age

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

Driving Record and Texas Motor Vehicle Law

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

Credit Score

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

Vehicle Make and Model

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.

Calculating Texas Car Insurance Estimates

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.

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$155
High
$114
Average
$64
Low

Rates updated:

Mar 30, 2025

Insurance Carrier
MoneyGeek Score
Average Monthly
Payment
1
92
/of 100
$64
2
GEICO

GEICO

74
/of 100
$94
3
Nationwide

Nationwide

88
/of 100
$104
4
67
/of 100
$127
5
Foremost

Foremost

70
/of 100
$138
6
71
/of 100
$155
MoneyGeek Score
92
/of 100
Average Monthly Payment$64/mo
2
GEICO

GEICO

MoneyGeek Score
74
/of 100
Average Monthly Payment$94/mo
3
Nationwide

Nationwide

MoneyGeek Score
88
/of 100
Average Monthly Payment$104/mo
MoneyGeek Score
67
/of 100
Average Monthly Payment$127/mo
5
Foremost

Foremost

MoneyGeek Score
70
/of 100
Average Monthly Payment$138/mo
MoneyGeek Score
71
/of 100
Average Monthly Payment$155/mo
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How to Find Inexpensive Car Insurance in Texas

If your car insurance in Texas is expensive, there are several ways to save on premiums, including:

  1. 1

    Shop around for quotes

    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.

  2. 2

    Bundle your policies

    Most insurers provide discounts for bundling car and home insurance. Reduce premiums by finding the best companies for bundled policies.

  3. 3

    Seek out discounts

    Depending on your profile, you may qualify for discounts like claim-free or safe driving incentives, which can lower your car insurance premiums.

  4. 4

    Increase your deductible

    A deductible is the amount you pay out of pocket when filing a claim. Policies with higher deductibles usually have lower premiums.

  5. 5

    Consider pay-per-mile insurance

    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.

  6. 6

    Drop unnecessary coverage

    Dropping comprehensive insurance can save money if premiums exceed 10% of your car's value, but ensure it won’t leave you underinsured.

Why Auto Insurance in Texas Is So Expensive: Bottom Line

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.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Texas Car Insurance Cost Factors: FAQ

We answer common questions about car insurance rates in Texas to help you understand why your premiums are costly.

Why is car insurance expensive in Texas?

How much does car insurance cost in Texas?

Why is my Texas car insurance expensive?

Do you have to have car insurance in Texas?

What is the minimum insurance requirement in Texas?

Car Insurance Rates in Texas: Our Review Methodology

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:

  • 40-year-old male
  • 2012 Toyota Camry LE
  • Clean driving record
  • 12,000 miles driven annually

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:

  • $30,000 per person for bodily injury
  • $60,000 per accident for bodily injury
  • $25,000 per accident for property damage

For full coverage rates, the study used these limits:

  • $100,000 in bodily injury liability per person
  • $300,000 in bodily injury liability per accident
  • $100,000 in property damage liability
  • Comprehensive and collision coverage with a $1,000 deductible

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:

  • $250,000 dwelling coverage
  • $25,000 other structures coverage
  • $100,000 personal property coverage
  • $25,000 loss of use coverage
  • $100,000 personal liability coverage
  • $1,000 medical payments coverage
  • All-perils coverage with a $1,000 deductible

Texas Car Insurance Costs: Related Articles

About Mark Fitzpatrick


Mark Fitzpatrick headshot

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.


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