Full coverage in Texas runs $1,799 per year while minimum coverage costs $795, with both rates exceeding national benchmarks by 23% and 16% respectively. Texas holds the 43rd spot for full coverage affordability and 37th for minimum coverage among all states.
Average Cost of Car Insurance in Texas
Updated: October 17, 2025
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Key Takeaways
Texas car insurance costs can range anywhere from $795 to $5,241 per year on average depending on your chosen coverage, driving profile and location.
Texas ranks as one of the most expensive in the country ranking 37th and 43rd overall for minimum and full coverage car insurance affordability respectively.
Find the cheapest car insurance in Texas by deciding on coverage beforehand, researching costs and companies, and comparing multiple quotes.
Average Car Insurance Cost In Texas
| Full Coverage | $150 | $1,799 |
| Minimum Coverage | $66 | $795 |
The Lone Star State's expansive metropolitan areas and severe weather patterns contribute to elevated insurance costs. Adding comprehensive and collision coverage increases annual premiums by $1,004, roughly $84 monthly, for drivers with good credit and clean records.
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Average Texas Car Insurance Cost By Category
Young drivers and credit-challenged drivers battle for Texas's highest rates - $323 versus $350 monthly respectively for full coverage. Both categories far exceed adult drivers at $148 monthly, showing how Texas insurers heavily penalize risk factors.
Older vehicles provide minimal relief at $136 monthly, suggesting Texas's severe weather and urban growth keep all categories elevated. The credit penalty approaches adult rates doubled, while youth adds more than $170 monthly.
| Drivers With Old Cars | $60 | $136 |
| Adult Drivers | $65 | $148 |
| Drivers With A Speeding Ticket | $78 | $177 |
| Drivers With Newer Cars | $81 | $185 |
| Senior Drivers | $84 | $174 |
| Drivers With Low Income | $84 | $196 |
| Drivers With An Accident | $94 | $208 |
| Drivers With A DUI | $105 | $223 |
| Young Drivers | $151 | $323 |
| Drivers With Bad Credit | $151 | $350 |
Texas's rapid metropolitan expansion and storm-prone climate create elevated base rates, with demographic risk factors adding substantial premiums across all categories.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Average Texas Car Insurance Cost by Company
State Farm leads Texas value at $93 monthly while Germania Insurance tops out at $143 monthly for full coverage. This $598 annual difference reflects Texas's diverse insurance landscape and regional carrier competition.
Lone Star State drivers benefit from both national carriers and regional specialists, creating competitive tension that rewards comparison shoppers with significant savings opportunities.
| State Farm | $41 | $93 |
| Geico | $54 | $112 |
| Mercury Insurance | $54 | $133 |
| AAA | $63 | $126 |
| Germania Insurance | $72 | $143 |
Average Texas Car Insurance Cost By City
Remote West Texas town Marfa keeps rates reasonable at $110 monthly, but border city McAllen reaches $225 monthly - a $115 spread reflecting Texas's vast geographic and economic differences. Border regions often face elevated rates due to theft and cross-border issues.
The Lone Star State's size creates distinct insurance territories, from rural plains to major metropolitan areas along international borders. Compare rates for your city below.
Data filtered by:Results filtered by:
Abbott
City:Abbott
| Full Coverage | $124 | $1,488 |
| Minimum Coverage | $54 | $650 |
Is Texas Car Insurance Expensive?
Texas ranks 43rd in affordability for full coverage and 37th for minimum coverage among the 50 states and Washington, D.C., making it one of the costlier states for car insurance. This reflects statewide averages, and affordability rankings for your city differ from the rest of the United States.
Why Is Car Insurance More Expensive In Texas?
Here are the main factors behind Texas's high car insurance rates:
Optional PIP Coverage Requirements
Texas requires insurance companies to offer personal injury protection (PIP) coverage, and it's automatically included unless you reject it in writing. Unlike true no-fault states, Texas follows a modified comparative negligence system where drivers must be less at fault to receive compensation. PIP covers medical expenses, lost wages and childcare costs regardless of fault, making it valuable protection even though it's not mandatory.
High Rate of Uninsured Drivers
Texas has a higher rate of uninsured drivers compared to the national average, and Texas law requires insurance companies to offer uninsured motorist coverage when you purchase auto insurance. Rising insurance costs are a major factor, with most uninsured drivers saying they simply can't afford coverage. This elevated rate puts insured drivers at risk of expensive out-of-pocket costs when accidents occur with uninsured motorists.
Severe Weather and Natural Disasters
Texas has experienced numerous confirmed billion-dollar weather disasters, including severe storm events, tropical cyclones and drought events. Texas faces frequent hailstorms that impact homes and cars with large hailstones. The frequency and severity of these storms lead to increased comprehensive claims and higher premiums as insurers account for weather-related risks.
Advanced Vehicle Technology Costs
The cameras and sensors that are supposed to keep us safe are all more expensive to replace, even if it's just a fender bender. Increases in the costs to repair new cars due to their advanced technology have pushed premiums higher across the state. Modern safety features make repairs more complex and expensive, contributing to higher comprehensive and collision coverage costs.
Rising Insurance Premiums
Texas car insurance rates have increased substantially in recent years, with Texas experiencing some of the highest cumulative rate increases over extended periods. Average rates in the state have increased considerably in recent years, making Texas one of the most expensive states for auto insurance.
High Highway Speeds and Traffic Risks
Texas has experienced more fatal crashes involving alcohol and more fatalities involving people not wearing seatbelts compared to other large states, despite having fewer drivers per capita. Texas has high speed limits that increase accident severity and claim costs, while heavy traffic and dense highways increase crash likelihood for drivers spending more time on crowded roads.
Vehicle Theft and Crime Rates
Texas has elevated theft rates that contribute to comprehensive coverage costs. Drivers might pay lower premiums in ZIP codes with less crime, as insurance companies factor local crime rates into their pricing algorithms when determining comprehensive coverage costs.
Geographic Risk Factors
Texas homes face substantial risk of hurricane wind damage, while many are at risk of storm surge damage. Climate scientists project Texas has high chances of experiencing hurricanes or tropical storms, contributing to higher comprehensive coverage costs for cars in coastal and high-risk areas.
How To Lower Car Insurance Costs In Texas
Below we've created a step-by-step guide to lowering your car insurance costs.
- 1
Decide on coverage needs beforehand
Deciding on your coverage needs is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2
Research costs and discounts
To save money for your profile, know the average costs for your preferred coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3
Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4
Compare quotes through multiple means
Compare quotes from multiple companies to find the best deal possible. Use different means of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in Texas: Bottom Line
Texas car insurance costs are among the more expensive in the United States, making it important to take advantage of savings strategies. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in Texas: FAQ
Below are answers to frequently asked questions about Texas car insurance costs:
How much is Texas car insurance per month?
Per month, Texas car insurance costs $66 for minimum coverage and $150 for full coverage policies. However, rates range from $54 to $550 monthly depending on your unique driver profile and coverage choice.
What factors affect Texas car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is Texas car insurance so expensive?
Texas faces extreme weather risks including hailstorms, flooding and hurricanes that drive up comprehensive coverage costs. The state has high uninsured driver rates at 14% compared to the national average of 13%, leading to higher premiums for all drivers. Rising health care costs, insurance fraud and rapidly growing urban areas with increased traffic density also contribute to Texas's above-average insurance costs.
How expensive is Texas car insurance?
Texas ranks 37th in affordability for minimum coverage and 43rd overall for full coverage, making them one of the most expensive places to get auto insurance in the U.S.
How We Determined Texas Car Insurance Costs
We used the following profile and modifications of this profile to determine Texas auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision 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.
sources
- National Centers for Environmental Information. "Billion-Dollar Weather and Climate Disasters: Texas." Accessed October 22, 2025.
- Texas Department of Insurance. "Uninsured Motorist Coverage." Accessed October 22, 2025.
