How Much Is Car Insurance in Texas? Rates by Coverage Level, Age, Driving History and Location

Texas' average car insurance cost is $1,316 per year. The Lone Star State features the 36th-most affordable average rates in the U.S., costing slightly less than the national average of $1,424. MoneyGeek landed on these average rates by requesting quotes from many providers in different locations for one sample driver. This guide explores average insurance costs in Texas by coverage level, age, driving history, credit score and location.

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The average cost of car insurance for a 40-year-old Texan with a full coverage policy and a clean record is $1,316 annually. Meanwhile, the same driver buying minimum coverage pays $665 per year, on average.

Car insurance rates also vary depending on the driver’s characteristics. For example, a full-coverage policy for a 16-year-old driver costs an average of $3,548 in the state. MoneyGeek breaks down how average car insurance costs in Texas change with different factors, including credit score, coverage level and driver history.

Average Cost of Car Insurance in Texas: Summary

MoneyGeek analyzed Texas' car insurance rates by the factors that most affect the price. Our research indicates that, in Texas, age and credit rating most significantly affect premiums. MoneyGeek's study on the average costs of car insurance for various driver profiles also offers insight on the matter.

Average Costs of Car Insurance in Texas

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Why Are Car Insurance Rates Moderately Priced in Texas?

Texas' car insurance rates are moderately priced compared to other states. Its dense urban population and frequent occurrence of natural disasters have increased its rates, but the state's low number of uninsured drivers, fair highway density and moderate vehicle theft rates help to keep average prices down.

If car insurance companies provide an expensive quote, your location may be the reason. Living in a metropolis with increased traffic congestion and theft rates can increase your car insurance rates.

Average Cost of Car Insurance in Texas: Full Coverage vs. Minimum Coverage

Car insurance premiums vary with the driver's amount of coverage. Policies with more features and greater coverage cost more. For example, full-coverage policies provide maximum coverage but also carry an increased price tag.

In Texas, the average annual cost of full-coverage car insurance is $1,316. Minimum liability insurance costs $665 per year, on average — amounting to a $651 difference.

Average Cost of Car Insurance in Texas by Coverage Level

Minimum vs. Full Coverage Car Insurance Costs in Texas - By Company

The insurance provider you choose can greatly affect your car insurance rates. In Texas, Farmers offers the cheapest average annual prices for minimum coverage and full coverage policies at $420 and $821, respectively. Additionally, USAA’s rates rank among the most affordable but only apply to the military and their families.

On average, Mercury features the most expensive annual minimum coverage insurance at $722. MetLife provides the priciest average full-coverage option at $1,525 yearly.

Average Annual Costs of Car Insurance in Texas - By Company

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How Much Is Car Insurance in Texas by Age

In Texas, car insurance rates are significantly affected by age. Insurers consider younger drivers riskier due to their lack of driving inexperience and charge them higher premiums.

MoneyGeek’s analysis indicates that, on average, a 16-year-old purchasing their own policy in Texas pays an average of $3,548 — $2,232 more than our 40-year-old sample driver. Fortunately, young drivers can often join their parent’s car insurance policies to reduce their rates.

Insurance providers treat first-time drivers the same as young drivers. If you’re a new driver, regardless of your age, you’ll pay similar car insurance rates as a teenager.

Average Costs of Full Coverage Car Insurance in Texas - By Age

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How Does Driving History Affect Car Insurance Costs in Texas?

Insurance providers consider drivers with accidents and traffic violations riskier to insure than individuals with clean driving records. A bad driving record will typically cause insurers to increase your rates.

A Texas driver with a speeding ticket pays $134 more each year for their policy, on average. Premiums also increase with the severity of violations. Fortunately, a driver with accidents or traffic violations on their record can still find affordable options by comparing quotes with different insurers.

Average Costs of Full Coverage Car Insurance in Texas - By Driving History

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  • Driving Violation
    Annual Premium
  • Safe Driver
    $1,316
  • Speeding Ticket
    $1,451
  • At-Fault Accident
    $2,048
  • DUI
    $1,987

Credit Scores and the Cost of Car Insurance in Texas

In Texas, how much you pay for car insurance also relates to your credit score. MoneyGeek discovered that having better credit can result in savings on your car insurance rates. Likewise, poor credit typically increases car insurance costs.

Insurance providers consider drivers with excellent credit scores less risky, leading to an average policy price that's $255 cheaper than individuals with good credit in Texas.

On the other hand, a driver with a poor credit score pays $1,066 more, on average, than individuals with good credit. Drivers with poor credit can still compare quotes to identify the best possible prices.

Average Costs of Full Coverage Car Insurance in Texas - By Credit Score

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  • Credit Score
    Annual Premium
  • Excellent
    $1,023
  • Good
    $1,278
  • Fair
    $1,596
  • Below Fair
    $1,939
  • Poor
    $2,344

How Much Is Car Insurance in Your City?

Location also significantly affects car insurance costs. Like variances from state to state, premiums also change among cities in Texas. High incidence of road accidents, increased occurrence of natural disasters and more dense populations tend to increase rates.

MoneyGeek’s analysis demonstrates that Wichita Falls offers the lowest annual average car insurance premiums in Texas at $1,052. Houston pays the highest rates on average, at $1,560 annually. Texas' average car insurance rate is $1,316 yearly.

Average Costs of Full Coverage Car Insurance in Texas - By City

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Frequently Asked Questions About Texas Car Insurance Rates

MoneyGeek answers some of the frequently asked questions about car insurance rates in Texas to help you find the best deals on the market for your specific circumstances.

Methodology

MoneyGeek collected car insurance rates across Texas in collaboration with Quadrant Information Services. We used a sample 40-year-old driver with a safe record and full coverage, unless altered by factors described above, including coverage levels, age, driving violations and credit score. The policies we evaluated are for a full coverage policy. To know more about our process, visit our methodology page.

  • Highway traffic density was calculated with 2019 data from the Federal Highway Administration/
  • Data on uninsured motorists was drawn from 2019 data from the Insurance Research Council.
  • Urban share of population was calculated using the latest data from the U.S. Census Bureau.
  • Data on motor vehicle theft rate was drawn from the FBI Crime in the United States Report for 2019.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.