How Much Is Car Insurance in Texas? (2023)

Several variables go into determining how much you'll pay for car insurance in Texas, including your age, the amount of coverage you get, location, driving record and credit score.

In Texas, for instance, the average annual premium for full coverage as a 40-year-old with State Farm is $699, but Dairyland charges $1,895. Also, a 25-year-old pays around $900 yearly with State Farm, a couple of hundred dollars more than a 40-year-old.

In Texas, the average annual car insurance cost is $1,183 for full coverage. Some of the key factors that determine your premium are your age, motor vehicle record and the coverage you choose.

With a spotless record in Texas, full coverage for a 40-year-old is around $1,183 yearly. The average annual rate, however, increases to $1,437 after a speeding ticket, $1,747 after a DWI (Texas does not use DUI) and $1,926 following an at-fault accident.

Texans do pay more for auto insurance than those in many other states. But the average Texas car insurance cost for full coverage is pretty close to the national average of $1,054 per year. Texas is a moderately-priced state for auto insurance — reasons for moderate rates may include medium urban population density, lower rates of vehicle thefts and lower traffic density.

If your premium for car insurance is more expensive in Texas than the average driver, it may be because of personal attributes like your age or driving record.

The average cost of auto insurance in Texas should not be regarded as a standard for the state; costs vary substantially between companies. State Farm has the average cheapest minimum coverage insurance in Texas, costing around $321 a year ($699 for full coverage), while Dairyland has the most expensive at roughly $1,002 ($1,895 for full coverage).

Since a minimum coverage policy in Texas only requires bodily injury and property damage liability and at the lowest allowed limits, State Farm’s policy is the cheapest liability-only insurance available.

Full coverage in Texas is more expensive than minimum coverage, but by comparing quotes from multiple companies, you are highly likely to get cheap full coverage insurance.

The average annual cost of auto insurance in Texas can range from $537 for the minimum coverage required to $1,401 for the maximum possible coverage. As you raise your liability limits, costs will rise.

Adding comprehensive and collision coverage to get a full coverage policy could add hundreds of dollars to your annual policy rate. But raising your deductible for both coverages or only one can lower your full coverage insurance cost.

Texas has a minimum amount of auto insurance coverage every driver must obtain; it is the cheapest policy on the market. The bodily injury liability and property damage liability limits on this policy are the lowest possible, and it does not include collision or comprehensive coverage.

You can increase your liability limits. Higher liability limits, often stated as 50/100/50 or 100/300/100, are available from insurers. Some have a maximum of 300/500/300.

A liability-only policy with 50/100/50 includes the following:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $50,000 property damage liability per accident

With a liability-only policy, only third parties are covered for medical costs and property damage. Full coverage has financial protection for your vehicle because it includes comprehensive coverage and collision coverage that pay for any damages caused to your car in the event of an at-fault accident or other incident, such as fire, theft or hail.

Your age can have a big impact on how much your auto insurance costs in Texas or any state, especially when it is car insurance for new or young drivers. Here is the average cost of a full coverage policy by age group in Texas:

• 22–29: $1,534 per year
• 30–59: $1,183 per year
• 60+: $1,136 per year

Insurance tends to be higher for drivers in their 20s but remains relatively stable between the ages of 30 and 59 and even after 60 before rising for those over the age of 70.

The average cost of insuring a 16-year-old male on a family policy in Texas is $3,687 yearly, which is much higher than the rates for other ages. In most cases, it is illegal for a teen under 18 to purchase car insurance without a parent or guardian as a co-signer, and if they do get an individual policy, the cost is around $7,113 annually.

Costs do, however, go down as drivers become older and gain more experience on the road. The average yearly cost for a 19-year-old male on a family plan is $2,629, while the cost for a 22-year-old is $2,055. Young drivers in Texas can save money by shopping around for the cheapest insurers.

Rates vary significantly by sex in most states, including Texas. The average annual cost for a 16-year-old female teen on a family policy is $3,284, around $400 less than the cost for a male teen of the same age.

A 2012 vehicle costs roughly $1,233 a year to insure with full coverage in Texas, which is around 25% less than the average cost of $1,589 to cover a 2022 model year. Because of their higher actual cash value, repair costs or increased danger of theft, it can be more expensive to insure a new car over an old car.

Drivers of newer vehicles in Texas should consider purchasing full coverage insurance to get comprehensive and collision coverage, which pays for damages to their vehicle, whether from an at-fault collision or off-road incident like fire, flood or theft.

The actual cash value (ACV) of your vehicle determines how much your insurance company will pay in a comprehensive or collision claim, whether to repair the vehicle or consider it totaled and pay you the ACV. Car insurance premiums may go down as the vehicle ages since the ACV drops, and the insurer may pay out less on a claim.

Auto insurance in Texas may be higher for drivers with a moving violation than for those with a clean motor vehicle record. In Texas, drivers pay the following premium, on average, for a full coverage policy:

• Clean record: $1,183 a year
• Speeding ticket: $1,437 a year
• DWI: $1,747 a year
• At-fault accident: $1,926 a year

Costs usually rise according to how serious the driving infraction is. For example, a DWI will likely result in a higher insurance rate than a speeding ticket.

Some insurers may penalize a driver more than another for a specific violation. You must compare quotes from several companies to get cheap auto insurance in Texas despite a poor record.

Your auto insurance premium could be significantly impacted by your credit history or credit-based insurance score. Texas drivers with poor credit pay, on average, $2,096 annually for a minimum coverage policy, while with an excellent credit score, they only pay $831.

Depending on credit history, Texas drivers pay, on average, the following for minimum coverage:

• Excellent: $831 per year
• Good: $1,021 per year
• Fair: $1,269 per year
• Below fair: $1,531 per year
• Poor: $2,096 per year

It's important to compare quotes to find cheap auto insurance in Texas for drivers with bad credit because insurers may penalize drivers differently for having lower credit ratings.

Your location in Texas may have a large impact on how much you pay for car insurance. For instance, Houston drivers pay around $1,436 annually for a full coverage policy, while Wichita Falls drivers pay roughly $965 annually.

In a city in Texas with a high population density and volume of traffic, such as Houston, car insurance rates are generally more expensive than in smaller towns.

It's common to wonder how much Texas auto insurance typically costs, especially given that prices vary depending on location and individual factors. For more information, look over MoneyGeek's responses to frequently asked questions.