Car Insurance in California vs. Texas: Costs, Laws and Resources

If you’re considering moving from California to Texas or vice versa, you may find different car insurance requirements in each state. The two states both require the same coverages, but they have different limits. In California, you’re required to have $30,000 in bodily injury liability, while Texas requires that you have $60,000.

MoneyGeek analyzed the differences between car insurance laws in California vs. Texas. We broke down costs and identified the cheapest providers to help you find the best deals.

California and Texas require the same car insurance coverages, but they differ in limits. California car insurance laws require $30,000 in bodily injury liability and $5,000 in property damage liability, whereas Texas car insurance laws require $60,000 and $25,000, respectively.

Despite more insurance requirements, the average annual cost of a minimum car insurance policy in Texas is equal to California at $665 per year. This is because car insurance costs are affected by factors beyond coverage, such as population density and accident frequency.

California and Texas are both tort states. This means, in the event of an accident, the at-fault driver pays for medical costs, loss of wages and vehicle damages of the other driver. On average, car insurance in tort states is more affordable than no-fault states, where a driver’s insurance pays for their own injuries and damages.

MoneyGeek’s analysis reveals you can find the most affordable state minimum policies in California and Texas from these companies:

• Cheapest in California: Progressive ($481 per year)
• Cheapest in Texas: Farmers ($420 per year)

Provider rates can vary significantly by state: although Farmers offers the cheapest car insurance in Texas, they are the most expensive provider in California.

State minimum car insurance policies cost an average of $665 per year in both California and Texas are $665. Meanwhile, full coverage car insurance in California costs around $1,429 per year, and the same policy is approximately $1,316 in Texas.

Even though both states have similar costs for state minimum policies, providers in Texas offer more affordable full coverage insurance. This is evidence of how premium prices can change based on various factors.

Car insurance costs in California and Texas are affected by various reasons, so it’s impossible to pin a difference in cost on one factor alone. For example, California has more dense highways, uninsured drivers and reported stolen vehicles, all of which cause car insurance rates in the state to be more expensive than those in Texas.

While the price of car insurance varies between states, they can also change between cities within a state.

In California, Santa Maria has the most affordable policies at around $509 per year and Glendale offers the most expensive policies at roughly $1,066 per year. On the other hand, car insurance in Texas is cheapest in Abilene at approximately $480 per year and Houston’s policies are most expensive at about $806 per year.

Because car insurance requirements and laws are the same within a state, they affect the cost of your premium. However, living in a more densely populated part of the state may increase the cost of your car insurance.

After moving from California to Texas or vice versa, you’ll need to update your driver’s license and registration. If you’re happy with your current carrier, you can stay with them as long as they cover your new state. However, your premium prices may change according to your location’s risks and coverage requirements.

Conversely, if you’re shopping around for a new provider, MoneyGeek’s resources can help you find the highest-rated policies that meet your driving profile.

Car insurance requirements and costs often change from one state to another. MoneyGeek answered some frequently asked questions to help you know more about car insurance in California vs. Texas.

To calculate average car insurance rates by company and across California and Texas, MoneyGeek collaborated with Quadrant Information Services to collect auto insurance quotes from both locations. We used a sample profile for a 40-year-old driver with a clean driving record and minimum coverage unless modified by criteria like coverage level, age, driving offenses and credit score. Learn more about how costs are calculated in our MoneyGeek car insurance methodology.

Minimum car insurance requirements by state were sourced from the Department of Motor Vehicles (DMV) of the respective state.