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MoneyGeek’s car insurance calculator provides a ballpark figure for the cost of car insurance in Texas for you. That baseline can help get started on shopping around for the best rate.
The cost of auto insurance is influenced by many different factors. MoneyGeek looked into how insurance companies calculate premiums for car insurance in Texas and found which factors have the most significant effect on your car insurance premiums.
Texas Car Insurance Calculator: How it Gets You an Instant, Free Estimate
To acquire an accurate car insurance quote, you must provide a variety of personal information to your prospective insurer. The entire process typically takes around 10–15 minutes to complete.
Using your age, coverage levels, vehicle type and driving record, Moneygeek's auto insurance calculator for Texas estimates how much your car insurance might cost you per year or per month.
MoneyGeek found that the factors that most significantly affect your car insurance in Texas are adding a teen driver to your policy, the coverage levels you choose and your age.
The cheapest car insurance company in Texas for you depends on a number of factors, but you can get a close estimate of your premium using MoneyGeek's calculator. Farmers is the cheapest widely-available company for our default 40-year-old driver in Texas, at an average of $452 per year.
In addition to cost, the insurance provider’s customer service quality and availability of the coverages you want are other important factors to consider.
When you’re researching how much insurance you need and how much it will cost, we recommend using our car insurance calculator and browsing our collection of sample drivers in MoneyGeek’s cheapest car insurance in Texas guide.
We’ve analyzed the average cost of auto insurance in Texas, the results of which can give you a better understanding of how insurance rates compare across the state.
You can find the best car insurance companies in Texas from our guide, in which we scored insurance providers on how effectively they balance affordability with service quality.
How Car Insurance Premiums are Calculated in Texas
In Texas, car insurance companies consider several factors to determine your premium. The elements considered include age, gender, coverage levels, car model, driving record, and driver profile.
Our research finds that the primary factors that affect your premiums are adding a teen driver to your policy, how much coverage you select and your age.
In Texas, adding a teen driver to your car insurance policy may increase your premium by as much as 3.6x.
How Much Adding a Teen Driver Matters in Calculating Car Insurance in Texas
There’s a reason insurance costs more if you add a teen driver to your family car insurance policy. Teens are young and inexperienced and are perceived to be more likely involved in an accident. That makes them a higher risk to insure than older drivers.
In Texas, adding a teen to your coverage can multiply your premium by up to 3.6x.
How Much Coverage Levels Matters in Calculating Car Insurance in Texas
The level of coverage you select also has an impact on the price of your car insurance. Increased coverage gives you more protection, but it means higher premiums.
Depending on your coverage level, you may have to spend up to 2.4x more. The state minimum liability-only policy is the cheapest, while full coverage is the most expensive.
How Much Age of Driver Matters in Calculating Car Insurance in Texas
Another important element to consider when calculating the cost of car insurance in Texas is your age. Teen drivers pay more than middle-aged drivers, as do senior drivers. Depending on your age, your insurance premiums might increase by up to 2.4x.
A 40-year-old driver pays the cheapest car insurance in Texas, while the most expensive insurance policy is for drivers between 19 and 20.
How Much Credit Score Matters in Calculating Car Insurance in Texas
An excellent credit score will get you the most affordable auto insurance rates in Texas. This is especially true when it’s paired with a clean driving record with no history of accidents.
In Texas, having poor credit impacts the amount you’ll pay for car insurance significantly. You'll pay approximately 2.3x more than a driver with an excellent credit score.
How Much Car Model Matters in Calculating Car Insurance in Texas
The type of vehicle you drive will also affect the cost of your car insurance in Texas. This is because some models are more expensive to insure. Drivers with high-value vehicles that require expensive parts and repairs, for example, may pay more for insurance. The same goes for car models that are more subject to theft.
For example, a compact SUV or sedan can be as much as 2x cheaper to insure than a luxury sports car.
How to Calculate How Much Car Insurance You Need in Texas
One of the primary factors in determining the cost of car insurance in Texas is the level of coverage you get. Calculating how much coverage you need can help you find a balance between the cost you can afford and the protection you want.
Bodily injury liability and property damage liability insurance are required in Texas. Depending on your circumstances, you may want to consider buying additional liability insurance and comprehensive and collision coverage.
Understand Texas car insurance requirements
You'll be able to figure out how much auto insurance you'll need by reviewing the minimum requirements for car insurance in Texas.
Drivers in Texas are required by law to carry at least 30/60/25 coverage. This means you should have at least $30,000 of coverage for injuries per person, $50,000 for bodily injury liability per accident and $15,000 property damage liability per accident. Unless you waive it in writing, personal injury protection (PIP) insurance of at least $2,500 is also required.
Texas also does not require comprehensive and collision insurance, which protects your vehicle from damage caused by accident. Although it’s much more expensive, full insurance offers the most protection.
Consider Purchasing Additional Liability Insurance
Minimum insurance gives a minimal level of protection against the costs that may arise from an accident. To protect yourself from the financial consequences of a major accident, you may need higher liability insurance.
In Texas, the average cost of minimum liability insurance is $558 per year. The average cost for insurance with $300,000 in bodily injury liability per accident is $844 per year.
Decide whether or not to buy comprehensive and collision insurance
You should decide if a full-coverage policy, which includes comprehensive and collision coverage, is right for you. While this coverage is not required by Texas law, it may be by lenders if you are leasing or financing your car.
In Texas, the average annual cost of adding comprehensive and collision coverage with a $1,000 deductible is $436. If your car’s replacement value is very low, it might be smarter financially to waive that coverage.
Consider buying additional protection besides these core coverages
Although uninsured motorist insurance is not part of the minimum car insurance requirements in Texas, you may wish to consider purchasing it in a state where approximately 8.3% of drivers are uninsured.
Uninsured/underinsured motorist coverage covers the cost of medical bills and lost wages due to injuries sustained in an accident by a driver without insurance.
You can also consider purchasing medical payments insurance. Known as MedPay, it’s an add-on that covers your medical expenses in an accident regardless of fault.
Frequently Asked Questions About How Car Insurance is Calculated in Texas
If you know what factors go into determining your premium, you can make better choices about your auto insurance. Some frequently asked questions about Texas car insurance are included below.
MoneyGeek partnered with Quadrant Data Services to get car insurance quotes from across Texas. Our data science team analyzed how personal factors impacted cost and incorporated our findings into our calculator to provide users with an accurate estimate of their expected yearly auto insurance costs. Read more about our methodology here.
About Mark Fitzpatrick