Many factors influence car insurance rates in Texas. While you can’t change things like traffic or weather, improving your driving record or credit score can help lower what you pay.
Why Is Car Insurance So Expensive in Texas?
Updated: February 4, 2026
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Key Takeaways
Texas drivers pay 10% more for minimum coverage and 21% more for full coverage auto insurance than the national averages of $726 and $1,493, respectively, based on MoneyGeek's analysis of insurance quotes.
State-specific factors, such as Texas's large urban population, higher-than-average theft rate and frequent natural disasters, contribute to higher car insurance costs across all demographics.
Personal factors like your driving record, age and credit score can make Texas car insurance even more expensive.
Reasons Why Car Insurance Is Expensive for Texas Drivers
Texas car insurance costs more than the national average. Traffic congestion, severe weather and high theft rates drive up premiums across the state. Texas drivers pay 21% more for full coverage than the national average. Understanding what causes these high costs helps you find ways to reduce them.
- Chevrolet Silverado 1500 (6,453 thefts in 2024)
- GMC Sierra 1500 (4,000+ thefts in 2024)
- Hyundai Elantra (3,100+ thefts in 2024)
Higher-Than-Average Highway Density
Texas maintains over 680,000 miles of public roads—more than any other state. The extensive highway network creates constant traffic exposure. More time on crowded roads means more accidents, which pushes up premiums statewide.
High Urban Population Density
Over 80% of Texas's 30 million residents live in urban areas. Cities like Houston, Dallas, San Antonio and Austin see higher accident rates, more vehicle theft and increased vandalism. Insurers charge higher premiums in these metro areas to offset claim frequency.
Vehicle Theft
Texas recorded 32,944 motor vehicle thefts in the fourth quarter of 2024 according to the Texas Department of Public Safety. Certain vehicles get stolen more often, affecting comprehensive coverage costs:
If you own one of these vehicles, expect higher comprehensive premiums due to the increased risk of theft. High theft numbers drive up comprehensive coverage claims statewide.
High Speed Limits
Texas posts the nation's highest speed limits. State Highway 130 between Austin and San Antonio allows 85 mph—the fastest legal speed in the United States. This 41-mile section of Highway 130 holds the highest posted speed limit in the Western Hemisphere. Higher speeds mean more severe accidents and costlier claims, which insurers factor into premiums.
Frequent Natural Disasters
Natural disasters strike Texas regularly. Hurricane Harvey caused $125 billion in damage in 2017 according to the National Oceanic and Atmospheric Administration. The February 2021 winter storm resulted in over 17,000 vehicle insurance claims statewide according to the Texas Department of Insurance.
Texas averages 132 tornadoes annually according to the Texas Almanac, with most occurring from April through June. Wildfires burn across West Texas during drought conditions, particularly affecting rural areas.
These disasters increase vehicle damage risk and lead to more comprehensive and collision claims, which drives up costs for all drivers statewide.
Uninsured Drivers
Around 20% of Texas drivers are uninsured, adding to the financial burden for insured drivers; insurance companies account for the higher likelihood of accidents involving uninsured motorists who can't pay for the damages they cause. When uninsured drivers cause accidents, the costs often fall on the insurance policies of responsible drivers through uninsured motorist coverage claims, driving up premiums for everyone.
Factors That Affect Texas Car Insurance Rates
1. Specific Texas Locations and ZIP Codes
Insurance costs vary by nearly 100% across Texas cities. Houston drivers in ZIP code 77071 pay $259 monthly for full coverage, almost double what Killeen residents pay at $133 monthly in ZIP code 76542. That's a $1,512 annual difference based solely on location.
Dallas and San Antonio span wide ranges, with some neighborhoods priced at $177 and others exceeding $220. Most Austin areas fall between $144 and $202. El Paso stays more consistent at $142-182, while Denton holds tight at $145-149. Check your specific ZIP code in the table for the premium applicable to your area.
Data filtered by:
Amarillo
| Amarillo | 79101 | $66 | $153 |
| Amarillo | 79102 | $67 | $154 |
| Amarillo | 79103 | $67 | $154 |
| Amarillo | 79104 | $87 | $198 |
| Amarillo | 79106 | $66 | $152 |
| Amarillo | 79107 | $87 | $198 |
| Amarillo | 79108 | $66 | $152 |
| Amarillo | 79109 | $66 | $153 |
| Amarillo | 79110 | $66 | $153 |
| Amarillo | 79111 | $66 | $152 |
| Amarillo | 79118 | $63 | $147 |
| Amarillo | 79119 | $63 | $145 |
| Amarillo | 79121 | $64 | $148 |
| Amarillo | 79124 | $65 | $149 |
| Amarillo | 79178 | $70 | $161 |
2. Car Insurance Companies in Texas
Find affordable car insurance in Texas by comparing quotes from multiple providers. Rates vary widely by company. Focus on affordability and strong customer service. Compare Texas insurer rates in this table:
Data filtered by:
Full Coverage
| State Farm | $95 | $1,135 |
| Geico | $113 | $1,358 |
| AAA | $126 | $1,514 |
| Mercury Insurance | $129 | $1,542 |
| Germania Insurance | $137 | $1,650 |
| Progressive | $147 | $1,758 |
| Chubb | $169 | $2,023 |
| Farmers | $200 | $2,401 |
| Allstate | $208 | $2,497 |
| Dairyland | $244 | $2,923 |
3. Driver Age
Car insurance rates in Texas change based on your age. Young drivers pay more because insurers see them as high risk due to inexperience and higher accident rates. The table shows how rates vary by age.
Note: Teen drivers under 18 must meet additional state licensing requirements and may have different coverage obligations.
Data filtered by:
Full Coverage
| Adult Drivers | $155 | $1,865 |
| Senior Drivers | $182 | $2,184 |
| Young Drivers | $339 | $4,066 |
4. Driving Record and Texas Motor Vehicle Law
Your driving record changes car insurance costs in Texas. DUIs, DWIs or at-fault accidents raise your rates because insurers see these drivers as high risk. Compare average Texas rates by violation type in the table below.
| Drivers With A Speeding Ticket | $78 | $177 |
| Drivers With An Accident | $94 | $208 |
| Drivers With A DUI | $105 | $223 |
5. Credit Score
Good credit scores mean lower auto insurance in Texas. Insurers charge less because statistics show credit-responsible people file fewer claims. See how a bad credit score changes Texas car insurance costs:
Data filtered by:
Full Coverage
| Poor | $363 | $4,360 |
| Below Fair | $258 | $3,102 |
| None | $222 | $2,666 |
| Fair | $204 | $2,443 |
| Good | $155 | $1,865 |
| Excellent | $128 | $1,541 |
6. Vehicle Make and Model
Your car's make and model change insurance costs. High-value vehicles cost more because repairs and replacements are expensive. Sports cars cost more because they crash and get stolen more. Older cars are often cheaper to insure than new ones because they're worth less.
How to Find Cheap Car Insurance in Texas
Texas car insurance costs beat national averages. Urban and high-risk area drivers pay the most. Cut premiums with these strategies while keeping essential coverage:
- 1Compare Rates from Multiple Providers
Insurance companies calculate premiums differently. State Farm charges some drivers $95 per month, while Progressive charges the same driver $155 per month for identical coverage. Use MoneyGeek's Texas quote tool to check potential savings based on your driving profile and location.
- 2Bundle Your Policies
Bundling home and auto insurance lowers your overall premiums. Many providers offer discounts to those who combine multiple types of coverage. Explore top companies for bundling to find one that fits your needs.
- 3Take Advantage of Discounts
Drivers in Texas have access to several state-specific money-saving opportunities by stacking multiple discounts:
- Defensive driving course: Complete a Texas-approved defensive driving course to reduce your premiums. These state-certified programs can provide ongoing discounts and help offset violation-related rate increases.
- Good student discounts: Texas insurers offer discounts for students maintaining good grades. If you have a student driver in your household, ask about academic achievement discounts that can reduce your family's premiums.
- Low-mileage discounts: Texas urban drivers working from home or those with short commutes benefit from low-mileage discounts. Many insurers offer discounted rates for people who log fewer miles annually.
- Anti-theft device credits: Adding a certified anti-theft system can reduce your premiums if you live in an area with elevated theft rates. Insurers provide discounts to drivers who use these devices because they lower the risk of loss.
- 4Adjust Coverage for Texas Weather Risks
Texas drivers can decline Personal Injury Protection (PIP) and Uninsured/Underinsured Motorist coverage if you have solid health insurance. But given Texas's 20% uninsured driver rate and frequent severe weather, dropping comprehensive coverage creates risk. Weigh your savings against potential out-of-pocket costs.
- 5Increase Your Deductible
Increasing your deductible from $500 to $1,000 reduces annual premiums by $150 to $300. Raising it to $1,500 saves an additional $75 to $150 yearly. Make sure you can afford the higher out-of-pocket costs if you file a claim.
- 6Consider Pay-Per-Mile Insurance
Texas residents driving under 10,000 miles annually save with pay-per-mile insurance. This coverage charges a low base rate plus per-mile fees. Urban drivers working from home or those with short commutes benefit most from this option.
- 7Drop Unnecessary Coverage
Dropping comprehensive insurance can save money if premiums exceed 10% of your car's value, but ensure it won't leave you underinsured. Consider Texas's frequent severe weather when making this decision.
Cheapest Car Insurance Providers in Texas
Rates vary by age, driving history and credit score, so the cheapest company changes by driver type. The table shows most affordable Texas providers for different drivers to help you compare options and find coverage that fits:
| Young Drivers | Geico | $150 | $1,797 |
| Adult Drivers | State Farm | $68 | $812 |
| Senior Drivers | State Farm | $76 | $917 |
| Drivers With An Accident | State Farm | $78 | $935 |
| Drivers With A DUI | State Farm | $104 | $1,251 |
| Drivers With A Speeding Ticket | State Farm | $67 | $807 |
| Drivers With Bad Credit | Geico | $132 | $1,588 |
| Drivers With Low Income | Geico | $88 | $1,060 |
| Drivers With Newer Cars | Geico | $90 | $1,080 |
| Drivers With Old Cars | State Farm | $61 | $733 |
Why Auto Insurance in Texas Is so Expensive: Bottom Line
Auto coverage in Texas costs more due to extensive highway networks, high vehicle theft rates, record speed limits, urban density and frequent natural disasters. These factors increase accidents and claims, driving up premiums across the state. While you can't control these risk factors, you can shop around, bundle policies and use Texas-specific discounts to lower costs.
Texas Car Insurance Cost Factors: FAQ
We’ve answered some of the most common questions about car insurance in Texas to help explain why rates can be so high.
Why does Texas have higher car insurance rates than other states?
Car insurance in Texas is expensive because of several Texas-specific factors. The state has high urban population density, highway density, uninsured driver rates and vehicle theft rates, leading to more claims. Weather is a big factor, with severe conditions causing crashes throughout the year. Texas also has high speed limits that make accidents worse and claims more expensive.
How do weather conditions affect car insurance rates in Texas?
Texas weather affects insurance costs in several ways. Hail damage is common across the state, especially in northern regions. Hurricane season brings more comprehensive claims from wind and flood damage. Flash flooding hits major urban areas regularly, while winter storms can cause major damage when they happen. These weather patterns make Texas riskier, so insurers charge more.
Why are car insurance rates different between Texas cities?
Car insurance rates vary across Texas cities because of local risk factors. Major cities have higher rates because of more people, traffic congestion and crime. Urban areas also experience greater weather-related risks because of their infrastructure and location. Rural areas tend to have lower rates due to less traffic and crime, though they still encounter weather issues.
How much does car insurance cost in Texas?
The average annual auto insurance cost in Texas is $795 for minimum coverage and $1,799 for full coverage. Rates vary depending on your profile and the provider you choose.
Why is my Texas car insurance expensive?
Your Texas car insurance might be expensive because of factors like a bad driving record, poor credit, age or where you live. Check out our guide on factors that affect Texas rates for more details.
Car Insurance Rates in Texas: Our Review Methodology
Choosing car insurance in Texas means more than just getting the cheapest rate. You need financial protection that works when you file a claim. Texas drivers deal with some of the nation's highest accident rates and insurance fraud levels, so our analysis helps you find coverage that balances cost with real financial protection.
We analyzed 328,384 auto insurance quotes across Texas using data from the Texas Department of Insurance and Quadrant Information Services. This dataset covers 14 major insurers in 370 ZIP codes throughout Texas, so our findings reflect the actual market when you shop for coverage.
Texas Car Insurance Costs: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in 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!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
sources
- Insurance Institute for Highway Safety. "Maximum Speed Limits by State." Accessed October 11, 2025.
- Texas Department of Motor Vehicles. "TexasSure - Insurance Verification." Accessed October 11, 2025.
- Texas Department of Public Safety. "4th Quarter Report (2024/Q4) Crime in Texas." Accessed October 11, 2025.