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: October 20, 2025
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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
Car insurance tends to cost more in Texas than in many other states. Things like traffic, weather, and claim frequency all contribute to those higher prices.
Higher-Than-Average Highway Density
Texas drivers pay higher car insurance premiums because of the state's heavy traffic, dense highways, and long roadways. Spending more time on crowded roads increases the likelihood of crashes, making drivers in Texas a higher risk for insurers.
High Urban Population Density
Auto insurance rates in Texas are higher due to the state's large urban population. Urban areas tend to have more accidents, thefts and vandalism, leading to more claims. Insurers charge higher premiums to account for the increased risk.
Vehicle Theft
Texas has a high vehicle theft rate. In the fourth quarter of 2024, the state recorded 32,944 motor vehicle thefts. High theft numbers like these lead to more comprehensive coverage claims, which is one reason premiums in the state are higher.
High Speed Limits
Texas has the highest speed limits in the country, reaching 85 mph compared to the national average of 70 mph. Faster driving speeds increase the risk of car crashes, leading insurers to charge higher premiums.
Frequent Natural Disasters
Natural disasters in Texas, wildfires, hurricanes, winter storms and tornadoes, increase vehicle damage risk and lead to more comprehensive and collision claims, contributing to higher auto insurance costs.
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
Texas auto insurance rates average $133 to $259 monthly for full coverage. Houston posts the highest premiums, while Killeen offers the most affordable options.
Killeen zip code 76542 delivers Texas's lowest rate at $133 monthly. El Paso neighborhoods range from $142-182, and Denton stays tight at $145-149. Houston tells a different story—77071 residents pay $259 monthly, nearly double what many other Texas cities charge. Dallas and San Antonio neighborhoods spread across wide ranges too, with some zip codes hitting $177 while others climb past $220. Most Austin areas fall between $144-202, though a few neighborhoods push higher. Your specific zip code determines your actual premium, so check the detailed breakdown below.
Data filtered by:Results filtered by:
Amarillo
City: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
To find affordable car insurance in Texas, compare quotes from multiple providers because rates vary by company. Prioritize affordability and excellent customer service to secure the best option. Compares rates from different insurers in Texas in this table:
Data filtered by:Results filtered by:
Full Coverage
Coverage: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:Results filtered by:
Full Coverage
Coverage: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 affects car insurance costs in Texas. Violations like DUIs or DWIs or at-fault accidents can raise your rates because insurers view drivers with violations as high risk. Compare average Texas car insurance rates for different violations.
| Drivers With A Speeding Ticket | $78 | $177 |
| Drivers With An Accident | $94 | $208 |
| Drivers With A DUI | $105 | $223 |
5. Credit Score
Drivers in Texas with good credit scores often pay less for auto insurance because insurers consider them lower risk based on statistical correlations between credit responsibility and claims frequency. See how your credit score can affect car insurance costs in Texas in the table below.
Data filtered by:Results filtered by:
Full Coverage
Coverage: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 can greatly influence insurance costs. High-value vehicles have higher premiums due to increased repair or replacement expenses. Sports cars often cost more to insure because they’re at higher risk for accidents and theft. Older cars, with depreciated value, are often cheaper to insure than newer models.
Calculating Texas Car Insurance Estimates
Companies calculate car insurance premiums differently using various factors and algorithms. To find the best car insurance companies and most affordable options, compare quotes from multiple providers. Use MoneyGeek's calculator to get accurate estimates based on your profile.
Car Insurance Calculator
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
$155
High
$114
Average
$64
Low
Rates updated:
Oct 21, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  State Farm | 92 /of 100 | $64 |
| 2 |  GEICO | 74 /of 100 | $94 |
| 3 |  Nationwide | 88 /of 100 | $104 |
| 4 |  Allstate | 67 /of 100 | $127 |
| 5 |  Foremost | 70 /of 100 | $138 |
| 6 |  Progressive | 71 /of 100 | $155 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
How to Find Cheap Car Insurance in Texas
Car insurance is more expensive in Texas, especially for drivers in urban or high-risk areas. If your current premiums feel too high, there are practical ways to lower your car insurance costs without sacrificing essential financial protection:
- 1
Compare Rates from Multiple Providers
Insurance companies calculate premiums differently. One of the easiest ways to cut costs is to get quotes from several carriers. Use MoneyGeek's quote tool to check potential savings based on your driving profile and location.
- 2
Bundle 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.
- 3
Take Advantage of Discounts
Drivers in Texas have access to several state-specific money-saving opportunities:
- Defensive driving course credits: 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.
- 4
Consider Optional Coverage Adjustments
Texas drivers can choose not to buy Personal Injury Protection (PIP) and Uninsured/Underinsured Motorist coverage. If you already have solid health insurance, adjusting these optional protections might lower your premiums.
- 5
Increase Your Deductible
Your deductible is what you pay out of pocket when you file a comprehensive or collision claim. Choosing a higher deductible can lower your premiums. Liability coverage doesn't have a deductible.
- 6
Consider Pay-Per-Mile Insurance
Texas residents who drive less than 12,000 miles annually may find pay-per-mile car insurance a more economical option. This type of coverage charges based on how much you drive.
- 7
Drop 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
Car insurance rates vary based on age, driving history and credit score, so the cheapest company can differ by driver profile. The most affordable providers in Texas for different types of drivers are highlighted in the table, helping you compare options and find coverage that best fits your needs.
| 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 is costly due to dense highways, high vehicle theft rates, high-speed limits, dense urban areas and frequent natural disasters. These factors increase both accidents and claims, driving up premiums across the state. While you can't control these statewide risk factors, you can shop around, bundle policies and take advantage of 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.
Do you have to have car insurance in Texas?
Yes, you need auto insurance to legally drive in Texas.
What is the minimum insurance requirement in Texas?
Texas car insurance laws require all drivers to carry insurance with $30,000 liability coverage per person, $60,000 per accident and $25,000 in property damage liability. These are minimum required amounts and may not provide adequate financial protection for serious accidents.
How does Texas's uninsured driver problem affect my rates?
Texas has more uninsured drivers than the national average, which drives up rates for everyone else. When uninsured drivers cause accidents, the costs often fall on insured drivers or the state, creating extra expenses that insurers pass on through higher premiums.
How do Texas vehicle theft rates impact my premiums?
Texas has higher vehicle theft rates than many other states, especially in major cities. Insurers look at theft statistics when setting comprehensive coverage rates because stolen vehicles result in total loss claims that drive up costs for everyone in those areas.
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.
Our Data Foundation
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.
Sample Driver Profile
Our analysis uses a realistic Texas driver profile:
- 40-year-old male driver
- 2012 Toyota Camry LE (one of Texas's most popular vehicles)
- Clean driving record
- 12,000 miles driven annually
When analyzing rates for young drivers, seniors or high-risk drivers, we adjusted this baseline profile while keeping our methodology consistent.
Coverage Levels Analyzed
Minimum Coverage (Texas State Requirements):
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
Full Coverage Analysis:
- $100,000 bodily injury liability per person
- $100,000 property damage liability
- Comprehensive and collision coverage with $1,000 deductibles
Bundled Home and Auto Analysis
For homeowners seeking package discounts, we included homeowners insurance with:
- $250,000 dwelling coverage
- $100,000 personal property coverage
- All-perils coverage with $1,000 deductible
This approach shows the real cost savings from bundling, which can reduce your total insurance costs by 5% to 25%, depending on the insurer.
Learn more about MoneyGeek's methodology.
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. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
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.