Updated: July 1, 2025
Advertising & Editorial Disclosure
Texas drivers pay 10% more for minimum coverage and 20% more for full coverage auto insurance than the national averages of $726 and $1,493, respectively.
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.
Due to personal factors like driving record, age or credit scores, you may find car insurance in Texas expensive.
Texas drivers pay higher insurance premiums than the national average due to factors that increase crash and claim risks. Below are some of these factors.
Texas drivers face higher car insurance premiums due to 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.
Auto insurance rates in Texas are often 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.
Texas has a high vehicle theft rate. In the 4th quarter of 2024, the state recorded 32,944 motor vehicle thefts. Insurers consider theft rates when setting premiums because they affect the number of comprehensive coverage claims.
The high speed limits in the state contribute to the higher cost of car insurance. With a speed limit reaching 85 mph, Texas has the highest limits in the country. In comparison, the national average is only 69.8 mph. Faster driving speeds increase the risk of car crashes, so insurers tend to charge higher premiums to account for this added risk.
Frequent natural disasters in Texas, such as wildfires, hurricanes, winter storms and tornadoes, increase the risk of vehicle damage and lead to more comprehensive and collision claims. This contributes to higher auto insurance costs in the state.
Around 20% of Texas drivers are uninsured. This adds to the financial burden for insured drivers, as 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, ultimately driving up premiums for everyone who maintains proper coverage.
Car insurance rates in Texas depend on state-specific factors you can't control and personal factors you can influence. While the state-specific issues discussed earlier impact premiums statewide, the following individual factors also play a role in determining your costs.
Auto insurance rates in Texas differ based on location. Where you live within the state impacts your premiums due to varying local risk factors such as crime rates, traffic density, and weather exposure. Find your city and ZIP code below and see the average car insurance cost in your area.
| Abbott | 76621 | $650 | $1,488 |
To find affordable car insurance in Texas, compare quotes from multiple providers, as rates vary by company. Prioritize affordability and excellent customer service to secure the best option. The table below compares rates from different insurers in Texas.
| State Farm | $41 | $489 |
| Geico | $55 | $662 |
| Mercury Insurance | $56 | $667 |
| AAA | $60 | $723 |
| Germania Insurance | $66 | $797 |
| Farmers | $67 | $806 |
| Dairyland | $78 | $938 |
| Allstate | $86 | $1,028 |
| Progressive | $87 | $1,045 |
| Chubb | $91 | $1,089 |
In Texas, auto insurance rates vary by age. Younger drivers often pay higher premiums because insurers consider them high risk due to inexperience and statistical accident rates. The table below shows how rates change with age.
| Adult Drivers | $68 | $814 |
| Senior Drivers | $88 | $1,058 |
| Young Drivers | $159 | $1,903 |
A poor driving record is a major factor in higher auto coverage costs in Texas. Violations like DUIs/DWIs or at-fault accidents can lead to significant rate increases, as insurers classify drivers with violations as high risk. The table below shows average car insurance rates in Texas for various violations.
| Drivers With A Speeding Ticket | $78 | $177 |
| Drivers With An Accident | $94 | $208 |
| Drivers With A DUI | $105 | $223 |
Drivers in Texas with good credit scores often pay less for auto insurance, as insurers consider them lower risk based on statistical correlations between credit responsibility and claim frequency. The table below shows average annual rates in Texas by credit score.
| Poor | $154 | $1,852 |
| Below Fair | $110 | $1,319 |
| None | $95 | $1,141 |
| Fair | $87 | $1,040 |
| Good | $68 | $814 |
| Excellent | $55 | $656 |
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.
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 below to get accurate estimates based on your profile.
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.
Rates updated:
Jul 05, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 | 92 /of 100 | $64 | |
| 2 |  GEICO | 74 /of 100 | $94 |
| 3 |  Nationwide | 88 /of 100 | $104 |
| 4 | 67 /of 100 | $127 | |
| 5 |  Foremost | 70 /of 100 | $138 |
| 6 | 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.
Car insurance tends to be 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.
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.
Bundling home and auto insurance is a smart way to lower 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.
Drivers in Texas have access to several state-specific money-saving opportunities:
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.
Deductible refers to what you pay out of pocket when you file a claim. Choosing a higher deductible can lower your premiums.
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.
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.
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. This article explores these issues and offers strategies to help Texas residents save on car insurance.
We answer common questions about auto insurance rates in Texas to help you understand why your premiums are costly.
Car insurance in Texas is expensive due to several state-specific factors. The state experiences high urban population density, highway density, uninsured motorists rate and vehicle theft rate, creating increased probability of claims. Weather plays a major role, with severe conditions contributing to crashes throughout the year. Texas also has high speed limits that increase accident severity and claim costs.
Texas weather impacts insurance costs through multiple risk factors. Hail damage is common across the state, particularly in northern regions. Hurricane season brings increased comprehensive claims from wind and flood damage. Flash flooding affects major urban areas regularly, while winter storms, though infrequent, can cause substantial damage when they occur. These weather patterns create a higher-risk environment that insurers factor into their pricing.
Auto insurance rates vary across Texas cities due to local risk factors. Major metropolitan areas tend to have higher rates because of increased population density, traffic congestion and crime rates. Urban areas also face greater weather-related risks due to infrastructure and geographic factors. Rural areas have lower rates due to reduced traffic density and lower crime rates, though they still face weather-related challenges.
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.
Car insurance in Texas may be expensive due to factors like a bad driving record, poor credit, age or location.
You need to have auto insurance to legally drive your car 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.
Texas has a higher percentage of uninsured drivers compared to the national average, which impacts premiums for insured drivers. When uninsured motorists cause accidents, costs often fall on insured parties or the state, creating additional expenses that insurers factor into their pricing.
Texas experiences higher vehicle theft rates than many other states, particularly in major metropolitan areas. Insurers consider theft statistics when setting comprehensive coverage rates, as stolen vehicles result in total loss claims that increase costs for all policyholders in affected areas.
Choosing car insurance in Texas isn't just about finding the cheapest rate. It's about securing financial protection that works when you need it most. With Texas drivers facing some of the nation's highest accident rates and insurance fraud levels, we designed our analysis to help you find coverage that balances affordability with real-world protection.
Our Data Foundation
We analyzed 328,384 auto insurance quotes across Texas, drawing from the Texas Department of Insurance and Quadrant Information Services. This comprehensive dataset covers 14 major insurers operating in 370 ZIP codes throughout Texas, ensuring our findings reflect the actual market you'll encounter when shopping for coverage
Sample Driver Profile
Our analysis centers on a realistic Texas driver profile:
When analyzing rates for specific demographics, young drivers, seniors or high-risk drivers, we adjusted this baseline profile accordingly while maintaining consistent methodology across all scenarios.
Coverage Levels Analyzed
Minimum Coverage (Texas State Requirements):
Full Coverage Analysis:
Bundled Home and Auto Analysis
For homeowners seeking package discounts, we included homeowners insurance with:
This approach reveals the true cost savings available through bundling, a strategy that can reduce your total insurance expenses by 5% to 25% depending on the insurer.
Learn more about MoneyGeek's methodology.
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.
