Car Insurance in Texas
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Introduction: Car Insurance in Texas
Texas is home to over 22 million licensed drivers, making it one of the largest driving states in the U.S. Whether you’re navigating Houston’s highways, cruising through Austinβs scenic roads, or dealing with Dallas traffic, car insurance in Texas is essential for financial protection and legal compliance.
Texas also has some of the highest car insurance rates in the country due to extreme weather, heavy traffic, and a large number of uninsured drivers. According to the National Association of Insurance Commissioners (NAIC), the average annual cost of full coverage in Texas is $2,019, which is higher than the national average of $1,674.
Texas Car Insurance Requirements (State Laws & Minimum Coverage)
Minimum Liability Coverage (30/60/25 Rule)
According to the Texas Department of Insurance (TDI), drivers must carry at least:
β $30,000 for bodily injury per person
β $60,000 for bodily injury per accident
β $25,000 for property damage
Why Minimum Coverage May Not Be Enough:
- Medical expenses can quickly exceed the $30,000 minimum.
- Vehicle repairs after an accident may cost more than $25,000.
- Nearly 20% of drivers in Texas are uninsured.
Recommended Full Coverage for Better Protection
For greater financial security, many drivers choose full coverage:
| Coverage Type | What It Covers | Recommended For |
|---|---|---|
| Collision Coverage | Pays for damage to your car in an accident | Drivers with new or financed vehicles |
| Comprehensive Coverage | Covers theft, vandalism, and weather damage | Essential in storm-prone Texas |
| Uninsured/Underinsured Motorist (UM/UIM) | Covers injuries from uninsured drivers | Important since Texas has many uninsured drivers |
| Personal Injury Protection (PIP) | Covers medical expenses regardless of fault | Beneficial for drivers without health insurance |
Average Cost of Car Insurance in Texas
Car insurance rates in Texas vary based on location, driving history, and vehicle type. Below is an average cost breakdown:
Texas Car Insurance Cost by Coverage Type
| Coverage Type | Average Annual Cost |
|---|---|
| Minimum Liability | $754 |
| Full Coverage | $2,019 |
Car Insurance Costs by Major Texas Cities
| City | Minimum Coverage | Full Coverage |
|---|---|---|
| Houston | $880 | $2,500 |
| Dallas | $850 | $2,400 |
| Austin | $750 | $2,100 |
| San Antonio | $790 | $2,200 |
| Fort Worth | $770 | $2,150 |
| El Paso | $720 | $1,900 |
| Arlington | $740 | $2,000 |
| Corpus Christi | $730 | $2,050 |
| Plano | $760 | $2,100 |
| Laredo | $710 | $1,850 |
| Lubbock | $700 | $1,800 |
| Irving | $750 | $2,100 |
| Amarillo | $690 | $1,750 |
| Brownsville | $680 | $1,700 |
| McAllen | $690 | $1,750 |
Car Insurance Costs by Age Group
| Age Group | Minimum Coverage | Full Coverage |
|---|---|---|
| 16-19 Years | $3,500 β $5,500 | $6,000 β $8,000 |
| 20-24 Years | $1,800 β $2,500 | $3,800 β $5,000 |
| 25-34 Years | $1,100 β $1,800 | $2,800 β $3,500 |
| 35-44 Years | $950 β $1,500 | $2,400 β $3,200 |
| 45-54 Years | $900 β $1,400 | $2,200 β $3,000 |
| 55+ Years | $850 β $1,300 | $2,000 β $2,800 |
β Teen Drivers (16-19 Years): Pay the highest premiums due to lack of experience and higher accident rates. Many insurers offer good student discounts to help lower costs.
β Young Adults (20-24 Years): Rates start to decrease as driving experience improves, but costs remain high compared to older drivers.
β Mid-Age Drivers (25-49 Years): Experience the lowest insurance premiums due to lower accident risks and a longer driving history.
β Senior Drivers (70+ Years): Rates increase again as older drivers face higher accident risks due to slower reaction times and medical conditions.
Factors Affecting Car Insurance Rates in Texas
Your car insurance premium in Texas depends on several factors:
- Driving Record: Accidents and speeding tickets increase rates.
- Credit Score: Texas allows insurers to consider credit history when determining premiums.
- Annual Mileage: More miles driven = higher risk.
- Location: Urban areas like Houston and Dallas have higher rates than rural towns.
- Vehicle Type: Luxury and sports cars cost more to insure.
- Coverage Level: Full coverage costs more than minimum liability.
Best Car Insurance Companies in Texas (2025)
Finding the right insurer depends on affordability, coverage, and customer satisfaction. Here are some top options:
| Company | Best For | Average Annual Cost (Full Coverage) |
|---|---|---|
| GEICO | Cheapest Rates | $1,900 |
| State Farm | Best for Customer Service | $2,000 |
| Progressive | Best for High-Risk Drivers | $2,300 |
| Allstate | Best Full Coverage Options | $2,400 |
| USAA (Military Families) | Lowest Rates for Military | $1,600 |
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FAQs
Texas law requires 30/60/25 liability coverage: $30,000 per person for injuries, $60,000 per accident, and $25,000 for property damage.
The average minimum coverage costs around $63 per month, while full coverage averages $168 per month.
Smaller cities like Amarillo and Lubbock tend to have lower rates compared to Houston or Dallas.
Uninsured motorist coverage is not required but is highly recommended, as 20% of drivers in Texas are uninsured.
Yes, some insurers specialize in high-risk drivers, but expect higher premiums. Improving your driving record over time can reduce costs.
Sources
- Texas Department of Insurance (TDI) β Official regulations and consumer resources
- National Association of Insurance Commissioners (NAIC) β Insurance cost reports and comparisons
- Insurance Information Institute (III) β Industry insights on policy trends and coverage options
About the Author
Alex Huber is a content writer for Atoz Insurances and he is a very experienced and well-rounded freelance content writer who specializes in the insurance and finance niches. His writing is engaging and informative, and he has a strong understanding of the industries he writes about.
