Car insurance is extremely important for drivers who want a safe state of mind as the road is always full of unpredictable perils and unexpected risks. And if you are a car owner driving in the bustling cities of Texas like Dallas, Houston, and Austin, you definitely want to consider investing in a good car insurance policy.
Texas can be an expensive state to get car insurance, so we recommend that car drivers consult with local insurance agents to get car insurance policies that don’t break the bank.
Car insurance is also mandatory in Texas, so as a car owner, you need to continually learn about the minimum coverage requirements, the cost of auto policies, and the available discounts.
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Popular Car Insurance Coverages in the State
Standard Coverage
- Liability Coverage
- Personal Injury Protection (PIP)
- Medical Payments Coverage
- Underinsured/Uninsured Motorist Coverage
Recommended Coverage
- Collision Coverage
- Comprehensive Coverage
- Full Coverage
- Rental Reimbursement Coverage
Optional Coverage
- Loss of Use Coverage
- Towing and Labor Coverage
Average Car Insurance Rates in Texas in 2023
Texas’s approach to auto insurance differs slightly from that of other states. For starters, the law mandates that all drivers carry liability insurance, which covers any damage or injuries caused by another driver. Although it is not mandated by law, drivers are free to choose to obtain supplemental insurance, such as collision and comprehensive coverage.
The average car insurance cost in Texas is slightly higher than the national average at $1868 annually.
In Texas, the type of vehicle being insured, the driver’s age, driving record, and credit score all affect how much a policy will cost. Here are the average car insurance rates in Texas:
Car Insurance Cost Breakdown in Texas by City
CityAverage Annual Premium
- Houston $2365
- Dallas $2340
- Austin $1966
- San Antonio $2087
- Fort Worth $2016
Car Insurance Discounts in Texas in 2023
Car insurance discounts in Texas can help you save money on your car insurance premiums. Insurers in Texas normally divide discounts into three categories, policy discounts, driver discounts, and vehicle discounts.
There are a few different ways to qualify for these discounts, so be sure to ask your car insurance agent about them. Some of the Texas car insurance discount in 2023 include:
| Car Insurance Discount | Description | Potential Saving |
|---|---|---|
| Good Driver Discount | If you have a clean driving record, you may be eligible for a discount on your car insurance premiums. | 10% to 30% |
| Safety Device Discount | If you have certain safety devices installed in your car, you may be eligible for a discount on your car insurance rates. | 2% to 30% |
| Good Student Discount | If you’re a good student whose average grade is “B” or higher, you may be able to get a discount on your car insurance premiums. | 5% to 20% |
| Multi-Vehicle Discount | If you’re a good student whose average grade is “B” or higher, you may be able to get a discount on your car insurance premiums. | 10% to 25% |
| Continuously Insured | Drivers who have been continuously insured for 6 months or more qualify for this discount. | 5% to 25% |
| Anti-theft Systems | If your vehicle has anti-theft systems like car alarm, steering wheel locks, LoJack, and other features, you can get discounts on your premium. | 5% to 25% |
| Usage Based Discounts | Usage-Based Insurance monitors the driving habits of a car owner usually using a smartphone app. If you are willing to sign-up for UBI, you can get discounts. | 1% to 30% |
Note: Car insurance rates are subject to fluctuation based on different factors like location, vehicle model, insurance history coverage amount, and more.
Car Insurance Cost Breakdown by Carrier
Insurance CompanyAverage Annual Full Coverage Premium
- Geico $1389
- Allstate $2578
- Nationwide $1685
- USAA $1531
- Chubb $2016
Frequently Asked Questions
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Do I need car insurance in Texas?
Yes, car insurance is mandatory in Texas. All drivers must carry liability insurance with minimum coverage amounts of $15,000 per person/$60,000 per accident for bodily injury and $25,000 for property damage.
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How much does car insurance cost in Texas?
A standard policy includes four key types of coverage: dwelling, other structures, personal property and liability.
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How much car insurance do I need in Texas?
The minimum car insurance required in Texas is $15,000 per person for bodily injury and $60,000 per accident for bodily injury, and $25,000 for property damage. However, it is recommended that drivers carry at least $100,000 per person for bodily injury and $300,000 per accident for bodily injury and $50,000 for property damage.
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What are some standard car insurance discounts in Texas?
A few standard car insurance discounts are available in Texas, including discounts for good drivers, low mileage drivers, and those who have taken a defensive driving course. Other discounts include customer loyalty, safety features discounts, usage-based discounts, and more.
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What are some of Texas's common car insurance coverages?
Many car insurance coverages are available in Texas, such as liability coverage, collision coverage, comprehensive coverage, personal injury protection (PIP), rental reimbursement coverage, and medical payments coverage.
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What are the consequences of not having car insurance in Texas?
If caught driving without insurance in Texas, you may be fined between $925-$1100 for the first offense including the annual surcharges.
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What should I do if I'm in an accident in Texas?
If you’re involved in an accident, you should first call the police and then your insurance company. Be sure to exchange information with the other driver and get a copy of the police report if possible.
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How much will car insurance cost me in Texas?
There is no simple answer to this question as car insurance rates vary depending on several factors, such as your age, driving history, and make and model of car, among others. However, the average cost of car insurance in Texas is $1868 per year. Generally, Texans have to pay slightly higher car insurance rates compared to the national average.
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What are some tips for getting cheaper car insurance in Texas?
You can do a few things to help lower your car insurance rates in Texas, such as shopping around for the best rate, maintaining a clean driving record, signing-up for usage-based insurance, adding safety features, and choosing a car with low insurance rates. You can also consider raising your deductible to lower your premium.
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What are some of the top car insurance companies in Texas?
Texas has several reputed car insurance companies, such as Allstate, GEICO, Progressive, State Farm, and Farmers.
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How do I file a car insurance claim in Texas?
If you need to file a car insurance claim in Texas, you should first contact your insurance company to report the accident. You will then need to provide them with all the necessary information, such as the police report, photos of the damage, and your medical bills. Once your insurance company has all of the necessary information, they will be able to process your claim and determine how much you are entitled to receive.
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