Average cost of auto insurance in Texas (2021 rate)

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Like most states in the United States, Texas requires its drivers to take out an insurance policy on their vehicles. The average cost of auto insurance in Texas is $ 524 per year for minimum coverage and $ 1,823 per year for full coverage, which includes liability plus collision and full coverage.

Like many, you may be looking for the auto insurance coverage you need at the lowest possible price. Bankrate analyzed the average Texas auto insurance premiums, obtained from Quadrant Information Services, by company, city, age, and driving record so you can make an informed decision about your insurance needs.

How Much Does Car Insurance Cost in Texas?

Auto insurance companies, including those in Texas, use a number of factors to determine your rate, including your age and gender, driving record, city and zip code, type of car you drive, your annual mileage and even your credit score. .

Drivers in the United States pay an average annual premium of $ 565 for minimum coverage and $ 1,674 for full coverage. Texas drivers pay a lower amount for minimum coverage, at $ 524 per year, but a higher amount for full coverage, at $ 1,823 per year. The quotes you receive will vary based on your individual rating factors as well as the covers you choose to purchase.

Texas Auto Insurance Rates by Company

Finding the best car insurance in Texas depends on your specific wants and needs. When researching an insurance company, you’ll want to decide which features are most important to you. Looking for the lowest price, great customer service reviews, or a business with digital tools? Once you know what interests you, you can request quotes from several different companies to compare them.

To give you an idea of ​​how some of Texas’ top auto insurers stack up, we’ve compiled a list of minimum and full average annual premiums.

Auto insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Allstate $ 557 $ 1,705
AmTrust Financial $ 573 $ 2,008
California victim $ 678 $ 2,824
Chubb $ 638 $ 2,250
Delek $ 665 $ 1,553
Fred loya $ 449 $ 2,889
Geico $ 391 $ 1,339
Kemper $ 669 $ 3,129
Mercury $ 526 $ 1,722
MetLife $ 662 $ 2,375
In all the countries $ 499 $ 1,362
Sentinel $ 721 $ 2,669
State auto insurance $ 628 $ 2,508
State farm $ 518 $ 1,411
USAA $ 395 $ 1,344
White mountains $ 424 $ 1,533

Keep in mind that auto insurance premiums are a combination of several factors, so the quotes you receive from the above companies are likely to be different from the average premiums.

Texas auto insurance rates by city

Auto insurance is often more expensive in cities than in rural areas due to increased traffic resulting in more car accidents and insurance claims. As you can see below, most of the top 20 cities in Texas have average insurance rates above the state average. However, by using discounts, you may be able to reduce the premium you pay.

City Average annual premium for full coverage Percentage difference of the average annual premium
Houston $ 2,146 18%
San Antonio $ 1,837 1%
Dallas $ 2,093 15%
Austin $ 1,796 -1%
Fort worth $ 1,856 2%
El Paso $ 1,830 0%
Arlington $ 1,915 5%
corpus Christi $ 1,806 -1%
Plano $ 1,819 0%
Lubbock $ 1,771 -3%
Laredo $ 2,015 11%
Spring $ 1,923 5%
Katy $ 1,930 6%
Garland $ 2,047 12%
Amarillo $ 1,895 4%
Irving $ 1,989 9%
Brownsville $ 2,026 11%
Grand Prairie $ 1,968 8%
Pasadena $ 2,027 11%
Tyler $ 1,769 -3%

Keep in mind that your individual zip code affects your premiums. Rates will likely vary even within cities, but knowing the average in your city can help you feel more confident when shopping for auto insurance.

Cost of Living in Texas and Auto Insurance

When looking for the best Texas auto insurance rates, it’s important to factor in your other expenses so that you’re looking at your total cost of living. The chart below shows the average annual cost of living in Texas, including the average cost of auto insurance. Use this chart as a guide to help you determine your overall spending so you can decide which insurance rates are within your budget.

Texas Auto Insurance Rates by Age

Your age plays an important role in determining your auto insurance premium. Since teenage drivers statistically have the most crashes, their rates are the highest of all age groups.

Age Average annual premium in Texas
Age 16 * $ 2,860
18 years old $ 5,778
20 years $ 4,452
25 years $ 2,350
30 years $ 2,072
40 years $ 1,823
50 years $ 1,775
60 years $ 1,703
70 years $ 1,835

* 16-year-olds on their parents’ policy

After 25 years, premiums generally start to decline as drivers gain more driving experience. But as drivers reach their third years of age, premiums may start to rise again, as insurance companies view older drivers as being at higher risk of accidents.

Texas auto insurance rates by driving record

Your insurer can reward you for good driving by giving you a reduction. The opposite is also true: if you have incidents like tickets, accidents or a DUI on your driving record, you will likely pay more for auto insurance.

Driving incident Average annual premium for full coverage in Texas % increase in average annual premium
Speeding $ 2,057 13%
Accident $ 2,739 50%
DUI $ 2,831 55%

Each company has its own regulations, but most insurance companies will bill your policy for incidents on your driving record for three to five years.

How To Save On Auto Insurance In Texas

Since auto insurance is a necessary expense, many people want to save as much money as possible. Here are some options that can save you money on your Texas auto insurance:

  • Discounts: Most auto insurance companies offer discounts. You could save money to agree to receive paperless documents, to have airbags or other security features on your car, or to insure multiple policies with the same company. Reviewing your policy with your agent to see if all possible discounts have been applied can help you find additional savings.
  • Compare the prices: Since each insurance company has its own rating system, the same coverage will generally be priced differently with each company. Getting multiple quotes to compare prices, coverage offers, and discounts can help you find the coverage you need at a lower price.
  • Increase your deductible: Your deductible is the amount you pay out of pocket for damage to your vehicle before the insurance company starts paying your repair bills. Increasing your deductible often results in a lower premium. Just make sure you can afford to pay the deductible before making this change to your policy.
  • Improve Your Credit Rating: In general, insurance companies take a low credit score as an indication that you are more likely to file a claim. If you are able to increase your credit score, you may see a reduction in your auto insurance premium.

Frequently Asked Questions

Which company has the cheapest auto insurance in Texas?

No company will always have the cheapest rates for everyone. To find the company that offers you the best rates, you can start your search with Bankrate’s cheapest auto insurance companies in 2021. Our chosen companies are the ones that consistently write some of the cheapest policies in the United States. coverage and premiums is one of the best ways to find the coverage you need at a price that fits your budget.

How Much Insurance Do I Need in Texas?

The state minimum limits are 30/60/25, which means you must carry at least $ 30,000 in personal injury coverage per person, $ 60,000 in personal injury per accident coverage, and $ 25,000 for liability coverage for property damage. Most insurance experts agree that it is worth buying higher levels of liability, if you can afford it, in order to have better financial protection in the event of an accident.

Do i need collision insurance and comprehensive coverage in texas?

Collision Coverage and Comprehensive Coverage are optional coverages that cover damage to your car as a result of an accident. If you have a lease or loan on your vehicle, your lender will likely ask you to carry them. If not, you might want to consider them if your car is newer or of a higher value. If you’re not sure what coverage you need, talking to an agent or representative of your insurance company might be a good idea.

Methodology

Bankrate uses Quadrant Information Services to analyze 2021 rates for all zip codes and carriers in all 50 states and Washington, DC Rates shown are based on a 40 year old male and female driver with a driving record clean, good credit and the following. coverage limits:

  • $ 100,000 of civil liability per person
  • Civil liability of $ 300,000 per accident
  • Civil liability of $ 50,000 per accident
  • $ 100,000 of uninsured bodily injury by a motorist per person
  • $ 300,000 in uninsured bodily injury by a motorist per accident
  • $ 500 collision deductible
  • Full $ 500 deductible

To determine the minimum coverage limits, Bankrate used minimum coverage that meets the requirements of each state. Our basic profile drivers own a 2019 Toyota Camry, commute five days a week, and cover 12,000 miles a year.



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