in texas, auto insurance costs vary significantly based on policy profile and coverage. For example, the average price of a full coverage policy is $1,316 per year; however, drivers who purchase minimum coverage pay an average of $665 per year. moneygeek found that with a violation, the average cost increases to $1,451 a year. Plus, adding a young driver to a full coverage policy increases the average cost to $3,548 per year.
The company you buy an insurance policy from also affects your costs. A farmers full coverage policy costs about $821 per year in Texas, while the general policy charges about $2,781 per year.
moneygeek analyzed texas auto insurance rates based on the factors that most affect price. our research indicates that in texas, age and credit score most significantly affect premiums. Moneygeek’s study on the average costs of car insurance for various driver profiles also offers information on this.
average cost of car insurance in texas
why are auto insurance rates reasonable in texas?
Auto insurance premiums vary based on the amount of coverage the driver has. Policies with more features and more coverage cost more. For example, full coverage policies provide the most coverage but also come at a higher price.
In texas, the average annual cost of full coverage auto insurance is $1,316. minimum liability insurance costs $665 per year, on average, which is a difference of $651.
average cost of auto insurance in texas by level of coverage
if you’re looking for the cheapest auto insurance policy, the state of texas minimum policy is the best option. however, it provides little coverage, so you can increase your liability insurance coverage to, for example, 50/100/50 or 100/300/100.
These numbers correspond to your policy’s liability coverage limits. for example, a 50/100/50 policy includes:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $50,000 property damage liability per accident
A full coverage policy also includes comprehensive and collision insurance, ensuring protection against damage to your vehicle.
The insurance provider you choose can greatly affect your auto insurance rates. In Texas, farmers offer the cheapest average annual prices for minimum coverage and full coverage policies at $420 and $821, respectively. Additionally, USAA rates are among the most affordable, but only apply to military members and their families.
On average, Mercury has the most expensive annual minimum coverage insurance at $722. metlife offers the most expensive average full coverage option at $1,525 a year.
average annual car insurance costs in texas – by company
in texas, auto insurance rates are significantly affected by age. Insurers consider younger drivers to be riskier due to their lack of driving experience and charge them higher premiums.
Moneygeek’s analysis indicates that, on average, a 16-year-old buying their own policy in Texas pays an average of $3,548, $2,232 more than our 40-year-old sample driver. Fortunately, young drivers can often join their parents’ auto insurance policies to lower their rates.
Insurance providers treat first-time drivers the same as young drivers. If you’re a new driver, regardless of your age, you’ll pay car insurance rates similar to those of a teenager.
average full coverage auto insurance costs in texas, by age
Insurance providers consider drivers with accidents and traffic violations to be more risky to insure than people with clean driving records. a poor driving record will usually cause insurers to raise your rates.
A texas driver with a speeding ticket pays $134 more each year for their policy, on average. premiums also increase with the severity of the violations. Fortunately, a driver with accidents or traffic violations on his record can still find affordable options by comparing quotes with different insurers.
average full coverage auto insurance costs in texas, by driving record
in texas, how much you pay for car insurance is also related to your credit score. moneygeek found that having better credit can lead to savings on your car insurance rates. Likewise, bad credit often drives up car insurance costs.
Insurance providers consider drivers with excellent credit scores to be less risky, leading to an average policy price $255 cheaper than people with good credit in Texas.
On the other hand, a driver with a poor credit score pays $1,066 more, on average, than people with good credit. drivers with poor credit can still compare quotes to identify the best possible prices.
average full coverage auto insurance costs in texas, by credit score
Location also significantly affects car insurance costs. Just like the variations from state to state, premiums also change between cities in Texas. the high incidence of traffic accidents, the greater occurrence of natural disasters and a denser population tend to increase the rates.
Moneygeek’s analysis shows that Wichita Falls offers the lowest average annual auto insurance premiums in Texas at $1,052. Houston pays the highest rates on average, $1,560 a year. The average auto insurance rate in Texas is $1,316 a year.
average full coverage auto insurance costs in texas, by city
moneygeek answers some of the most frequently asked questions about auto insurance rates in texas to help you find the best deals on the market for your specific circumstances.