Here you will find out everything you need to know to buy car insurance in Texas. We explain Texas car insurance laws and provide average Texas auto insurance rates for your neighborhood. You’ll also learn how much car insurance you need for your particular situation. That means you’ll know what to expect when shopping for auto insurance in Texas – and you won’t overpay for it. You'll also see rates for the following:
- Low cost auto insurance for drivers with tickets
- Companies ranked from cheapest to most expensive for drivers with accidents
- Cheap car insurance for drivers with bad credit
- Ranking of the best car insurance companies for Texas drivers
The average car insurance rate in Texas is $1,300 a year. Your age, your driving record, the model of car you have, the severity and frequency of claims in your neighborhood and other variables are used by insurance companies to figure out the cost of your policy. That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates. For example, in Dallas ZIP code 75242, the highest rate among six carriers is ($2,937) is nearly three times as much as the lowest ($1,072). If you want to compare car insurance quotes, use our tool. Enter a ZIP code to see the average premium for the location. You will also see the highest and lowest rates from the six major carriers surveyed. You can get a more customized rate by choosing from among six age groups and three coverage levels. This way you can tell if your quotes are too high and if you should keep shopping for a lower rate.
Cheap car insurance in Texas
Texas car insurance requirements
| State law requires the following coverages: | |
| Minimum bodily injury liability | $30,000/$60,000 |
| Minimum property damage liability | $25,000 |
| Uninsured/underinsured motorist bodily injury | $30,000/$60,000 |
| Uninsured motorist property damage | $25,000 ($100 deductible) |
Texas car insurance laws mandate that drivers carry minimum liability coverage limits of 30/60/25 on their vehicle. Buying the state required limits to drive is definitely the cheapest way to go. But if you opt for the cheapest car insurance in Texas, you are only covered for damage you do to other drivers’ cars and for others’ injuries. That means your insurer won’t pay for damage to your car or for your injuries if you cause an accident. Still, buying just the minimum coverage required is a good idea if you have an old car or don’t drive much.
It does cost more to buy more protection, but as you’ll see in the chart below, additional coverage is typically affordable. Increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $835 more, or $70 a month. For higher liability limits, the extra cost is just $23 a year.
| Coverage limits | Average annual rate |
| Liability Only – state minimum | $465 |
| Liability Only - 50/100/50 BI/PD | $488 |
| Full Coverage - 100/300/100 BI/PD $500 Comp/Collision deductible | $1,300 |
*The table shows the average annual rate of nearly every ZIP code in Texas from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.
Recommended car insurance coverage
The cheapest car insurance may not provide sufficient protection, so how much insurance should you buy? Bare-bones coverage may be a good choice if you have few assets or have an old car and don’t drive much. But if you have a home and investments, consider buying more insurance. If you don’t, you’re at risk for having your money and house taken to cover the cost of an accident. If you financed your car you will be required to get additional comprehensive and collision coverage.
Largest car insurance companies in Texas
| Rank | Company | Premiums written | Market share |
|---|---|---|---|
| 1 | State Farm | 3,563,120 | 16.83% |
| 2 | Geico | 2,637,489 | 12.46% |
| 3 | Allstate | 2,362,584 | 11.16% |
| 4 | Progressive | 2,041,345 | 9.64% |
| 5 | Farmers | 1,842,735 | 8.70% |
| 6 | USAA | 1,712,949 | 8.09% |
| 7 | Liberty Mutual | 1,195,735 | 5.65% |
| 8 | Texas Farm Bureau Group | 693,004 | 3.27% |
| 9 | Consumers County Mutual Insurance | 541,825 | 2.56% |
| 10 | Nationwide | 473,342 | 2.24% |
Source: A.M. Best; State/Line (P/C Lines) - P/C, US; Data as of:November 28, 2018
Car insurance for cities in Texas
Find out what the most expensive and the cheapest car insurance rates are by ZIP code, as well as how they compare statewide.
Texas car insurance laws and resources
Texas roads with the most fatal accidents
Here are the highways and roads where the most fatal accidents happened in 2017, according to the most recent data available from the Fatality Analysis Reporting System research compiled by the National Highway Traffic Safety Administration:
| Road | Number of fatal accidents |
|---|---|
| I-20 | 96 |
| I-35 | 94 |
| I-10 | 88 |
| I-45 | 41 |
| US-59 | 33 |
| US-77 | 30 |
| US-281 | 30 |
| US-287 | 29 |
| US-83 | 29 |
| US-290 | 29 |
Driving without insurance
You may be fined $350 and you may be required to file an SR-22 form.
Mandatory discount for drug and alcohol awareness
Texas requires a 5 percent discount when the principal driver on a policy completes a drug and alcohol awareness training class.
Driving without a license
A first-time offense will get you a fine of up to $200. Third-time offenses can bring the penalty to $500 plus jail time of 72 hours to six months. In addition, Texas' Driver Responsibility Program will charge you an additional $100 per year for three years.
No grace period
In Texas, there is no 30-day grace period after buying a car before you have to obtain insurance.
No age restriction for vehicle ownership
In Texas, there is no age restriction to own and register a car, but proof of financial responsibility (liability insurance) is required to obtain registration.
Motorcycle helmets
Texas' mandatory motorcycle helmet law was repealed in 1997, but exceptions remain for riders under 21 or those who lack health insurance.
Electronic proof of insurance
Texas is one of 48 states that allow drivers to show proof of insurance during a traffic stop on a smartphone.
Comprehensive coverage recommended due to hailstorms
Texas gets more hailstorms than any other state in the country, and only comprehensive coverage will handle hail damage claims.