Average Cost of Car Insurance in Texas in 2024 | Bankrate (2024)

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Updated Apr 15, 2024

In Texas, the average annual cost stands at $2,637 for full coverage car insurance, while minimum coverage averages at $760.

How much is car insurance in Texas?

In Texas, the car insurance rates hover close to the national average. Full coverage averages $2,637 annually, while minimum coverage sits at $760 per year. The national averages for full and minimum coverage are $2,314 and $644, respectively. Your own rate will vary from these averages. The final rate that each Texan might pay takes into account personal factors such as age, gender and credit rating, as well as vehicle specifics like its age, make and model.

Key takeaways

• If you opt for monthly insurance payments in Texas, car insurance averages at $220 for full coverage and $63 for minimum coverage.
• Teen drivers pay some of the highest average rates in Texas: 16-year-old drivers on their parents' policies pay an average of $5,225 per year for full coverage.
• Texas drivers with excellent credit pay an average of $2,324 yearly for full coverage; those with poor credit average $5,430.

Texas car insurance rates by city

The average car insurance rate in Texas varies based on where you live. City dwellers often pay more for car insurance because of the higher traffic density and higher likelihood of accidents, as opposed to sparsely-populated rural areas. Crime rates and local weather patterns can also influence rates by ZIP code.

Average car insurance costs by age and gender in Texas

Car insurance rates vary by individual because insurance companies look at risk when calculating your premium. While some states prohibit the use of age in insurance rating, Texas does not. Data indicates that certain groups are more likely to be involved in accidents. Teen drivers in Texas, due to their limited driving experience, typically face higher car insurance rates than those in their 20s and 30s.

Gender also plays a role in car insurance rates in Texas. Historically, male drivers have displayed riskier driving behaviors compared to females, leading to slightly elevated rates for men.

The rates by age provided in the subsequent tables outline the costs for drivers on their individual policies, while the young drivers table highlights rates when they remain on their parents' policy.

Bankrate’s take:Car insurance rates often differ between genders, primarily rooted in statistical analyses of driving behavior and risk. Historical data suggests that male drivers, particularly younger ones, are more likely to engage in riskier driving behaviors and have a higher likelihood of being involved in serious accidents. This propensity for risk often results in higher premium rates for male drivers in many states. Conversely, female drivers tend to have fewer accidents and traffic violations, often leading to lower premium rates. However, it’s a must to mention that insurance companies use a combination of factors, including location, vehicle type and individual driving history to determine rates. Gender is just one of the many components in this intricate calculation.

Cost considerations for young drivers in Texas

Young drivers in Texas face higher average premiums than their older counterparts. In general, the younger and more inexperienced a driver is, the more likely they are to be involved in an auto accident or traffic violation. Insurance companies balance out this increased risk by charging young drivers higher premiums. Young drivers can usually save money by remaining insured on their parents' policy even after they turn 18.

The table below shows the average full coverage rates for young drivers on their own policies compared to those on their parents' policy:

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in Texas?

Car insurance rates in Texas vary significantly based on your driving record. A moving violation can lead to a spike in your premium, especially if you don't have accident forgiveness included in your policy. DUIs are typically the most costly offense, but severe speeding tickets or multiple accidents can also put drivers in the high-risk category. If you have a DUI or other severe driving infraction, there is no guarantee that a carrier will offer you coverage. The best way to gauge eligibility is by requesting personalized quotes.

The table above compares driving records with different incidents and highlights how much, on average, these incidents tend to raise rates. *The rates reflected are for full coverage policies.

Car insurance rates in Texas by credit tier

In Texas, your credit history will influence your coverage costs. Drivers with poor credit generally pay more for coverage because they are more likely to file claims.

Texas car insurance rates by vehicle type

The type of car you drive has an impact on your car insurance rates in Texas. Your insurer will look at crash statistics for your car and consider what safety features are installed. It will look at how often cars like yours are stolen as well as how often they are involved in accidents. Some cars, such as sports cars, are often more expensive to repair or replace, and this usually makes them more expensive to insure.

Estimate your car insurance cost in Texas

Car insurance is highly personalized. You can get a more precise premium estimate using the tool below.

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How to save on car insurance in Texas

Although the average full coverage car insurance cost in Texas is $2,637 per year, you may be able to pay less by taking a few simple steps:

• Utilize discounts. Texas drivers can access discounts from almost all insurance companies. Some are offered for simply bundling your car insurance with home or renters insurance, or you may earn a discount for driving safely. Ask your agent or check online to see what discounts your company offers.
• Practice safe driving while behind the wheel. Texas drivers who avoid accidents and the subsequent claims are more likely to pay a low rate. An at-fault accident, speeding ticket conviction or DUI raises rates significantly. Consider taking a defensive driving course if you're not sure about your skills.
• Gather several quotes. One key recommendation by experts is to shop around when considering a new policy. Obtaining free quotes and comparing rates can help drivers find which auto insurance company will offer them the lowest premiums for the coverage they seek. When doing this, make sure to specify the same types and limits of coverage on each quote.
• Review your policy each year. If there have been any changes in your life in the past year — such as a move to a new location or job switch that means a shorter commute — it may be worthwhile to review your coverage selections and compare quotes from other carriers.

Methodology

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $50,000 property damage liability per accident
• $100,000 uninsured motorist bodily injury per person
• $300,000 uninsured motorist bodily injury per accident
• $500 collision deductible
• $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 202 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Credit-based insurance scores: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base).

Age: Rates were calculated by evaluating our base profile with the ages 16-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

Teens: Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy unless otherwise noted.