The Lone Star State car insurance rates are relatively expensive in comparison to most other states. Minimum state-required liability only policy is relatively cheaper and below the national average but the average cost of a full coverage policy is just above the country average. The ratio of Uninsured Motorists has been coming down in recent years and at 8.3% it is below the US average. Although Texas has the second highest number of registered vehicles in the country, the ratio of auto ownership is lower than most states since there are 78 cars per 100 people in this state.
Texas Vehicle Insurance Requirements
Here are the minimum liability coverage requirements;
- $30,000 for bodily injury per person.
- $60,000 total for bodily injury per accident.
- $25,000 for property damage.
In Texas, all car insurance policies come with Personal Injury Protection (PIP) coverage. Additionally, insurance providers are required to offer you Uninsured/Underinsured Motorist Bodily Injury (UM/UIM BI) and Property Damage (UM/UIM PD) coverage. However, if you choose not to include these coverages in your policy, you can decline them in writing. Here are the minimum coverage limits:
- PIP: $2,500
- UM/UIM BI: $30,000 per person $60,000 per accident
- UM/UIM PD: $25,000 with a $250 deductible
The Department of Insurance website can help motorists looking for up to date requirements and penalties for breaking the driving laws.
Driving without insurance in Texas carries significant penalties and fines. For a first offense, there’s a fine, but for a second offense, you may face a higher fine and potential vehicle impoundment for up to 180 days. You can only retrieve your vehicle once you provide proof of insurance and pay impoundment charges. In the event of an accident without insurance, you must file an SR-22 for three years, and your vehicle registration and driver’s license can be suspended for up to two years. Depending on the accident’s seriousness, a jail sentence of up to one year may also apply.
Furthermore, you will have to pay the injuries and damages you caused to third parties out of pocket if you don’t have liability vehicle insurance coverage. In addition, lapses in coverage and penalties appearing in your driving record can potentially affect your auto insurance rates going forward.
Car Insurance Costs in Texas
The average cost of a state-required minimum Liability-only policy in TX is $565, which is lower than the US average of $622. On the other hand, the average cost of a full coverage vehicle insurance policy is $2019 and it is only $5 above the national average.
Texas presents its own set of risks, and it’s essential for motorists to take these into account when seeking automobile insurance. One of the first pieces of advise offered by experts is to increase your liability limits to more comfortable levels. Considering the weather-related risks, auto thefts and high accident risks due to Texan drivers not being one of the best in the country, it may be a prudent decision to add Collision and Comprehensive Coverage to your policy, especially if you have a vehicle that still keeps its value.
Cheapest Vehicle Insurers in Texas
When you are shopping around for a better deal, you are trying to find the most competitive company for your circumstances. Below companies are known to be highly competitive in TX and therefore it is a good idea to start getting quotes from them first and check with other carriers as well.
- State Farm
- Farm Bureau
- Geico
- Germania Mutual
- AAA Texas
While the average car insurance rates can differ across Texas cities, these variances tend to be modest. Generally, premiums are elevated in larger cities due to increased traffic congestion and a higher likelihood of vehicular crimes such as theft and vandalism. Houston and Dallas adhere to this trend, with average vehicle insurance premiums in both cities being 20% higher than the state average. However, Austin’s rates align closely with the state average.
Interesting Texas Automobile Insurance and Driving Facts
- In 2022, Texas experienced the second-highest number of motor vehicle thefts, totaling 105,015 cases, according to NICB reports. This marked a 10% increase in incidents compared to the previous year, 2021. You need Comprehensive coverage on your car insurance to be protected against auto thefts, vandalism, fire and weather-related damages.
- Texas has a serious drunk driving issue. According to the National Highway Traffic Safety Administration in 2021, Alcohol-impaired-driving fatalities were highest in Texas (1,906) and the percentages of alcohol-impaired-driving fatalities among total traffic fatalities was 42% in this state.
- Texas not only faces a significant issue with drunk drivers but also ranks second highest for the incidence of fatal car accidents involving drowsy drivers and those driving in the wrong direction. Furthermore, the state holds the ninth spot for the highest number of fatal car accidents involving distracted drivers. In short, Texans are statistically the worst drivers in the USA.
- Texas is in the tornado alley and suffers damages from it. In 2022, State Farm suffered the most hail damage claims in Texas.
- Given the concerning driving statistics, auto thefts and weather-related damages in Texas, it may be wise to consider obtaining comprehensive auto insurance coverage in the state, including Collision, Comprehensive, and Liability coverage, even if you possess an excellent driving history. This is particularly important if you own a valuable vehicle, as it provides an added layer of financial protection in the event of accidents or other unforeseen incidents on the road.
- Texans have one of the lowest average credit scores in the country with 692, according to Experian. This is important because car insurance companies consider your credit score when they calculate premiums. According to Forbes, bad credit increases premiums by 64% on average in this state.
- Also, interestingly auto insurance rates only increase 52% on average with a DUI conviction in your record in Texas. This is one of the lowest rate hikes due to DUI in the country.
Motorists should aim to secure a policy that shields them from potentially financially devastating losses and claims. To manage costs effectively, it’s advisable for them to carry out a thorough car insurance comparison shopping to evaluate different options and discover the most cost-effective coverage. This approach ensures that vehicle insurance premiums remain manageable while also enabling them to purchase additional coverage if needed.