Texas Auto Insurance Coverage

State rules, accidents, claims and congestion is some of the factors affecting premiums in Texas. Living and car insurance costs are reasonably cheap in the Lone Star state in comparison to the rest of the country. There is a good competition in the market, which keeps auto insurance rates suppressed. While they are going up at a faster speed in most other states, premiums have actually been going down in Texas until recent inflationary pressures started pushing them up again.

The real problem on the roads of Texas appears to be drunk drivers. Alcohol related traffic deaths are one of the highest in the country at 40% and certainly very serious with over 1,200 mortalities. Number of Uninsured Motorists is above most states with 15% as well. When there are serious problems like those above, people look up to the authorities for solutions and driver education.

Texas Liability Laws and Requirements

Here are the minimum liability coverage requirements;

  • $30,000 for bodily injury or death per person.
  • $60,000 total for bodily injury or death per accident.
  • $25,000 for property damage. 

Collection of Pictures from TexasDepartment of Insurance website can help motorists looking for up to date requirements and penalties for breaking the driving laws. The state is lenient  towards motorists who are caught without vehicle insurance coverage for the first time. But it is severe enough if the offence is repeated. It is the same as failing the alcohol test. Clearly authorities don’t believe in heavy penalties here and expect people to do the right thing without being forced to do so. It is a different approach than most other states with heavy fines, license suspensions and vehicle impounding.

Providing they can afford and have a worthy auto, not only should motorists arrange a policy with decent liability limits but also they should add Uninsured Drivers Coverage as well as Collision and Comprehensive to make sure they are fully protected for the unexpected circumstances on the roads.

Texans face the same financial struggles as everyone else and looking for ways to save money. Car insurance premiums may be more affordable in TX but motorists can still save some money by finding the most competitive provider in their zip codes. Comparing quotes is a very quick and easy process and should be carried out at least once a year to make sure of being on the best rates.

Automobile Insurance Costs in Texas

Average cost of a Liability only policy in TX is $565, which is lower than the US average of $622. The same applies to full coverage policies, which cost on average very slightly over $2,000. This is mainly due to the fact that premiums have been coming down here lately while rest of the country has been stable.

Generally, when a study looks at estimates it takes a good, experienced and single driver as an example. You may pay more if you are a teenager, have a recent claim or traffic tickets. You may also pay less if you have a good credit score, are a homeowner and drive a safe automobile.

If policyholders choose one of the expensive carriers they can end up paying $2,000 more for auto insurance, in comparison with cheaper ones. This would mean that they would pay 4 years of premiums in one year. This goes to show how important it is to choose the insurer well if you want to save money. It is very important to take the time, check coverage options, get a few quotes and look into providers when arranging a policy.

Cheapest Vehicle Insurers in Texas

Here are some names worth checking first during a search. These are known to offer the lowest rates and you cannot complain about the choices here since you have two of the top 5 automobile insurers in the list.

  1. Allstate, $589
  2. Foremost, $654
  3. Farmers, $668
  4. Geico, $688
  5. AAA Texas, $693

Finding the most competitive offers can take a bit of time when searching for quotes online. It should be easier now that we have named those sources for you above. This should save you some time and you should use it to search deeper by getting a few more.


Houston has the most expensive rates. Policyholders pay about 40% more than the state average here. The good news is that the above-mentioned companies can save you around 40%, in comparison to more expensive ones to put you right back in line with the rest.


The capital city average premiums are about 20% higher than the rest. Although it isn’t as bad as other big cities, there is room for savings. You can get about 40% cheaper car insurance in Austin TX if you choose one of the above most affordable sources. That goes to show how low premiums can go down.


It is one of the 5 most expensive cities. So, there are plenty of saving opportunities here. And if you were to shop around with the help of our quote platform and tips you can shave about 30% off your premium in Dallas. You may be able to get even better prices with another carrier we failed to mention. As usual get a few more quotes no matter where you live before jumping into conclusion.