Cheap Car Insurance in Texas

Living in Texas means spending more time behind the wheel due to the large size of this state. There are 800 miles from north to south, so long driving distances are part of the routine here, including daily commutes across Dallas, Austin, Houston, and San Antonio, as well as weekend road trips between metros on long stretches of open highways. 

In addition to the distance, drivers in the Lone Star State face intense summer heat, freezing winters, hailstorms, and hurricane wind damage. All of this, combined with the usual traffic of big cities and the higher speeds on rural highways, makes finding the right cheap auto insurance in Texas important. The bilingual agents at Acceptance can help you, even if your driving record is not perfect. Keep reading and discover how to find protection that fits your needs and budget. 

How much is car insurance in Texas? On average, liability insurance costs $786 per year, while full coverage costs around $2,751 per year. These averages are very close to the national annual averages of $820 for liability insurance and $2,697 for full coverage, which may be due to the Lone Star State’s population density, weather-related claims (with hail and flooding as the main ones), and rising repair and medical costs. 

However, your final insurance premium will depend on other factors we’ll explain later, including the specific ZIP code where you live, your age, and more. 

What Is the Average Premium for Cheap Full Coverage Car Insurance in TX?

Full coverage in the Lone Star State comes in at $230 monthly on average. This type of auto insurance includes three very important coverages: 

• Liability insurance 
• Collision coverage 
• Comprehensive insurance 

Texas is an at-fault state, which means if you cause a wreck, your liability insurance will pay for the bodily injuries and property damage you cause—up to your policy limits. However, liability doesn’t cover anything toward your own repairs. That’s where collision and comprehensive come in: whether your vehicle is damaged in a wreck you caused or by something else, such as a hailstorm, this insurance will help pay for the repairs or replacement of your vehicle. 

Full car insurance is commonly required for financed vehicles and is highly recommended, especially for new or high-value cars. If you want to maintain your auto in good condition after unexpected incidents, you may also consider additional protection such as GAP and rental car reimbursement coverage. 

Note: Both collision and comprehensive insurance have a deductible, and you can purchase either one separately if you wish. 

How Much Does Minimum Liability Insurance Cost in Texas?

The cheapest liability insurance in Texas costs around $65 dollars per month. This only covers you up to your policy limits for bodily injury/death liability and property damages you cause to others when you are at fault in an accident. 

For example, if you hydroplane on a wet afternoon in the Gulf Coast and slam into someone’s brand-new car, your basic liability limits for damage to their vehicle is $25,000. If someone is hurt, your basic liability will pay up to $25,000 for medical bills, lost wages, and other expenses. 

With today’s repair costs and medical bills, those amounts may be used up quickly, leaving you to pay the rest out of pocket. Additionally, with only basic liability, you’ll be responsible for covering all your own damages out of pocket. 

If you want better financial protection, it is recommended to increase your liability limits to 100/300/100. 

How do Insurance Rates Compare Across Texas’ Major Cities

Where you live is a major factor insurer’s use to determine your rates. Those who drive in congested cities may face a higher premium than those who drive on rural roads. Is vehicle crime high in your area? That can impact your rates, as well. Here are some Texas cities to compare:

We use the following methodology to arrive at our average cost: male, age 30, state minimum liability and full coverage of 100/300/100.

What are Some Car Insurance Discounts in the Lone Star State?

Most insurers offer discounts to their customers. Almost everyone qualifies for some discount, so just ask your friendly neighborhood agent for his or her recommendations. For example, if you are free from accidents, tickets or claims in the last three years, you may qualify for one of the best discounts out there: the safe driver discount. 

Another high discount is bundling. Those who bundle their auto and home insurance may receive up to 25% off their combined policy premiums. Other driver discounts include: 

Ask your local insurance agent for more information on what discounts are available, especially if you’ve had significant life changes recently, such as switching vehicles or getting married. 

Understanding Different Types of Auto Insurance Coverage 

• Bad Credit: Car insurance options designed for drivers with low credit scores to help them get affordable coverage.  
• High Risk: Affordable policies created for drivers with poor driving records or those who need specific coverages like DUI or SR-22 insurance.  
• Liability: The most affordable auto insurance option, covering the damages or injuries you cause to others in an accident, which is a legal requirement in most states.  
• Non-Owner Insurance in Texas: Provides liability coverage for individuals who don’t own a vehicle but need insurance for occasional driving.  
• Non-Standard: Insurance designed for drivers who don’t qualify for standard underwriting due to factors like age or driving history.  
• Senior: Car insurance plans and discounts specifically aimed at meeting the needs and lifestyles of older adults.  
• SR-22 in Texas: A required auto insurance form needed after certain serious traffic violations to prove you have the necessary coverage.  
• Teenager: Insurance solutions designed to offer affordable coverage to new, young drivers. 

Is car insurance required in Texas? Yes, as an at-fault state, the state requires coverage to help pay for injuries and damages you cause. To ensure drivers have protection, the Lone Star State uses the TexasSure electronic insurance verification system, which is a real-time database where all insurers must report the status of each policy. Additionally, you must carry proof of insurance at all times, as it may be required to verify your coverage during stops, accidents, and vehicle registrations. 

What are Mandatory Vehicle Insurance Requirements in Texas?

Mandatory car insurance requirements in Texas include:

• Bodily Injury Coverage per Person: $30,000
• Bodily Injury Coverage per Accident: $60,000
• Property Damage Per Accident: $25,000

In Texas, drivers are required to refuse uninsured motorist coverage (UM) in writing. Since there are plenty of people driving in Texas without insurance, you should consider adding UM to your policy.

Check with your friendly local Acceptance agent to make sure you have the right amount of coverage.

What Happens if You are Caught Driving Without Insurance in TX?

What are the penalties for driving without insurance in Texas? Other than DUI, driving without coverage is one of the reasons why SR-22 insurance is needed in the Lone Star State. Those who drive without insurance are subject to fines (up to $350 for a first offense), plus court costs. The possibility of losing your license and registration is present for multiple offenses. 

What Factors Does Texas Law Allow in Determining Your Insurance Premiums?

The average cost of car insurance that Texans pay in various cities is calculated based on a long list of factors that insurance underwriters input into an algorithm. Algorithms may differ slightly between carriers, and much of your information is unique to you. As a result, premiums for different drivers will be higher or lower than the average.  

Unique factors include age, gender, and driving record, while others, like your zip code, also apply to your neighbors.  

Some common factors that affect your insurance premium include:  

• Age and gender  

• Driving record and claims history  

• Credit score  

• Type of vehicle  

If your driving record or credit score is less than ideal, you can work to improve these metrics and see your premiums decrease over time. Similarly, young drivers will see their policy costs drop as they age and maintain a clean driving record. 

Am I Required to Report an Accident in Texas to Authorities?

Only under certain circumstances, including if there is an injury or death, the vehicles cannot be moved or property damage exceeds $1,000. If these conditions are not met, you do not have to report an accident. However, keep in mind that a police report might be the only thing between you and another driver who disputes the facts.

In major cities, congestion causes issues for drivers on the roads. Outside of those cities, you can drive for miles and never see another vehicle. There are many two-lane roads (even highways) in Texas.

As far as weather is concerned, the southern part of Texas is humid and can be rainy. There’s a danger of hurricanes at some times. In the more northern areas, tornadoes and ice storms can cause hazardous conditions.

How Many Car Accidents Happen in TX?

Unfortunately, the number of crashes occurring in Texas continues to rise. The Texas Department of Transportation estimates that 1 person is killed every 2 hours in a traffic accident.  

In 2024, there were 554,146 total crashes, of which 3,762 were fatal, claiming the lives of 4,150 people. To help reduce these numbers, it is best to avoid drinking and driving and to steer clear of distractions while behind the wheel. 

How Many Uninsured Drivers Are on Texas Roads?

Texas is among the states with the highest rate of uninsured drivers. Ranking 19th, according to data from the Insurance Information Institute, the state has about 14.5% of drivers without auto insurance, and encountering one of them on the road could seriously impact your financial stability.  

Choosing to carry uninsured motorist coverage or underinsured motorist coverage can provide financial protection if you are involved in an accident caused by one of these drivers or a hit-and-run.