Texas Car Insurance

Texas car insurance costs an average of $70 per month for minimum coverage and $190 for full coverage in 2026.

Your price can vary significantly based on factors like your age, where you live, your driving record, the car you drive, and your coverage needs. Comparing quotes regularly, driving a safe vehicle, and maintaining a clean driving record can help you save on auto insurance in Texas.

The average cost of Texas car insurance is $70 per month for state-minimum coverage and $190 per month for full coverage. That works out to about $835 per year for minimum coverage and $2,283 per year for full coverage.

State-minimum coverage is the least amount of car insurance required by Texas law. Full coverage typically includes liability, comprehensive, and collision coverage, which can help pay to repair or replace your own vehicle after covered events, such as a crash, theft, hail, or other damage.

Despite higher-than-average rates, Texas premiums have begun to stabilize. Texas Department of Insurance (TDI) data shows rates increased just 0.9% in 2025, down from 4.8% in 2024 and well below 2023’s 25.5% increase.¹

Everything’s bigger in Texas, including car insurance premiums. Insurers face costly claims in the Lone Star State due to several factors, including severe weather, urban population density, uninsured motorists, high speed limits, and vehicle theft.

Severe weather

Texas experienced 45 billion-dollar weather and climate disasters from 2022 to 2024, according to the National Oceanic and Atmospheric Administration (NOAA).² TDI notes that the state faces multiple types of costly weather events, including hurricanes, tornadoes, hailstorms, and wildfires.³

More weather-related claims can increase insurers’ costs. Those costs can factor into future premiums as insurers adjust rates to reflect expected losses. 

Urban density and high accident rates

Texas ranks as one of the fastest-growing states, adding 562,941 residents from 2023 to 2024, according to the U.S. Census Bureau.⁴ More people on the road can mean higher crash risk, especially in densely populated urban areas. Houston, Dallas, Austin, and San Antonio rank among the 25 most congested U.S. cities in the 2025 INRIX Global Traffic Scorecard.⁵

The Texas Department of Transportation (TxDOT) recorded 554,146 reportable crashes in 2024.⁶ That’s about 1,518 crashes per day, or one every 57 seconds.⁷ Insurance Institute for Highway Safety (IIHS) data also shows Texas has among the highest total numbers of traffic fatalities in the country.⁸

High uninsured driver percentage

Driving without insurance is illegal in Texas, but that doesn’t stop around 14% of drivers from getting behind the wheel uninsured, according to data from the Insurance Research Council.⁹ Because uninsured drivers increase insurers’ risk of paying claims, insurance companies spread that risk among all insured drivers, which can mean higher premiums.

High speed limits

Speed is a major contributor to fatal crashes in Texas, according to TxDOT.¹⁰ Higher speeds increase crash risk, leading to more severe injuries and death. Many roads and highways in Texas have speed limits between 75 and 85 — the highest speed limits in the country.¹¹

Vehicle thefts

Texas recorded 75,269 vehicle thefts in 2025, according to the National Insurance Crime Bureau (NICB), the second-highest total in the country. The Houston-Pasadena-The Woodlands metro area ranked 4th with 23,659.¹²

High theft rates can contribute to higher comprehensive coverage costs. Texas drivers pay nearly 68% more than the national average, according to data from the National Association of Insurance Commissioners (NAIC).¹³

Texas requires drivers to carry liability, and insurers must offer uninsured/underinsured motorist coverage and personal injury protection (PIP). You can waive uninsured motorist coverage and PIP in writing, but they may be worth keeping.¹⁴

Is Texas a no-fault or at-fault state?

Texas is an at-fault state. That means you’re responsible for paying for the damage and injuries you cause in an accident, which is why liability coverage is required. 

According to the Insurance Information Institute (III), almost 20% of accidents involving injuries resulted in costs higher than the at-fault driver’s liability limits.¹⁵ Drivers can also sue you in Texas. TDI and most insurance experts recommend buying higher limits to protect your finances.¹⁴

The cheapest car insurance company depends on your driver profile, vehicle, coverage needs, and ZIP code. The following table shows average monthly rates by Texas insurance company. 

These figures are averages, so they don’t tell you what a specific insurer will charge for your policy.

Texas has a competitive auto insurance market, with more than 322 companies selling car and home insurance in the state.¹⁶ Each company sets its own rates, giving drivers many options to compare when shopping for coverage. 

Texas car insurance companies use multiple factors to determine rates, including your driving history, location, annual mileage, age, gender, marital status, vehicle, and credit score. Insurers use their own rating formulas, so two companies can charge very different premiums for the same driver.

Here’s how these factors can affect your Texas car insurance rates:

• Driving record: Tickets, at-fault accidents, and DUIs can increase your rate.

• Mileage: Driving more raises your crash risk, which can increase your premium.

• Age: Young drivers with less experience are often riskier behind the wheel, so insurers typically charge more. 

• Gender: Men drive 62% more miles than women per year and are involved in 73% more fatal accidents in Texas, which means they usually pay higher rates.¹⁰

• Marital status: Married drivers are seen as less risky, so they often pay cheaper rates than single drivers.

• Vehicle: Insurers consider your vehicle’s value, repair costs, theft rates, parts availability, and loss trends when setting rates.

• Credit score: Insurers in Texas can use your credit history, including your payment history and debt load, as part of the formula to determine how likely you are to file a claim.¹⁷

How your driving record affects Texas rates

Your driving record can have a big impact on your rates in Texas. Drivers with a speeding ticket pay almost 27% higher premiums than drivers with a clean record. A DUI raises rates by around 54%. An at-fault accident has the largest effect, increasing the average premium by over 70%.

How your location affects Texas rates

Your ZIP code can dramatically affect your premium because insurers consider local claim frequency, repair costs, theft rates, weather risks, traffic, and other factors.

Yes, if you have comprehensive coverage. It's optional in Texas, but may be well worth adding to your policy. Comprehensive covers non-collision claims, such as vandalism, theft, fire, animal and weather damage to your car, including from tornadoes, hail, wind, and flooding. It also covers falling objects, such as lightning striking a tree branch that then falls on your vehicle.

Spring usually brings hail and severe thunderstorms to Texas, according to TDI.¹⁸ But hailstorms can happen anytime, like the February 2022 hailstorm that caused $1.1 million in property damage.²

Comprehensive coverage is generally cheaper than collision coverage. According to NAIC data, the average cost of collision coverage in Texas in 2023 (the most recent year with available data) is $529, while comprehensive coverage averages $400.¹³

The best way to find cheap car insurance in Texas is to compare quotes from multiple insurers. Here’s how:

1. Compare the same coverages and deductibles. Comparing the same coverage types, limits, and deductibles ensures you’re getting a true price comparison for the coverage you need.

2. Ask about discounts. Insurers typically offer many discounts you can stack together to maximize savings. Ask about discounts for safe drivers, low mileage, vehicle safety features, bundling policies, going paperless, and paying your bill on time.

3. Review your deductibles. A higher deductible can lower your premium, but make sure you can afford the higher out-of-pocket cost after a claim.

4. Improve your driving record. Avoiding tickets and accidents can help you get the cheapest rates. You may save even more if you sign up for your insurer’s usage-based insurance telematics program and allow it to track your driving habits and mileage.

5. Boost your credit score. Pay your bills on time and decrease your debt load to raise your score and potentially lower your insurance premiums.

6. Check rates at each renewal. When you receive your policy renewal, it's a great time to check whether your new rates are still the cheapest for your driving profile and vehicle.

Luva helps you compare personalized quotes from multiple insurers side by side, so you can easily see rate and coverage differences. Lu, your personal insurance guide, is ready to help you find the coverage that best fits your needs and budget.