Insuring your vehicle in Texas can be more costly than in other states, but savvy shoppers can still save money by researching different insurance providers and their offerings. State Farm often has the best full-coverage rates for drivers state-wide. Their insurance costs about $1,094 per year, which is less than the state average of $1,823 per year. Your actual insurance rates depend on your situation, however. Read on to learn which Texas car insurance will cost the least for you.
Driving in Texas
Car insurance costs can vary by state and city depending on factors like state insurance requirements, zip code, and population density. For example, drivers living in more rural parts of Texas might pay less for car insurance than someone living in a more populated area. When there are more drivers on the road, chances for collisions can increase. The cheapest cities to insure a vehicle in Texas on average are Tyler, Lubbock, Corpus Christ, and Austin. The most expensive cities to insure a vehicle in Texas on average are Houston, Dallas, Garland, and Pasadena.
In 2019, Texas had a reportable crash every 56 seconds. For this reason, and many others, having coverage on your vehicle is very important.
What Is Car Insurance?
Car insurance is coverage you buy for your vehicle that protects you if you’re in an accident. You can get basic coverage, which helps you pay for crashes or accidents that are your fault, or more comprehensive coverage, which provides drivers with various resources depending on the coverage they choose. All states have an insurance requirement, meaning it’s illegal to drive without insurance coverage on your vehicle.
Types of Car Insurance
There are multiple types of car insurance you can purchase, depending on your driving habits, budget, and needs. Here’s a closer look at some primary car insurance types:
- Liability Coverage: Liability coverage is often the most basic insurance coverage you can get, and it’s also often the minimum legal requirement in most states. It covers costs for damage to other people, their vehicles, or their property when you are at fault.
- Collision Coverage: If you have an auto loan or a lease, you might have to get collision coverage. This coverage helps cover the costs of repairs to your own vehicle, regardless of who’s at fault.
- Comprehensive Coverage: Comprehensive coverage is one of the most robust coverage packages you can get. It helps cover costs for many factors outside a driver’s control, like damage from weather or glass repair.
- Uninsured or Underinsured Motorist Coverage: Uninsured or underinsured motorist policies can help you cover expenses if you get into an accident with someone who doesn’t have vehicle insurance.
Insurance Providers in Texas
There are many insurance providers in Texas to choose from. Picking the best provider for you can depend on your driving habits, budget, and driving needs. Here’s a list of some of Texas’ top insurance providers:
- State Farm: As one of the most affordable insurance providers in the state, State Farm offers a range of coverage options to its drivers. They rate highly in customer service and offer other types of insurance for customers, too.
- Geico: Geico also offers Texas drivers cheaper-than-average car insurance. For inexperienced drivers, Geico might be even more affordable than State Farm.
- Dairyland: Dairyland is an insurance provider that can offer coverage to high-risk drivers who might struggle to find affordable rates through other big-name providers. They also specialize in motorcycle insurance.
- USAA: USAA is available to members of the military and their families. For those who qualify, the rates and coverage options with USAA can exceed those of other area providers.
- Nationwide: Based in Columbus, Ohio, Nationwide is a popular car insurance provider, but its coverage options are some of the state’s most expensive.
- Chubb: Chubb is an insurance company headquartered in Zurich, Switzerland. Their coverage is typically considered high-end and is also among the state’s priciest.
Best Car Insurance for Texas Drivers
The best car insurance for you can depend on a few factors. Here’s a closer look at some of the top providers for different driver situations:
- Best Overall Car Insurance: For Texans looking to save money on their car insurance, the most affordable option with excellent customer service is State Farm. Although individual rates vary, their full coverage is about $1094 a year, or $91 a month.
- Cheapest Texas Car Insurance: State Farm is also often the cheapest insurance option for most drivers. Their liability coverage is around $450, or $38 a month.
- Best Car Insurance for Military Members: USAA often has good rates and reliable service for military members and their families. For those who qualify, USAA also has the second-cheapest rates in the state, with full coverage for $1403 a year, or $117 a month for members.
- Best Car Insurance for Drivers With Bad Credit: State Farm also has decent rates for drivers with low credit scores. Full coverage for poor credit score drivers is often about $2034 per year, or $169 a month.
- Best Car Insurance for Drivers with Accident Records: If you were in an at-fault accident, State Farm can still offer affordable coverage. For those with poor driving records, State Farm usually costs about $1,294 a year, or $108 a month.
- Best Car Insurance for High-Risk drivers: Dairyland is known for offering coverage to high-risk drivers, though you might still find cheaper rates through other providers. Dairyland typically costs around $2,649 per year, or $221 a month.
- Best Car Insurance for Drivers With DUIs: If you have a DUI on your record, you can still find affordable insurance through State Farm. Insurance for these drivers is typically about $2,001 a year, or $167 a month.
By doing research and getting insurance quotes for your zip code and specific driving history, you can discover how to save on car insurance in Texas. it’s important to stay in compliance with state laws so you can protect yourself and others if you’re in an accident. State Farm, Geico, and USAA are among the state’s most affordable insurance providers.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.