How to Find Affordable Car Insurance in Texas

Fran
Lucy Lazarony
June 25, 2020

Finding cheap car insurance rates in Texas takes some work since auto insurance rates in Texas are higher than the national average. Still, there are ways to lower car insurance rates and you will want to follow those money saving tips when shopping for car insurance. But first, let’s take a closer look at auto insurance rates in Texas.

High Auto Insurance Rates

The average car insurance rate in Texas is $1,823 a year for a driver aged 30 with full coverage. That is $65 higher than the U.S. national average. Full coverage entails collision and comprehensive coverages plus liability coverage higher than the state minimum liability coverage.

Collision coverage is auto insurance coverage that helps to repair or replace your car if it is damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events not covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane or a tornado.

Liability insurance coverage helps to pay the other person’s expenses if you are at fault in an accident. Each state has its own minimum liability requirements for its drivers. The average car insurance rate in Texas for the state’s minimum liability coverage is $414.

Minimum Liability Limits

All Texas drivers are required to carry liability insurance. In Texas, you must buy $30,000 bodily injury and death liability coverage per person, $60,000 bodily injury and death liability coverage per accident, and $25,000 property damage liability coverage per accident. Just carrying the minimum liability coverage in Texas may not give you enough protection if you are at fault in an accident. So consider getting additional liability insurance. And you may want to consider comprehensive and collision coverage as well, especially if you have a newer car that you are looking to insure.

Why Is Car Insurance Expensive in Texas?

Texas has three of the top 10 largest cities in the country. These cities are Houston, San Antonio and Dallas. These urban areas have more traffic, accidents and claims. And all of this, drives up the cost of auto insurance for everyone in Texas.

In addition, the cost of insurance is increasing in Texas and around the country. As the cost of auto insurance goes up so do premiums for consumers. All insured drivers share in the increasing cost of insurance.

Factors Affecting Insurance Rates in Texas

There are a number of factors that impact your car insurance premium in Texas. Let’s look at them individually.

Age. Your age plays a factor in your car insurance premium. Drivers under the age of 25 pay more for car insurance because they are more likely to be involved in accidents than drivers over the age of 25. So turn 26 and you’ll pay a little less on your car insurance.

Gender. Men pay more than women for auto insurance premiums because men are more likely to make claims on their car insurance. Because of this, men get hit with higher insurance premiums. And women drivers, on the other hand, pay less.

Where you live. The neighborhood where you live affects your auto insurance premium. If you live in a neighborhood with high accidents and high crime, you’ll pay more for your auto insurance.

Low mileage. Low mileage drivers pay less for auto insurance. So drive a little less and save money on your auto insurance.

Credit score. In Texas, your credit score will impact your auto insurance premium. Credit scores are numerical summaries of a person’s credit history. Credit scores are calculated using credit information such as past delinquencies and bankruptcies. Credit scores also look at payment history, debt ratios, different types of credit in a consumer’s credit file and most recent credit accounts.

Having on-time payment history is the best thing you can do for your credit score. So get any past due accounts current and work on paying down debt. You’ll ease your wallet and lift your credit score at the same time. And since car insurance companies in Texas use credit-based insurance scores you will save money on your insurance premium as you improve your credit.

Marital status. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

Driving record. Being a safe and accident-free driver will help you to save money on your car insurance premium. So keep a clean driving record, no speeding tickets, no at-fault accidents, no moving violations and no DUIs and you’ll save money on your auto insurance.

Coverage choices. Choosing to get collision coverage and comprehensive coverage along with higher liability coverage will cost you more than if you opt for state-mandated liability coverage. It makes sense that full insurance coverage is going to cost you more since it gives you so much more protection than liability-only coverage. So choose your coverages carefully. You want the best coverage that you can afford. Going cheap with liability-only coverage means you will pay more out of your own pocket at the time of an accident or another loss.

Your deductibles. The deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car and losses. You’ll choose deductibles for both your collision coverage and your comprehensive coverage. Choosing a high deductible will help to lower your premium. Opting for a low deductible will raise your premium. So weigh your options carefully. If you choose a high deductible, it is a good idea to put the money for the deductible in a savings account so the money will be there should you need it.

In Texas, auto insurance premiums are higher than the national average so it is important to do things to keep auto premiums as low as possible. So maintain a good credit score, be a safe and accident-free driver with no traffic violations, choose coverage that makes sense for you and your family and choose the right-sized deductible for your budget.

Drive safely in Texas and enjoy driving in the Lone Star State.

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