Average Cost of Car Insurance in Texas

By Jacqueline DeMarco · March 02, 2023 · 6 minute read

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Average Cost of Car Insurance in Texas

If you drive a car in Texas, you’ll need to make room in your budget for car insurance. The state requires it. The amount you’ll pay for protection depends on a number of factors, such as your driving record, age, car type, and insurer. Understanding the cost of coverage in your area can help as you’re comparing quotes. Keep reading to learn more about the average cost of car insurance in Texas.

How Much Does Car Insurance Cost in Texas?

The average cost of car insurance in Texas is $1,842 per year, according to a 2023 U.S. News & World Report analysis of cheap car insurance companies. By comparison, the national average is $1,442 per year.

Average Car Insurance Cost in Texas per Month

The average cost of car insurance in Texas is $153.50 per month, which is $33.33 more than the national monthly average of $120.17. But as the chart below shows, prices can vary greatly among the state’s insurers.

Company Average Cost Per Month Average Annual Cost
AAA $150.42 $1,805
Allstate $242.75 $2,913
Geico $111 $1,332
Home State Insurance $278.42 $3,341
Mercury $123.67 $1,484
National General $146.67 $1,760
Nationwide $131.33 $1,576
State Farm $98.67 $1,184
Texas Farm Bureau $73.41 $881
The General $221.16 $2,654
USAA $111.08 $1,333

Source: U.S. News & World Report

Average Car Insurance Cost in Texas by City

Where you live can also impact how much you spend on car insurance. The rate of theft, vandalism, and accidents in your area can help insurance providers estimate how likely you are to file a claim, which can raise insurance costs. In the chart below, notice how rates vary even among 10 major cities in Texas.

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City Average annual cost
Austin $1,841
El Paso $1,855
Corpus Christi $1,867
Fort Worth $1,890
Plano $1,891
Arlington $1,899
San Antonio $1,927
Laredo $2,050
Dallas $2,162
Houston $2,226

Source: Insure.com

Average Car Insurance Cost in Texas by Age and Gender of the Driver

Usually, teen drivers (aka new drivers) can expect to spend more on car insurance than older drivers. Gender is another consideration. Because women statistically get in fewer car accidents and have fewer DUI incidents, they tend to spend less on car insurance.

Recommended: How Much Does Insurance Go Up After an Accident?

Company 17-Year-Old-Female 17-Year-Old-Male 25-Year-Old-Female 25-Year-Old-Male 60-Year-Old-Female 60-Year-Old-Male
AAA $4,805 $5,441 $2,042 $2,264 $1,554 $1,587
Allstate $6,627 $8,044 $3,315 $3,495 $2,641 $2,641
Geico $2,991 $3,200 $1,407 $1,426 $1,162 $1,325
Home State Insurance $12,208 $14,935 $3,445 $3,579 $2,919 $3,393
Mercury $7,052 $8,802 $1,850 $2,066 $1,089 $1,146
National General $8,039 $9,134 $2,008 $2,228 $1,300 $1,599
Nationwide $5,486 $7,096 $1,883 $2,062 $1,250 $1,350
State Farm $3,037 $3,794 $1,216 $1,492 $1,044 $1,044
Texas Farm Bureau $1,654 $1,908 $1,110 $1,282 $640 $674
The General $6,043 $7,864 $3,194 $3,637 $2,069 $2,386
USAA $2,588 $2,821 $1,577 $1,697 $1,138 $1,136
Statewide Average $5,503 $6,640 $2,095 $2,293 $1,528 $1,662

Source: U.S. News & World Report

Related: How to Buy Car Insurance in 5 Simple Steps

Average Car Insurance Rates After an At-Fault Accident

Your driving record plays a big role in the auto insurance rates you’re offered. In general, the better someone’s record is, the less they’ll spend on insurance. This table compares how much someone can generally expect to spend on car insurance in Texas when they have a clean record and after just one at-fault accident.

Type of Policy Clean Record Premium After One At-Fault Accident Premium
Full Coverage Car Insurance $1,316 $2,048

Source: MoneyGeek.com

Average Car Insurance Costs for Good and Bad Credit

Some insurance companies examine applicant credit scores when determining rates, as certain credit behaviors can indicate how likely someone is to file a claim. Rates can increase for drivers with lower credit scores. See how the average cost of full coverage car insurance in Texas differs between drivers with good and bad credit scores.

Type of Policy Good Credit Premium Bad Credit Premium
Full Coverage Car Insurance $1,023 $2,344

Source: MoneyGeek.com

What Else Affects Car Insurance Costs?

Other factors that can affect car insurance costs include:

How Much You Drive

The more someone drives, the more likely they are to get in an accident simply because they are on the road more often. As a result, driving more miles can lead to higher insurance prices.

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Make and Model of Your Car

When setting a rate, insurance companies often consider how expensive it would be to repair or replace the driver’s car. The higher these costs are, the more the driver will likely pay for coverage.

Amount of Coverage

How much car insurance do you need? The amount may be based on your personal preference or your state’s minimum car insurance requirements. But in general, the more coverage you have, the more expensive your policy will likely be.

Related: Car Insurance Terms, Explained

How to Get Affordable Car Insurance

Looking to lower your car insurance costs? Consider these tips and tricks for finding a more affordable car insurance policy.

Compare Quotes From Different Insurers

There’s no need to accept the first quote you’re offered. Instead, shop around with a few different car insurance issuers to see which can offer the most coverage for the best price.

Recommended: How to Get Car Insurance

Choose a New Car Carefully

If you’re shopping for a new car, you may want to factor in the cost of insurance. The Insurance Institute for Highway Safety shares helpful information on its website, iihs.org, about the cost of insuring different makes and models of cars.

Consider Whether a Higher Deductible Is Right for You

Choosing a higher deductible often means spending less on monthly premiums. However, it’s important to select a deductible you’ll be able to pay if you ever do need to file a claim.

Ask for Discounts

From taking a defensive driving course to earning good grades as a college student, there are many different reasons insurance companies offer discounts. It can’t hurt to ask your insurer if you qualify for any discounts.

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The Takeaway

The average cost of car insurance in Texas is $1,842 per year, or $153.50 per month. The amount you’ll spend on car insurance depends on several factors, including your driving record, age, gender, location, credit score, and insurer.

Feeling uncertain about how much auto insurance you really need or what kind of premium you might have to pay to get what you want? Check out SoFi’s online auto insurance recommendations. The better you drive, the more you can save.

FAQ

How much is car insurance in Texas per month?

The average cost of car insurance in Texas is $1,842 annually. This breaks down to $153.50 per month.

Is car insurance expensive in Texas?

According to the Insurance Information Institute, the average price of car insurance in Texas is higher than the national average but lower than other states in the South, including Louisiana, Mississippi, Florida, and Georgia.

Is $300 a lot for car insurance?

In many cases, the average monthly cost for coverage in Texas is well below $300. But remember, the amount you pay depends on a number of different factors. A 17-year-old woman, for example, could very well pay more than $300 per month largely because of her age and lack of driving experience.


Photo credit: iStock/lightkey

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