car insurance in Texas 3Texas is the 10th most expensive state for car insurance. In 2014, the average cost of car insurance in Texas was $905.64, while the national average was 866.31. Harris County, is 11 percent above the Texas average, and Tom Green County in West Texas, is 22 percent below the Texas average, showing the variation of cost within the state. As with other states, cheap car insurance pricing will vary depending on your driving record, your age, gender, and which policy limits you choose. Other variables include where you live, and the crime rate of your neighborhood. Another interesting fact, the annual vehicle miles traveled in Texas during 2016 reached 261.994 billion, which is an increase of 1.5% over the 258.122 billion traveled in 2015.

The minimum levels of coverage required by the Texas State Auto Insurance laws are 30/60/25.

  • $30,000 of coverage for bodily injury liability per personcar insurance in Texas 2
  • $60,000 of coverage for bodily injury liability per incident
  • $25,000 of coverage for property damage liability per incident

If you fail to show proof of insurance at an accident or traffic stop, this may result in a fine of up to $350. In addition, a surcharge of $250 will be added to your annual driver’s license fee for each of the next three years. You possibly will also have your license and registration suspended until you’re able to show proof of insurance.

Why Is Car Insurance In Texas More Expensive?

There are a couple of reasons why car insurance in Texas is more expensive than other states. Theft, uninsured motorists, increased accidents, population growth, and high cost vehicles all contribute to cause insurance premiums to be higher than in other areas.

  • In 2014 Texas had 68,546 vehicle thefts reported, which is a 4.2% increase compared to 2013. In 2014, the vehicle theft rate was 254.3 per 100,000, a 2.4% increase compared to 2013. The vehicle theft rate in Texas is higher than the overall US vehicle theft rate, which were 216.2 per 100,000 in 2014.
  • Uninsured Drivers are another factor that increases auto insurance. About 13.3% of Texas residents are estimated to be driving car insurance in Texas without insurance. This makes Texas rank as #19 among US states and the District of Columbia, slightly worse than average.
  • The Texas Department of Transportation maintains a website with vehicle crash data. The Fatality Rate on Texas roadways for 2016 was 1.44 deaths per hundred million vehicle miles traveled. This is a 3.59% increase from 2015. Texas, unfortunately, also leads the country in DUI offenses, and that’s just the ones that are caught. In 2016, there were 987 people killed in motor vehicle traffic crashes where a driver was under the influence of alcohol. This is 26% of the total number of people killed in motor vehicle traffic crashes.
  • Another factor in auto insurance rates is the growing population in the state, particularly in urban areas. Texas is a fast-growing state, and in cities like Dallas, Houston and San Antonio, the growing population density is causative to more accidents, especially where texting, speed or alcohol is part of the equation.
  • Texas may invoke images of old beat up trucks, but it also has a high number of relatively expensive luxury cars, trucks and SUVs.  These larger vehicles are more expensive to repair, and the high cost replacement parts and the labor for fixing damaged cars and trucks has pushed up the price of auto insurance.

car insurance in texas 4A study by the National Association of Insurance Commissioners shows that the price of collision coverage, which is the portion of an insurance policy that pays to repair damage after an accident, has been climbing in Texas and now ranks as the fifth highest among the states. However, the market is competitive, and that means that drivers who are unhappy with what they’re paying can often find better cheap car insurance rates by comparing multiple quotes online. Click here for our latest data insights on car insurance prices for Texas.