Full coverage insurance in Texas costs an average of $445 per month. A full coverage policy usually includes collision and comprehensive insurance, plus the types of coverage required by Texas law. In Texas, liability insurance is mandatory for all drivers.
Car insurance in Texas costs $64 per month or $773 per year for minimum coverage, on average. The cheapest car insurance companies in Texas are State Farm, Texas Farm Bureau, and USAA, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in Texas is 15% higher than the … read full answernational average auto insurance premium. There are several factors that affect how much you’ll pay for car insurance in Texas, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.
Average Cost of Car Insurance in Texas by Category
Note: Rates are an approximation based on a driver in Texas with minimum coverage and a clean driving record. Actual rates will vary.
How to Lower the Cost of Car Insurance in Texas
Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.
Full coverage insurance costs $1,997 per year or $166 per month, on average. Full coverage car insurance is more expensive than the legal minimum auto insurance coverage because full coverage usually includes collision and comprehensive insurance as well as the minimum coverage required by a state.
The cost of full coverage car insurance varies based on the state, the driver’s chosen coverage limits, the driver’s risk factors, and the vehicle’s value. Additionally, … read full answercomprehensive and collision insurance are subject to a deductible, and drivers can select a higher deductible in return for a lower premium. Drivers can also minimize the cost of full coverage car insurance by comparing rates and checking for discounts.
Comprehensive insurance: The coverage limit matches your car’s actual cash value. With comprehensive coverage, your vehicle can be replaced or repaired if it is stolen or damaged by things like animals, natural disasters or falling objects. Lenders and lessors usually require comprehensive coverage for financed cars.
Collision insurance: In Texas, or any other state, the coverage limit for collision coverage is the same as the actual cash value of your vehicle. Collision insurance pays for vehicle damage caused by things like hitting another car, a tree, or a stationary object, or damage caused by single-car accidents like rolling over. If you are financing a car, your lender or lessor may require collision insurance.
Personal injury protection: In Texas, $2,500 worth of personal injury protection is automatically included with liability insurance. Drivers can opt out of this insurance coverage by informing their insurer in writing.
Uninsured/underinsured motorist coverage: Insurance companies in Texas are required to offer uninsured/underinsured motorist insurance. You must decline this insurance coverage in writing if you don’t want it. Coverage limits generally match what you have for liability insurance.
Additional Auto Insurance Options in Texas
Although the insurance types listed above are the standard for full coverage in Texas, the minimum limits may not be high enough for your needs. For example, if you have $1 million in assets, you don’t want to lose it all in a lawsuit, so buying $1 million worth of liability protection would be a good idea.
Similarly, medical payments coverage (MedPay) is optional in Texas, but adding it is a relatively cheap way to cover your injuries in case of a car accident. MedPay is beneficial if your health insurance has coverage gaps, low limits, or high deductibles. However, if you have good health insurance or personal injury protection, it will offer many of the same benefits as MedPay, making MedPay unnecessary.
Ultimately, not every Texan needs every type of insurance that can be included in a full coverage policy. But it’s useful to review your needs regularly. Your situation can change over time. You want to be sure your insurance is keeping pace. For more information, check out WalletHub’s guide on full coverage insurance.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.