Car ownership is expensive. There’s the cost of purchasing the vehicle, as well as the amount you spend on Texas car registration, maintenance, and gas each year. On top of that, there’s paying for a quality insurance plan. And insurance is something every driver should have. In fact, it’s legally required in Texas.

Which is why finding the cheapest plan is important.

Different insurance companies offer packages on a wide spectrum of affordability. In addition to the variances between companies, the state and city you live in may also play a huge role in how much your car insurance costs. That includes Texas.

What Makes Texas Unique for Auto Insurance?

Depending on which part of Texas you live in, combined with the minimum requirement for auto insurance coverage in the state, your monthly insurance bill can change. And Texas is a great example of how insurance costs range from state-to-state (and even city-to-city). With so much land and so many residents, Texas insurance rates are polarized.

If you’re a resident of the Lone Star State and looking for insurance that won’t break the bank, here’s a guide to finding the cheapest car insurance rate in Texas.

How Much is Car Insurance in Texas?

To get an idea of what most Texas drivers spend on insurance, you should first familiarize yourself with the average cost and coverage most residents get.

The average price of car insurance in the state of Texas is $1,810 a year, which is over $100 higher than the national average. This number is calculated using the entirety of the state, which can be a bit misleading for those who live in outlier areas.

The average insurance cost for larger cities in Texas is a bit higher, due to the increased number of cars on the road:

  • Houston – $2,158 per year

  • Dallas – $2,202 per year

  • Austin – $1,821 per year

On the other hand, less populated areas will allow for slightly cheaper rates. Some examples of insurance costs in more suburban and rural areas of Texas include:

  • Odessa – $1,287 per year

  • Abilene – $1,210 per year

  • Harris County – $1,370 per year

These numbers are important to remember, because they can help drivers estimate what the cost of their insurance may be. Using averages based on your location can also help you determine if you’re getting a good deal or not.

Beyond averages, however, there are other factors to consider when searching for the best Texas car insurance rates. Depending on your specific needs, the price of your plan is going to vary quite a bit.

Let’s take a look at some of the variables in price and coverage.

What Are the Different Insurance Plans in Texas?

Texas state minimum car insurance requires liability coverage only.

Liability coverage is insurance that will pay for the damage to the other party’s vehicle in the event you cause a car accident. The lowest amount of coverage drivers need to purchase is broken up into categories:

  • Injuries – For physical injuries caused by an accident, Texas residents need a minimum of $30,000 of coverage per person. This coverage must total at least $60,000.

  • Property damage – The coverage for property damage is a bit lower, at a minimum of $25,000.

The Downfall of Only Purchasing the Minimum

Though only purchasing the minimum required coverage under Texas state law may seem like the most affordable option, it might not be. In the event of a serious accident accumulating more damage than the minimum coverage you have purchased, Texas drivers may be at risk of paying the remaining costs out of their own pockets.

In this way, low liability coverage can wind up being more expensive in the long run. If you’re looking for higher coverage, paying a bit more each month can potentially save you money if an accident does occur.

Take a look at the other coverage options Texas drivers have for affordable auto-insurance, beyond the minimum liability coverage.

Better Insurance Plans in Texas

For more insurance coverage, Texas drivers can opt for other insurance plans based on their budget and individual needs. The Texas Department of Insurance lists the additional plans that drivers can choose to purchase:

  • Collision coverage – This type of insurance covers your own car. This may be a more affordable option for those who find themselves in an accident where their vehicle is badly damaged or even totaled. Adding this coverage to your plan may be a cheaper option than purchasing a new car or paying out of pocket for costly repairs.

  • Comprehensive coverage – Comprehensive coverage protects your car in the event it is damaged by something other than a collision. This includes natural disasters, fires, vandalism, and theft.

  • Medical coverage – In addition to paying for the other party’s medical bills, you may want insurance that covers your own. Medical coverage can be purchased to help pay for your and your passengers’ medical bills if injured in an accident. This plan carries over if you’re injured while driving someone else’s car, walking, or biking.

  • Uninsured motorist coverage – This plan will pay for your medical and vehicle repair bills if you are hit by a driver who doesn’t have insurance. Accidents happen, and sometimes other drivers on the road are not covered. This type of coverage may help make this unfortunate incident more affordable.

  • Towing coverage – For an extra perk, Texas drivers can pay for towing coverage if their vehicle breaks down. This may not be necessary for those looking for the most affordable insurance plan, but it’s something to keep in mind.

  • Rental reimbursement coverage – Should your car be totaled in an accident, or simply break down unexpectedly, rental reimbursement coverage will reimburse you for the cost of having a rental car in the meantime. This plan will cover any theft of damages to a rental car. Again, this may not be the best option for those looking to save money.

Now that you’re familiar with the types of coverage you can purchase, it’s time to delve into the world of quotes and determine which companies provide the best rates for Texas drivers.

How to Find the Cheapest Car Insurance in Texas

In today’s world, the easiest way to find the most affordable coverage is to compare auto insurance quotes online. Car insurance quotes in Texas can be calculated online and compared just like any other state.

Take a look at some of the most popular auto insurance companies and what their average rates are in the state of Texas. For the purpose of this comparison, the rates will be calculated in both Dallas and Brownsville, to get an idea of rates in a larger and smaller city. The rates will be calculated for a single driver in their 30s with a new car.

  • Geico – The most affordable option Geico provides for a Dallas driver is about $143 per month. For a driver in Brownsville with all the same information, this number drops to $129 per month. It’s important to take into consideration the variables for your specific driving history and vehicle, as these could cause the costs to fluctuate.

  • Progressive – Progressive is a bit more unique in terms of cost, due to the fact that the company offers drivers more flexibility with payment plans. Using the Name Your Price Tool, drivers can choose to pay the same amount monthly as they would with another company. With that in mind, the most affordable payment plan Progressive offers for the same Dallas driver is a down payment of $41.80 and a monthly payment of $108.44 after that. For a Brownsville driver with the same information, the cost doesn’t change. This means a city driver may be better off with Progressive, but a more rural driver won’t get an added discount like they would with Geico.

  • The General – The General insurance is often advertised as a cheap alternative to other companies, but a quote for a Dallas driver is actually surprisingly high with a downpayment of $286.55 and a monthly cost of $291.75. This number actually increases for a Brownsville driver, requiring the entire 6 month payment in full at a cost of $1,863 up front. For Texas drivers looking to save money on quality auto insurance, The General is not going to be the best choice.

  • Farmers’ – Farmers’ insurance offers one of the more affordable deals, with a simple monthly cost of $180 for a Dallas driver. Unfortunately, Brownsville drivers get a more expensive plan, at $191 a month. Once again this is a case where city drivers get the better deal.

  • Allstate – For a new car with a good safety rating, Allstate provided a $700 in discounts for the Dallas driver, coming to a low monthly price of $122 per month. For the Brownsville driver, a similar number of discounts were applied to create a monthly total of $187 a month. Allstate proves to be a good option for both drivers, but more affordable for the resident of Dallas.

The Bottom Line

For car insurance quotes, Texas can be a mixed bag. The size of the state leads to much larger premiums than less populated areas of the country, making insurance more expensive for those who live in Texas.

Upon comparing different quotes, there are a few winners in different categories when it comes to affordability. The best deals that came up were:

  • Geico

  • Progressive

  • Allstate

To find the most accurate quote for your situation, compare these rates with Online Auto Insurance. It’s fast, easy, and will instantly show you the cheapest car insurance Texas has to offer.

Sources:

Texas Department of Insurance. Automobile Insurance Guide. https://www.tdi.texas.gov/pubs/consumer/cb020.html