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Austin is one of the fastest-growing metro areas in the country but is also ranked among one of the nation’s worst metro areas for traffic congestion. Most people living in Austin drive to get to work and the average commute time is 26.4 minutes. Given that drivers spend so much time in the car, it’s important to have accurate and helpful information on car insurance rates. Its even more important if your car is your most reliable way to get to work. Investing in quality auto insurance will help ensure that there is less disruption to your life in the event of an accident. So what is the best car insurance rates in Austin, Texas?

Best car insurance rates in Austin Texas
Best car insurance rates in Austin Texas

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Best Car Insurance Rates in Austin, Texas

Texas Auto Insurance Coverage Laws

Texas law requires you to have 30/60/25 liability coverage, this means $30,000 in bodily injury liability per person, $60,000 per accident, and $25,000 in property damage liability. This is called state minimum insurance. It is generally the cheapest, however, there are some definite ‘costs’ to this low price. If you only have the state minimum and get into an accident, your car will not be protected and you will have to pay out of pocket for any repairs that your car might require. If you get into a major accident and your car is totaled, you will not have any financial help in replacing the car and no rental car coverage in the shorter term.

Additionally, because you don’t have significant coverage, if you get into an accident that results in serious injuries, your health care costs may also become a hefty financial burden. While it might be tempting to simply go with a lower rate to save money in the short term, spending a few more dollars a month might save you thousands of dollars in the end.

To make sure that your car is protected in the event of an accident and that you will be financially taken care of in the event of an accident, you need to have what is called comprehensive and collision insurance. Although this will cost you slightly more per month, it could save you substantially in the long term in the event of a major accident. Note, if you still owe a balance on your car, your lender will require you to have collision and comprehensive coverage because like you, they do not want to be liable for the loss or repair costs of an accident.

Laws in Texas require insurance companies to charge rates that are fair, reasonable, and adequate for the risks that they cover. If the government finds that the company’s rates are too high the company can be required to refund people for the overages. If you feel like you are being overcharged or that something unethical is occurring with your insurance. The Texas Department of Insurance is the government agency that is responsible for processing complaints about insurance companies. [https://www.tdi.texas.gov/]

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Car Insurance Rate Factors in Austin Texas

Decisions about premium rates depend on a number of factors:

  • Age. Men under 25 and women under 21 typically have the highest rates. Rates go down as people approach middle age and then begin rising again after the age of 70. Are you currently in your 30s or 40s? If you are, you are in the perfect age range for affordable insurance coverage.
  • Your driving record and history of claims. If you have gotten into accidents or received tickets you can be charged more. Some companies may even refuse to sell you a policy if they determine you are at a high risk for issues like accidents, tickets, and drunk driving arrests.
  • Where your car is located. If you live in a city, such as Austin, your rates will probably be higher because people in urban areas are more likely to get into accidents than people in rural areas. With more cars are on the road in denser numbers, statistics show that more accidents occur in more densely populated areas – like Austin. Even in the same city, your rates can change depending on your zip code. You will be surprised to find that your rates could vary upwards of 13% based on your Austin neighborhood.
  • The type of car you have. Collision and comprehensive rates are the highest for luxury, high-performance and sports cars. Rates are also high for cars that are expensive to repair, like imports with harder to find parts. In general, if you have a newer mid-range domestic car you will have lower insurance costs.
  • How you use your car. If you use your car for things like commuting and running errands, your insurance costs will be lower than if you use your car for your business. Business vehicles are more expensive to insure
  • Your credit score. Some companies will use your credit score to decide what to charge you. If you want to double-check which companies will use your credit scores [http://www.helpinsure.com/help/documents/creditauto.pdf]. If you have a great credit score it might be worth going with a company that will take your credit into account. If you have low credit look for a company that does not run a credit check

Cheapest Car Insurance Rates in Austin, Texas

Unfortunately, the average car insurance rate in Austin is higher than both the national and state average due to a high accident rate and the high number of insurance claims. For individuals looking for liability, collision, and comprehensive coverage, the average cost for car insurance for men is around $1,272 per year for men and $1,333 for women. However, it is still possible to find good deals, especially if you don’t have a high rate of claims or tickets.

As part of this study, we compared the rates of the companies who offered the best car insurance rates for Austin, Texas. For the purposes of this comparison used a 30-year-old, single man, who owned his own home. The man drove a 2014 Toyota Rav4 and drove around 12,000 miles a year, using his car primarily for commuting to and from work. He had no history of accidents, claims, or tickets. He selected coverage slightly above the state minimum, but still less than the full comprehensive coverage.

A similar analysis was used for a 30-year-old woman which had an otherwise identical history. It was found the average cost for the man was $107 per month and for the woman, it was $104 per month. The cheapest companies were either Elephant or Mercury, with many of the other companies costing an upwards of $10 – $20 more per month.

It is important to remember that one of the big discrepancies in insurance is what zip code you live in. There are 15 different zip codes throughout Austin. The most expensive zip codes for men were 78731 and 78732, which encompass neighborhoods of Allandale, Balcones Park, Rosedale, Davenport, Lost Creek, Rollingwood, Rob Roy, Stratford Hills, and Westlake Hills.

The cheapest auto insurance rate for men in these neighborhoods was $126 per month. For women, 78732 and 78746 were the most expensive zip codes. These include the neighborhoods of Davenport, Lost Creek, Rollingwood, Rob Roy, Stratford Hills, Westlake Hills, Lake Travis, and Steiner Ranch. Unsurprisingly many of these neighborhoods are also some of the wealthiest and most up and coming areas of Austin, where in-general people drive more expensive cars and that was reflected in a higher cost of car insurance.

Cheapest Auto Insurance Rates Austin Texas by Neighborhood.                                   

ZipNeighborhoodMaleFemale
78731AllandaleElephant $126Elephant $119
78750Anderson MillElephant $124Elephant $119
78759The ArboretumElephant $122Elephant $115
78731Balcones ParkElephant $126Elephant $110
78750Balcones VillageElephant $124Elephant $119
78704Barton HillsMercury $98Mercury $94
78738BelevedereMercury $101Mercury $95
78704Bouldin CreekMercury $98Mercury $94
78748Buckingham EstatesMercury $96Mercury $91
78750Bull CreekElephant $124Elephant $119
78702ChavezMercury $102Mercury $98
78745Cherry CreekMercury $100Mercury $94
78723CherrylawnMercury $98Mercury $96
78745Cherry MeadowsMercury $100Mercury $96
78702ChestnutMercury $102Mercury $101
78757CrewstviewMercury $92Mercury $89
78749Circle C RanchMercury $106Mercury $99
78703ClarksvilleElephant $117Elephant $110
78703CrestviewElephant $117Elephant $110
78746DavenportElephant $126Elephant $121
78749Deer HavenMercury $106Mercury $99
78759The DomainElephant $122Elephant $115
78702East 6thMercury $102Mercury $101
78702East 11thMercury $102Mercury $101
78702East CeasarMercury $102Mercury $101
78745Flournoy AcresMercury $100Mercury $96
78745Grand OaksMercury $100Mercury $96
78702GovalleMercury $102Mercury $101
78749Heights at Loma VistaMercury $106Mercury $99
78702HollyMercury $102Mercury $101
78750JesterElephant $124Elephant $119
78759JollyvilleElephant $122Elephant $115
78703Lake AustinElephant $117Elephant $110
78732Lake TravisMetlife $102Elephant $121
78750Lakewood ParkElephant $124Elephant $119
78749Legend OaksMercury $106Mercury $99
78746Lost CreekElephant $126Elephant $121
78749Maple RunMercury $106Mercury $99
78748Manchaca GardensMercury $101Mercury $101
78757North Shoal CreekMercury $89Mercury $89
78749Oak ParkMercury $106Mercury $99
78703Old EnfieldElephant $117Elephant $110
78748Onion CreekMercury $101Mercury $101
78703Pemberton HeightsElephant $117Elephant $110
78746RollingwoodElephant $126Elephant $121
78731RosedaleElephant $126Elephant $110
78738Rough HollowMercury $101Mercury $95
78746Rob RoyElephant $126Elephant $121
78748Shady HollowMercury $101Mercury $101
78703Shoal CreekElephant $117Elephant $110
78748South SlaughterMercury $101Mercury $101
78750Spicewood VistaElephant $124Elephant $119
78745Southhampton HillsMercury $100Mercury $96
78748Southland OaksMercury $101Mercury $101
78738Spanish OaksMercury $101Mercury $95
78759St. Edwards TrailElephant $122Elephant $115
78732Steiner RanchMetlife $102Elephant $121
78746Stratford HillsElephant $126Elephant $121
78745Sunset ValleyMercury $100Mercury $96
78703TarrytownElephant $117Elephant $110
78704Travis HeightsMercury $98Mercury $94
78723Walnut HillsMercury $98Mercury $96
78749Western OaksMercury $106Mercury $99
78703WestfieldElephant $117Elephant $110
78746Westlake HillsElephant $126Elephant $121
78723Windsor ParkMetlife $102Elephant $121

 

Although this analysis can help you get started, how accurate it will be for you as an individual will vary. If you closely mirror our fictional examples your rates will be similar. If you are significantly younger or older, have a markedly different car, or have lots tickets or claims then your rates will deviate considerably from these examples.

Circumstances that can Negatively Impact Your Auto Insurance Rates in Austin Texas

Your Age:

Men and women in their late teens and early twenties are likely to pay significantly higher rates than those in their thirties. Teens and young adults are more accident prone and are therefore more expensive to insure. As individuals age, the accident rate once again begins to inch upwards. In Texas, the average monthly rate for drivers over the age of 65 is $93, at over 75 years old it increases to $102, and over 85 it reaches $114. Now, these rates might sound low based the rates for the 30-year-old’s discussed previously. However, it is important to remember that rates in Austin are greater than those in other areas of the state, so rates for older people in Austin will be greater than the state average. However, if people in these age groups are able to maintain clean driving records, they will still be able to find some less expensive rates.

Traffic Citations:

Regardless of age, if people have accumulated a high number of traffic citations or made multiple claims they will also be faced with higher monthly rates. In Texas, each traffic citation will stay on your driving record for three years. If you do receive a citation the best thing is to use a defensive driving course to remove the citation from your record if you are eligible. If not, try to avoid any additional tickets over the next three years. This will stop your rate from increasing further and hopefully at the conclusion of the three-year period your higher rate will begin to come down.

Accidents:

Whether or not your car insurance rates will be impacted by an accident depends on who is to blame. Texas uses what is called a ‘fault’ state. When an accident occurs, it is determined which driver is responsible for the accident. ***Note*** This is why it is extremely important to contact the police when any accident occurs to fill out a report. The Police will assign who is at fault and without this verification, insurance companies can deny claims. So to protect yourself and your rights, it is imperative that you contact the police in the event of an accident.

Once the fault is assigned, that person’s insurance will be required to pay not only for the injuries or damage for themselves but for the other people and vehicles involved in the accident. If you get in an accident and it is the fault of the other driver then you will not have to make an insurance claim with your insurance and the accident will not impact your rates – In this case you will need to obtain the insurance information for the other driver and contact their insurance in order to have your car repaired and any physical injury costs covered. However, if you are the “at fault” driver you should be prepared for the other driver(s) to make claims against your insurance and for your rates to go up temporarily. Do keep in mind, some insurance companies offer things like accident forgiveness so be sure and ask when shopping rates about these programs it could end up saving you thousands over the years you are on the road.

If you are unsure of the status of your driving record you should contact the Texas DMV (Department of Motor Vehicles) and obtain a copy of your current driving record. If you have had tickets that have just reached the three-year mark it is worth checking your driving record to make sure that they have been officially removed from your record, if they have, that would be a good time to shop new rates with several different companies to see if you can get a new lower rate.

 

Circumstances that can Positively Impact Your Car Insurance Rates in Texas

Retirement:

Although rates typically go up as someone approaches retirement, there are ways to still qualify for low rates. For people of retirement age, there are insurance agencies who provide discounts to age qualifying membership such as the AARP, which can support older drivers and help keep rates down. In Texas, the AARP provides a number of benefits, such as 12-month rate protection, lifetime renewability, accident forgiveness, and 24/7 claim service. These benefits are not only valuable for older Texas drivers to look into but can also help you as you age and no longer want to deal with issues such as roadside repairs on your own.

Military Members:

Many people in Austin are affiliated with the military, and issues such as deployment can definitely impact auto insurance rates. Many active duty, veterans, and military family members might find that USAA insurance is the right fit for them. It can help lower costs, especially when people are deployed or away from home and their vehicles for an extended period of time. They even offer a 60% discount on storing vehicles.

Car Theft Rates

Texas auto insurance not only helps you in the event of an accident but also helps you get back on the road if your car is stolen. When considering how much auto insurance coverage would be best for you, it is worthwhile to consider what the car theft statistics are in your area. There were a total of 937 car thefts in Austin neighborhoods in 2017. However, where those thefts occurred varied widely based on zip code. If you live in a zip code with a greater than average amount of car thefts it might be worth investing in stronger insurance or in a car with anti-theft features.

Car Insurance Thefts in Austin in 2017, by Zip Code:

Zip CodeMotor Vehicle Thefts
7873115
7875025
7875968
78704177
7873860
7874857
78702143
78745132
7872391
7875757
7874928
7870337
7874647
787320

Cheapest Car Insurance Agents in Austin

While many prefer the cheapest auto insurance rate, there are also a number of other factors to consider when choosing cheap car insurance. Perhaps you are willing to pay more for certain types of coverage. You might also prefer a company where you are able to develop a close relationship with your local car insurance agent.

For instance, although Elephant can often provide the lowest rates for auto insurance, there are some factors that might have you thinking twice about using them. Elephant is a direct to consumer insurer, without the ability for you to develop personal relationships with a local agent, which means that you may be at their organization mercy, devoid of the human touch. For instance, people with car insurance through Elephant filed complaints about the company at three times the national average. Doing your research on these direct to market companies to hear other consumer experiences will likely indicate the companies values and help you make the best decision for yourself.

For people interested in a maintaining a more personal and yet professional relationship with an agent, there are a number of people that they can go to, both in Austin and the surrounding area. Keep in mind you are likely going to spend more as these agencies have more overhead. Below you will find some of the top-rated agents in the Austin area.

Owner / PresidentCompanyLocation
Phyllis Benjamin and Sara FryBenjamin Fry Insurance1111 South Interstate 35

Suite 100

Austin, TX 78747

Patrick WatkinsWatkins Insurance Group3834 Spicewood Springs Road

Suite 100

Austin, Texas 78759

Robin Moore and Justin LawhornLawhorn and Moore Insurance1311 Chisholm Tri

Suite 403

Round Rock, Texas 78681

Ron NemetzNemetz Insurance Services3470 Jack C hays Trail

Suite D

Buda, Texas 78610

Heaton BennettHeaton Bennett Insurance3933 Steck Avenue

Suite B119

Austin, Texas 78759

Stephanie AbtAbt InsuranceOnline
Multiple AgentsSouthwest Insurance Center3105 Slaughter Lane

Austin, Texas 78748

Bent AllenState Farm9809 Anderson Mill Road

Suite 100

Austin, Texas 78750

Ed WeeranEd Weeren Insurance Agency300 East Highland Mall Blvd

Unit #208

Austin, Texas 78752

Dean DavisDean Davis Insurance7950 Anderson Square

Suite 101

Austin, Texas 78757

Xzavier HaywoodGEICO Insurance4930 South Congress Avenue

Unit C-302A

Austin, Texas 78745

Lin AgencyAllstate Insurance8516 Anderson Mill Road

Suite 107

Austin, Texas 78729

Ross GrayFarmers Insurance2404 South IH 35 Frontage Road

Austin, Texas 78704

Summary on Cheapest Auto Insurance Austin, Texas 2019

If your primary concern is to locate a cheap rate for insurance than going with a direct to consumer company may be your right for you. However, if you want quality customer service, with a more human touch and possibly an agent on the ground that you can work alongside than it might be worth paying slightly more per month. Remember, there are ways to save if you are 55 or older and/or in the military, it will also be worthwhile to explore some of the exclusive insurance rates that are open to you.

A price comparison based on your own driving record, your vehicle, your age, and the individual factors will provide the most competitive car insurance rate in Austin, Texas. In the end, the most important thing for you to do is decide what kind of coverage you need and then do some shopping, allow multiple car insurance companies the opportunity to compete for your business.

Austin Texas Car Insurance FAQs

What are the car insurance minimums in Texas?

Texas law requires you to have 30/60/25 liability coverage, this means $30,000 in bodily injury liability per person, $60,000 per accident, and $25,000 in property damage liability. This is called state minimum insurance. It is generally the cheapest, however, there are some definite ‘costs’ to this low price. If you only have the state minimum and get into an accident, your car will not be protected and you will have to pay out of pocket for any repairs that your car might require. If you get into a major accident and your car is totaled, you will not have any financial help in replacing the car and no rental car coverage in the shorter term.

More information at Texas Coverage Laws for Auto Insurance

What determines auto insurance rates in Austin, TX?

Decisions about premium rates depend on a number of factors:

  • Age Your driving record and history of claims
  • Where your car is located
  • The type of car you have
  • How you use your car
  • Your credit score

More information at:

Car Insurance Rate Factors in Austin Texas

Circumstances that Can Negatively Impact Insurance Rates in Texas

Circumstances that Can Positively Impact Insurance Rates in Texas

Johnny Jet Editorial

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Best Car Insurance Rates in Austin, Texas
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