Car insurance rates have been on the rise nationwide, and this has also held true for the state of Texas. For the last few years, the Lone Star State has seen auto insurance rates increase by almost 5% per year since 2017, giving Texas drivers the tenth-highest rates in the entire country. That said, rates vary widely based on your insurer, city/county, age, driving history, type of vehicle, and even your credit score. So here’s the best car insurance for Texas 2019.

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To get a clearer idea of how cheap auto insurance in Texas works and how to find the most affordable rates in the state, let’s first take a look at how Texas laws regulate drivers and their vehicles.

Best Car Insurance for Texas (2019)

Auto Insurance Laws in Texas

According to the Texas Department of Insurance, drivers must abide by the following regulations:

  • All Texas drivers must obtain liability insurance, and any Texas driver that is still making payments toward owning their car must obtain collision and comprehensive coverage.
  • The minimum liability insurance required by state law is $30,000 for personal injury, $60,000 per accident, and $25,000 for property damage.
  • If you buy a new car, your existing insurance policy will cover the new vehicle for approximately 20 days, by which time you will need to contact your insurance provider to set up a new policy.
  • Generally, Mexico does not recognize Texas auto insurance policies; so, if you plan to drive across the border, you may need to obtain a Mexican liability insurance policy.

How Cheap Auto Insurance Rates are Determined in Texas

As of the latest data, good drivers in Texas pay an average of $1,934 annually for auto insurance, or about $161 per month. Rates vary by insurance provider, location, insurance type, and the level of coverage. However, these rates are also highly dependent on drivers. When an insurance provider is calculating your rates, they will look at the following factors:

  • Location – Generally, if you live, commute, or work in an urban area (like Houston, San Antonio, or Dallas), your rates will be higher, as accidents are more prevalent in densely-populated regions. However, other location-based factors are important, too, like adverse weather conditions and reports of vandalism. In Texas, areas closer to the Gulf of Mexico are more likely to be adversely affected by hurricanes, which also causes rates to rise.
  • Age – Statistically, younger drivers get in more accidents. This means that the younger you are, the more you will need to pay in insurance premiums. The average age in Texas is 34, which is lower than the national average.
  • Gender – Men are more likely than women to get in accidents, so your gender could impact your auto rates as well.
  • Marital Status – Typically, married couples take fewer risks than their single counterparts, and this holds true for driving. Married couples get in fewer accidents, and therefore pose a smaller risk for insurance providers.
  • Driving Experience – While this metric is similar to age, it is still slightly different. Usually, the older you are, the longer you have been driving, but that is not always true. Nonetheless, people who have held a driver’s license for longer are more experienced, and therefore pay lower premiums.
  • Driving Record – A driver’s record is one of the most important factors that insurance providers consider. If you have a history of frequent speeding tickets, DUIs, or other infractions, you will have to pay more. Texas is rated among the top-10 states when it comes to traffic incidents, which is one of the primary reasons that auto insurance rates are higher.
  • Claims Record – It is also important to consider how many claims you have made to insurance providers in the past (if any). At-fault claims will cause your premiums to rise, while not-at-fault collisions will generally have no impact on your rates.
  • Credit History – Your credit is a good indicator of how financially responsible you are, but the research also shows that people with low credit tend to file more claims, making them a greater risk for insurance providers.
  • Previous Insurance Coverage – If you have maintained auto insurance without any gaps, your new insurance provider will see this as a good sign. However, if you went for several years, months, or even days without any insurance, you will be seen as high-risk.
  • Vehicle Type – Certain cars are driven differently, which means that certain cars are more prone to accidents. Some cars are also more prone to theft or vandalism.
  • Use of Vehicle – When you exclusively use your vehicle for personal use, you are less likely to get in an accident. However, if you take long business trips or frequently drive for your work, you increase your chances of a collision. 
  • Annual Mileage – How much you drive directly impacts your chances of getting in an accident. No matter how you use your vehicle (personal or business use), if you put a lot of mileage on your car, you are more likely to file a claim with your insurance provider.
  • Number of Policies – Finally, the type of insurance you want/need will help determine your rates. The more policies you have (liability, comprehensive, uninsured motorist, etc.), the more you will need to pay.

Best Auto Insurance Rates in Texas (by Provider)

When looking at rates across the entire state, there are 6 major insurance providers that consistently provide low rates for good drivers. Additionally, there are several other companies that provide low rates in certain cities and counties, but do not consistently provide low rates statewide. In any case, let’s take a look at some of the lowest auto insurance rates available in the state of Texas:

ProviderAnnual RateMonthly Rate
State Farm$505$42
Allstate$760$63
Progressive$785$65
Geico$886$74
Esurance$1,067$89
USAA* (only for active military/veterans/families)$354$29

 

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It is important to note that the table above shows the average rates for the minimum coverage required by the state of Texas. For standard or “full coverage,” the rates are significantly higher:

ProviderAnnual RateMonthly Rate
State Farm$1,205$100
Progressive$2,088$174
Esurance$2,266$189
Allstate$2,497$208
Geico$2,601$217
USAA* (only for active military/veterans/families)$949$79

 

These are approximate rates based on statewide polling for 40 year old men and women with good driving records. Naturally, individual rates will vary. Additionally, providers like Mercury, Unitrin, and the Texas Farm Bureau also provide low rates for certain areas. So, in order to get a better picture of auto insurance rates around the state, let’s look at how rates vary by city.

Cheapest Texas Auto Insurance Rates by City

Aside from your driving history, your location is one of the most important factors when calculating the cost of your auto insurance. Population, crime rates, weather conditions, and cost of living can all affect the amount you pay each year. Individuals who live and work in rural areas typically have the lowest rates, however, the majority of Texas residents live in urban or suburban areas, where rates tend to increase. 

The table below shows the average yearly auto insurance rate for 78 of the most populated cities in Texas. These are approximate rates based on statewide polling for 40-year-old men and women with good driving records. Here is what the data shows:

Cheapest Auto Insurance Rates in Texas by City

CityAverage Yearly Rate
San Marcos$1,034
Seguin$1,063
Round Rock$1,064
Killeen$1,071
Flower Mound$1,072
Cedar Park$1,089
Kerrville$1,100
College Station$1,123
Fort Worth$1,134
New Braunfels$1,166
Kyle$1,204
Burleson$1,206
Leander$1,213
Pflugerville$1,234
Plano$1,235
Converse$1,272
Grapevine$1,297
Austin$1,302
Victoria$1,310

 

Dickinson$1,326
Lubbock$1,334
Corpus Christi$1,336
Kingwood$1,336
The Colony$1,338
Alvin$1,340
Del Rio$1,341
League City$1,343
Keller$1,345
El Paso$1,348
Tyler$1,350
Odessa$1,352
Denton$1,356
San Antonio$1,356
Cypress$1,361
Spring$1,362
Waxahachie$1,363
Amarillo$1,375
Richmond$1,376
Lewisville$1,377

 

Mansfield$1,377
North Richland Hills$1,378
Wylie$1,380
Allen$1,381
Mckinney$1,386
Bedford$1,389
Euless$1,389
Desoto$1,390
Red Oak$1,392
Irving$1,402
Missouri City$1,409
Arlington$1,417
Grand Prairie$1,421
Pearland$1,422
Tomball$1,423
Baytown$1,424
Brownsville$1,424
Frisco$1,425
Richardson$1,425
Sugar Land$1,425

 

Mission$1,426
Coppell$1,427
Cedar Hill$1,428
Eagle Pass$1,431
Friendswood$1,432
Carrollton$1,433
Laredo$1,434
Mcallen$1,450
Dallas$1,452
Harlingen$1,452
San Benito$1,457
Garland$1,462
Mesquite$1,464
Katy$1,464
Humble$1,468
La Porte$1,480
Weslaco$1,484
Pharr$1,490
Houston$1,500

 

Houston

In Houston, the average annual cost is $966 for minimum liability insurance, and $1,500 for full auto coverage. However, like with most large cities, these prices can vary by district or neighborhood. For example, residents in neighborhoods like Clear Lake and Kingwood will pay about $25 less per month than residents in Sharpstown and Alief. Houston has a high rate of fatal accidents when compared to the national average. High-density traffic also contributes to the city’s high premiums.

San Antonio

In San Antonio, the average annual cost is $831 for minimum liability insurance, and $1,356 for full auto coverage. Those living in Downtown San Antonio will typically pay much higher rates than those living on the outskirts of the city in neighborhoods like Stone Oak. San Antonio ranks in the bottom half of US cities for safe drivers, which is one of the primary reasons that rates remain high. That said, San Antonio is much farther from the coast than cities like Houston, so it is not as vulnerable to hurricanes.

Dallas

In Dallas, the average annual cost is $936 for minimum liability insurance, and $1,452 for full auto coverage. Neighborhoods like Farmers Branch and Casa Linda pay an average of $12 less per month than Downtown and West Dallas. While Dallas has some of the best drivers in the state, it is still a densely populated city, which translates into frequent traffic collisions and higher premiums.

Austin

In Austin, the average annual cost is $800 for minimum liability insurance, and $1,302 for full auto coverage. Residents of neighborhoods like Del Valle pay as much as $100 more per year than residents of neighborhoods like New Braunfels and Georgetown. It is less expensive to obtain auto insurance in Austin than in many other large cities in Texas. However, the city is not known for having safe drivers, which contributes to rising annual rates. Here are the best auto insurance rates for Austin Texas

Fort Worth

In Fort Worth, the average annual cost is $516 for minimum liability insurance, and $934 for full auto coverage. Fort Worth is located just outside of Dallas, but does not see the same traffic levels, thanks in part to its smaller population (approximately 758,000). Like most other cities in the state, rates vary widely by zip code, with Stop Six residents paying the highest rates in the city. Fort Worth has more accident-free drivers than any other city on this list, but still falls below the national average for safe drivers.

As you can see, there are a lot of variables that affect the cost of auto insurance in Texas. Additionally, the figures provided above are averages based on adults with good driving records, so the exact rates you pay may differ. Nonetheless, we hope that this information helps you when you’re ready to obtain a new policy, or upgrade your current one in the state of Texas. If you’d like to learn more about acquiring auto insurance in Texas, consult the Texas Department of Insurance today!

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Matthew Jones