Looking for Cheap Car Insurance in Texas?
There's a reason Texas residents pay higher car insurance rates than most other states: More risky driving behavior, such as speeding, distracted driving, and inadequate safety measures, means there are more fender benders in Texas than elsewhere. At Carlay, our goal is to help you find the best car insurance at a price you can afford.
When it comes to Texas auto insurance, location plays an important role in how much you pay. Carlay can help you find the best prices on home and auto insurance in El Paso, Austin, Houston, or anywhere in between. With Carlay, you can seamlessly switch policies without having to worry about the extra legwork. A licensed broker, Carlay handles your conversion from start to finish, as well as any renewals.
Here are some quotes from people in Texas who saved money on Carlay:
How Much Does Car Insurance Cost in Texas?
If you are looking to buy liability-only car insurance in Texas, you can expect to pay an average of $2,008 per year. If you are interested in buying full coverage car insurance, the average annual cost is $2,408 per year.
For comparison, the national average is $1,783 per year for basic liability car insurance coverage and $2,485 per year for full coverage auto insurance.
What contributes to the insurance rates in Texas?
The following information about the determinants of insurance in Texas will be useful to you.
- High population density
Texas has a large population and thus, high population density requiring higher coverage limits for car insurance.
- Higher speed limits
If you're like most Texans, you love the idea of having more freedom on the road. Driving at higher speeds gives you that. But with that more speed also comes more risk.
- High rate of car accidents
If you live in the Lone Star state, it's important to know the safest way to drive; a higher rate of car accidents in Texas means more risk for insurance companies. Make smart choices behind the wheel to get a low car insurance rate on your next premium.
In Texas, the minimum car insurance requirements are fairly high, which can increase the cost of even basic liability insurance.
Here's how Texas's insurance savings with Carlay stack up against nationwide averages:
| All Coverage Before Carlay | All Coverage After Carlay | Minimum Coverage Before Carlay | Minimum Coverage After Carlay | Full Coverage Before Carlay | Full Coverage After Carlay | |
| TX | $2,366 | $1,602 | $1,929 | $1,055 | $2,875 | $2,072 |
| National Average | $2,489 | $1,671 | $2,360 | $1,390 | $2,761 | $1,963 |
| TX | National Average | |
| All Coverage Before Carlay | $2,366 | $2,489 |
| All Coverage After Carlay | $1,602 | $1,671 |
| Minimum Coverage Before Carlay | $1,929 | $2,360 |
| Minimum Coverage After Carlay | $1,055 | $1,390 |
| Full Coverage Before Carlay | $2,875 | $2,761 |
| Full Coverage After Carlay | $2,072 | $1,963 |
Top auto insurance providers in Texas
Texas boasts dozens of auto insurance companies, including household names like Progressive, State Farm, and Allstate. However, finding the best match for you isn't as easy as just choosing one and signing up.
The way your insurance company calculates a premium varies from one provider to the next. This means that if you get rates from six different insurance companies, you'll probably get six different quotes even for the same coverage.
Factors that have a big impact on your insurance rates include your age, driving record, and where you live. The kind of car you drive also affects your insurance rates. For example, if you drive a Honda Civic full-coverage insurance premium will likely always be lower than it would for an Audi A3 because expensive cars cost more to insure.
Carlay customers have scored some impressive deals with popular carriers in Texas. Just check out the savings:
| Insurance Company | Average Cost | Annual Savings with Carlay | |
| National General | $4,038 | $1,469 | Compare Prices |
| Dairyland | $4,194 | $1,389 | Compare Prices |
| Kemper | $2,627 | $1,141 | Compare Prices |
| Allstate | $2,724 | $1,032 | Compare Prices |
| State Auto | $1,773 | $953 | Compare Prices |
| Safeco | $3,169 | $921 | Compare Prices |
| Nationwide | $3,072 | $899 | Compare Prices |
| Travelers | $2,727 | $770 | Compare Prices |
What Car Insurance Do You Need in Texas?
Every state has a set of requirements to be met before a driver can get an insurance policy. Texas drivers need the following:
| Coverage | Amount | Description |
| Bodily injury liability | $30,000 per person / $60,000 per accident | Covers the costs associated with injuries you cause to others |
| Property damage liability | $25,000 per accident | Covers the costs associated with damage you cause to other people's vehicles or property |
If you don't have the right amount of car insurance before driving, you could get into some serious trouble with the law, including:
- Minimum $175 ticket for your first offense
- Driver's license suspension
- Vehicle impoundment
- Financial liability in the event of an accident
If you have the money, you should probably buy more than the minimum insurance coverage. The following are some helpful add-ons:
| Coverage | Description |
| Collision insurance | Covers damages that are the result of a collision with a vehicle or stationary object |
| Comprehensive insurance | Covers damages that aren't the result of a collision, such as vandalism, theft, or a natural disaster |
| Uninsured motorist coverage | Reimburses you for your expenses from an accident caused by an uninsured driver |
Carlay is ready to help you with whatever coverage you are looking for. Carlay helps you quickly and easily compare and save on car insurance. Sign up takes less than a minute, and you'll start getting quotes from companies like Nationwide and Travelers right away. The average Carlay customer saves $879 per year!
Now that you've decided on the type of insurance you need, let's look at the factors that affect your premium.
How is Your Cost of Car Insurance Determined in Texas?
Factors affecting your final car insurance premium include age, driving record, zip code, and the type of vehicle you drive.
- Cost to insure your car in Texas by age
Insurers recognize that young drivers have less driving experience than older drivers and will likely charge them higher premiums.
What young drivers in Texas need to know
- Texas has a graduated licensing system, which helps new drivers gain experience under lower-risk conditions.
- Some young drivers choose to take defensive driving courses to help lower the cost of their car insurance premiums.
- A good average will save you money on your car insurance as a good student discount.
As a young driver, you might not get the same rates as your parents. But by shopping around and having a clean driving record, you can still find affordable car insurance.
Carlay Insurance offers quotes for drivers of all ages. Here are the average rates for drivers by age:
| Age Group | Average Cost | Annual Savings with Carlay |
| 18-20 | $2,947 | $1,068 |
| 21-24 | $2,690 | $983 |
| 25-34 | $2,573 | $906 |
| 35-44 | $2,444 | $850 |
| 45-54 | $2,559 | $912 |
| 55-64 | $2,503 | $912 |
| 65+ | $2,487 | $819 |
- Cost to insure your car in Texas with a poor driving record
If you've been in an accident, received a speeding ticket, or been convicted of a major offense such as a DUI, you can expect to pay more for your Texas car insurance. Insurance companies consider you a more risky driver than someone without a conviction, so they'll charge you higher rates for three years after your conviction.
When you have a bad driving record, your chances of finding cheap car insurance are slim. But finding cheap car insurance with a bad driving record doesn't have to be difficult. With Carlay, you can find great rates and save money on car insurance in just a few minutes.
Some of our customers with a less-than-perfect driving history found the following discounts on their car insurance premium:
| Driving Violation | Average Cost | Annual Savings with Carlay |
| Clean Record | $2,940 | $972 |
| Illegal Turn | $6,080 | $2,853 |
| Suspension | $3,605 | $2,243 |
| Improper Passing | $4,704 | $1,885 |
| Defective Equipment | $3,646 | $1,729 |
| Speeding over 15 | $3,431 | $1,273 |
| Speeding under 15 | $3,552 | $1,218 |
| Failure to Obey Traffic Sign | $3,447 | $1,134 |
| Open Container | $3,180 | $1,082 |
| Wrong Way/Wrong Lane | $3,160 | $969 |
- Cost to insure your car in Texas based on where you live
Texas is the second largest state in terms of both area and population. Its 29 million residents nearly equal its 18 million licensed drivers. Drivers in Texas face rate fluctuations depending on where they live. Rates are higher in cities than in rural areas, because of higher rates of accidents and theft claims.
If you live in a large city such as Dallas or Houston (3,500 people per square mile), you will pay higher premiums than you would if you lived in a small town like Texarkana (less than 800 people per square mile).
Carlay checked out some great rates for auto insurance in the following Texas cities:
- Cost to insure your car in Texas based on the type of car you drive
At the end of the day, the type of vehicle you drive could have an impact on your car insurance. If you're driving a Toyota Camry or a Ford F-150 light-duty pickup truck, affordable rates shouldn't be too hard to come by. But if you ride around in something like a Mercedes-AMG G63 or Audi A8 Quattro, your premiums will be higher.
In general, people who drive less expensive cars pay lower car insurance premiums than those who drive more expensive cars. This is because it's less expensive to fix or replace a cheap car if you get into an accident than it is to repair or replace a pricey car. And the savings are even greater if you often use public transportation.
Following are insurance costs for five popular car models, listed in alphabetical order, with and without Carlay:
How to Save Money On Car Insurance in Texas?
If you're like most people, then you want to get the best deal possible on car insurance. And aside from your driving record, the state in which you live, and the make of your vehicle, there are always ways to save.
- Shop around for quotes
When it comes to saving money on your car insurance premiums, compare quotes from at least three to five insurance companies. That's where we can help. Carlay has relationships with trusted dealers, which means you get the best offers on new cars while minimizing your driving time and paperwork.
Carlay is an app that uses the latest technology to save you money on car expenses. After a quick sign-up, it helps you collect quotes, complete paperwork, and cancel your old policy. Carlay will monitor your renewal price and let you know if there is a better deal before you renew.
- Look for discounts
Be sure to seek out a variety of different car insurance quotes so that you can find the best car insurance for your needs. Here are some discounts that many companies give in Texas:
| Discount | Who is eligible? |
| Good driver discounts | Good driver discounts are for Texas drivers who have had a valid driver's license for the past three consecutive years, have no more than one point on their driving record, and have no serious driving-related convictions. This discount is mandated by state law and saves drivers 20% on their car insurance premium. |
| Bundling discounts | Insuring multiple products (like auto and home) with the same company is an easy way to get a bundling discount, which can result in savings of around 18%. |
| Defensive driver discounts | Most insurance companies offer discounts to drivers who complete a state-approved defensive driving course. This can be particularly helpful for young drivers who typically face high premiums. |
| Payment and billing discounts | Policyholders who pay their premium in full, set up automatic payments, or sign up for paperless billing may be eligible for a discount of up to 25% on their annual premium. |
| Good student discounts | Good student discounts can help reduce insurance premiums for young drivers, who typically have sky-high rates until they turn 25. Full-time students who maintain a B average may qualify for savings up to 25% through their insurer. |
| Continuous coverage discounts | Many insurance companies offer discounted rates—often 5% to 25%—to policyholders who have been continuously insured for 6 months or more. |
Texas car insurance companies that sell personal policies have the ability to provide discounts for factors such as marital status, employment, and residential history. Ask your insurer if a discount is available.
- Increase your deductible
By increasing your deductible, you can potentially save on your premium. However, when you're thinking about raising your deductible, make sure you'll be able to afford the full amount whenever you need to file a claim.
Registering Your Car in Texas
To register a car in Texas, be sure to have the following paperwork available:
- Valid driver's license or ID card
- Proof of insurance
- Proof of sales tax payment
- Car title or signed lease agreement
- Proof of a safety inspection
- Smog test certificate, depending on the age of the vehicle
You should call ahead to make an appointment. When you come in, you will be required to complete a registration form with some personal information and details about your vehicle.
Texas drivers must renew their vehicle registrations annually.