Average Cost of Car Insurance in Texas for 2025
Quick Answer
Car insurance in Texas costs on average $2,299 annually or $192 per month. However, your driving record, age, credit and the car you drive can all affect the cost of car insurance in Texas.
The average cost of car insurance in Texas is $2,299 annually or $192 per month, according to Experian data from January 2025 and based on policies sold through our automotive insurance marketplace.
Here are the average premium costs for full and minimum coverage car insurance in Texas:
| Type of Coverage | Annual Cost | Monthly Cost |
|---|---|---|
| Full coverage | $2,684 | $224 |
| Minimum coverage | $1,412 | $118 |
Source: Experian data as of January 2025
You're typically required to buy full coverage car insurance if your car is financed or leased. Full coverage adds collision and comprehensive coverage, both of which protect the vehicle from damage. If your car isn't financed or leased, you could opt for minimum coverage insurance.
Texas requires drivers to carry minimum liability coverage of $30,000 per person and $60,000 per accident for bodily injury and $25,000 per accident for property damage. Purchasing only the minimum coverage car insurance required in Texas can save money. However, insurance experts usually advise buying full coverage insurance for greater financial protection and increasing liability limits to $100,000 per person and $300,000 per accident for bodily injuries and $100,000 for property damage.
Texas auto insurance policies include personal injury protection (PIP) coverage by default. However, you can decline this coverage by telling the insurance company in writing that you don't want it. PIP coverage, also called no-fault insurance, helps cover your medical bills, lost wages and other expenses if you or your passengers are hurt in a car accident, no matter who caused it.
Your actual cost of car insurance depends on a variety of factors, including:
- Age (younger drivers generally pay more)
- Gender (men typically pay more than women)
- Where you live (you may pay more in areas with high crime rates or a lot of accidents)
- The vehicle you're insuring (new cars cost more to insure than used cars)
- Your driving record (incidents and violations usually increase your costs)
Although these average car insurance costs provide a general guideline, your price for Texas car insurance is likely to differ. Before buying a car insurance policy, take some time to compare insurance quotes from several different insurers.
How Are Car Insurance Costs Trending?
Although car insurance costs in Texas are lower than in many other states, affordability is still an issue. Some 13.8% of motorists in Texas are uninsured, according to data from the Insurance Research Council (IRC). A bill currently in the Texas Senate would create a state-run auto insurance program with sliding-scale premiums to make car insurance affordable to more drivers.
The increasing frequency of severe weather events is causing car insurance premiums to rise in Texas. Houston is one of the top three metropolitan areas at highest risk for storms and hurricanes, according to the Insurance Information Institute (III), and had the most hurricanes of any state in the U.S. in 2024.
Texas also has the second highest rate of auto theft in the U.S., with vehicle theft rising by 10% between 2022 and 2023, according to data from the National Insurance Crime Bureau (NICB). Extreme weather and high theft rates can result in more comprehensive insurance claims for damaged or stolen cars.
Texans aren't the only drivers suffering from rising auto insurance costs, however. Nationwide, auto insurance premiums have increased dramatically in recent years due to extreme weather events and higher costs for vehicles, parts and repairs. Insurance companies are also paying out larger settlements due to increasingly serious accidents and a growing number of lawsuits.
As the chart below shows, the average cost of full coverage car insurance in the U.S. has risen by 30.46% since March 2023. While the increase isn't as pronounced, the cost of minimum coverage auto insurance has also risen, by 15.45% nationwide.
Average Annual Auto Insurance Premiums, 2023-2025
If you feel like you're overpaying for auto insurance in Texas, comparing car insurance quotes from other carriers could help you get the same coverage for less. An easy way to research your options: Use Experian's free car insurance comparison tool to gather quotes from multiple top insurance carriers in Texas at once.
Average Texas Car Insurance Rates by City
Within Texas, the area where you live affects your auto insurance rates. There are different risks to drivers in different parts of Texas. For example, car crashes are twice as likely to be fatal in the Permian Basin of West Texas than in the rest in the state, a study by the Texas A&M Transportation Institute found. Higher accident rates or auto theft rates or lengthier commutes in your area could all impact how much you'll pay for car insurance in Texas. Your rates may also be higher if you live in a city where medical care and car repair costs are higher than average.
The chart below shows how the average cost of car insurance in some of Texas' most populous cities varies depending on the location.
| City | Annual Cost |
|---|---|
| Austin | $2,151 |
| San Antonio | $2,262 |
| Fort Worth | $2,276 |
| Dallas | $2,504 |
| Houston | $2,696 |
Source: Experian data as of January 2025
Note: Top cities ranked by those with highest policy count
Average Texas Car Insurance Rates by Age and Gender
Your gender and age can both impact the cost of car insurance in Texas. Statistically, women are less apt to have serious car accidents or get DUIs, according to the III, so they may pay less for car insurance. However, that's not the case in Texas, where women pay slightly more on average than men, as the chart below shows.
| Gender | Annual Cost | Monthly Cost |
|---|---|---|
| Male | $2,260 | $188 |
| Female | $2,273 | $189 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
Gender makes a bigger difference in the cost of your car insurance when age is also considered. Younger drivers, especially men, usually pay more for car insurance than older drivers because younger drivers have a statistically higher rate of accidents.
However, the cost of car insurance generally drops as you get older—sometimes considerably, as the chart below shows. Auto insurance premiums tend to decline steadily until you're in your mid-70s, when they tend to rise again.
| Age | Female | Male |
|---|---|---|
| Under 20 | $3,307 | $3,717 |
| 20-29 | $2,642 | $2,683 |
| 30-39 | $2,436 | $2,252 |
| 40-49 | $2,327 | $2,141 |
| 50-59 | $1,983 | $1,942 |
| 60-69 | $1,660 | $1,669 |
| 70-79 | $1,628 | $1,758 |
| 80 or above | $1,701 | $1,894 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
How Your Driving Record Impacts Your Insurance Costs in Texas
You can help keep your auto insurance premiums down by keeping your driving record clean. Safe drivers have a lower risk of accidents or traffic citations, which can pay off in lower insurance premiums. Texas drivers with "clean" driving records that show no incidents or violations pay an average of $2,151 annually for car insurance. However, in Texas, a single moving violation can bump those premiums to an average of $2,674 annually.
A driving record showing moving violations or accidents (even those in which you weren't at fault) could lead insurance providers to view you as a high-risk driver and raise your premiums accordingly. Multiple car accidents or serious infractions such as DUIs can have a bigger effect on the cost of car insurance and might even cause your insurer to cancel your policy.
The chart below shows how the number and severity of infractions on your record could affect your insurance premiums in Texas. Incidents include things like traffic accidents or insurance claims; violations include moving violations, such as speeding tickets.
| Driving Record | Annual Cost |
|---|---|
| Clean Record | $2,151 |
| 1 Incident | $2,345 |
| 1 Violation | $2,674 |
| 2 Incidents | $2,552 |
| 2 Violations | $2,907 |
| 3+ Incidents | $2,993 |
| 3+ Violations | $4,327 |
Source: Experian data as of January 2025
Note: Costs above are a blended average of full and minimum coverage policies
Cheapest Car Insurance in Texas
Elements such as your age, vehicle and driving record have a big effect on the price you pay for car insurance. However, these aren't the only factors that can affect your premiums. Each car insurance company uses its own formula when setting insurance premiums. That means the cost of car insurance may vary greatly depending on the provider you choose.
Due to these differences, shopping around and comparing quotes from a variety of insurance companies is a good way to find the most affordable car insurance. The table below shows the cheapest full coverage auto insurance among the insurance carriers that sell the most policies in Texas.
| Carrier | Annual Cost | Monthly Cost |
|---|---|---|
| Mercury | $2,101 | $175 |
| Root | $2,488 | $207 |
| GEICO | $2,735 | $228 |
| Liberty Mutual | $2,789 | $232 |
| Progressive | $2,891 | $241 |
Source: Experian data as of January 2025
Note: Costs above represent insurance quotes, not policy premiums
We can't know exactly how each insurance company sets its rates. Generally, however, factors including the company's projected operating costs, estimated claims payouts, risk tolerance and profitability goals come into play. For instance, an insurance carrier with higher overhead expenses may charge more than one with lower overhead costs.
How to Save on Car Insurance in Texas
They say everything's bigger in Texas, but that doesn't have to include your car insurance premiums. Here there are several ideas for saving money on car insurance.
Choose a Higher Deductible
When you file a car insurance claim, you're generally responsible for paying a deductible before the insurance coverage kicks in. Typically, insurance companies let you select a deductible between $250 and $2,000. You can usually lower your premiums by raising your deductible, because you're taking on more of the financial risk for a claim yourself.
Before making the switch, though, make sure you can afford to pay the higher deductible if you have a claim. Assess the status of your emergency fund and other financial resources, and ask your insurance carrier to demonstrate how various deductibles could affect your rates.
Ask About Discounts
See if your current car insurance provider offers any discounts you aren't taking advantage of. Then visit other insurance company websites to see what discounts they have available. Common ways to save on car insurance include bundling home and auto insurance, going paperless, setting up automatic payments or paying your premium upfront. Many insurers also offer discounts if you get your insurance quotes online or sign your documents online.
High school or college students who maintain good grades or are away at school without a car could qualify for a discount too. You should also check whether your workplace or any membership organizations you belong to offer auto insurance savings.
Drop Unneeded Coverage
You may have add-on coverage, such as rental car reimbursement, windshield replacement or roadside assistance insurance, that isn't absolutely necessary. If so, dropping it could lower your car insurance premiums. Before making the change, ask your insurance company how much you'd save and compare the potential savings with the out-of-pocket costs you might face. For instance, if you're a one-car family, it may be worth paying for rental car reimbursement, but if you have several cars, you may not need this coverage.
If you own a paid-off car that's not worth very much, dropping collision and comprehensive coverage could be something to consider. Collision and comprehensive coverage pays out the vehicle's value if it's totaled, but if that's just a few thousand dollars, it might make more sense to cancel the coverage and start saving for a new car.
Reduce Your Annual Mileage
The more miles you drive each year, the more risk you face of being involved in an accident. Driving less can reduce that risk, which is why many insurance companies offer discounts if you drive fewer than 12,000 miles per year. Consider whether driving less is realistic for you. Could you try walking, carpooling, biking or taking public transportation? What about switching to remote work?
To get low-mileage car insurance discounts, you typically need to track your mileage through self-reported or third-party odometer readings or have a tracking device installed in your car. Another option is pay-per-mile car insurance, which charges a monthly base rate plus a per-mile charge for each additional mile you drive.
Drive Safely
Practicing safe driving habits can lower your odds of having an accident or getting a moving violation. This can help reduce your insurance costs, so focus on keeping your driving record clean. Consider taking a defensive driving or safe driving course; this could earn you a discount on car insurance, too.
Improve Your Credit
Auto insurance companies in Texas can review your credit-based insurance score when they're determining your premiums. Having a poor score could mean paying more for auto insurance. However, taking steps to improve your consumer credit score could positively impact your credit-based insurance score, potentially saving you money on car insurance.
Compare Prices
Shopping around with different car insurance carriers is a good way to ensure you always pay the lowest rate. At least once a year, compare quotes from a variety of insurance companies. You can get car insurance quotes at insurance company websites or by contacting insurance carriers directly.
If you're looking for a simpler way to explore your options, try using Experian's free car insurance comparison tool. It gathers car insurance quotes from multiple top insurance companies in Texas so you can easily see which insurance provider offers the lowest rates.
Methodology
This analysis is based on a review of auto insurance policies and quotes provided through Experian's insurance marketplace. Policy premium and quote averages are based on driver data across all genders and ages unless otherwise noted.
Experian's insurance marketplace matches users with auto insurance coverage from more than 30 carriers across 50 states and Washington, D.C.
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About the author
Karen Axelton
Karen Axelton specializes in writing about business and entrepreneurship. She has created content for companies including American Express, Bank of America, MetLife, Amazon, Cox Media, Intel, Intuit, Microsoft and Xerox.
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