Texas car insurance laws require drivers to carry at least some liability coverage, but finding a great deal isn’t always easy. The secret to scoring the cheapest car insurance in Texas is to focus on the right providers and compare quotes from several of them to see which can offer you the best deal. Here are a few of the best car insurance companies in Texas that drivers may want to consider in their search:
- Cheapest for typical drivers: Texas Farm Bureau Insurance
- Cheapest for drivers with prior accidents: State Farm
- Cheapest for drivers with prior speeding tickets: State Farm
- Cheapest for young drivers: Texas Farm Bureau Insurance
- Cheapest for senior drivers: Texas Farm Bureau Insurance
- Cheapest for drivers looking for minimum coverage: Texas Farm Bureau Insurance
- Cheapest for drivers with poor credit: Farmers Auto Insurance
Cheapest for typical drivers
The best car insurance in Texas for typical drivers is Texas Farm Bureau Insurance. On average, its premiums cost $1,277 per year for a 35-year-old female with no accidents on her record. A 35-year-old male with a clean record can expect to pay about $1,475 per year with Texas Farm Bureau.
By contrast, the state average for female drivers with a clean record in Texas is $2,277 per year. Males with clean records pay about $2,412 per year on average.
Other companies offering affordable car insurance in Texas include:
- State Farm, which has average premiums of $1,461 per year for both males and females
- Geico, which has average premiums of $1,796 per year for females and $1,800 per year for males
Cheapest for drivers with prior accidents
Many drivers with accidents on their driving records find that State Farm offers the best Texas auto insurance for them. It has an average annual premium of $1,702 per year. That’s well below the state average of $3,237 per year for drivers with one accident.
Other companies that offer low cost car insurance in Texas to drivers with accidents on their records include:
- Germania Insurance, which has an average annual premium of $2,011 for drivers with one accident on their record
- Southern County Mutual Insurance, which has an average annual premium of $2,384 for drivers with a single accident within the last few years
Cheapest for drivers with prior speeding tickets
State Farm also offered the best car insurance in Texas for drivers with a single speeding ticket. Its average premium of $1,461 per year falls well below the state average of $2,700.
But some of its competitors aren’t far behind. These include:
- Texas Farm Bureau Insurance, which had an average annual premium of $1,475 for drivers with a single speeding ticket
- Germania Insurance, which had an average premium of $1,623 per year for drivers that have a single speeding ticket
Cheapest for young drivers
Teen drivers can expect to pay about $6,439 per year on average to get Texas auto insurance. But those who go with Texas Farm Bureau Insurance could score a much lower rate. Its average annual premium for 18-year-old drivers is $2,275 per year.
The following companies also offer some of the cheapest car insurance in Texas to young drivers:
- Germania Insurance, which has an average annual premium of $3,353 per year
- State Farm, which has an average annual premium of $3,455 per year
Cheapest for senior drivers
Senior drivers pay about $2,110 for Texas auto insurance on average. But drivers who choose Texa Farm Bureau Insurance could pay roughly half that. Its average annual premium for a 65-year-old driver is $1,182.
Other Texas auto insurance companies that stood out for senior drivers include:
- Farmers Auto Insurance, which charges senior drivers about $1,226 per year on average
- State Farm, which has an average annual premium of $1,302 for senior drivers
Cheapest for drivers looking for minimum coverage
Drivers looking for cheap liability car insurance in Texas should consider Texas Farm Bureau Insurance. It only charges about $485 per year on average, which is far less than the $712 state average.
Other companies that offer affordable minimum coverage for Texas residents include:
- State Farm, which provides Texas minimum car insurance for $513 per year on average
- AAA, which charges about $574 per year for minimum coverage on average
Cheapest for drivers with poor credit
Drivers with poor credit pay about $3,570 per year for Texas auto insurance on average. Farmers Insurance is willing to insure these drivers for about $2,155 per year on average, according to our research.
Other companies that offered some of the best car insurance in Texas for drivers with poor credit include:
- Texas Farm Bureau Insurance, which has an average annual premium of $2,329 for drivers with poor credit
- State Farm, which charges drivers with poor credit about $2,357 per year on average
Average car insurance cost in Texas compared to the national average
How much is car insurance in Texas? It currently costs about $2,785 per year on average, according to our research. That’s a little above the national average of $2,646. But it’s still possible to score cheap car insurance quotes in Texas if you try some of the tips below.
Texas auto insurance laws
Here are some key Texas auto insurance laws drivers should be aware of.
Texas is an at-fault state
At-fault auto insurance states require the driver who is found to be at fault in the accident to pay for medical bills for themselves and the other driver, if necessary. This is different from no-fault states, where both drivers are supposed to have personal injury protection (PIP). Each uses their own PIP to pay for their medical expenses, regardless of who caused the accident.
Consequences for driving without insurance in Texas
The first time a person is caught driving without insurance in Texas, they can expect a fine somewhere between $175 and $350. Subsequent offenses can bring fines between $350 and $1,000. Driving without insurance can also lead to suspension of a driver’s license and vehicle registration. Some may even have their vehicles impounded.
Texas minimum coverage requirements
Texas minimum coverage requirements include the following.
Bodily injury liability coverage
Texas drivers are required to have at least:
- $30,000 of bodily injury liability coverage per person
- $60,000 of bodily injury liability coverage per accident
Property damage liability coverage
Drivers in Texas must also purchase at least $25,000 in property damage liability coverage to pay for vehicle repairs or other personal property they damage in a crash.
How to get cheap auto insurance in Texas
Try these tips to score the cheapest car insurance in Texas.
- Shop around: All insurance companies weigh the various parts of a driver’s application differently, so getting multiple car insurance quotes is key to determining which will offer the best car insurance in Texas. Start with some of the companies listed above.
- Look into discounts: Car insurance companies have their own set of discounts to help drivers save. Some insurance discounts are automatically applied when a driver signs up while others require drivers to opt in. For example, an increasing number of insurers offer discounts to drivers willing to install a monitoring device in their vehicles to demonstrate their safe driving habits.
- Raise the deductible: Car insurance deductibles are your out-of-pocket costs in the event of an accident, while premiums are the monthly costs you pay for your insurance. Raising the deductible often lowers Texas auto insurance premiums. If a driver saves for their deductible in an emergency fund, this shouldn’t affect their financial security in the event of an accident.
Other things to consider when looking for car insurance in Texas
Keep the following things in mind when shopping for cheap auto insurance in Texas.
Texas sees the most hail claims of any state in the U.S.
There were nearly 193,000 Texas auto insurance claims filed in 2019 due to hail, according to the Insurance Information Institute. That’s far and away the most in the country. Drivers may be able to avoid this issue by parking their vehicles in a garage or under a carport. But this isn’t always possible.
It’s wise to invest in comprehensive coverage as well. This pays for weather-related damages to your vehicle as well as animal-vehicle crashes and more. Lenders may require drivers with a lease or loan on their vehicle to purchase this coverage.
Odessa, Texas is a hotbed for auto theft
Drivers in the Odessa, Texas area can expect to pay slightly more for auto insurance than drivers in other parts of the state because Odessa sees a high rate of vehicle thefts every year, according to the Insurance Information Institute.
This is yet another reason to consider investing in comprehensive coverage, even if you aren’t required to have it. It will pay a driver for their stolen vehicle if they’re unable to recover it or if they do recover it and it’s damaged. State minimum liability coverage won’t protect drivers from this.
View more information: https://www.fool.com/the-ascent/insurance/auto/the-best-cheap-texas-car-insurance-for-2021/