Texas Car Insurance

The Dallas High Five

InsurancePanda’s guide to car insurance in Texas. Image source.

Texas is the second-largest state in the United States and is commonly referred to as the Lone Star State. Years ago, Texas won its independence from Mexico, but the state is still a very unique part of the U.S. In an area so big, the cities almost act more like states because car insurance rates can change drastically depending on where you travel. No matter where you drive, Austin to Houston, El Paso to Dallas, make sure that you can prove your financial responsibility to the state before hitting the dusty trail home.

Average Auto Insurance Prices in Texas

The cost of Texas auto insurance, should you choose to purchase it, can vary wildly based on where you live. Residents of Houston will pay nearly two times what residents in Wichita Falls pay for insurance. Keep in mind that location isn’t the only factor insurance companies use to determine your insurance premiums. One of the most important aspects is your driving record. The more offenses you have and the severity of each will play a huge part in whether you have affordable Texas auto insurance. While a speeding ticket may only raise your premium a few dollars, a DUI could drastically affect your insurance, possibly even canceling your policy.

Other determining factors include the make and model of your vehicle. A new car will need more coverage than an old clunker because you want to be able to cover a total loss. Don’t be afraid to ask your insurance agent how your premiums are being determined. In each state and even insurance companies, the factors used will be different.

  • Current average annual auto insurance premiums in the United States: $1666.62
  • Current average annual auto insurance premiums in Texas: $1,492.00

Most Expensive Texas Insurance Rates

  1. Allison (79003): $3385
  2. Northeast (75207): $1705
  3. Edinburg (78563): $1651
  4. Houston (77037): $1640

Least Expensive Texas Insurance Rates

  1. Wichita Falls (76305): $1105
  2. Wichita Falls (76311): $1108
  3. Wichita Falls (76309): $1108
  4. Wichita Falls (76302): $1110

Texas Minimum Auto Insurance Requirements

Nearly 20% of Texas drivers are riding around without insurance, so the state has made it illegal to drive without some form of financial responsibility. The easiest way to do this is to purchase liability insurance, for which the state has set minimum requirements. Of course, if you don’t want to purchase liability insurance you have several other options.

You can:

  • File a surety bond with your county clerk.
  • Deposit $55,000 to the county comptroller or county judge.
  • Register for self-insurance, which is only possible if you own more than 25 vehicles.

Purchasing liability insurance is cheaper than paying $55,000 and the majority of accident or damage claims will be paid for by the insurance company. Keep in mind that the minimum limit is only a starting place for your insurance needs. It’s a good idea to purchase more coverage, especially comprehensive, which covers damage from weather-related incidents. Texas has more hailstorms than any other state.

  • Bodily Injury Liability per person: $30,000
  • Bodily Injury Liability per accident: $60,000
  • Property Damage Liability: $25,000

The following amounts and policies are most common in Texas.

  • Bodily Injury Liability per person: $250,000
  • Bodily Injury Liability per accident: $500,000
  • Property Damage Liability: $25,000
  • Uninsured Motorist Bodily Injury per person: $25,000
  • Uninsured Motorist Bodily Injury per accident: $50,000
  • Personal Injury Protection: $2,500
  • Medical Payments: $2,000
  • Collision: $500 deductible
  • Comprehensive: $500 deductible

Penalties for Driving Without Insurance in Texas

With such a large landmass and many drivers to account for, the Texas government created TexasSure, which verifies insurance information electronically. Once you file for insurance, your insurer will submit your policy information to the Texas Department of Motor Vehicles. This information can be accessed by multiple DMV departments, including law enforcement. You only have to maintain the minimum legal amount of insurance, but if you receive a notice from the DMV, don’t forget to respond.

Your license and registration could be suspended. If you get pulled over by a police officer, you could face suspension if you can’t provide proof of insurance or other means of financial responsibility. You have the right to appeal if you’ve simply misplaced your proof of insurance, but if you truly don’t have any coverage, your license and registration will remain suspended. If you get caught a second time, your car could be impounded and you’ll have to pay a daily impoundment fee as well those associated with getting your license reinstated.

Since Texas doesn’t require that you purchase insurance to drive, it’s not a problem if you get pulled over and don’t have proof of insurance. The problem will arise if you’re driving and get into an accident and cannot provide financial responsibility. At that point, you’ll lose your license and registration. The only way you can get out of having to prove financial responsibility after an accident is if the car was taken without your permission, if there was no other property damage or bodily injury, or if your car wasn’t moving at the time of the accident.

How to Get Auto Insurance in Texas

There are so many insurance providers in Texas, it’s hard to know which one has the most affordable policy. It may be easy to go with big-box providers, but there may be an insurance company right in your town that can provide you with a lower rate. When you use our quote comparison tool, you’ll have access to affordable quotes from a variety of insurance companies. It only requires a little basic information and a few minutes to get started.

If you are a high-risk driver struggling to find affordable auto insurance rates, the Texas Automobile Insurance Plan (TAIPA) can help you find the minimum legal coverage at a price that won’t bankrupt you. To learn more about TAIPA, click here.

Texas Auto Insurance Resources

The information above is for reference material only and Insurance Panda cannot legally be held responsible for anything written above. For official information, visit these websites:

Back to Top