Purchasing car insurance in the state of Texas is as easy as 1-2-3! However, rates run quite a bit higher than that. This page contains a summary of data, facts, recent rates and helpful hints on lowering the cost of auto insurance for Texas drivers.
Texas Minimum Liability Coverage
The minimum car insurance liability coverage required for each vehicle owned in the state of Texas is $30,000 in personal injury protection, $60,000 in per-accident insurance to benefit others who are injured, and $25,000 in protection against property damage. Insurance carriers refer to this minimum “30/60/25 per vehicle.” So, Texas car insurance carriers will pay out a maximum of $115,000 per accident on the minimum required auto insurance coverage.
Penalties for Driving Without Insurance in Texas
First offenders caught driving uninsured vehicles in Texas face fines from $175 to $350. For subsequent offenses, the fine is raised as high as $1,000. Added to these fines are an annual surcharge, reinstatement fees, and whatever other charges they can dream up. Also raised will be next year’s car insurance premiums, for driving without insurance.
Auto Insurance Rates in Texas
The average annual auto insurance premium for a vehicle owned in the state of Texas was $1,510 in 2016. This figure was higher than the national average at the time, which floated around $1,347. According to researchers at Top50States.com, a plausible reason for the above average premiums on Texas car insurance is that high population density will drive up the rates of car insurance in big cities like Houston, Dallas and San Antonio, where most Texans live. For example, the average annual car insurance premium in Houston is about $1,685. In more rural areas of the state, the average annual premium is much nearer to the national average.
Low Cost Car Insurance Programs in Texas
Texas drivers find many creative ways to cut their car insurance costs to the bare minimum. Texas drivers can get the lowest possible rates by following any or all of these suggestions:
- Pay your annual premium all at once, rather than monthly.
- Increase your deductible amount.
- Drive a vehicle with a car alarm and airbags installed.
- If you live near enough to bordering states like New Mexico or Oklahoma, consider establishing an address there, as insurance premiums vary by state. If you live near Louisiana, don’t bother. Louisiana has the highest average auto insurance premiums of all U.S. states.
- Qualify for every possible discount. Available options include good driver discounts, good student discounts, safe vehicle discounts, multiple policy discounts and multiple auto discounts.
Obtaining Auto Insurance Quotes in Texas
Customer satisfaction ratings indicate that the top three car insurance companies in the state of Texas are State Farm, Farmers and Progressive. Still, many Texas residents prefer smaller, locally based auto insurance providers like Colonial County Mutual, Direct General, or Farm Bureau. Simply call around, ask about discounts, compare free quotes, and grab the lowest rate that fits your needs.