Cheapest Car Insurance Rates for January 2021
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Cheap Auto Insurance in Texas: Best Companies & Quotes
Best Car Insurance Companies in Texas
- Texas Farm Bureau
- State Farm
- 21st Century
|Texas Farm Bureau||Geico||Progressive||State Farm||Mercury||21st Century|
|AM Best Financial Strength Rating||A||A++||A+||A++||A||A|
|JD Power 2019 Overall Customer Satisfaction score||5/5||3/5||3/5||5/5||2/5||Not Rated|
|Avg Annual Premium||$1,210||$1,301||$1,368||$1,501||$1,789||$2,429|
|Consumer Reports Reader Score||N/A||78||75||78||N/A||N/A|
Auto Insurance Statistics in Texas
Auto insurance rates in Texas appear to have been going up over the past few years. It’s important to pay close attention to the trends in auto insurance rates so you can determine whether or not what you are paying is in keeping with standard rates. By looking into the fluctuations in rates over the past few years, Texas drivers can get an idea of what they can expect to pay in auto insurance coverage.
Top 10 Cheapest Car Insurance Companies in Texas
|Rank||Company Name||Avg. Annual Premium|
|8||Texas Farm Bureau||$1,679|
Drunk Driving Fatalities
Drinking and driving is a dangerous practice that can often end in death. Drinking and driving in Texas appears to have been plateaud over the past few years. The National Highway Traffic Safety Administration has done a tally of the number of drunk driving fatalities in Texas vs. nationwide.
Drunk driving fatalities in Texas from 2013 to 2017
Teen Drinking and Driving
Teen drinking and driving in Texas is at a rate that is much higher than the national average. According to the reported data, teen drinking and driving in Texas is at an alarmingly high rate. The practice of drinking while consuming alcohol should be strongly discouraged by both parents and teachers alike. The below statistics compare the percentage of Texas drivers that are teenagers who are drinking and driving related to national averages.
Teen Drinking & Driving in Texas vs. Nationwide (2017)
Source: Center For Disease Control
SR-22 Insurance in Texas
If you commit a driving violation in Texas, you will most likely need to submit proof that you have basic insurance coverage if you want to reinstate your license. The state uses this as a tool ensure that you have the financial viability to pay for damages if you get into an accident on the road. You can provide proof of this coverage by purchasing an SR-22 form (policy).
Texas has some of the highest coverage requirements for SR-22 holders. You will need $25,000 in property damage coverage, $60,000 of per accident bodily injury cover, and $30,000 of per person bodily injury coverage. As these policies can end up costing significant amounts of money, don’t underestimate the importance of comparing quotes.
Car Theft in Texas
Auto theft in Texas is at a rate that is similar to that of the national average for the past few years. The numbers went down in 2013 but then increased again a year later. By finding out about the number of car thefts in Texas, drivers will have a more comprehensive understanding of the level of risk they take on while driving and owning a car in the state.
Vehicle thefts by rank Nationwide vs. Texas
Uninsured Motorists in Texas
Driving without insurance can be risky especially when an accident occurs. If you get into an accident with an underinsured or uninsured motorist, you may have to pay out of pocket and then you’ll most likely have to carry high risk insurance. This is why it is recommended to have uninsured and underinsured motorist coverage. The below data shows how well Texas ranks in the total number of reported uninsured motorists in the state in the year 2015.
Percentage of uninsured drivers (Top States in 2015)
Source: Insurance Information Institute
In the Great State of Texas, cheap car insurance is aplenty but hard to find. In Houston alone, there was a nearly $700 price difference per year between the cheapest and most expensive car insurance. That’s what it’s crucial that you shop around for car insurance near you. You also have to pay close attention to what all the insurance covers or you may be paying for a big mistake later.
During our research, we found that the average Texan pays around $2,300 per year for their car insurance. There are five companies in Texas that can help you save hundreds each year.
5 – Mercury.
A Mercury Insurance quote charged our sample driver roughly $1,800. That’s a savings of $500 per year. It’s already a huge improvement, and it’s not even our number one!
4 – State Farm.
With our sample driver, State Farm charged a mere $1,500. That’s $800 dollars the average Texan could be saving on their car insurance per year.
3 – Progressive.
Our sample driver found even more savings with Progressive, which would have charged only $1,300 – a whopping $1,000 less than the average yearly cost paid.
2 – GEICO.
GEICO, too, would have saved our driver around $1,000, beating Progressive’s quote by a mere $60.
Don’t worry – we’re not nickel and diming our way to number 1, which goes to:
1 – Texas Farm Bureau.
With Texas Farm Bureau, we would have been expected a humble $1,200 per year for our car insurance. That’s a grand total of $1,100 dollars off of the total that most Texans pay for auto insurance each year.
While these price differences tend to hold up regardless, you’ll find that the price of car insurance, even when offered by the same company, will differ from city to city. That’s why it’s so important for you to shop around and see what the best local deals are. You may just find that some of the insurance companies have better rates than their competitors even just a county over! So, make sure to check out all your options regardless if you’re living in Dallas, El Paso, Lubbock, Fort Worth, Houston, or San Antonio.
Though in our research, we did find that most times the five above companies were consistently the cheapest, they did occasionally hop around on the spots.
Just be wary of any insurance company that is offering a quote that sounds too good to be true. Either you’ll be covered with the bare legal minimum, or you’ll find yourself crawling with hidden fees! And while we all want to save a buck here and there – don’t skip out on the insurance. It’s illegal!
Types of Auto Insurance Coverage in Texas:
- Comprehensive Insurance Coverage
- Bodily Injury Liability Insurance
- Uninsured/Underinsured Motorist Bodily Injury Insurance
- Uninsured Motorist Property Damage Insurance
- Property Damage Liability Insurance
Minimum Requirements For Car Insurance in Texas
There are minimum requirements for car insurance for drivers operating a motor vehicle in the state of Texas. According to the Texas Insurance Division, all drivers must have a minimum of liability insurance coverage.
Liability minimums in Texas:
$25,000 includes property damage in an accident.
$30,000 includes injury to an individual from an accident.
$60,000 includes multiple injuries in an accident.
Failure to maintain insurance in the state of Texas results in a first offense fine of $175 up to $350. A second offense results in a fine of $350 up to $1,000.
Source: Texas Department of Insurance
New Driver Requirements in Texas
In accordance with Texas law, each driver who operates a motor vehicle in the state of Texas is required to hold a state driver’s license. The state also has a licensing program for minors which is known as the Graduated Driver License (GDL) program. This allows minors to get important training which helps them to learn how to drive unsupervised. The GDL has three stages:
- The Learner License
- The Minor Restricted Driver License
- The Provisional License
The Learners License:
The Learner’s License is a license permit for applicants who are 15 years old or under 18 and allows them to drive with a licensed adult who is at least 21 years of age or older and has 1 year of driving experience.
The Minor Restricted Driver License:
The Minor Restricted License is also known as a hardship license and allows the applicant to become licensed at 15 if not doing so would present a hardship to the family.
The Provisional License:
The provisional license is a regular driver’s license that has restrictions for drivers who are under 18 years of age.
Source: Texas Driver’s Handbook
Cheap Auto Insurance Discounts
At CheapAutoInsurance.co, we aim to assist you in finding hidden deals to help you save on the cost of car insurance. One way to do this is with car insurance discounts. We have compiled a list of the best car insurance discounts to help you save as much as you can on Texas auto insurance premiums. Browse the list below to find some of the auto insurance discounts listed that can help you to save on the cost of car insurance in Texas each year.
- Anti-theft discount
- Mature driver discount
- Military or Veteran discount
- Bundling insurance policies discount
- Senior citizen discount
- Car safety features discount
- Good student discount
- Defensive driving discount
- Low-mileage discount
- Multi-car auto insurance discount
- Infrequent usage discount
Your Texas Auto Insurance and How You Can Get One
In this section, you’ll learn the basic information on car insurance as well as on acquiring it.
What is the minimum auto insurance coverage in Texas?
The minimum liability limits in Texas follows a 30/60/25 coverage. Get a quote to see how much liability car insurance cost for you would be.
What is full coverage auto insurance in Texas?
There’s no such thing as full coverage. However, in Texas, it simply means a much higher liability coverage than the minimum state requirement. Learn more: How much is full coverage car insurance?
What is a restricted auto insurance policy in Texas?
While not an industry term, it refers to an auto insurance policy issued to someone with a restricted or conditional license.
How much car insurance do I need in Texas?
The state minimum is a great reference for that, but also take into account the potential inconveniences that you’re willing to pay to get rid of. Read more: How much should I be paying for car insurance?
What type of car insurance is required in Texas on a new car?
Your lender may set guidelines on what and how much coverage you should get. However, if there is no such conditionality, you may get a liability insurance plus any additional you feel necessary.
What is auto PPI insurance in Texas?
Michigan requires drivers to have Property Protection Insurance (PPI), not Texas.
When did auto insurance became mandatory in Texas?
Since 1991, it has become mandatory for drivers to acquire auto insurance.
What insurance is required to rent a car in Texas?
You don’t need any. Aside from the fact that rental companies are required to insure their car at least at the minimum requirement, your own coverage may also apply to the vehicle.
According to Texas law, when should I add a car to my insurance?
You should add it to your auto insurance now or the moment you decide you would be using it on the road as well. To avoid fines and delays with registration, you must do it as soon as possible.
How do I get a car insurance in Texas?
You must have a driver’s license and a Texas-located address in order to purchase car insurance. As most insurance companies require down payment on your annual rate, you would have to have enough money saved to pay for that. Then you can just get auto insurance quotes online whenever you’re ready.
How do I shop for car insurance in Texas?
Get quotes from websites as well as from real agents. By not limiting yourself how you would access quotes, you expand your prospects. If you’re in school then look for auto insurance for student drivers because there are discounts. If you have a classic car then consider something like Grundy collector car insurance.
When do I need to get insurance for new car in Texas?
You need it as soon as you purchase it because the DMV would require proof of insurance before you are issued your registration.
What documents do I need for car insurance Texas?
At the very basic, you only need your driver’s license and a proof of address. However, in other cases, you may also have to provide your previous proof of insurance and proof of membership (on insurance companies).
Do I need to purchase car insurance when I buy a new car in Texas?
Not necessarily. If you’re replacing an old car, you may transfer the coverage to your new vehicle instead of cancelling the policy and getting a new one. If you don’t have coverage then you can apply for car insurance online right now.
Can I keep my Texas insurance when I register my car in Colorado?
No. Colorado would require a car insurance from their state before you would be permitted to register your vehicle. This is also the case if you will need a specific type of coverage such as Colorado sr22 insurance.
Right now, nobody wants to give me auto insurance in Texas. So what can I do?
If even high risk insurance won’t take you, try to avail a state automobile insurance plan which gives you insurance where the risk is distributed among different companies.
Auto Insurance Costs
Aside from the pricing itself, you’ll also find tips on getting better rates and other insights on the insurance market.
How much is car insurance in Texas?
Reviews show that annual rates for auto insurance in Texas average at $1,044. It is possible to get cheap car insurance depending on your driver profile.
Why is auto insurance so expensive in Texas?
It is not expensive at all. While it is not the cheapest in the United States, it is still below the national average. Take a look at the top 10 auto insurance company reviews.
How do I get the best auto insurance quote in Texas?
There is no shortcut to simply getting as many quotes as possible both online and from agents. The average rates don’t always represent your reality, so the only way to make sure is to actually do the work. Learn how to reduce car insurance costs.
Who has the cheapest auto insurance in Texas?
How much is full coverage car insurance in Texas?
For full coverage, your rates can be at $2,330 or better. The basis here is the sample profile that ValuePenguin used to obtain a reliable average.
How does Arizona auto insurance compare to Texas?
Looking at state averages alone, Arizona is $200 cheaper than Texas on annual auto insurance rates. This may be very different for Arizona sr22 insurance or other special types of insurance coverage.
How much does it cost to add a teenager to car insurance in Texas?
Assuming that you get full coverage, your annual rates may increase by as much as $5,000 by adding a teen driver to your policy. Read our more in depth article about this subject here: How much does it cost to add a teenager to car insurance?
Why would I have a surcharge on my car insurance in Texas?
If you have been caught driving without insurance, Texas law is allowed to issue a surcharge but it should reflect on your registration, not your policy.
Which car insurance charges the most in TX?
Of all the insurance companies compared, Kemper Security charges the most for the exact same coverage and driver profile.
Who has the best home & auto insurance discounts in Texas?
Farmers and State Farm both grant a 10% discount as a reward for getting both auto and home insurance with them. Compare quotes to find cheap monthly insurance policies.
How long does a claim affect your auto insurance rate in Texas?
A claim associated with an accident or anything that directs to your negligence would affect your rate for a time positively correlated with the gravity of the incident.
Is Texas better than California auto insurance?
If you’re referring to cost then yes Texas is a few hundred dollars cheaper a year for the typical auto insurance policy. However, if you were to compare other insurance types such as when you get a sr22 insurance California quote versus Texas you might get a different result.
How to get cheap motorcycle insurance in Texas?
You can get cheap motorcycle insurance by using price comparison tools and taking advantage of things like driver training discounts. It is quite convenient to get online motorcycle insurance these days.
Accidents, Claims, and Coverage Issues
How long does an auto insurance company have to settle a claim in Texas?
Insurers have 45 days to decide on the claim. Only then would be the insured be involved as far as the 45-day timetable is concerned.
How long in Texas does an auto insurance company have to claim who is at fault?
Two years. The company may file a lawsuit to compensate for whatever its losses in covering the insured.
In Texas, why should I tell the insurance company to settle when being sued for a car accident?
Given no information at all, we do not advise on what you do. However, if you have a weak case, this may your best option.
How much should I demand in an auto accident case to the insurance claim in Texas?
The adjuster would give you an idea what you should be looking at. Now, your job is to ensure that the amount fully justifies the damage caused in the accident.
How do I find a status on auto insurance claim check from Texas Farm Bureau?
You may call your local agent or the Waco Claims Office at 1-800-772-6535.
How long do I have to file an auto insurance claim in TX?
The insurance company encourages you to file the claim as soon as possible, but each has a different ‘deadline,’ so to say.
What do I do if someone without insurance hits your car in Texas?
You may choose to be compensated for the damages with your own insurance or go after the at fault driver in court.
What do I do when auto insurance denies my claim in Texas?
You demand their ground for denial, and propose a settlement based on your counterarguments. If you feel your claim has been wrongly denied, you may also file a complaint through the Insurance Complaint Process.
What is the state law on insurance totaling a car in Texas?
The damage on your car must have resulted on the 100% loss of its market value for it to be totaled.
What rights do I have in Texas if the other insurance company totals my car?
You may negotiate to get money for repairs instead. Moreover, you can also ask how they determined that your car is already worthless in the market.
How do I verify auto insurance coverage in Texas?
You will be said your updated declaration pages which allow you to verify any change you made to your insurance policy.
How do I find out if someone has car insurance in Texas?
You may go to your local DMV with a valid reason supported by a police report or other evidence and request to obtain that person’s insurance information.
How do I determine an insurance carrier in Texas for an auto claim based on VIN only?
Contact a DMV agent and give them the VIN number for your vehicle. Then, they’d supply you with the car’s insurance history.
If I have a car accident and no insurance in Texas, what happens?
You are at fault, you will shoulder the damages including your own to the extent that your assets allow.
How long does a car accident stay on your insurance record in Texas?
It doesn’t stay on your record, actually. They just factor it in determining your rates. Depending on what type of accident it is, it may affect your rates for three to ten years.
What is the fine in TX for not having car insurance?
First time offenders would only be charged $175 to $350 as well as a $250 surcharge on your driver’s license fee for three years. From there, the fine would continue to go up until the third offense.
How often can you be fined for not having auto insurance in Texas?
You are fined every time you are caught except if it’s on the same day.
From cancelling your insurance to finding out how insurance companies think, you would find the answers to these questions here. Other concerns that are not as likely or as relevant as those in the previous section were also placed here.
What do Texas auto insurance companies don’t want you to know?
The biggest thing perhaps is that every state publishes a buyer’s guide with all the insurance companies and their average rates. Remember you can always consider changing car insurance companies if you’re unhappy with your current rates.
When I cancel my car insurance in Texas, do I need to turn in plates?
Yes, you have to. No matter your reason, you must return your plates if you drop your insurance.
Do I need to show proof of insurance when getting my car inspected in Texas?
Yes. In fact, if you’re not able to provide it, you have two weeks to get your coverage or risk forfeiting the inspection fee.
What are the laws in TX on car insurance about your household?
Your insurance extends to anyone in the car as well as to household members.
Do I have to get SR22 insurance with DUI in Texas?
Texas does require SR22 coverage when you get a DUI. We can help you find the best SR22 insurance with different companies. Start by filling out our form above and comparing quotes.