car insurance in texas is expensive because the state has three of the 10 largest cities in the country and a large and growing population throughout the state. In Texas, you can expect to pay approximately $5,335 per year for full coverage auto insurance or $1,689 per year for minimal coverage. Texas auto insurance is more expensive than the national average, which is about $2,000 a year for full coverage and about $700 a year for minimum coverage.
The cost of auto insurance is also rising steadily, both in Texas and across the country. As the cost of providing insurance rises, so do the premiums charged by insurers. all insured drivers share in the rising cost of insurance. That’s why your rates tend to go up each time your policy renews, regardless of whether any individual factors, like your driving record or location, have changed.
Reading: Why is texas auto insurance so high
There are several unique reasons why auto insurance also increases each year in Texas, even if its details remain the same.
top reasons auto insurance is expensive in texas
- People in texas drive more. As a result, the number of accidents, claims and payments is also increasing. For example, there were approximately 3,520 fatal accidents in 2020 in Texas, up from 3,190 fatal accidents in 2015.
- Car repairs are getting more expensive. Today’s vehicles cost more to repair because of added technology and features. For example, a study by the National Association of Insurance Commissioners found that the average cost of vehicle repairs was about 8% higher in 2018 than in 2014.
- People in texas drive without insurance. As the cost of auto insurance continues to rise, more drivers are at risk of driving without car insurance. in 2019, 8% of drivers lacked even minimal liability insurance in texas. the cost of uninsured drivers is passed on to consumers through higher premiums.
- Medical care in texas is getting more expensive. Auto insurance companies bear the brunt when paying claims related to medical bills, and it’s not getting any more expensive. cheaper. Health care spending increases an average of 6.9% each year in Texas.
- texas is experiencing more severe weather. in texas, weather events such as severe storms, droughts, and tropical cyclones are becoming more common. These weather events cause insurers to pay more claims, which tend to be more expensive and less predictable. as a result, they have to raise rates to keep up.
However, there could be other issues raising your rates.
If your driving record is clean and your rates are still high, your car insurance could be expensive because of your:
age. Drivers under 25 and over 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In Texas, 16-year-old drivers pay an average of $3,930 per year, 25-year-old drivers pay an average of $997 per year, and seniors 65 and older pay an average of $797 per year.
Location and driving patterns. Densely populated cities have higher premiums than rural areas because city life generally means more accidents, more property crimes, and more frequent claims. In Texas, the most expensive locations for insurance are Houston, Edinburg, Pasadena. You can also expect rates to change based on your driving patterns: long commutes or regular driving in high-risk areas can cost you dearly.
financial responsibility. in texas, drivers with no credit pay 70% more in premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum auto insurance with no gaps in coverage. letting your coverage lapse could result in a higher rate when you get your next policy.
history of claims. numerous recent claims may increase your premiums. That’s one of the reasons it sometimes makes sense to pay out of pocket instead of filing a claim, especially if a claim won’t get you much more than your deductible.
how to get cheaper car insurance in texas
Multiple factors affect the cost of auto insurance. some things you can’t control, but you have a say in most contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.
Other than that, the best way to lower your auto insurance costs is to compare rates from at least three insurance companies. Ideally, you should review your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and look for rates every three to five years, as you may be able to get a lower rate if a traffic violation is not listed on your record.
in texas, the most expensive policies cost about $3,107 per year and the least expensive coverage costs about $842 per year, when all driver profile information is the same. that means you could save up to $2,265 just by shopping. be sure to confirm that you also get all the discounts for which you are eligible.