Texas is a big state and all Texas drivers know that—especially when they get in the car to drive on some of the three-quarters of a million miles of road in the state, the most in the country and 70% more than the number-two state California. This means some long drives between cities, towns and sometimes even neighboring homes, which is why it’s important for Texas residents to make sure that both you and your car are protected.
Texas Car Insurance Information
As with most states, in order to register and drive your car in Texas, the state requires that you have a minimum level of certain types of auto insurance coverage. These include:
- Bodily Injury to Others: $30,000 per person / $60,000 per accident
- Property Damage Liability: $25,000 per accident
Most people opt for higher amounts of auto insurance coverage than the state minimum in order to protect themselves and their cars in case of an accident. To learn more about Texas auto insurance minimums, visit the.
What is Personal Injury Protection (PIP) Coverage?
If you are injured in a car accident, Personal Injury Protection (PIP) pays for your medical expenses and other related costs. PIP coverage in Texas pays for:
- Medical expenses from injuries suffered in an auto accident.
- Lost wages due to missed time at work.
- Household replacement services when paying someone to help you with tasks you could have done on your own before you were injured.
Did You Know?
- Liberty Mutual opened its first Texas office in 1923.
- Today Liberty Mutual employs more than 1,900 people across the state.
Get Texas Home Insurance & Save
Purchasing a Home Insurance policy along with Car Insurance from Liberty Mutual could qualify you for a multi-policy discount. Learn more about our .
Best Car Insurance Rates in Texas
ValuePenguin analyzed car insurance quotes in 78 cities in Texas from 11 companies to identify the cheapest insurers and rates in the state. Our analysis showed a wide range in costs from company to company.
For example, in Houston, the difference between the cheapest and the most expensive company was $696 a year. This is why to get the right rates, consumers should shop around. Enter your zip code above now to start shopping for great auto rates in your area among the top U.S. insurers, or read more by clicking directly on each section below.
- Cheap Car Insurance in Texas
- Cheapest Car Insurance in Texas: by City
- Best Auto Insurance Companies in Texas
- What’s the Average Cost of Car Insurance in Texas?
Cheap Car Insurance Companies in Texas
To identify the cheapest companies, we reviewed auto liability insurance quotes for a sample driver in Texas and then ranked them based on their average across 78 cities. Here are the five companies with the best auto insurance rates in Texas:
The cheapest car insurance companies in Texas include Texas Farm Bureau, GEICO, Progressive, State Farm, and Mercury. Overall, Texas Farm Bureau had the best rates, but it does require a membership fee.
Here are the average rates across 78 cities for our sample driver, a thirty year old single male with a clean driving record. While your actual quotes will depend on where you live and park your car, as well as how you’ve driven, these companies are a good place to start finding low cost insurance. The same driver will get different quotes from different companies. Comparing quotes from at least three companies is the best way to get good rates. Start by entering your zip code below to see what top US insurers are covering your area.
|Texas Farm Bureau||$1,210|
Cheap Car Insurance in Texas: by City
We analyzed auto liability insurance rates in each city to identify the top three insurers with the lowest rates. In the table below, we’ve prepared a list of 78 largest cities in Texas along with the city’s three lowest cost insurers and average annual premiums to give drivers a sense of costs. Rates are averaged for a single 30 year old with a good credit score and driving history.
Note that USAA ranked in the first or second spot in almost all cities, but we’ve excluded them from this table because the company only serves military and affiliated members. Below is also a deeper dive by the largest cities of the most affordable insurers by age and marital status to give drivers a further idea of the going rates for auto insurance. We’ve excluded USAA from the city specific tables as well.
|Allen||Texas Farm Bureau||$1,032|
|Alvin||Texas Farm Bureau||$1,200|
|Amarillo||Texas Farm Bureau||$1,320|
|Arlington||Texas Farm Bureau||$1,248|
|Austin||Texas Farm Bureau||$1,044|
|Baytown||Texas Farm Bureau||$1,284|
|Bedford||Texas Farm Bureau||$1,020|
|Burleson||Texas Farm Bureau||$1,128|
|Texas Farm Bureau||$1,524|
|Cedar Hill||Texas Farm Bureau||$1,224|
|Cedar Park||Texas Farm Bureau||$1,068|
|College Station||Texas Farm Bureau||$960|
|Converse||Texas Farm Bureau||$924|
|Coppell||Texas Farm Bureau||$1,032|
|Texas Farm Bureau||$1,164|
|Cypress||Texas Farm Bureau||$1,236|
|Texas Farm Bureau||$1,464|
|Texas Farm Bureau||$1,176|
|Denton||Texas Farm Bureau||$984|
|Desoto||Texas Farm Bureau||$1,200|
|Dickinson||Texas Farm Bureau||$1,140|
|Texas Farm Bureau||$1,260|
|El Paso||Texas Farm Bureau||$1,248|
|Texas Farm Bureau||$1,308|
|Flower Mound||Texas Farm Bureau||$924|
|Fort Worth||Texas Farm Bureau||$960|
|Friendswood||Texas Farm Bureau||$1,104|
|Texas Farm Bureau||$1,440|
|Garland||Texas Farm Bureau||$1,140|
|Grand Prairie||Texas Farm Bureau||$1,308|
|Grapevine||Texas Farm Bureau||$1,020|
|Texas Farm Bureau||$1,224|
|Houston||Texas Farm Bureau||$1,284|
|Humble||Texas Farm Bureau||$1,104|
|Texas Farm Bureau||$1,464|
|Katy||Texas Farm Bureau||$1,284|
|Keller||Texas Farm Bureau||$1,188|
|Kerrville||Texas Farm Bureau||$948|
|Killeen||Texas Farm Bureau||$984|
|Kingwood||Texas Farm Bureau||$1,284|
|Kyle||Texas Farm Bureau||$1,140|
|La Porte||Texas Farm Bureau||$1,176|
|Texas Farm Bureau||$1,536|
|League City||Texas Farm Bureau||$1,080|
|Leander||Texas Farm Bureau||$1,068|
|Texas Farm Bureau||$1,368|
|Lubbock||Texas Farm Bureau||$1,116|
|Texas Farm Bureau||$1,296|
|Mckinney||Texas Farm Bureau||$1,212|
|Mesquite||Texas Farm Bureau||$1,332|
|Missouri City||Texas Farm Bureau||$1,092|
|New Braunfels||Texas Farm Bureau||$864|
|North Richland Hills||Texas Farm Bureau||$960|
|Odessa||Texas Farm Bureau||$1,212|
|Pearland||Texas Farm Bureau||$1,056|
|Pflugerville||Texas Farm Bureau||$1,104|
|Plano||Texas Farm Bureau||$1,032|
|Texas Farm Bureau||$1,392|
|Richardson||Texas Farm Bureau||$1,200|
|Richmond||Texas Farm Bureau||$1,092|
|Round Rock||Texas Farm Bureau||$984|
|Texas Farm Bureau||$1,368|
|Texas Farm Bureau||$1,428|
|San Marcos||Texas Farm Bureau||$960|
|Seguin||Texas Farm Bureau||$1,008|
|Spring||Texas Farm Bureau||$1,176|
|Sugar Land||Texas Farm Bureau||$1,092|
|Texas Farm Bureau||$1,368|
|Tomball||Texas Farm Bureau||$1,236|
|Tyler||Texas Farm Bureau||$1,080|
|Texas Farm Bureau||$1,080|
|Waxahachie||Texas Farm Bureau||$1,116|
|Texas Farm Bureau||$1,368|
|Texas Farm Bureau||$1,320|
Policies in the Big D cost on average $2,457, but you can still save with cheap car insurance in Dallas if you know where to look. Start with Progressive, Texas Farm Bureau, and State Farm — the three cheapest insurers in Dallas based on our study. Quotes from these three companies are about 39% less than the Dallas composite.
Paying for car insurance in Houston can cost an annual premium of $2,881, making it the most expensive in our study of Texas auto insurance. You can save money though by going with quotes from Texas Farm Bureau, Progressive, and State Farm. The three companies’ yearly average are about can save you 34 — 51% off of the average auto insurance rate in Houston.
Which companies have the cheapest auto insurance rates in Austin, TX? We suggest 30 year old drivers in Austin compare quotes starting at Texas Farm Bureau, Progressive, and GEICO based on our graph below. Auto insurance in Austin can cost drivers about $2,191 a year, which is about 6% less than elsewhere in the Lone Star state. At these three companies, however, drivers can save on average 44% versus the average city cost.
San Antonio, TX
In San Antonio, we have Progressive and Texas Farm Bureau sweeping the boards with the lowest rates, with State not far behind. It costs about $2,348 to insure your car in the Alamo City, Texas’s second largest city — about 7% more than the the state average.
El Paso, TX
Despite being the sixth largest city in Texas, El Paso has a car insurance cost just lower than the average city in Texas. It costs just $2,239 a year to insure a car in a town that has been named one of the Happiest Cities to Work In, or one of America’s Safest Cities. Annual premiums are already 8% cheaper than the state average. Keep Texas Farm Bureau and Progressive in mind if you’re looking for cheap auto insurance in El Paso.
Best Auto Insurance Companies in Texas
To find the best insurers in Texas, we’ll be looking at the companies with the fewest complaints compared to their competitors. These are thirty of Texas’s largest auto insurance companies, and are ranked based on their complaint index, which measures how many valid complaints the company gets compared to the average insurer. An index of 1.00 is average, and a number below 1, such as State Farm County’s index, is better (gets fewer complaints than the average company).
The best car insurance companies in Texas with the fewest complaints are the Hartford, State Farm, and Germania Insurance. The cheapest companies in our study, Foremost County Mutual, Allstate, and USAA, had lower than average complaints as well.
|1||Hartford Fire Insurance Company||0.00|
|2||State Farm County Mutual Insurance Company Of Texas||0.24|
|3||Germania Select Insurance Company||0.29|
|4||Dairyland County Mutual Insurance Company Of Texas||0.31|
|5||Foremost County Mutual Insurance Company||0.32|
|6||State Farm Mutual Automobile Insurance Company||0.33|
|7||21st Century Centennial Insurance Company||0.36|
|8||USAA Casualty Insurance Company||0.46|
|9||Allstate Property And Casualty Insurance Company||0.65|
|10||Consumers County Mutual Insurance Company||0.68|
|11||Texas Farm Bureau Casualty Insurance Company||0.70|
|12||Garrison Property And Casualty Insurance Company||0.76|
|13||Allstate County Mutual Insurance Company||0.77|
|14||Farmers Texas County Mutual Insurance Company||0.79|
|15||Colonial County Mutual Insurance Company||0.85|
|16||Texas Farm Bureau Mutual Insurance Company||0.85|
|17||United Services Automobile Association||0.86|
|18||Progressive County Mutual Insurance Company||0.91|
|19||Liberty County Mutual Insurance Company||0.91|
|20||Allstate Fire And Casualty Insurance Company||0.92|
|21||Allstate Indemnity Company||0.93|
|22||Government Employees Insurance Company (GEICO)||0.94|
|23||USAA General Indemnity Company||0.94|
|24||Southern County Mutual Insurance Company||1.23|
|25||AAA Texas County Mutual Insurance Company||1.37|
|26||Home State County Mutual Insurance Company||1.46|
|27||ACCC Insurance Company||1.70|
|28||GEICO Indemnity Company||1.80|
|29||Loya Insurance Company||2.27|
|30||Old American County Mutual Fire Insurance Company||2.69|
How much do people pay on average for car insurance in the state of Texas? $2,330, according to our data. Going into this number are rates for 78 cities in the Lone Star State for a thirty year old single male driver with a good driving history and credit score.
Auto Insurance in Texas: Minimum Liability Insurance Requirements
The absolute minimum you can have on a basic car insurance policy in Texas is liability protection for the categories and limits below. Other types of coverage such as collision and comprehensive, personal injury protection or medical payments coverage, and uninsured motorist coverage are optional in Texas.
- Bodily Injury (BI) Liability Insurance: $30,000 per person/$60,000 per accident
- Property Damage (PD) Liability Insurance: $25,000 per accident
We always advise drivers to purchase as much coverage as they have in assets to protect themselves. That’s because if you’re involved in a serious car accident, your insurer will only cover you up to the amounts on your policy. Any medical bills or car repair costs that exceed your car insurance limits, you would be on the hook for. That’s true whether you live in Houston, which the Texas Department of Transportation recently reported had 67,000 car crashes, or Adrian, which reported just one this past year.
Methodology & Assumptions
Average rates are for illustrative purposes, as individual quotes will differ based on driving history, coverage sought, vehicle type, and other factors.
Data was obtained from the Texas Department of Insurance for a thirty year old single male driver across 78 cities. He owns his car and uses it primarily for work purposes, averaging about 12,000 miles annually. Insurance policies include Texas’s minimum auto insurance liability requirements: $30,000 for bodily injury liability per person (up to $60,000 per accident), and $25,000 of property damage (30/60/25 coverage) liability insurance, 50/100/50, as well as 100/300/100. Car insurance costs are based on a 2011 Toyota Camry four-door sedan, with 2.5 liter/4 cylinder engine.
Save on car insurance in Texas
Whether you live in Dallas, Austin, Houston, or anywhere in the Lone Star State, Elephant Auto Insurance has you covered. Elephant offers affordable auto insurance coverage and many other products to Texas drivers. If you’re looking for the cheapest car insurance, our many discounts can help you save on Texas auto insurance.
- You could save over $500 when you switch to Elephant
- Multiple discounts available, worth up to 40%
- Nationwide claims service and friendly claims agents available 24/7
We’ve provided some information below that we hope will be helpful in answering your questions about getting affordable car insurance in Texas.
If you’re searching for a Texas auto insurance policy that offers exceptional value for your hard-earned money, Acceptance is here to serve you. Our wide range of auto insurance products gives customers the flexibility and choices to design a policy that works for them. You can customize a policy with the coverage you need, including options such as these:
- Texas drivers are required by law to have bodily injury liability insurance of $30,000 per involved party and $60,000 per incident, and property damage liability coverage of at least $25,000 per incident.
Basic Liability Coverage
All drivers in this state are required to carry Texas auto insurance with basic liability coverage. This minimum level of insurance will cover the other vehicle, any property inside, its driver and any passengers driving with them if you are at fault for an accident. The minimum coverage is often insufficient, though, so many drivers choose additional coverage.
Comprehensive and Collision Coverage
If you want to make sure you’re taken care of following an accident, you will want to add comprehensive and collision coverage to your Texas auto insurance policy. This type of coverage is highly recommended because it will protect your property in the case of a collision, theft, fire, vandalism or damaged windshield. The repair and replacement costs for your damaged property, as well as any rental car bills resulting from the incident, will be covered for the cost of the deductible. If you want to lower your monthly payments, just choose a higher deductible. We offer flexible choices like this, so you can get the policy that’s right for you.
Uninsured Motorist Coverage
There’s no telling whether the other drivers around you on the road are insured, or whether the insurance they have is adequate to cover your medical bills and property damage if they collide with your vehicle. This is why drivers are advised to add uninsured motorist coverage to their policies. It may not be required in this state, but it is well worth the money for the protection it provides.
Texas Auto Insurance
Quick Facts about Auto Insurance in Texas
Texas state law requires that you purchase and maintain a minimum of liability auto insurance for your vehicle. Let A-MAX help keep you protected.
Long story short, car accidents can happen and it always seems as though they occur at the most inconvenient of times; which is why having a good low-cost insurance company to take care of you is so important. An auto insurance policy is there to help cover the cost of the repairs to your vehicle and medical expenses in the event of an accident; helping you get your life back to normal as fast as possible while also doing our best to alleviate the stress often associated with an auto accident.
A-MAX Auto Insurance offers Texans affordable auto insurance with a package of primary coverages, which together makes up a standard auto insurance policy. Each of these auto insurance policies has its own separate premium. There are also other add-on auto insurance policies for additional premium costs. In addition to car insurance, we also offer motorcycle insurance, insurance for other vehicles like trailers and RVs, and Mexico tourist insurance.
Understanding Texas Auto Insurance Coverage
Put simply, the various types of automobile insurance coverage in Texas can be confusing; which is why we have broken them down to help make it easier to understand.
Everything’s bigger in Texas — including car insurance costs. Texas has the nation’s 14th highest rates, according to Insure.com, with an average annual premium of $1,620.
That doesn’t mean you have to pay that much, however. To get the lowest car insurance rates in Texas, you should get as many quotes as possible. Compare.com’s Texas car insurance comparison chart reveals that whatever your driving history looks like, some insurers will offer you dramatically lower rates than others.
Texas Car Insurance Comparison Chart
In Texas, drivers are required to carry at least $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 of property damage coverage. Driving without insurance in Texas is a bad idea. Penalties range from a fine of $175-$350 for a first offense to $4,000 and a year in jail if you cause an accident resulting in serious injuries or death. Not only that, but an insurance company is allowed to charge you more if you drove without insurance in Texas for more than 30 days during the 12 months before your insurance application. Texas uses a system of electronic verification called TexasSure to check that drivers are carrying insurance.
In Texas, insurers have wide latitude when setting rates. We created a Texas car insurance comparison chart for three different driver profiles to illustrate the range in premiums.
These are all authentic quotes obtained by Compare.com, although we’ve left out the names of the insurance companies. What causes these big variations in Texas insurance rates? Let’s take a closer look.
Texas car insurance laws
- Car insurance rates are affected by your driving history. Having an at-fault accident, speeding ticket or other moving violation on your record will raise your premiums. On our Texas car insurance comparison chart, you can see that the two profiles with a blemished record are seeing some high premium quotes. Even so, the Averages’ lowest monthly installment quote is a whopping $332 less than the highest quoted premium. That’s why it’s so important to shop around for car insurance.
- Insurers consider how you use your car. Car insurance rates are typically lower for people who drive only for pleasure, like Elizabeth Allclear. If you use your car regularly to commute to work or conduct business, like Joe and Julie Average, your rates will be higher.
- Your consumer credit affects your car insurance rates. Texas prohibits insurance companies from refusing to sell you insurance, or canceling your policy, because you have bad credit. However, Texas does allow insurers to consider consumer credit history. Bad credit can lead to higher rates.
- Age and marital status affect Texas car insurance premiums. The highest rates, on average, are paid by men under 25 and unmarried women under 21, according to the Texas Department of Insurance. This may not seem fair, but that’s how it works. Age is one of the biggest reasons Johnny Racer sees such high premium quotes.
Your Texas auto insurance options
Don’t resign yourself to paying a lot for your insurance. Our Texas car insurance comparison chart reveals that some insurers will offer you much lower rates than others — even if you have a few tickets or an accident on your record. As you can see, Johnny Racer’s highest monthly installment quote is two and a half times his lowest quote. And with a clean record, Elizabeth Allclear sees rates as low as $77 per month.
Keep in mind that cost shouldn’t be the only factor you consider when you’re shopping for car insurance. Check your coverage levels, the reputation of the insurer and the perks, like roadside assistance, that may be included with your policy.
Texas Car Insurance
Did you know that in Texas you could get a discount on your car insurance just for taking a drug and alcohol awareness course? Learn more about Texas auto insurance laws, rates, and programs.
Car Insurance Requirements
Texas requires you to be able to pay for any damages and injuries from a car accident you caused. Most people buy liability car insurance to fulfill this law.
If you choose to buy liability insurance to comply with the law, your policy must have the following minimum limits:
- $30,000 for each injured person.
- $60,000 for injuries per incident.
- $25,000 for property damage.
Other Car Insurance
Texas only requires you to have liability insurance, but there are other optional types of car insurance coverage available to help protect you financially, which include:
- Collision – This coverage will help cover damages to your vehicle due to accidents with other cars.
- Comprehensive – This coverage will help with damages to your car due to incidents not involving car collisions. For example, if hail dents your car, you may be covered through comprehensive coverage.
- Uninsured/Underinsured drivers – The Texas Department of Motor Vehicles (TxDMV) states that about 20% of current drivers in TX are uninsured. This coverage can help protect you from damages caused by these drivers.
- Towing and labor.
NOTE: If your car is being financed, your lending or leasing company will require you to carry both collision and comprehensive coverage for your car.
Car Insurance Alternatives
Buying liability insurance is the most common way to cover your financial responsibility, but you do have other options:
- A surety bond from two individual sureties that own property in Texas, with the same coverage limitations as liability insurance.
- $55,000 cash or securities deposit with the state Comptroller.
- $55,000 cash or cashier’s check deposit with the county judge of the county in which the car is registered.
- Certificate of self-insurance – You must own a fleet of more than 25 cars to qualify for a certificate of self-insurance.
Proof of Insurance in Texas
Your car insurance company will give you an insurance card to use as your proof of car insurance. You must show a proof of insurance when you:
- Are asked for it by a police officer.
- Get into a car accident.
- Register or renew your car’s registration.
- Apply or renew your driver’s license.
- Have your car inspected.
You should get a new car insurance card from your insurance carrier every time you renew your auto insurance. Most insurance companies offer a minimum term of 6 months on a policy.
TexasSure is a program that helps various Texas government agencies electronically verify that you have car insurance.
Among the agencies that use TexasSure are:
- The Texas Department of Public Safety.
- Sherriff and police departments.
- Vehicle registration offices.
If there are issues with your Texas car insurance information, you may receive one of the following notices:
- Unmatched notices – According to the Texas Department of Insurance (TDI), less than 1% of insured driver’s cannot be matched with their registered car in the TexasSure system. You will receive this notice if you are on record as having car insurance but the insurance does not match with your car.
- Uninsured Notices – You will receive this notice if you have a registered vehicle with no record of car insurance for that car.
Violation Fines and Penalties
Violating Texas car insurance laws can bring harsh consequences, including the following fines and penalties:
- For your first conviction:
- $175 – $350 in fines.
- For additional convictions:
- $350 – $1,000 in fines.
- Possible suspension of your driver’s license.
- Possible impoundment of your car.
Texas Automobile Insurance Plan Association
Drivers with poor driving records may have a hard time finding car insurance. If 2 insurance companies have refused to insure you, you can buy your car insurance through the Texas Automobile Insurance Plan Association (TAIPA).
To be eligible for the TAIPA program, you must:
- Have a valid driver’s license or be applying for one.
- Live in Texas or have a car registered in Texas.
- Certify that 2 insurance companies have turned you down within the last 60 days. You do not have to have proof of refusal to insure, but you will need to sign an affidavit stating that 2 insurance companies have rejected your application of insurance.
Through TAIPA, you will be covered for the minimum required liability coverage PLUS:
- $2,500 Personal Injury Protection.
- Uninsured/Underinsured Motorists Coverage of:
- $30,000 personal injury.
- $60,000 injuries per incident.
- $25,000 property damage.
TAIPA only allows you to purchase annual policies, but you do have various options for payment, which include:
- Paying your full annual premium up-front.
- 8 Installment payments – You will need to pay a down payment of whichever is greater: 20% of your premium or $40.
If you have been issued car insurance through TAIPA and have gone 3 years without a car accident or traffic ticket, your insurance carrier must take you out of the TAIPA program and offer you standard car insurance at a lower rate.
Help With Your Car Insurance Complaints
The Texas Department of Insurance (TDI) offers assistance for complaints you might have with insurance companies, including your car insurance carrier.
The most common complaints TDI helps resolve involve:
- Claim and benefit disputes.
- False advertising.
- Suspected insurance fraud.
TDI cannot assist you with the following:
- Determining who was at fault in a car accident.
- Resolving disputes between you and your insurance carrier when your word is your only evidence.
- Forcing insurance companies to pay a disputed claim or make a policy exception when no insurance laws were broken.
- Giving legal advice.
To learn more about how you can get assistance with your car insurance complaints, visit the TDI website.
Driving While Intoxicated (DWI)
The Texas Department of Transportation estimates that someone is hurt or killed in an alcohol-related accident every 20 minutes. Drinking and driving can be costly, not only to your safety but to your wallet. DWI convictions can increase your car insurance rates. The best way to avoid this is not to drink and drive.
To learn more about Texas’ DWI laws visit our DUI & DWI in Texas page.
Drug and Alcohol Driving Awareness Discount
To help promote safe driving, Texas car insurance companies are required to offer you a 5% discount off your car insurance premium for voluntarily taking a Texas Education Agency (TEA)-approved drug and alcohol awareness course.
You are not eligible for this discount if you have been convicted of a drug- or alcohol-related charge in the past 7 years. You are eligible for the discount after 7 years has passed since your conviction.
Staying safe can not only keep your car insurance premiums from rising; it can help you find affordable insurance from the start. Get a quote on car insurance today and see how much you can save.
Most Stolen Cars in Texas
If your car is highly targeted for theft, you may have to pay a little more for car insurance.
The following is a list of the most stolen cars in Texas for 2013, according to
- Ford Pickup (Full Size).
- Chevrolet Pickup (Full Size).
- Dodge Pickup (Full Size).
- Honda Accord.
- Honda Civic.
- GMC Pickup (Full Size).
- Chevrolet Tahoe.
- Toyota Camry.
- Chevrolet Impala.
- Ford Explorer.
It’s The Law
As a Texas driver, state law requires that you purchase and maintain auto insuranceas an indication of your proof of financial responsibility. In fact, you will not be able to register your vehicle with the state without furnishing proof that your vehicle is currently insured in your name.
Texas Minimum Coverage Levels
As in other states, there are minimum levels of auto insurance coverage that are mandated by Texas law. A qualifying auto insurance policy must have:
- $30,000 in bodily injury coverage per person
- $60,000 in bodily injury coverage total per incident
- $25,000 in property damage coverage per incident
The amount of coverage that you buy and the deductible figure associated with your policy will strongly affect how much auto insurance will cost.
State law does not require you to purchase additional insurance policies (such as uninsured/underinsured motorist coverage). But Texas is a tort state, which means that someone will be found liable for every accident, as well as the resulting injuries or damages. And if you are victimized in a collision caused by an uninsured driver, then your expenses may not be fully covered unless you have supplementary insurance.
Proof of Auto Insurance
Once you acquire auto insurance, you will need to carry proof that you are insured whenever you drive in Texas. In most cases, your insurance company will furnish you with an insurance card that contains all pertinent information about your auto insurance policy.
If you are not in possession of proof of insurance at all times while you are driving, you could face fines up to $350.
Furthermore, if you are found guilty of a second offense, your driver’s license could be suspended and your fine could reach up to $1000.
Auto Insurance Verification in Texas
Because of the financial burden that uninsured drivers place on the taxpayers of Texas, the state has taken steps to document all drivers who are covered by auto insurance and compile this information into a database.
This program is called TexaSure, and it allows law enforcement offices and other agencies to enter a vehicle’s license plate or identification number to determine whether its owner is properly insured. TexaSure prevents uninsured drivers from circumventing proof of responsibility laws by carrying an expired or fraudulent auto insurance card.
Texas Auto Insurance Discounts
If you are concerned about the cost of an auto insurance policy, there are numerous ways to earn discounts on your insurance premiums. Some of these include discounts for:
- Maintaining a safe driving record
- Avoiding traffic tickets or citations
- Completing a state-certified Defensive Driving course
- Reducing the number of miles you drive annually
- Listing more than one vehicle on the same insurance policy
- Acquiring your auto insurance policy from the same carrier who handles other insurance policies that you currently have
- Equipping your vehicle with various anti-theft devices
- Driving a hybrid vehicle
- Earning good grades in school (for drivers enrolled in high school or college)
You should check with your insurance company to see which discounts are offered and how you may qualify for them.
In addition, a few insurance providers offer a method to reduce your premiums by recording your individual driving habits. This is accomplished by installing a device in your vehicle that records driving-related data over a certain period of time. If the information shows that you are a lower-risk driver, then your premiums will be reduced accordingly.
Texas is a «Fault» Car Accident State
Texas uses a «fault» system when it comes to liability for a car accident. In the words of the Texas Department of Insurance, a «fault» system is one that requires drivers to «pay for the accidents they cause.»
After an accident occurs, an injured driver, passenger, or pedestrian may decide to file a claim with his or her own auto insurance carrier first, in what’s known as a «first-party» claim. The injured person may also decide to seek compensation from the other driver’s insurer, by filing what’s known as a «third-party» claim. (The «second party» is always the insurance company.) Finally, an injured person may also choose to go to court and file a personal injury lawsuit against the at-fault driver, seeking compensation for medical bills, property damage, pain and suffering, and other losses related to the accident.
(By contrast, «no-fault» states usually require a policyholder’s own insurer to pay for their medical bills, lost income, and other out-of-pocket losses — up to certain minimums — regardless of who caused the accident. In no-fault states, an injured person must meet certain threshold requirements in order to step outside the no-fault car insurance system and make a claim against the at-fault driver.)
Minimum Auto Insurance Requirements for Texas Drivers
As touched on above, Texas requires drivers to demonstrate their financial responsibility in case they cause a car accident on the state’s roads and highways. Most vehicle owners choose to comply with this requirement by purchasing car insurance. If you’re buying car insurance in Texas, the law requires you to have the following minimum amounts of liability car insurance coverage:
- $30,000 for bodily injury liability per person injured in an accident you cause
- $60,000 for total bodily injury liability when two or more people are injured in an accident you cause, and
- $25,000 for property damage per accident you cause.
This basic coverage — known as «30/60/25» coverage for short — pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits. You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets in the event of a serious crash.
Your liability coverage will kick in if any family member is driving your vehicle, or if you’ve given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.
You’ll need to carry your insurance card or proof of insurance in your vehicle with you, in case you are asked to present it to a law enforcement officer during a traffic stop. Failing to carry insurance or to provide proof of insurance when asked for it can result in fines and other penalties, especially if you’re involved in an accident.
Finally, remember that the liability coverage we discussed here doesn’t apply to your own injuries or vehicle damage after a car accident. You’ll need different (additional) coverage for that if you’re involved in a car accident and no one else’s coverage applies to your losses. For example, personal injury protection (PIP) or MedPay coverage can be used to pay your car accident medical bills, and collision coverage can pay for repairs to (or replacement of) your damaged vehicle after a car accident.
Uninsured/Underinsured Motorist Coverage in Texas
Texas does not require drivers to buy uninsured/underinsured motorist coverage, but it does require insurance companies to offer this kind of coverage, which can provide additional protection if you’re in an accident with someone who has no car insurance, or whose coverage won’t pay for your medical bills and other losses. In Texas, all uninsured/underinsured motorist coverage is subject to a $250 deductible, which you must pay before the insurance company will pick up the remaining bills up to coverage limits.
More Information on Auto Insurance in Texas
The Texas Department of Insurance website offers more information on auto insurance in Texas, including advice on choosing the right coverage.
Offering some of the best auto insurance throughout the Dallas/Fort Worth Areas
At Baja Auto Insurance we believe that all people should have access to affordable coverage, regardless of their social, economic, or legal status. Whether you have an excellent or poor driving record, agents at Baja Auto Insurance are ready to help find the right plan for you and your family. Our state of the art rate comparison program allows us to compare car insurance rates from multiple different companies to find you the best rate to fit your individual needs.
Why choose Baja for your auto insurance?
Since 2006, thousands of Texans have purchased insurance through Baja. Beyond our industry expertise, our customers choose us again and again because we offer:
- Friendly service. At Baja, our personal lines automobile specialists take the time to work with you and your family to find a policy that matches your needs and budget. We are dedicated to providing you with personal service so you can relax knowing that you’re being taken care of by experts.
- Affordable plans. Because we have the freedom to shop your policy with many different carriers, more often than not, we provide lower rates than the big direct insurers.
- Variety. There is no “one size fits all” when it comes to insurance. At Baja, we have a variety of policies to meet your unique preferences and circumstances. Multi-policy, multi-automobile, good driver, and student discounts are just some of the options we provide.
- Efficiency. Your time is valuable. Our agents can get you and your family set up with a plan in no time. With Baja, you can receive a quote, compare, buy, and print in just minutes.
- Plans for the hard to insure driver. Do you have tickets, accidents, or a DUI on your record? That’s no problem. We have helped many others in similar circumstances to find a great policy at a reasonable price.
If you’re looking for auto insurance, you’ve come to the right place. The advice of Baja’s automobile insurance specialists will help you to find the best policy for you and your family. Call us today and let us maximize your savings.
Everything’s bigger in Texas, at least that’s what they say. And if you live here, you’ll probably agree with this statement, especially when it comes to your auto insurance. Surpassing the national monthly average by a few dollars might not sound that bad, but compared to North Carolina (one of the cheapest state in the south and the nation), Texas is paying an average $70 more per month. Don’t be discouraged though, when I went on the hunt for coverage in the Lone Star State I found $388 in savings.
I checked yearly premiums for the minimum coverage required in Texas. GEICO was my best quote at $401, and State Farm was close behind at $452. Texas Farm Bureau and Progressive topped the chart both breaking $700. I cannot generalize that these companies will give you your lowest of highest quotes; auto insurance premiums are based on a wide variety of information that will change, possibly drastically, per person.
Each company calculates the same information in different ways. One company may place more emphasis on your sex and age, while another may be more concerned with your employment status and profession. This is why you should make an effort to check as many companies as possible. With every new quote comes the possibility of hundreds in savings.
All of my quotes were completed using each company’s personal online quote tool. Each one took approximately 5-10 minutes to complete. The process could stretch a bit longer if you have any claims or traffic violations to report, so it’s safe to budget 15 minutes per quote. If for any reason you need to, or would prefer, to contact agencies by phone to secure a quote, be prepared for a longer process. In my experience, calls can extend 15-20 minutes. Even still, if you find over $300 in savings like I did, that’s time well spent.
Our Top 4 Picks for the Best Car Insurance in Texas
I began by selecting the top four companies in customer service rankings (JD Power). I then cross-referenced these agencies with the financial stability reports released by A.M. Best. By these standards I’d recommend any one of these companies to any Texan.
|Texas Farm Bureau||$751|
In my investigation of quotes offered by these four companies, I found that they split themselves into two price groups. Interestingly, GEICO was the cheapest rate at $401. State Farm fell in the mid-range 400’s as well. Then the quotes took a sharp jump, with Progressive and Texas Farm Bureau squarely in the mid to upper $700’s. Texas Farm Bureau did top JD Power’s list of the customer service rankings as the best by a slight margin, but otherwise I could find no true explanation for the $300 gap. Instead of paying more for minimum coverage or better service you should think about upgrading to proper protection. It could actually save you money.
Even If You’re Happy, It’s Best to Shop for a New Policy Every Couple of Years
In a study produced by Earnix, 68 percent of all insurance companies polled made strategic pricing changes within a year in order to produce greater profitability. In order to maximize profits, insurance companies have begun using a tool which analyzes information outside of the traditional risk-profile. Complex algorithms analyze your personal data like shopping habits and social media interactions (which is gathered through data mining of big data) to determine how likely you are to look for better prices over time. The process is called price optimization. If you are found to be undeterred by price changes or don’t seem to be concerned with finding your best deal, insurance companies will start pushing the boundaries of your premium to see how much you’re really willing to lay down.
The act of shopping and gathering quotes from multiple providers will produce a win-win scenario. First, you might find grand savings, the likes of which you couldn’t have imagined! Especially if it has been awhile since you’ve shopped around. Second, even if you find that the policy you currently hold is still your best deal, you’ll also be showing the insurance companies that you aren’t afraid of leaving for a better price. This could save you from incremental price hikes with the purpose of simply stretching your wallet as far as it will open.
Recently a small batch of states (15 in total) have begun to address the use of price optimization within their borders. Some states like California have said that the practice is illegal since it uses information outside of risk-related data. Others, like Vermont, call it a discriminatory practice which also disqualifies it for use as a price-influencer. Still others, like New York, have only begun to investigate the practice. Unfortunately, Texas has yet to take a stand against price optimization. This means your protection from unfair price changes is squarely in your hands. Keep an eye out for savings everywhere you can, and remember the more quotes you get, the better off you’ll be in the long run.
Texas’ Minimum Coverage
The Bare Minimum
Texas, the ever rebellious child of the south, proves its anarchical ways by being one of the ultra-rare states not to specifically require automobile insurance to drive its roads. Instead, it provides 5 different ways for an individual to prove financial responsibility and gain the right to operate a vehicle according to state law.
The easiest and probably your best option is liability auto insurance. The minimum coverages must meet $30,000 per injured person in an accident, $60,000 per accident involved, and $25,000 for property damage liability. Otherwise known as a 30/60/25 plan.
If the normal recourse for insurance isn’t your cup of tea, you might try one of the next four ways. Investing a Surety Bond with the Texas Department of Insurance, will guarantee your right to drive the roads of Texas. You’ll essentially be putting up your property as collateral to be foreclosed upon if you can’t pay the damages caused in an accident. Secondly, you might make a deposit of cash or securities worth $55,000 with the county comptroller or judge. In the event of an accident, these assets will be liquidated to pay any damages you have caused. Lastly you can become Self-Insured. To become self-insured, you must own at least 25 registered vehicles. Should you be found responsible in an accident, you will be required to pay the same damages that any traditional insurance company would.
The Best Car Insurance is Not Just Cheap Car Insurance
If you think that minimum coverage is all you’ll need, take the following facts into consideration:
- An automobile accident will occur to the average individual approximately once every 17.9 years.
- The average cost of a disabling, nonfatal accident is $80,700.
If I decided only to buy a cheap car insurance policy with only the coverage mandated by the Texas government (30/60/25), I could personally be on the hook for over $50,000 after my bodily injury protection ran out. I could owe even more if my property protection (only $25,000) were to be exceeded.
If, instead, I decided to upgrade my coverage to a more appropriate rate (50/100/50) I would certainly have a much better chance at covering all or most of the bills generated by an automobile accident. You may think that an increase in coverage would jack up your premiums to an unreasonable level, but this was not so in my experience. If I chose to upgrade my coverage with GEICO, my lowest quote for the minimum, I would only spend a grand total of $22 more per year! If we calculate those numbers out for 18 years, that’s only $396 more dollars in total. If that is all it took to increase my protection and be better prepared for the future, it would certainly by my first move.
If You Skip Coverage, It’ll Cost You
According to the Texas Department of Insurance, “First time offenders are subject to a fine of up to $350, plus court costs, and may be assessed additional fees…” If you are caught more than once, get ready for fines up to $1,000 and suspension of your driving licensure and privileges for up to 2 years.
Citizens Insurance Agency
Welcome to Citizens insurance Agency. We are an independent insurance agency that compares rates of over 50 different insurance companies to save you money. We are located in central Texas with offices in Brady and Mason. This website allows us to share our excellent rates and small town customer service with consumers all over the state. Our goal is to provide the most useful information and resources, so you will have everything you need to make an informed decision. Whether you visit us in person or use our website, we’re here to help. And we hope to make your experience as easy and convenient as possible.
Why Choose Us?
Local Agent with Online Convenience
We know you have options when it comes to buying Texas car insurance and that’s why we work to offer something a little different. As your local agent, we’re able to give you the personal attention you deserve, with the advanced quoting technology of an internet company. It’s the best of both worlds- a local, trusted agent and the ability to shop online. When you deal with Citizens Insurance Agency, it’s like talking to a friend.
Expertise You Can Depend On
We’re more than insurance agents, we’re experts. We’ve worked hard to learn the in’s and out’s of the business and we’re prepared to help you get you the best insurance to fit your needs and your budget. We deal with only top companies offering Texas insurance like Hochheim Praire, Progressive, Travelers and The Hartford. That’s expertise you can depend on.
Easy, Reliable Quotes…at Your Fingertips
It’s never been easier to compare quotes with Citizens Insurance. And the best part is this- we’re not your typical online search engine and we’ll NEVER share your information with third parties. What does this mean for you? Reliable, accurate Texas car insurance quotes. Quick, easy and hassle free- it’s as simple as that.
Whether you’re looking for affordable car insurance in Texas for yourself or dependable coverage for your family, we’re here to help. Put the skills and expertise of a trusted source to work for you and give us a call today. We look forward to hearing from you!
Most of us have heard the term “financial responsibility” at one time or another. More than likely we’ve used it ourselves to explain to our children the importance of getting a job, saving money and paying bills. But in the context of car insurance in Texas, proof of financial responsibility means you must provide evidence that you have the means to pay for any damages you cause while operating a motor vehicle. Most drivers satisfy this law by purchasing a car insurance policy. However, there are alternatives.
Texas is one of 10 states that currently follows a combination of No Fault and Tort Law systems when it comes to car accidents. That means, if you are driving a car that is involved in an accident and it is your fault, you are financially responsible and must pay for the costs of medical care for injured passengers as well as any property damage. If you cannot prove you have the means to pay for damages, you will be in violation of Texas law and will be fined. The first time, the fine can be between $175 and $350. A second offense can result in suspension of your driving license, $1,000 fine or both.
The easiest way to prove financial responsibility is to purchase a Texas car insurance policy. Liability insurance— which typically includes Bodily Injury and Property Damage coverage protects you financially in the event someone or something is damaged as a result of your driving. Texas requires drivers with insurance to meet minimum liability requirements. Currently, you must carry a minimum of $30,000 in Bodily Injury Liability for a total of $60,000 per accident and $25,000 Property Damage Liability coverage. This requirement is typically referred to as 30/60/25 coverage.
Remember, liability coverage does not protect you for damage or injuries, only those in the other vehicle. If you wish to protect yourself and your passengers, you must purchase Personal Injury Protection (PIP) or seek coverage from a health insurance policy. In addition, minimum coverage offers only minimal protection and does not provide optimal coverage. To avoid out-of-pocket expenses, you may need to purchase more coverage.
Other Methods of Proving Financial Responsibility
By Texas law, you do not have to purchase a car insurance policy to drive as long as you can provide another acceptable form of financial responsibility. A cash deposit or a cashier’s check with a county judge verifying you have deposited at least $55,000 is accepted as proof of financial responsibility. As is a surety bond or a copy of a self-insurance certificate issued by the Texas Department of Public Safety.
It’s also acceptable to drive in Texas with a car insurance policy issued from another state. As long as the insurance comes from a valid, agent or company with legal authority to write liability insurance in the state and meets minimum coverage requirements, it’s fine.
There are a few alternatives to purchasing Texas auto insurance and you can drive legally in the state without it. But keep in mind, when and if you are involved in an accident, facing costly damages and high out-of-pocket expenses, a reliable, dependable insurance policy sure comes in handy.
Finding the best car insurance in Texas is easy. We compare insurance companies in the Lone Star State based on price, customer satisfaction, and more.
Finding insurance in any state can be tough. Getting it in the Great State of Texas may be a bit more expensive than in much of the rest of the country. In this article, we’ll dive into the rules and regulations for car insurance in Texas.
Knowing these rules is the best way to protect yourself when shopping for insurance in any state! So we went straight to the source–government websites–to compile the details you need to know.
We also looked at specific insurance companies that are licensed to provide insurance in Texas. The insurance company that works best for you may be different than the one that works best for your neighbor.
Some companies place a higher weight on your driving history, which could be bad if you have a couple of minor violations. Others place a heavier emphasis on your age, which isn’t great if you’re in the under-25 crowd.
Still, we looked at general policy options from the Texas database, financial stability, and customer complaints for many Texas car insurance companies. What we came up with is a list anyone shopping for car insurance in Texas can use.
We didn’t only look at rates when ranking the best car insurance companies. But, of course, getting good value for your money is important. So we will also look at estimated rates for each company featured in this article. The rates are for minimum liability coverage for a fairly average married woman–aged 25 to 65 with average credit, a car she drives to and from work, and a clean driving record. Keep in mind however, that your results could vary dramatically depending on a variety of other factors.
Our Top Five Picks for the Best Car Insurance in Texas
1. National Surety Corporation–You may not have heard of this insurance company, but it’s one of the top in Texas as far as complaints go. It’s got a below average number of complaints according to the state’s database. And it has an A+ financial rating from A.M. Best. What’s more, it came out on the low end of our estimated pricing, at just $320 per year.
2. Allstate–A larger insurance company, Allstate has about an average number of complaints made against it in Texas. This means most consumers are happy with the company and its car insurance product. It also came out near the top of our price comparisons, at just $390 per year for basic liability coverage. Allstate also has an A+ rating from A.M. Best.
3. Farmers Texas County Mutual Insurance Company–This name may sound unfamiliar, but it’s not. It’s the Texas name for Farmers Insurance. It gets way fewer consumer complaints than average. It has an A rating from A.M. Best, and its annual liability coverage estimate came out to $417 per year. With flexible policy options, they may just have what you’re looking for.
4. Hartford of Texas General Agency–This insurer gets good marks for pricing, at about $450 per year according to our quote. It also gets an A financial rating from A.M. Best, meaning it’s a financially stable company. Hartford also gets almost half as many complaints in Texas as the average company.
5. Progressive County Mutual Insurance–Progressive is known for its snazzy ads and commercials. In Texas, it’s also known for customer satisfaction, since customers are about half as likely to report a complaint to the state as with the average insurance company. The quote came out at a competitive $505 per year, and the company has an A+ financial rating.
Texas Auto Insurance Requirements
Like all states, Texas has mandated minimum car insurance requirements. In Texas, the required coverage is 30/60/25. These are the liability insurance minimum coverage amounts. It means that you need $30,000 for each injured person for up to $60,000 per accident, and $25,000 for property damage. Keep in mind that this may not be the amount of insurance you actually need. It’s just the absolute minimum Texas requires for you to legally operate a vehicle.
Texas law requires that “the motorist or operator of a vehicle” prove their financial responsibility–typically by providing proof of insurance–when they drive. Failing to provide proof of insurance can cost you a pretty penny. In fact, a first time offender can be charged up to $350 plus court costs.
Your penalties–both financial and when it comes to your driver’s license–will get worse if you continue to get caught driving without insurance. In fact, continued offenses could cost you up to $1,000, plus court fees. You may have your driver’s license suspended. And in some cities, driving without insurance can even get your vehicle towed.
Proof of Insurance
In Texas, motorists need to have proof of insurance and also be registered by TexasSure, the state’s insurance verification program. We’ll talk more about TexasSure below. For now, know that Texas has strict proof of insurance laws.
Many drivers in Texas can simply carry the standard proof of insurance card issued by the insurance company. And in 2013, the Texas State Legislature made it legal for motorists to show their proof of insurance on their phones, as well.
However, in certain circumstances, you may need to also show a Financial Responsibility Insurance Certificate (SR-22) form verifying that you are maintaining liability insurance for your vehicle. You can get an SR-22 from your insurance company. It basically proves that you have the minimum liability coverage required by law.
You’ll need an SR-22 if your driver’s license has previously been suspended or revoked because of a car crash, conviction, or judgment. You have to file this form from your insurance company with the Department of Public Safety (DPS). And you’ll have to maintain this coverage for two years starting from the date of conviction or the date of judgment. You’ll also need an SR-22 if you’re required to place a security deposit with DPS as compliance for your license suspension.
If you’re on the list of those required to file an SR-22, your regular insurance card won’t cut it. The SR-22 allows DPS to have more visibility into your current insurance status. As soon as you cancel your insurance policy or let it lapse, your insurer will notify the Texas Department of Public Safety. If you’re required to have an SR-22 on file and your insurance company notifies DPS of the cancellation, your license will be suspended again.
Average Cost of Coverage in Texas
According to the Insurance Information Institute (III), the average cost of car insurance in the United States in 2014 was $866.31 per year. Texas falls somewhere in the middle of the pack as far as insurance costs go. The III ranked the state number 35 in 2014.
The average cost of liability insurance was $516.26 per year, and the average cost of collision coverage was $357.61 per year. For comprehensive insurance, motorists paid an average of $192.33.
Many drivers owe money on their vehicles. Thus, they need more than just liability coverage. The average total cost of insurance in Texas in 2014 was $905.64 per year–about $75 per month.
Cost of Auto Insurance in Texas
As with any other state, the cost of car insurance in Texas depends on a variety of factors: how much coverage you opt for, the type of vehicle you drive, your personal driving record and even where you live. It’s also legal for auto insurers to use your credit history when determining eligibility or setting rates.
Texas’s insurance site provides a list of auto insurance companies that use some form of credit scoring during the application and price-setting process. It also includes a list of a handful of companies that do not consider credit.
Credit aside, your costs will vary in Texas depending on your circumstances. We used Texas’s auto insurance pricing tool to look at a few different scenarios. We compared people of different ages, credit ratings, and driving records. You can see from the results just how much variance there is between companies and pricing options.
The amount of variance in pricing even for the same person means you definitely need to shop around. Luckily, Texas provides a great worksheet to help you do that. You can download it here and use it to quickly compare insurance companies and quotes.
Texas’s Unique Car Insurance Rules
Texas has some laws in place to protect consumers when it comes to car insurance. You can find the full list of rules here. They include:
- Insurance companies must provide consumers with a toll-free number to ask questions or lodge complaints.
- Insurers must provide consumers with proof of insurance.
- Insurance agencies cannot require you to purchase more insurance than is required by law.
- Insurance companies cannot deny you insurance solely because of your credit history, though they can use your history in setting insurance pricing.
- You have a right to buy minimum liability insurance through the Texas Automobile Insurance Plan Association, outlined in the next section, if you are denied insurance from other plans.
- Insurance companies cannot require you to pay the full year’s insurance premium at once. You can pay a 12-month policy in at least ten equal monthly installments or a six-month policy in at least four equal monthly installments. Insurers do have the right to charge a fee for installment payments.
- If you have signed up for automatic payments, your insurance company cannot increase the monthly amount withdrawn without 30 days’ written notice.
- If an insurer reduces the amount of coverage provided by your policy, they must give you a written explanation of the reduction.
- If an insurer denies your application, they must provide you with a written explanation of why you were denied.
- An insurance company can divide a county into sections in order to charge different rates to different areas. But the difference between the highest and lowest rates in the county cannot exceed 15% “unless actuarially justified.”
Besides these consumer protection laws, Texas has another insurance law quirk: TexasSure. This is a vehicle insurance verification program charged with the task of cutting back on the number of uninsured drivers in Texas. The TexasSure database connects insurance policies to license plates and vehicle identification numbers (VINs) to give more visibility into drivers’ insurance coverage.
Any insurance company that writes personal auto insurance in Texas is required to report up-to-date policy information to TexasSure. In fact, they report these policies on a monthly basis. Authorized users, including law enforcement officers, county tax assessor offices, and some state agency staff can view your records in TexasSure.
The only thing you have to do to make sure your insurance policy is reported to TexasSure is to choose an insurer who is licensed to provide insurance in Texas. If you move to Texas from another state, first make sure your insurance is licensed. If it is, you can stick with the same insurance company. You’ll just need to let them know that you live in Texas so that they can report your information to TexasSure.
Texas Sponsored Programs
If you can’t afford even the cheapest insurance in Texas, you may need to turn to the Texas Automobile Insurance Plan Association (TAIPA). This coalition of insurance companies provides only minimum liability coverage to motorists who cannot qualify for or afford other insurance.
To apply for TAIPA, you’ll have to meet with an agent, who will submit your application. You’ll need to make a down payment on the insurance. Once your application and down payment are submitted, TAIPA will take care of the rest. As long as you continue paying for your TAIPA coverage, you’ll be able to drive legally in Texas.
Top 10 Car Insurance Companies in Texas
Sometimes when you’re shopping for the best car insurance, you need to dig deep to find a hidden gem. But other times, you can go with the crowd. Here, according to the Texas Department of Insurance, are the state’s top ten most popular insurance companies.
One interesting factor of the Texas Department of Insurance website’s auto insurance pricing tool is customer complaint data. It uses a complaint index, which shows how the number of complaints filed against a company compare to other companies. The average index is 1.00. Companies with a complaint index of less than 1.00 have received fewer than average complaints. Companies with a complaint index of greater than 1.00 have received more than average complaints.
As when shopping for any financial product, be sure to look at both well-known companies and lesser-known options. You may just find an affordable, high-quality car insurance option in Texas that you have never heard of. But take this information–rates, financial stability, customer satisfaction, and more–into account as you shop around.
Cheapest Car Insurance In Texas
The Lone Star state is synonymous with the American Wild West. The Alamo, Hell’s Acre, the Stockyards, Stephen F. Austin and a host of other uniquely “cowboy” treasures are packed in America’s second largest state. Texas holds an enormous variety of activities to keep its residents occupied. From the Gulf of Mexico beaches in the south, to the pine forests of the northeast, to the rolling hills of the central plains to the desert and mountains in the west, there is always something to see. Drivers on one border could drive all day and still be in Texas when the sun goes down. With a state so big, Texans don’t have time to waste searching for car insurance information. So to make up for what could be lost time, CheapCarInsurance.net has done the searching and brought all the important facts right here in one, neat list.
Taking time to study all the changing laws and regulations just shouldn’t be part of a Texan’s day. This list streamlines the process so no more time is spent digging and hunting for the information than is absolutely necessary. It’s all right here.
Minimum Requirements for Car Insurance in Texas
- All vehicles in Texas must be covered by liability insurance, according to the state’s Insurance Division.
- Liability minimums in Texas:
- $30,000 includes injury to an individual from an accident.
- $60,000 includes multiple injuries in an accident.
- $25,000 includes property damage in an accident.
Failure to maintain insurance results in:
- First Offense: a fine of $175 to $350
- Second or subsequent offense(s): a fine of $350 to $1,000, suspension of driving privileges and possible impounding of the vehicle.
New Driver Licensing Requirements
- By law, every driver operating a vehicle in the state of Texas must hold a valid state driver’s license. The state’s Graduated Driver License (GDL) is a licensing program to give minors valuable driving training prior to allowing them to drive unsupervised. The GDL has three stages:
- The Learner License
- Minor Restricted Driver License
- Provisional License
- The Learner License. This license permits an applicant who is 15 years old (and under 18) to drive only with a licensed adult who is 21 or older and who has had at least 1 year of driving experience. To apply for the license, the applicant must:
- Complete a driver education course
- Submit a verification of enrollment and attendance for school.
- Minor Restricted Driver License. This license, also known as a hardship license, is available for minors who establish the necessity to drive. With this license, the applicant may become fully licensed at age 15. For an explanation of the requirements and restrictions, refer to the Texas Driver’s Handbook.
- Provisional License. This is a regular driver license with restrictions for drivers under the age of 18. At this point, the applicant must have held the Learner License for at least 6 months and fulfilled all the requirements associated with it. The restrictions include:
- The applicant is permitted only one unrelated passenger under 21.
- The applicant is restricted from driving between midnight and 5am unless driving to/from employment, school activity or medical emergency.
- Once these requirements are fulfilled and the driver turns 18, the Provisional License will become an unrestricted Driver License.
- Vision Screening. 140 degree peripheral vision and at least a 20/40 visual acuity with or without corrective lenses is required to obtain an unrestricted license.
- Knowledge Test. The knowledge test evaluates the driver’s understanding of basic traffic concepts included in the Texas Driver’s Handbook. A passing score of 70 percent is needed.
- Road Test. The test consists of four skill areas:
- Vehicle control
- The driver’s handbook details each skill area with specific required actions that the test administrator will include in the test.
- Learner License (under 18): $16
- Driver License (under 18): $16
- Driver License (Ages 18-84): $25
- Driver License (Ages 85 and up)D: $9
- BAC limit: .08 The Texas Department of Transportation defines the state’s DUI laws (§ 49.04), while the department’s website provides a reader-friendly version.
- First Offense:
- Jail: 3 to 180 days
- License revocation: maximum 1 year
- Fine: maximum $2,000
- License retention fee: $1,000 to $2,000 per year for 3 years
- Second Offense:
- Jail: 1 month to 1 year
- License revocation: maximum 2 years
- Fine: maximum $4,000
- Ignition Interlock Device must be installed
- License retention fee: $1,000, $1,500 or $2,000 per year for 3 years
- Third Offense:
- Jail: 2 to 10 years
- License revocation: maximum 2 years
- Fine: $10,000
- Ignition Interlock Device must be installed
- License retention fee: $1,000, $1,500 or $2,000 per year for 3 years
Texting & Driving Laws
Nothing says “Cowboy” quite like Texas, and some of its laws make it clear that Texas isn’t trying to hide that fact! For instance, only a man who owns 10 or more cattle is permitted to tuck his pants into one boot. When riding one’s horse at night, it is unlawful to forget to attach its taillights. Emitting offensive odors is prohibited while in an elevator. Cattle thieves can be hanged on the spot, and it is legal to ride one’s horse into a saloon!
Best Cheap Car Insurance Quotes for Texas
Car insurance quotes are for one car and one driver who has state minimum coverage with $500 comprehensive and collision deductibles. The hypothetical driver is 40 years old, female, married, employed, a college graduate, and has good credit. She has no moving violations, accidents, claims, or lapse in coverage. The vehicles are assumed to be garaged on premises, used primarily for commuting, and driven 16,000 miles per year. Car insurance quotes include commonly available discounts and are estimates and not guaranteed.
Cheap Car Insurance understands you work hard for your money so, why spend more on your auto insurance. Here is a list of some of the car insurance discounts that will help keep your hard-earned money in your pockets:
- Multi-car insurance discount
- Good student discount
- Military discount
- Car safety features discount
- Anti-theft discount
- Bundling your auto with home or renters
- Defensive driving discount
- Usage or low-mileage discount
- Senior citizen discount
- Mature driver discount