Are you looking for a great deal for insuring your vehicle in Texas? There’s no easy way to find the most suitable policy, as every person is different, and the quote will depend on your circumstances and the level of coverage you need. To get the cheapest car insurance in Texas, you will have to pick the right company, level of insurance, and be on the lookout for special deals and discounts. Here is a simple guide.
Comparing Car Insurance Quotes in Texas
Before you start comparing prices, determine which level of coverage you need and make sure you don’t pay for what you don’t need.
Here are the basic steps to take for locating the most suitable coverage.
- Check the prices of both regional, state, and national insurance providers.
- Consider your driving habit, history, vehicle, credit rating, age, gender, and other circumstances that will affect your price.
- Have a full record of your car insurance history. If you have a gap in your history, your risk level might be considered higher.
- Never take out insurance that you don’t need. If you don’t use your vehicle for commuting, let the company know, in case you qualify for a low mileage discount.
- Look out for discounts for safe drivers, military personnel, or veterans.
- Check your credit score before applying, to avoid disappointments.
The Types of Texas Personal Automobile Policies
In Texas, insurance companies offer a policy called Texas Personal Automobile Policy, which covers eight different types of coverage. The level of protection ranges from the minimum to the full 100/300 liability coverage.
The minimum coverage is liability, (30/60/25) which is required to legally drive in Texas. It covers:
- Bodily injury liability up to $30,000 per person.
- Up to a total of $60,000 liability coverage for each accident.
- Property damage liability of $25,000.
This doesn’t cover damage to your own vehicle.
Additional insurance coverage services include:
- Uninsured driver insurance.
- Collision coverage.
- Medical insurance
- Roadside recovery insurance.
How Auto Insurance Companies Calculate Your Cost
If you don’t compare the prices, you might miss out on savings of hundreds of dollars a year. Most car insurance companies will work out your quote based on what you drive, which is the most important factor, where you live, and how you have been driving in the past few years.
Good drivers automatically get a better rate or safe driving bonuses. NerdWallet explains this further on their blog. Further, your credit score will affect your pricing. The better you pay your bills the lower the price is generally. The miles you travel each year are also taken into consideration when you apply for auto insurance, as well as speeding tickets and DUIs.
The Best Car Insurance Companies by Price
Based on price only, the cheapest car insurance company in Texas is State Farm, with an annual cost of $527, followed by Fred Loya Insurance costing $545. If you are in the military, you might be able to take advantage of the offer by USAA, priced at $425. You can also check out the latest comparison by MoneyGeek on car insurance prices in Texas for 2021.
If you are looking for a full coverage, Fred Loya is the cheapest, at $979 annually. As a comparison, State Farm charges $1245 for the same coverage, while Met Life will charge you $5405.
The Best Texas Car Insurance Companies by Claims Satisfaction
There are five main car insurance providers in Texas to choose from. You don’t want to make a decision based on price alone, claims satisfaction is an important factor. Allstate, Amica, GEICO, and Safeco all have superior or excellent ratings based on their financial strength and the percentage of claims satisfied. These scores indicate how likely you are to get your insurance payout on time. Read our full price guide on the Car and Driver Site.
What Is the Average Cost of Car Insurance in Texas?
You can expect to pay about $2653 a year for full car insurance in Texas. The lowest cost is $44 per month, and the highest is $153.
For minimum coverage, you can pay about $77 per year, or $1415 a year, which is around 9 percent cheaper than the national average. Active members of the military can get a policy from USAA, the most affordable insurer in Texas.
Car Insurance Quotes After You Had an Accident, DUI, or Speeding Ticket
If you have a less than perfect driving record, you might need to shop around a bit longer. Your insurance cost will go up by up to 54 percent, depending on the violation. Fred Loya or State Farm will not increase your premium after one speeding ticket, but Nationwide and USAA will. If you got a ticket, look at Clearcover State Farm for quotes, but expect your price to go up by an average of 7 percent.
In case you have a DUI on your license, you can still get a good deal with Fred Loya, at the average cost of $1638, or Esurance costing around $1149.
Best Auto Insurance Companies for Bad Credit
In Texas, poor credit will negatively affect your car insurance cost, as people with good credit are likely to have fewer claims. Fred Loya still offers a reasonable price of $979, as they don’t consider your credit rating as a risk factor, while most insurance companies do. State Farm charges over $1000 more for the same coverage if you have a poor credit history. The most expensive car insurance company for people with bad credit in Texas is MetLife, costing around $8000 a year.
High Risk and Young Driver Car Insurance in Texas
Young drivers are more likely to cause an accident, based on statistics. Therefore, they will generally pay more for their insurance. The best price for students is from state Farm, at $2512 a year. 20-year-olds can get a full coverage policy for $2084 a year from Texas Farm Bureau. Read our guide on car insurance for 18-year-old drivers on the Car and Driver blog. However, if they have one crash that is at-fault, they can expect to pay $1059 for minimum protection only.
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