We all want cheap car insurance, but it’s important to understand what you’re getting in addition to a low premium.
Are you looking for Cheap auto insurance in Texas? Freeway Insurance explains how to find cheap car insurance in Texas.
In general, the most affordable car insurance in Texas is one that meets the state’s minimum liability coverage requirement. It is the most affordable insurance, but for better and broader protection, we recommend getting higher levels of coverage.
The cheapest car insurance options for minimum coverage in Texas were discovered to be from the following insurance providers:
- Farmers: $420 per year
- State Farm: $495 per year
If you or a family member is in the military, USAA has an affordable offer that averages $424 per year. The General is the most expensive company in Texas for minimum liability car insurance, with an average annual rate of $1,317.
Cheapest Minimum Car Insurance in Texas
These are only estimates based on average Texas driver rates and should not be used to compare insurance prices.
Cheapest Full Coverage Car Insurance in Texas
Some drivers prefer to have more protection and choose a full coverage policy that includes comprehensive and collision insurance and covers the majority of road and off-road accidents in Texas. While this policy has higher liability limits, it is more expensive than a basic coverage policy. It also covers expenses related to vehicle damage for the policyholder.
The cheapest full coverage auto insurers in Texas, based on average comprehensive and collision rates, are:
- Farmers: $821 per year
- State Farm: $924 per year
USAA also has an affordable average annual rate of $885 for current and former military members. The General is Texas’ most expensive insurance company, with an average annual rate of $2,718.
Cheapest Full Coverage Car Insurance in Texas
The above prices are estimated rates for the average driver in Texas and may differ from the rates you can obtain. These figures are based on a policy that includes comprehensive and collision coverage, as well as $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident, and $100,000 in property damage per accident.
Cheapest Car Insurance for Drivers With a DUI in Texas
Car insurance comparison shopping can provide Texas drivers with significant savings. For example, switching from The General to Esurance saved our sample driver nearly $2,000 per year, and the difference could be significant for you.
A DUI in Texas can not only raise your car insurance rates, but it can also result in jail time and fines. Insurance premiums, legal fees, education expenses, and other costs associated with a DUI can last for years.
Average Car Insurance Rates With a DUI
From 2009 to 2018, 13,592 people were killed in alcohol-related car accidents in Texas, according to the Centers for Disease Control and Prevention. In the last 30 days, 2.2% of Texas drivers reported driving after drinking too much.
DUI offenders in Texas face jail terms ranging from 3 days to 6 months, as well as a mandatory license suspension of 90 days to a year. Direct fines and fees of up to $2,000 are also possible. If this is your second offense, the fine could be up to $4,000. If it’s your third offense, or you have a minor child in the car, your fine in Texas could be $10,000.
A DUI in Texas can not only raise your car insurance rates, but you may also face jail time and fines. The true costs of a DUI can last for years in terms of insurance premiums, legal fees, and education costs, among other things.
If you have an at-fault accident on your driving record in Texas, you will pay more. Car insurance premiums for drivers who are at fault in an accident average $1,988 per year.
In Texas, the cheapest car insurance for at-fault drivers is:
- State Farm: $1,113 per year
- Farmers: $1,165
If you qualify, USAA is one of the most affordable insurance options, with an annual average cost of $1,387.
Cheapest Car Insurance With an At-Fault Accident
Car Insurance in Texas: What You Need to Know
If you own or operate a motor vehicle in Texas, you must obtain insurance coverage for all vehicles registered for on-road use (except semi-trailers and trailers). There is one exception to this rule: if you deposit at least $55,000 in cash or eligible securities with the Texas Comptroller, or a cashier’s check with the county judge, you can avoid the requirement for insurance.
Proof of Insurance in Texas
Drivers in the state are required to show proof of insurance or other documentation. The Texas Department of Motor Vehicles requires proof of insurance in the following situations:
- When asked for it by a police officer
- When involved in a car accident
- When registering and renewing a vehicle registration
- When applying for and renewing a driver’s license
Auto insurers are required to send insurance cards to policyholders. Individuals who use insurance alternatives will be given certificates instead of insurance cards. Your card can be carried on your smartphone.
Texas Insurance Requirements
Texas drivers are required to show proof of insurance or alternative documentation. Drivers are required by the state to purchase minimum liability insurance or post a $55,000 bond. A 30/65/25 policy requires $30,000 in liability coverage for each injured person, $60,000 in total for injuries per accident, and $25,000 in property damage per accident.
Instead of the state’s minimum liability coverage, we recommend that drivers carry 100/300/100 coverage. This entails purchasing $100,000 in bodily injury coverage for each individual, $300,000 in bodily injury coverage per accident, and $100,000 in property damage coverage per accident. While collision and comprehensive coverage are typically optional, they are frequently recommended.
High-Risk Auto Insurance Program in Texas
There are a few options available if you are having difficulty finding a policy that meets your needs. Individuals who do not qualify for traditional liability insurance may be able to obtain coverage through the Texas Automobile Insurance Plan Association. Uninsured residents may also drive legally if they provide proof of financial responsibility in the form of a $55,000 deposit.
Alternatives to Insurance in Texas
Uninsured residents in Texas may drive legally if they can show proof of financial responsibility, according to Texas law. The following are approved alternatives to car insurance in Texas, according to the Texas Transportation Code:
- $55,000 cash or securities deposit with the state comptroller
- $55,000 cash or cashier’s check deposit with the county judge
- Surety bond filed with the Texas Department of Public Safety
Drivers who choose this option must always carry a certificate of deposit or a surety bond deposit instead of an insurance card.
What Happens If You Don’t Have Car Insurance in Texas?
Texas drivers who are caught driving without insurance or a valid alternative face the following penalties:
- First offense: $175–$350 fine
- Second offense: $350–$1,000 fine, a two-year suspension of driver’s license and car impoundment
- Driving without a license: Up to a $2,000 fine and/or 180 days in jail
How Much Coverage Do You Need in Texas?
While Texas only requires 30/60/25 minimum liability coverage, many drivers should consider purchasing insurance that provides more protection. A 100/300 liability policy, which covers $100,000 for a single person in an accident and $300,000 for all individuals in an accident, is far more likely to protect you if you cause an accident that results in serious injuries or property damage to the other driver or vehicle. If you have a newer vehicle or if you haven’t paid for it yet, it’s also a good idea to have comprehensive and collision coverage to cover damage to your vehicle.
Texas Personal Automobile Policy, a standardized policy that offers eight types of insurance in one policy, is offered by insurance companies in the state. However, because exclusions vary by policy, the Texas Office of Public Insurance Counsel recommends that drivers understand who and what is covered.
Expert Tips for Finding Low-Cost Auto Insurance in Texas
Received expert advice from proven professionals to help you find trustworthy and accurate information on car insurance in Texas. Individual contributors’ perspectives and opinions are expressed.
- How does the Texas Department of Insurance serve as a resource for auto insurance consumers? And what about home insurance?
- What are the most important factors Texas drivers should consider when looking for the best auto insurance coverage?
- What steps can Texas drivers take to find cheap car insurance?
- How do Texas regulations and rules affect insurance pricing and how consumers shop for coverage?
- What consumer resources does the Texas Department of Insurance provide?
sources
- Centers for Disease Control and Prevention. “Sobering Facts: Alcohol-Impaired Driving State Fact Sheets.” Accessed February 18, 2020.
- Experian. “2019 Consumer Credit Review.” Accessed February 18, 2020.
- Governing: The Future of States and Localities. “Military Active-Duty Personnel, Civilians by State.” Accessed January 27, 2021.
- National Association of Insurance Commissioners. “2018 Market Share Reports.” Accessed February 18, 2020.
- National Highway Traffic Safety Administration. “Traffic Safety Facts.” Accessed February 18, 2020.
- Texas Department of Insurance. “Automobile insurance guide.” Accessed February 18, 2020.
- Texas Department of Public Safety. “Drivers Age 79 or Older.” Accessed January 27, 2021.
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