Get 5% off in-app
400k+ download
Open app

Reasons why Texas auto insurance rates are higher

Spread the love

Whether you’ve lived in Texas your entire life or are new to the state, there’s a good chance you would have been surprised by the car insurance rates you received when you went to insure your car. There’s no denying that auto insurance in Texas is pricey. The average car insurance rate in Texas is $1818 per year.

So, why are Texans paying 26.9% more than the national average? Let’s look at why auto insurance in Texas is so expensive, what factors influence automobile insurance in Texas, and how you might potentially cut your premiums.

The Lone Star State Texas GIF by GAYCATION with Ellen Page and Ian Daniel


Cost of car insurance in Texas

Car insurance in Texas is mandatory. The average yearly cost of car insurance in Texas is $1818, whereas the national average is $1431. When shopping for car insurance, knowing the typical cost of auto insurance in your area might be helpful. It would help if you never spent more than you have to, and it’s a good reminder to ask about discounts to get a price closer to the average.

However, don’t place too much faith in average auto insurance rates.¬†

They can only provide you with so much information on the overall picture of insurance. Several criteria go into calculating your rate, and they both depend on the driver and the insurance provider from whom you obtain a quote. There are significant differences in rates not only within Texas but also within cities. Your location has a significant impact on your insurance. 

Even relocating a few miles down the road to a different zip code can affect your prices.

Why is Texas auto insurance so expensive?

You’re not alone if you’ve noticed your auto insurance quotes steadily rising.¬† Car insurance prices have risen for everyone in general during the last few years. There is no single explanation for why auto insurance is so expensive in Texas. However, there are a few factors that could be causing it.

auto insurance expense

Population concentration

Texas is the second-most populous state in the United States, after California. Furthermore, the majority of the population lives in metropolitan regions that are very close together. In the United States, urbanization accounts for 80% of the population, whereas it accounts for 84 percent in Texas.

In general, metropolitan areas pay more for auto insurance than rural locations. This is because there are more significant dangers in a large metropolis. There will be more traffic, as well as an increase in theft and vandalism.

Rise in accidents

Because so many people live and drive in cities, accidents are more likely to occur, which raises premiums – even if you’ve never been in an accident. When compared to all other states, Texas had the highest number of fatal car accidents. There will be more claims if there are more accidents. Insurance companies consider these risks, and rates rise across the board.

Increased speed limits

Texas boasts the quickest highway in the US, with a speed limit of 85 miles per hour. More accidents and more significant liability claims from insurance companies are associated with higher speed restrictions. 

Rates rise as a result of this.

Uninsured motorists

The percentage of uninsured drivers in Texas is slightly higher than the national average of 13%. Even though insurance is required in Texas, 14.1 percent of drivers do not have it. Because insurance companies stand a higher chance of persons filing uninsured motorist claims, this impacts insured drivers and their rates.

Time spent commuting

Many Texans have a long commute to work and spend a significant amount of time stuck in traffic. 

Driving trends

Texans drive a lot more than people in other states. Per capita, drivers in urban and rural areas make more car trips and drive more daily kilometers. The higher the number of miles you drive, the higher your insurance rates will be. If you spend more time on the road, you’re more likely to be involved in a car accident.

Minimum requirements on the higher side

Liability insurance is mandatory in Texas. Liability coverage covers the other driver’s car as well as the other driver’s medical claims if you’re at fault in an accident. You must have at least $30,000 in bodily injury coverage per person, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage. 30/60/25 is a typical way to write this. The state minimum coverage in most states is 25/50/20.

Liability insurance in Texas

Natural calamities

Texas has the highest frequency and variety of natural disasters in the United States. Hurricanes, flooding, wildfires, and hail storms are all examples of this. Car insurance prices increased by 8% following Hurricane Harvey in 2017. 

car insurance Texas

While the causes described above may have played a role, there’s a good possibility it was in response to the natural disaster. About 500,000 cars were inundated during Hurricane Harvey.¬†

car insurance quote in Texas

Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you.


Related Posts


Press ESC to close