Let’s get you startedSign in or create an account to view your personalized quotes.
By continuing, you agree to Insurify's Terms & Conditions.

Texas Car Insurance Rates Shrank 8% in 2025, New Report Finds

Rates fell nationwide last year, and fewer accidents and vehicle thefts may have helped in Texas.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

Featured in

media logomedia logomedia logo
Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo
John Leach
Reviewed byJohn Leach
Photo of an Insurify author
John LeachLicensed P&C Agent, Chief Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 20461358

John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

Featured in

media logo

Published | Reading time: 2 minutes

Advertiser Disclosure

At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.

We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.

Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.

Share

After years of auto insurance rate increases, many Texans saw lower premiums in 2025. By the end of the year, the average annual cost of car insurance in the Lone Star State fell 8% from 2024, according to Insurify data.

The average cost of full-coverage car insurance in the state was $2,470 at the end of 2025, down $205 from 2024, according to Insurify’s American Driver Report (ADR).

Still, car insurance in Texas is far from the cheapest in the country. The state’s average was 15% higher than the national average in 2025. And the current average is 58% higher than the state’s average in 2021.

“The recent decline in Texas car insurance rates may be partly because vehicle theft, crash, and fatality rates have fallen in the state in recent years,” said Matt Brannon, Insurify senior economic analyst and author of the ADR. “But it’s likely that Texas is also benefiting from the trend we’re seeing nationwide. Insurers were focused on customer acquisition in 2025, and priced their policies competitively in many areas.”

What’s more, after years of rate increases, many insurers found themselves profitable again in 2025. Texas’ full-coverage average peaked at $2,708 per year in February 2025 and steadily declined through the rest of the year, Insurify data shows.

Location
sort ascsort desc
2025 Average Annual Cost
sort ascsort desc
Projected 2026 Change
sort ascsort desc
Projected 2026 Year-End Cost
sort ascsort desc
Change From 2024 to 2025
sort ascsort desc
United States$2,1440.6%$2,158-6% (-$148)
Texas$2,4700.3%$2,477-8% (-$205)
Source: Insurify’s American Driver Report

Texas’ largest cities also saw significant rate drops by the end of 2025, including Houston, the largest and most populous city in the state.

City
sort ascsort desc
2024 Average Cost
sort ascsort desc
2025 Average Cost
sort ascsort desc
Year-Over-Year Change
sort ascsort desc
Austin$2,583$2,480-4%
Dallas$3,112$2,852-8%
Fort Worth$2,635$2,481-6%
Houston$3,603$3,259-10%
San Antonio$2,736$2,571-6%
Source: Insurify

Falling accident, theft rates can drive down car insurance costs

In recent years, Texas has experienced improvement in multiple factors that affect car insurance costs.

Motor vehicle crashes in the state fell more than 3% in 2025, according to preliminary data from the Texas Department of Transportation (TDOT). The number of fatal accidents fell nearly 9% in 2025, and the number of fatalities dropped more than 10%, according to the data.

Those decreases continue a yearslong improvement in the state’s crash rates, TDOT data shows. Since 2021, the annual number of fatal crashes in Texas has fallen nearly 15% and the number of people killed in car crashes has dropped more than 16%, according to an Insurify analysis of TDOT data.Accident totals are down overall in Texas, dropping 3% between 2024 and 2025. The longer-term decrease since 2021 was slightly smaller, at 2.75%.

Vehicle theft rates in a state also affect insurance costs there. Texas has the eighth-highest rate of vehicle theft in the nation, according to National Insurance Crime Bureau (NICB) data. In the first half of 2025, the state’s theft rate was 123.83 per 100,000 residents, the NICB reported. That’s a 25% decrease since the same time period in 2024.

What’s next? Texas may see minor increase in 2026

Despite a year of healthy declines in insurance costs, accidents, and theft rates, Texans may see minor increases in insurance costs in 2026, Insurify data scientists predict.

Nationally, Insurify projects rates will increase 0.6% this year, while Texas could experience an increase of 0.3%. That would bump the state’s average cost of full-coverage insurance from $2,477 at the end of 2025 to $2,484 by the end of 2026.

But, the ADR notes, if prolonged tariffs raise the cost of auto parts, pushing claims costs higher, insurance companies may decide to pass those expenses on to policyholders as higher rates.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content

Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.

Before joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as tax editor for Credit Karma, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.

Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.

Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.

Chris Schafer
Edited byChris SchaferDeputy Managing Editor, News and Marketing Content
Chris Schafer
Chris SchaferDeputy Managing Editor, News and Marketing Content
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

Featured in

media logomedia logomedia logomedia logo
John Leach
Reviewed byJohn LeachLicensed P&C Agent, Chief Copy Editor
Photo of an Insurify author
John LeachLicensed P&C Agent, Chief Copy Editor
  • Licensed property and casualty insurance agent

  • 10+ years editing experience

  • NPN: 20461358

John is Insurify’s Chief Copy Editor, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

Featured in

media logo