Why Is Car Insurance So Expensive in Texas? (2026)
The average annual car insurance premium in Texas is $2,470, which is 15% higher than the U.S. average of $2,144.
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Written byElizabeth Rivelli
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Elizabeth RivelliFreelance Insurance Writer
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
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Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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John LeachLicensed P&C Agent, Chief Copy Editor
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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.
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Table of contents
Texas has historically had some of the most expensive car insurance premiums in the U.S., and data shows that it’s still the 13th-costliest state for car insurance. The state’s annual cost of full coverage was $2,470 at the end of 2025, about 15% higher than the national average, according to Insurify data.
But rates actually fell by 8% in Texas in 2025. Decreases in several car insurance rating factors, like vehicle thefts and accidents in the state, likely contributed to the decline in Texas car insurance costs.
If you’re shopping for auto insurance, you might wonder why car insurance is so expensive in Texas. Here’s what you need to know about the factors that affect insurance premiums in the Lone Star State and how you can reduce your insurance costs.
Quick Facts
Texas car insurance rates increased nearly 58% from December 2021 to December 2025, Insurify data shows.
State-specific factors, like a comparatively high rate of fatal accidents and exposure to severe weather like hail and wind, all affect Texas car insurance rates.[1]
Texas car insurance rates will increase by about 0.3% in 2026, according to estimates from an Insurify report.
How Texas car insurance rates have changed
The 2025 drop in Texas car insurance rates reversed the upward trajectory rates had been on for the last several years. In December 2021, the average full-coverage rate was $1,568 per year. As of December 2025, the average full-coverage policy premium was roughly $2,470 per year, an increase of nearly 58%.
In the graph below, you can see how car insurance rates in Texas have changed over the years.
Average Annual Cost of Full-Coverage Car Insurance
5 reasons why car insurance is so expensive in Texas
While 2025 saw Texas car insurance rates fall, its insurance costs are still well above the national average. Crash and vehicle theft rates fell in Texas last year, helping lower insurance costs. But the state’s tally for both insurance rating factors still remains high compared to other states.
And Texas drivers face multiple other factors that keep the state’s insurance costs high.
Severe weather and natural disasters
Texas is vulnerable to extreme weather, including severe storms, high winds, flooding, and wildfires — all of which can lead to car insurance claims.
Areas along the Guadalupe River experienced catastrophic flooding in July 2025, resulting in significant property damage and fatalities.[2] And 873 fires between Jan. 1 and Dec. 31, 2025, burned nearly 103,000 acres in Texas, according to Texas A&M Forest Service data.
Dense urban traffic and high accident rates
More time on the road means higher accident risks. Texas has multiple densely populated, high-traffic urban areas where crash risks are high.
For example, Houston ranks No. 8 among U.S. cities with the worst traffic, with drivers spending 70 hours per year sitting in traffic. Dallas ranks No. 19, Austin is No. 21, and San Antonio is No. 23.[3] And the fatal crash rate in Texas is among the worst in the nation.
High percentage of uninsured drivers
Drivers who get behind the wheel without insurance cause rates to climb for everyone. Texas requires drivers to buy bodily injury and property damage liability insurance to pay for any accidents they cause. Texas has the 19th-highest number of uninsured motorists of all states. About 15% of Texas drivers are uninsured.
By comparison, Utah, the state with the lowest percentage of uninsured motorists, has full-coverage car insurance rates well below the Texas and national averages.
High speed limits
Speeding contributes to about one-third of all fatal accidents in the U.S.[4] High speed makes crashes more severe, reduces the effectiveness of vehicle safety features, and makes it harder to control or stop a vehicle.
Texas has the highest speed limits in the country, at 80–85 mph on some rural interstates, and 75 mph on most other roads.[5]
Inflation
Across the country, inflation has pushed most costs higher in recent years, including the cost of labor and parts for vehicle repairs. Texas is fifth among the 10 states most affected by inflation, according to a National Business Capital analysis of federal data.
Texas cities with the most expensive car insurance (2026)
Where you live and drive in Texas affects your risk of filing a car insurance claim. If you live in an area with high traffic congestion, like Houston, your odds of being in a crash can be higher than those of someone who lives in a rural area. Those greater risks push car insurance higher, too.
For example, Abilene, a smaller city about 180 miles west of the Dallas/Fort Worth area, has the lowest average car insurance costs in Texas, at $176 monthly for full coverage and $82 per month for minimum coverage. Meanwhile, the much larger city of Houston has the highest rates in the state, averaging $270 per month for full coverage and $157 per month for liability-only policies.
These cities have the highest average monthly car insurance costs in Texas:
City  | Full Coverage | Liability Only |
|---|---|---|
| Houston | $270 | $157 |
| Mesquite | $239 | $124 |
| Garland | $234 | $127 |
| Dallas | $235 | $125 |
| Beaumont | $224 | $126 |
Disclaimer: Table data is based on real-time Texas quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
Insurance costs in each city depend on multiple factors, including:
Houston: Crash rates are high. Houston had more than 67,000 vehicle accidents in 2025, according to state data.
Mesquite: Near Dallas, Mesquite sits at the crossroads of Interstates 20, 30, and 635 and U.S. Route 80.[6] Mesquite sees significant tourism and business traffic.
Garland: A midsize Texas city, Garland is part of the Dallas-Fort Worth metroplex.
Dallas: As one of the largest cities in Texas, Dallas has some of the worst traffic congestion in the country.
Beaumont: The city’s proximity to the Gulf Coast puts Beaumont at a higher risk of flood and storm damage to vehicles.
Factors that affect your car insurance premium in Texas
Car insurance premiums in Texas will vary for every driver. Insurance companies consider a number of different rating factors to assess risk and determine prices, including your age, location, driving record, and vehicle details. To find the most affordable car insurance for your situation, it’s a good idea to compare quotes from several different insurance companies.
Learn more about a few of the most notable factors that can affect your Texas car insurance premium below.
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Age
Your age will affect how much you pay for auto coverage in Texas.
Teenagers pay the most expensive car insurance rates in Texas on average because they’re high-risk drivers. In 2025, Texas drivers younger than 20 were involved in more than 176,500 crashes, according to Texas Department of Transportation (DOT) data. Rates start to decrease for people in their 20s, as long as they maintain a clean driving record. Senior drivers in Texas pay the lowest rates.
Below, you can see the average cost of liability insurance and full-coverage car insurance in Texas for drivers in different age brackets.
Age | Average Quote: Liability Only | Average Quote: Full Coverage |
|---|---|---|
| Teens | $203 | $426 |
| 20–29 | $149 | $313 |
| 30–39 | $113 | $238 |
| 40–49 | $101 | $212 |
| 50–59 | $90 | $189 |
| 60–69 | $85 | $178 |
| 70+ | $91 | $192 |
Disclaimer: Table data is based on real-time Texas quotes from Insurify’s network of 500+ insurance partners. Actual rates may vary depending on the policyholder’s individual profile and coverage needs.
Location
Where you live in Texas, down to your ZIP code, can affect car insurance costs significantly due to location-based factors like population density, average car repair costs, severe weather risks, medical expenses, and car theft rates. For example, drivers might pay lower premiums in ZIP codes with less crime.[7]
The largest cities also tend to have the highest rates. A few of the cheapest cities for car insurance in Texas include El Paso, Lubbock, and Fort Worth, which have slightly lower populations.
Below, you can find the average monthly car insurance rates for drivers in different Texas cities.
City | Average Quote: Liability Only | Average Quote: Full Coverage |
|---|---|---|
| Abilene | $82 | $176 |
| Amarillo | $93 | $211 |
| Arlington | $118 | $213 |
| Austin | $119 | $210 |
| Beaumont | $126 | $224 |
| Brownsville | $110 | $208 |
| Corpus Christi | $122 | $207 |
| Dallas | $125 | $235 |
| Denton | $104 | $207 |
| El Paso | $92 | $186 |
| Fort Worth | $110 | $207 |
| Galveston | $119 | $206 |
| Garland | $127 | $234 |
| Grand Prairie | $121 | $221 |
| Houston | $157 | $270 |
| Huntsville | $104 | $197 |
| Irving | $113 | $226 |
| Killeen | $99 | $195 |
| Laredo | $104 | $201 |
| Lubbock | $95 | $204 |
| McAllen | $126 | $213 |
| Mesquite | $124 | $239 |
| Midland | $91 | $204 |
| Odessa | $97 | $230 |
| Plano | $116 | $204 |
| San Antonio | $118 | $216 |
| San Marcos | $107 | $209 |
Disclaimer: Table data sourced from real-time Texas car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Texas may vary based on the policy buyer's unique driver profile.
Driving record
Texas has a comparatively high rate of drivers with incidents on their records, which is something insurers take into account when setting rates. Drivers with clean records generally see the lowest insurance premiums.
But in Texas, 3% of drivers have speeding tickets, and more than 4% have had an accident, according to Insurify data.
Make and model of your car
The type of vehicle you drive will influence your car insurance premium. New cars, luxury cars, sports cars, pickup trucks, and electric vehicles have higher values and repair costs and tend to cost more to insure. Used cars and older models that have already depreciated typically have lower insurance premiums.
Many of the most popular vehicles in Texas are also among the most expensive to insure. For example, Ford F-Series pickups and Chevrolet Silverados are the two most-popular vehicles in Texas, Insurify data shows. But full coverage averages $2,069 per year for the Ford pickups and $2,718 for Silverados, Insurify data shows.
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How to lower your car insurance rate in Texas
Texas car insurance premiums fell last year, but they’re still higher than the national average. And they may increase again by the end of 2026. Use these strategies to help lower your Texas car insurance premium:
Choose an insurer that offers discounts. Most Texas insurance companies offer car insurance discounts, including ones for getting good grades in school, having no prior insurance claims, taking a defensive driving course, insuring multiple cars, and signing up for automatic payments. You can also get discounts from some insurers for affiliations with certain businesses and organizations, such as the State Bar of Texas, University of Texas alumni association members, and the Texas State Teachers Association.
Bundle your policies. You can sometimes save a significant amount on insurance when you bundle two or more insurance products from the same company. For instance, if you purchase car insurance with home insurance or renters insurance, you could earn a discount on one or both premiums.
Select higher deductibles. Some car insurance policies, like collision insurance, require a deductible that you pay out of pocket when you file insurance claims. Choosing a higher deductible will lower your insurance premium.
Drive safely. Most Texans have a good driving history, and only a small percentage have accidents, speeding tickets, or a DWI on their records. If you practice safe driving habits, like adjusting your speed for road conditions and avoiding hard braking, you’ll see lower rates than drivers who have infractions on their records.
Shop around and compare rates. Car insurance companies charge different rates, even for the same type and amount of auto coverage. Comparing personalized quotes from several insurers is the best way to find the most affordable policy for your situation.
Why car insurance is so expensive FAQs
While Texas has high average car insurance rates, the amount you’ll pay depends on a number of factors. Here’s some additional information about the cost of car insurance in Texas that can be helpful as you shop for an insurance policy.
How much will auto insurance prices rise this year?
Insurify data scientists predict Texas car insurance premiums could rise a modest 0.3% in 2026. That would push the state’s average full-coverage premium up by $7 per year, to $2,477.
Why does Texas have higher car insurance rates than other states?
Auto insurance rates are high in Texas for multiple reasons, including:
Exposure to severe weather events like flooding and windstorms
Multiple large metro areas with severe traffic congestion
High accident and vehicle theft rates
Speed limits as high as 80–85 mph on certain rural highways
Which company has the cheapest car insurance in Texas?
State Farm has the cheapest car insurance rates in Texas, Insurify data shows. Its rates average $44 per month for minimum coverage.
Does car insurance ever get cheaper?
Car insurance typically gets cheaper for Texas drivers over time. Young drivers — including teens and drivers younger than 25 — pay the highest rates because they lack driving experience. Premiums tend to decrease steadily after that. You might also be able to reduce your premium with discounts or bundles.
Does credit score affect car insurance?
In Texas, insurance companies can use credit-based insurance scores to determine premiums. Drivers with good credit histories usually pay lower rates than drivers with poor credit histories.
Do high speed limits make Texas car insurance more expensive?
High speed limits in a state can affect car insurance, especially if they contribute to higher accident rates. Texas has the highest maximum speed limit of any state, and exceeding the speed limit was a factor in nearly 1,000 crashes in 2025, according to state DOT data. That said, safe drivers can still score lower monthly premiums.
How can you lower your auto insurance in Texas?
Maintaining a clean driving record is the single most impactful thing you can do to avoid higher premiums anywhere, including in Texas. Comparing auto insurance quotes from multiple companies is the second most-beneficial tactic. Hundreds of insurers offer auto insurance in Texas, including regional companies that may be cheaper than some large national insurers.
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Sources
- Insurance Institute for Highway Safety (IIHS). "Fatality Facts 2023 State by state."
- USDA National Agricultural Statistics Service. "Texas Floods July 2025."
- INRIX. "2025 INRIX Global Traffic Scorecard."
- National Highway Traffic Safety Administration. "Speeding."
- IIHS. "Maximum posted speed limits."
- Texas State Historical Association. "Discover Mesquite, Texas: History, Economy, and Community."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
)
Elizabeth RivelliFreelance Insurance Writer
5+ years writing insurance and personal finance topics
Auto, home, health, and life insurance expertise
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She’s also finance and insurance editor for Car and Driver.
Featured in
Elizabeth has extensive insurance industry experience, having written for Insureon, Rate Retriever, and Insurify. She ’s also finance and insurance editor for Car and Driver.
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
Featured in
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.
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