Cheapest auto insurance in Texas in 2021 - Your exact location in the state plays a big role in how much you pay for coverage. Larger metropolitan areas, such as Houston and San Antonio, generally pay higher fees for auto insurance. For minimum coverage, health care costs and possible accidents can increase auto insurance rates. But the opposite is also true; some areas of the state offer more affordable prices.
If you live in one of the following five cities, you may be paying some of the cheapest rates for minimum coverage in Texas:
City Average annual minimum coverage premium Memphis $378 $32 Friona $379 $32 Farwell $380 $32 Denver City $380 $32 Knox City $381 $32 Cheapest city in Texas for full coverage
Just like minimum coverage, full coverage premiums vary based on your city and even your zip code. Big cities like Dallas and Austin may have a higher chance of an accident due to heavier traffic. In addition, larger cities may have a higher cost of living, which can increase car repair and labor costs. This can further increase the premium.
These five cities are among the cheapest for full coverage in Texas:
City Average annual full coverage premium Grape Creek average monthly full coverage $1,577 $131 College Station $1,584 $132 Miles $1,587 $132 Burkburnett $1,589 $132 Woodway $1,589 $132 Minimum coverage requirements for Texas drivers
While most insurance agents recommend purchasing a higher liability limit, you can opt for minimum coverage to keep your rates low. In Texas, the minimum required auto insurance is:
- Liability for bodily injury $30,000 per person
- Liability for bodily injury $60,000 per accident
- $25,000 property damage liability per accident
- Uninsured and insured motorist coverage, as well as personal injury protection (PIP), must be offered but may be refused in writing.
Surety bonds, deposits, and self-insurance can also meet state "financial liability laws," although most drivers tend to opt for auto insurance. Driving with insurance or failing to provide proof of bonds, deposits, or self-insurance is illegal in Texas and drivers can face severe penalties.
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Insurance agents usually recommend that you purchase a higher liability limit for the greater financial protection they offer. In addition, if you have a loan or lease your vehicle, your financial institution may ask you to purchase comprehensive and collision coverage. If you're not sure how much auto insurance you need, working with a licensed agent can help.
Here's how to find (and save) cheap auto insurance in Texas
Finding affordable rates for car insurance is a priority for many drivers. If you are looking for the cheapest auto insurance in Texas, you may want to:
- Understand your needs: Knowing what type of coverage, limits, and specific policy features you're looking for can help you decide which company might be right for you. Not all companies offer the same type of coverage or features.
- Shop around: Insurance providers offer different rates, so the price of your policy may vary between carriers. Getting quotes from several different companies for the same coverage can help you find the cheapest option.
- Take advantage of discounts: Most companies offer discounts that can help you lower your premiums. Choosing a company that has savings opportunities that you can take advantage of can help you find a cheap rate.
Once you have cheap car insurance, you can take a few steps to lower your rates:
Keep a clean driving record: Drivers with a clean driving record tend to pay lower premiums. Accidents, tickets, and DUI penalties can indicate risky driving behavior, so avoiding these incidents can help you avoid costly additional costs.
Maintain or improve your credit score: Your credit level usually plays a role in how much you pay for auto insurance (except in certain states). Drivers with low credit scores tend to pay more for coverage in Texas, because they are statistically more likely to file a claim. Maintaining your credit score - or better yet, improving it - can help you avoid rising premiums.