Cheapest car insurance in Texas Today

With average car insurance prices in Texas topping $1,800 per year, drivers are motivated to find ways to reduce their annual premiums. While minimum liability coverage is required, keeping rates affordable is key for most households.

The Lone Star State's high accident rates, crowded urban areas, lawsuits, uninsured drivers and auto theft rates contribute to elevated pricing. But with proactive shopping and smart policy decisions, Texas motorists can secure lower insurance rates to meet their budgets and needs.

This comprehensive guide provides actionable tips to cut insurance costs while still carrying adequate protection. We'll explore minimum requirements, pricing factors, discounts and other savings strategies. Let's get started.

Understanding Car Insurance in Texas

Why Carrying Auto Insurance is Crucial in Texas

While it's tempting to trim back on insurance to save money, doing so leaves drivers dangerously exposed. Texas has some of the highest rates of serious auto accidents and fatalities in the U.S.

In 2020 alone there were over 297,000 crashes reported statewide resulting in 3,896 deaths. Urban areas like Houston and Dallas see high volumes of accidents. The odds of being in a collision are high.

Texas is also an "at fault" state, meaning the negligent driver who caused the accident is fully liable for damages. Without sufficient insurance, a moment of distraction behind the wheel can lead to crippling expenses.

Minimum liability insurance covers injuries to others and property damage you cause up to policy limits. Carrying robust coverage options protects your own vehicle, medical bills and lost income as well. Don't put your assets at risk by going without proper insurance.

Average Car Insurance Prices in Texas

Overview of Minimum Car Insurance Requirements in Texas

Texas drivers are legally required to carry a minimum level of liability coverage. Failing to meet these requirements can lead to fines, license suspension and further financial implications after an at-fault accident.

Bodily Injury Liability

Texas requires:

• $30,000 per person bodily injury liability
• $60,000 per accident bodily injury liability

This covers medical bills, lost wages, rehabilitation, long-term care and pain and suffering damages for others hurt in a collision you cause. Experts recommend carrying 100/300 or higher limits if possible.

Property Damage Liability

Drivers must carry at least:

• $25,000 per accident property damage liability

This pays to repair or replace another driver's vehicle or property if damaged in an at-fault collision. Again, $50,000 or higher limits are wise.

Uninsured/Underinsured Motorist Bodily Injury

Also mandated in Texas:

• $30,000 per person uninsured motorist coverage
• $60,000 per accident uninsured motorist coverage

This type of coverage protects you and passengers if injured in a crash caused by a driver with no insurance or insufficient coverage.

Personal Injury Protection (PIP)

Personal injury protection coverage is no longer required in Texas but still offered by many insurers. This optional coverage pays medical expenses for you and passengers after an accident regardless of fault.

While minimum liability insurance is required, investing in robust coverage options is also important to fully protect your finances. Next we'll explore how to keep the overall cost of adequate insurance reasonable.

10 Smart Strategies to Reduce Car Insurance Premiums in Texas

Drivers have many options to potentially decrease auto insurance costs in Texas while still carrying proper protection. Here are some of the most effective ways to save.

1. Compare Quotes From at Least 5 Insurers

One of the quickest ways drivers can save on Texas car insurance is getting quotes from multiple providers. Insurers consider different risk factors and use varying formulas to set premium prices. Rates can vary dramatically between insurers.

Experts recommend comparing at least 5 quotes, and the more the better. Be sure to get quotes with identical coverage limits for accurate comparisons.

Both large national brands and regional Texas insurers should be included in your search for the best value. Compare quotes through insurer websites, independent agents and online insurance quote platforms.

Drivers who compare rates when policies are up for renewal typically find opportunities to lower premiums and/or enhance coverage. Don't let policies auto-renew without shopping around first.

2. Ask About Usage-Based "Pay-Per-Mile" Discounts

Usage-based insurance programs that base rates partly on actual driving behaviors are catching on quickly in Texas. Providers like Progressive, Allstate, and State Farm now offer these voluntary programs.

Drivers install a small device in their vehicle or use a mobile app to track mileage, speed, acceleration, braking, time of day driven and other metrics. The data is analyzed over a set review period of often 6 months.

Those with low mileage and safe habits like avoiding excessive speeding or hard braking can earn substantial discounts. However, risky driving can also increase your costs under these telematics programs.

Savings for safe drivers can range from 10% up to 30%, making usage-based insurance worthwhile for many motorists. But it may not be ideal for those with privacy concerns or extremely high annual mileage.

3. Take Advantage of All Available Car Insurance Discounts

Most major auto insurance providers offer a range of discounts drivers can utilize to reduce premiums. Be sure to inquire about all possible savings opportunities.

Common discounts available in Texas include:

• Multi-policy (bundling home and auto) - Saves up to 20%
• Good driver (accident-free years) - Lowers up to 30%
• Defensive driving course - Saves 10% or more
• Good student - Discounts for B average grades
• Low mileage - Saves ~10% for driving less than 10k miles/year
• Anti-theft devices - Can lower 5% or more
• New vehicle - Savings for safety tech like AEB
• Renewal - Savings for retaining a policy with an insurer

Also ask about affinity discounts for belonging to groups like AAA or certain employers. Consider discounts when selecting insurance providers.

4. Opt for a Higher Deductible

Choosing a higher deductible, the amount you pay out-of-pocket on a claim before insurance kicks in, can significantly reduce premium costs. For example, raising your deductible from $500 to $1,000 could potentially decrease your premium by 15% to 30%.

Just be sure you have the funds available to cover the higher deductible amount in the event of an accident. This strategy works best for drivers with solid emergency savings and clean driving records. See if raising your deductible makes sense for your situation.

You can't increase liability coverage deductibles which protect others, but you can choose higher deductibles for collision and comprehensive which cover your own vehicle.

5. Improve Your Credit Score

Most major insurance companies use credit-based insurance scores as a factor when underwriting policies. Drivers with poor credit generally have to pay higher premiums compared to those with excellent credit, often 80% more.

There are a few ways responsible drivers can improve their insurance credit scores:

• Pay all monthly bills on time - set up autopay
• Correct any errors on your credit reports ASAP
• Keep credit card balances low
• Limit new credit inquiries when possible
• Monitor your credit with free apps

Maintaining great credit saves on car insurance as well as loan costs. Follow healthy credit habits to benefit your rates.

6. Keep a Clean Driving Record

Traffic violations, at-fault accidents, and claims for minor repairs can seriously inflate car insurance costs. Insurance companies interpret these issues as signals you may be a high risk client.

Here are some tips for maintaining a clean record to avoid premium hikes:

• Obey all traffic laws and avoid citations
• Enroll in traffic school if you do get a ticket
• Drive defensively and avoid distractions
• Don't file small claims frequently
• Research vehicles' safety ratings
• Consider extra driver training

Waiting for citations and accidents to clear your record after 3-5 years can help lower rates again. But preventing issues in the first place is ideal.

7. Choose a Car With Great Safety Ratings

Insurers analyze industry crash test results, theft data, repair costs, injury claims and other statistics to assign risk profiles to vehicles. Rates are set accordingly.

Vehicles with the latest safety packages, top crash test results, and lowest injury claims generally have cheaper insurance premiums. For example, a Honda Odyssey minivan will likely cost substantially less to insure than a Porsche 911 sports car.

You can find model-specific risk ratings from:

• Insurance Institute for Highway Safety (IIHS)
• Highway Loss Data Institute (HLDI)
• National Highway Traffic Safety Administration (NHTSA)

While insurance shouldn't dictate your entire vehicle purchase, it's one factor to keep in mind. All other things equal, choosing a safe, affordable-to-insure model over a high-risk vehicle saves money.

8. Drop Comprehensive and Collision Coverage on Old Cars

As vehicles age and depreciate in value, optional physical damage coverage like comprehensive and collision becomes less critical and more costly relative to the vehicle's worth.

Comprehensive covers damage from weather, theft, vandalism, animal collisions and other non-accident scenarios, while collision covers accident damage from a crash.

Once a car is 10 years old or has over 100k miles, it often makes sense to remove comprehensive and collision coverage and simply carry liability. You'll save substantially while self-insuring total loss risk on an older vehicle.

Drivers without auto loans can cancel these optional coverages to slash premium costs. But you must maintain minimum liability limits.

9. Bundle Homeowners or Renters Coverage

Purchasing multiple insurance policies with the same provider, known as bundling, can yield large discounts. Most insurers offer breaks for bundling auto with homeowners, renters or life insurance.

Stacking two policies with an insurer may lower premiums by up to 15% while bundling three or more policies can save over 20% in some cases. The more policies you have with one company, the deeper the savings.

Major national carriers like State Farm, Allstate, GEICO and Progressive offer some of the most competitive bundle discounts. Combine this strategy with other discounts to maximize savings.

10. Enroll in Ongoing Safe Driving Programs

Insurers recognize completing additional driver safety courses correlates with lower claims risk. Programs like National Safety Council's Texas Defensive Driving provide ongoing training.

Completing an initial 6-hour Texas-approved defensive driving course saves 10% on your premium for 3 years. Simply take another course later on to renew savings.

The program teaches accident avoidance skills, insights on driving conditions, proper distraction avoidance, and state traffic laws. Signing up every few years keeps skills sharp and rates 10% lower.

Choosing a Reputable Car Insurer in Texas

With hundreds of insurance companies licensed to operate in Texas, it can be challenging picking the right provider. These key factors help identify reputable insurers:

Compare Financial Strength Ratings

Start by reviewing the financial strength ratings issued by unbiased agencies like A.M. Best, Standard & Poor's and Moody's. These ratings reflect an insurer's ability to pay claims reliably based on financial factors like profitability, debt levels, reserves and investments.

Look for companies with "Excellent" (A or A+) ratings from A.M. Best, "Good" (A3) or better from Moody's, or "Strong" (BBB) or above from S&P. Higher ratings indicate greater financial stability.

Read Customer Feedback and Complaint Data

It's also helpful to browse online customer reviews and feedback for insurers. Sites like ConsumerAffairs, BBB, and Google Reviews can provide insights on real customer experiences.

You can also check official Texas complaint ratios which compare complaint volume relative to an insurer's market share. Avoid companies with consistently high complaint ratios.

Positive feedback and resolution of issues indicates good customer service. But no insurer is perfect, so look for reasonable responses even to negative reviews.

Consider Local and Regional Insurance Firms

The major national insurance brands spend heavily on advertising and name recognition. But smaller regional and local companies can also deliver solid value.

Insurance firms that operate in select states or only within Texas can offer competitive rates, market expertise, and better customer service. They include names like:

• Germania Insurance
• Texas Farm Bureau Insurance
• Allstate County Mutual
• KBK Insurance Group
• Falcon Insurance Agency

Compare quotes from direct insurers like GEICO and State Farm as well as local options when searching for the best rates.

Finding Affordable High-Risk Car Insurance in Texas

Drivers classified as high-risk due to driving history, credit issues, or lapses in coverage pay considerably higher rates. But finding affordable coverage is still possible.

• Compare quotes from speciality insurers like Fred Loya, The General, or Direct Auto that focus on higher-risk drivers. But still shop around.
• Ask agents about potential discounts or ways to transition back to lower rates by maintaining clean records going forward.
• Drop comprehensive and collision coverage if your vehicle is older to save substantially. But keep minimum liability.
• Enroll in Texas defensive driving even if you don't have a recent ticket. Some courses provide conditional completion certificates accepted by insurers.
• Accept higher deductibles for collision and comprehensive to lower premiums, but have funds to cover the costs.
• Improve credit history by making all payments on time, paying down debts, and correcting errors. Poor credit drastically raises rates.
• Review rates again in 6-12 months after improving your record. Additional time crash-free lowers risk factors.

With some diligence, drivers classified as high risk can still obtain reasonably affordable auto insurance. Don't accept initial rate quotes without exploring all options.

Key Takeaways for Reducing Texas Auto Insurance Costs

Trimming back critical insurance coverage is risky. But drivers have options to cut premium costs while maintaining adequate protection including:

• Compare at least 5 quotes from a mix of national and regional insurers when shopping
• Ask providers about all available discounts like bundling policies, defensive driving courses and affinity memberships
• Consider usage-based "pay-per-mile" insurance programs to potentially save up to 30%
• Raise deductibles and drop optional physical damage coverage on older vehicles if possible
• Maintain excellent credit history and a clean driving record to keep risk factors low
• Drive a late model vehicle with top safety ratings to qualify for lower premium pricing
• Review insurer financial strength and customer feedback before choosing a provider

With the right combination of proactive policy shopping, strategic adjustments and ongoing safe driving practices, Texas drivers can find affordable auto insurance rates to suit their budget and protection needs.

FAQs

What is the cheapest car insurance company in Texas?

According to Bankrate's analysis, the cheapest car insurance companies in Texas for minimum coverage are Geico, Houston General Insurance Exchange, and State Farm. However, the cheapest car insurance company can vary depending on factors such as your location, driving record, and the type of car you drive.

How can I get the cheapest car insurance in Texas as a high-risk driver?

As a high-risk driver, it can be challenging to find cheap car insurance. However, some strategies that may help include shopping around and comparing quotes from multiple insurance companies, looking for insurance companies that specialize in high-risk drivers, taking a defensive driving course, and maintaining a clean driving record.

What discounts should I ask about to get cheap car insurance quotes in Texas?

To get cheap car insurance quotes in Texas, you should ask about potential discounts such as good driver discounts, multi-policy discounts, safety feature discounts, student discounts, and military discounts.

Is minimum liability insurance enough coverage in Texas?

While minimum liability insurance in Texas meets the state's legal requirements, it may not be enough to fully protect you in the event of a serious accident. It's recommended to consider additional coverage options, such as collision coverage and comprehensive coverage, to ensure you have adequate protection for your needs.

What steps can I take to get the cheapest Texas car insurance?

To get the cheapest car insurance in Texas, you can take several steps, including shopping around and comparing quotes from multiple insurance companies, raising your deductible, maintaining a clean driving record, taking advantage of available discounts, and bundling your car insurance with other insurance policies.

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