Best Car Insurance in Texas (2026)

Texas car insurance requirements

Texas requires all drivers to carry minimum liability coverage of 30/60/25: $30,000 per person for bodily injury, $60,000 per accident, and $25,000 for property damage. Personal injury protection (PIP) is offered by default but can be rejected in writing. Texas operates as an at-fault state, meaning the driver who caused the accident is responsible for damages through their insurer.

Average rates across Texas

Texas drivers pay an average of $2,050 per year for full coverage and $680 for liability-only policies. Urban areas like Houston, Dallas, and San Antonio have significantly higher premiums due to heavier traffic, severe weather exposure, and higher uninsured driver rates. Harris County (Houston) consistently ranks as one of the most expensive areas for auto insurance in the country. Rural West Texas drivers can pay 25-40% less than their urban counterparts.

Coverage level	Annual average
Liability only (30/60/25)	$680
Full coverage (100/300/100)	$2,050
Full coverage + comprehensive	$2,380

Texas-specific factors affecting rates

Texas is one of the most weather-volatile states for auto insurance. Hailstorms across North Texas cause billions in vehicle damage annually, driving up comprehensive premiums statewide. The Texas Department of Insurance (TDI) does not set rates but does review them for fairness. Unlike California, Texas allows insurers to use credit scores as a rating factor, which can significantly impact premiums for drivers with poor credit.

Saving money on Texas car insurance

Texas insurers are required to offer discounts for completing a state-approved defensive driving course, saving 5-10% for three years. Bundling auto with homeowners or renters insurance typically saves 10-20%. Installing anti-theft devices qualifies for additional discounts with most carriers. For drivers aged 55 and older, completing a mature driver course can reduce premiums. Shopping at least three carriers before renewing is critical: Texas rate spreads between the cheapest and most expensive insurers often exceed $1,200 for the same coverage.

What to do after an accident in Texas

Texas law requires reporting any accident involving injury, death, or property damage over $1,000 to the police. You have two years to file a personal injury lawsuit. The TDI provides a free complaint process for disputes with insurers, and Texas has strong "prompt payment" laws requiring insurers to pay undisputed claims within five business days of reaching a settlement.