Texas Car Insurance

Last Updated on September 29, 2020 by Andrew Lee

In the State of Texas, there is a law that requires all motorists to have the financial ability to pay for expenses incurred for damages to property and bodily injuries they may cause after a road traffic accident. Even though you drive prudently, it doesn’t mean that all the other people you share the roads with exhibit the same qualities, or that you no longer will cause an accident.

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The average cost of car insurance in Texas

The National Association of Insurance Commissioners (NAIC) claims that the average person pays roughly $895.44 for car insurance in Texas each year.

They broke this figure down to:

$502.67 is the average annual liability insurance expenditure.

$357.37 is the average annual collision insurance expenditure.

$198.56 is the average annual comprehensive insurance expenditure.

Young Drivers in Texas

A young driver in the Lone Star State can expect quite the high car insurance premiums with annual averages of:

  • $1318.8 for state minimum coverage
  • $2562 for basic full coverage
  • $3714.8 for premium full coverage

Our study showed that, till today, new and teen drivers face higher rates than the more experienced motorists. Primarily due to their lack of experience, insurers regard them as high-risk individuals. Lack in first-hand knowledge increases the likelihood of getting into an accident. This then results in greater insurance-related expenditures.

Female Drivers in Texas

We found that a female driver can have a premium average of:

  • $676.4 for state minimum coverage
  • $1225.2 for basic full coverage
  • $1732.4 for premium full coverage

Our case study’s methodology suggests that on average, women can spend about $56.47 per month on car insurance. We also found that the city of Socorro, the second-largest municipality in El Paso County with an estimated population of 33,222 (2015, latest data) offers one of the best monthly premiums at only $37.

Senior Drivers in Texas

Insurance companies typically start to charge motorists who just turned 65 years old with higher rates. A senior driver can expect a yearly premium average of:

  • $634.8 for state minimum coverage
  • $1123.6 for basic full coverage
  • $1474.8 for premium full coverage

One reason behind the possibility of an increase in insurance-related expenditures is the potential of age-related health concerns, such as impaired vision. These problems can raise one’s risk of becoming involved in a road accident. However, maintaining a spotless record can help keep premiums at a minimum.

Minimum car insurance requirements

With Texas ranking second (next to California) in terms of having the greatest number of licensed drivers in the country, you should already realize just how high your risks are of getting into an unfortunate road incident. It is also because of this that the state enforces higher liability insurance coverage coverages.

You can only expect your insurance company to provide you with assistance in paying for bodily injury- and property damage-related expenses you have brought upon others when your insurance has the minimum required coverage minimums. This means maintaining a $30,000/person coverage for bodily injury, a $60,000/accident coverage for total bodily injury (for accidents involving more than just one victim), and a $25,000/accident coverage for property damage.

This is the only type of coverage you need to purchase and maintain in order to legally operate your motor vehicle in the State of Texas. However, this doesn’t mean you should no longer explore your other options. You can protect yourself better by investing in the other non-mandatory types of coverage available, including collision coverage, comprehensive coverage, uninsured/underinsured drivers’ coverage, as well as towing and labor coverage.

Violations and Penalties 

Texas has quite the unique penalties for those found guilty of violating the state’s auto insurance laws. And while the fines associated with these offenses are not as high as some of the other states, paying for them still means you waste valuable money.

First offenses have a fine ranging from $175 to $350. Aside from this, violators will also have to pay a surcharge amounting to $250 for three years.

The fine for subsequent penalties goes up to anywhere from $350 to $1,000. The same surcharge amount applies. However, the law enforcement officer will also take both the license and motor vehicle registration of the driver and suspend it until the offender supplies proof of insurance valid for two years from the date of the subsequent violation. The authorities will also impound the car for up to 180 days and will only release it once they receive proof of violation. A $15 a day impoundment fee also applies.

Driving safety in Texas

Texas exceeds the 86% national average of motorists and front-seat passengers who use their seatbelts, as the state boasts of a 94% rating, according to the Centers for Disease Control and Prevention (CDC).

In a 2015 National Highway Safety Administration study, it reported that 3,516 driving casualties happened during the said year. 1,323 of them (accounting for 38% of the total) were caused by alcohol-impaired drivers.

TX, as the CDC  further revealed, has an overall vehicle occupant death rating of 9.1 per 100,000 residents.

Final thoughts

The last thing you want to happen throughout the duration of your life as a driver is not just to have a bad record, but also to have to pay out-of-pocket expenses for any injury or property damage an accident you cause will incur. Instead, invest in a proper Texas car insurance policy as a way to protect yourself, your passengers, and other people on the road. A great article, Car Insurance: The Facts, to learn more.

Source: Statista