How to Save on Texas Car Insurance? 7 Tips to Reduce Costs

By Randy Luton | Last Updated: 05/04/2022

Key Insights

  • The average car insurance cost in Texas is higher than most of the states of our country and even the national average cost.
  • There are different reasons behind high car insurance rates in the state.
  • Drivers can try different ways to get discounted rates on their car insurance policy premium.
  • Different companies have different car insurance rates for drivers in Texas.

The average car insurance cost in the United States is $1321, but the average car insurance rate in Texas is much higher. This is the reason that most drivers are struggling with buying even the basic state’s requirement car insurance at an affordable rate.

There are a lot of different factors that affect the car insurance rate for any driver in any state. And do you know drivers can reduce their car insurance rates easily? Yes, there are some ways that can help you to get discounts on your insurance policy premium.

This blog is all about saving money on expensive car insurance policies in Texas. Read till the end to know the reasons why car insurance is expensive and how you can save your money.

Average Car Insurance Cost in Texas

The average car insurance cost in Texas is more than $1800 which is higher than the national average cost. The average cost can vary from company to company and driver to driver. This is the reason we recommend all our drivers to check the average car insurance rates of all the different companies in your area.

Car Insurance CompanyAverage Car Insurance Cost in Texas
GEICO$1338
Mercury$1426
MetLife$1537
State Auto$1621
Chubb$1754
Nationwide$1869
Progressive$1925
Esurance$2068
State Farm$2156
Allstate$2279

Why Car Insurance is Expensive in Texas?

We have seen that car insurance rates are higher in some companies as compared to others. Another important factor that affects car insurance rates in the city and area of the driver. There are some cities that are more expensive than the other cities of the state like Houston, Dallas, Austin.

To understand why you have to pay a high amount in Texas we have listed some of the top reasons for it:

1. High Number Of Road Accidents

In 2020; 3896 people died in fatal crashes in Texas which is 7.5% higher than the number of deaths due to vehicle crashes in 2019. Higher accidents mean higher claim amounts which mean the company will have to face higher financial losses. As a result, they will try to cover it from the driver’s pocket.

2. Expensive Healthcare

The healthcare cost in Texas is way too much for middle-class and lower-class citizens of the state. Most of the citizens are not able to afford basic healthcare and hence they try to commit fraud to get their medical expenses covered in auto insurance in Texas.

3. Harsh Weather

Floods, drought, and severe storms are very common in Texas which results in damages to cars of the Texas citizens. More damages results in more claims; more claims results in more expense for car insurance companies. Again they try to cover this loss from the drivers in advance and provide higher insurance costs.

4. Too Many Uninsured Drivers

In Texas, more than 8% of drivers were uninsured in 2019 and this number is increasing every day. If you ever got into an accident with an uninsured driver then your car insurance company will be liable to pay for the damages caused to your vehicle and your hospital bills. In such cases, companies again face a huge loss and they try to cover this expense from the drivers by providing high car insurance costs.

5. High Population Density

Texas is the second most populated state of our country with an increase of 15.9 % rate in the last 10 years. A higher population means more traffic, more chances of thefts, and vandalism. This means more claims and hence higher car insurance rates in Texas.

How to Save on Texas Car Insurance?

So now we know that car insurance is expensive in Texas and we know the reasons as well. It’s time to check the ways to get affordable car insurance in the state. Yes, there are different ways to reduce the rates of your car insurance policy easily. By combining these factors the final cost can be reduced to a huge extent.

Consider the below factors to get affordable rates on car insurance in Texas:

  1. Install Modern Safety And Security Devices
    With advanced features like automatic seatbelts and anti-lock brakes, you can save your car from getting into an accident. As a result, your car insurance company will consider you as a safe driver, and hence you will get lower rates as compared to others.
  2. Bundle Different Policies
    There are a lot of different policies that we need to survive in Texas along with auto insurance like homeowners insurance, renters insurance, health insurance, etc. If you buy all these insurances from one company then you can get amazing discounts on your final amount.
  3. Select Advance Payment Options
    Insurance companies love those drivers that adopt advanced payment options. This reduces the risk of swapping the company in the middle of the year and hence your insurance company will get security. As a result; you will get a discounted rate on your policy.
  4. Get Quotes From Different Companies And Compare Them
    Getting quotes from all the top car insurance companies in your area will give you better clarity on where to spend your money. There are some companies that provide much affordable rates as compared to the others.
  5. Cut Your Miles
    Drivers who drive less get lower rates as compared to the drivers who have higher miles coverage every year. The logic is simple; if you don’t drive your car much your chances of getting into an accident will decrease automatically. As a result, you will file fewer claims and your insurance company will consider you as a safe driver.
  6. Keep A Clean Driving Record
    A clean driving record will help you to get into the category of a safe driver. Texas works on a point system; with every driving infraction, you will get points on your driving record. Drivers with high points are considered risky drivers and they get higher insurance rates.
  7. Try To Remove Points From Your Driving Record
    You can not remove the infraction from your record but you can remove points from your driving record. You will have to visit the court for this and you will get a chance to explain your side of the story. If the judge gets convinced then your points will be removed from your record.

Now Its Your Turn!

The car insurance rates vary a lot from state to state and company to company in Texas. This is the reason that some drivers find it not that expensive and others have to borrow money to buy car insurance. The best way to get affordable car insurance in Texas is to shop around and compare rates from different top insurance companies. That’s where RateForce can help you by providing a simple and secure way to compare rates online in under 3 mins. Go and compare now!

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SOURCES

  • Referred to an article on US News Website; to check the average car insurance rates in the United States on 20 January 2022.
  • Checked the Bankrate website article for the average car insurance rate in Texas on 20 January 2022.
  • Read the report by the Texas Department of Transportation for the fatal crashes in 2020 and 2019 on 20 January 2022.
  • Referred to US News Website to understand why healthcare is expensive in texas on 20 January 2022.
  • Checked Wikipedia to see the population of Texas and the growth percentage science last 10 years on 20 January 2022.
  • Referred to an article by Market Watch to understand why car insurance rates vary too much in Texas on 20 January 2022.
  • Referred to Insurance Information Institute website for uninsured drivers in Texas on 20 January 2022.

Editorial Guidelines: The above is meant as general information to help you understand the different aspects of auto insurance. This information does not refer to any specific auto insurance policy. Coverages and other features vary between insurers, vary by state, and are not available in all states. References to costs of coverages/repair, average or typical premiums, amounts of losses, deductibles, etc., are indicative and may not apply to your situation. We encourage you to speak to our insurance representative and to read your policy contract to fully understand your coverages.

Randy Luton is the Founder and CEO of RateForce. He is passionate about InsurTech services and has in-depth knowledge about the auto insurance sector of the USA.