Purchasing car insurance in Texas depends upon a few factors. Knowing what they are and comparing the prices of several companies can help you save money. You might also be able to save on costs by bundling services and avoiding high-risk behaviors. Arm yourself with this knowledge, and practice safe driving, to ensure that you aren't paying a lot for your coverage in the state of Texas. Wondering, 'how much is car insurance in Texas?' Read on.
Car Insurance Factors
If you're wondering how much is car insurance in Texas, costs vary depending upon several factors, such as the motorist's credit, age, driving history, marital status, and gender.
According to ValuePenguin, the average Texas car insurance cost is $2330. This value factors in the rates for 78 Texas cities for a 30-year-old single male driver with a solid credit score and good driving history.
Typically, car insurance rates change as you age. It's more costly for teens and younger drivers since insurers see inexperienced drivers as riskier to insure. For instance, a 50-year-old driver might pay almost one-third of the premium compared to an 18-year-old driver.
While gender isn't as significant a factor as is the driver's age or location, many insurers use it as a rating factor.
Also, insurers rely on credit history to determine responsibility as studies show drivers with stellar credit scores oftentimes are less likely to file claims.
Higher credit scores usually equate to affordable car insurance rates. According to The Zebra, a driver with outstanding credit saves $1640.97 annually on insurance compared to someone with bad credit.
Drivers who are at fault in an accident see their insurance rates rise. The more red flags, the more expensive car insurance becomes. In Texas, when you have your first minor at-fault crash, it increases your insurance payment by about $838.85, whereas a DUI (Driving Under the Influence) can increase rates by about $677.27.
Insurance Coverage in Texas
According to QuoteWizard, drivers in Texas must have a minimum coverage amount of 30/60/25. That means you must have a policy with the following coverages:
- Bodily injury liability: $30,000 per person
- Bodily injury liability: $60,000 per incident
- Property damage liability: $25,000 per incident
If you're part of a couple who live together, you both can save on auto insurance by combining policies. It doesn't matter if you're married or not since there are multi-driver and multi-car discounts. Once you get married, rates can decrease further as insurers see married people as less risky and charge them lower premiums.
Find Low-Cost Insurance
One of the best ways to locate low-cost insurance in Texas is to compare quotes from numerous car insurance carriers, according to NerdWallet. These carriers use several factors to determine your policy's cost. These factors include the following:
- Your age
- Your driving record
- Your car model
- Your neighborhood's severity and frequency of claims
After you consider these factors, the carriers can have varying costs so it's best to shop around.
You might also qualify for discounts if you bundle your car insurance with your home insurance. According to CarInsurance.com, you can save an average of 10 to 12 percent from your auto rates if you bundle. Two other ways to save costs include the following:
- Drop comprehensive and collision if your cars are worth less than $3000.
- Raise your deductible from $500 to $1000.
Punishment for Driving While Intoxicated (DWI) in Texas
The punishment for having a DWI in Texas varies, depending upon the number of convictions. For the first offense:
- A fine up to $2000
- Up to 180 days in jail
- The loss of a driver's license
- Annual fee of up to $2000 for three years to retain a driver's license
For the second offense:
- A fine up to $4000
- Up to a year in jail
- The loss of a driver's license for up to two years
- Annual fee of up to $2000 for three years to retain a driver's license
For the third offense:
- A fine up to $10,000
- Up to two years in prison
- The loss of a driver's license for up to two years
- Annual fee of up to $2000 for three years to retain a driver's license
In Texas, a DWI stays on your record permanently unless you can get it sealed or expunged. However, in 2017, the state passed a law that lets drivers who meet certain criteria to have convictions sealed if they petition the court for non-disclosure. That means it stays on your record, but people such as landlords and potential employers cannot see it.
Collision vs. Comprehensive Coverage
There's a difference between collision and comprehensive coverage. Collision coverage pays for car damage due to an accident you cause. Comprehensive coverage pays for the replacement of stolen vehicles and for damage that occurs due to floods, vandalism, fire, hail, and animal strikes.
How do you know which one to choose? Use these following tips:
- If your vehicle is less than 10 years old, consider purchasing comprehensive and collision.
- If your vehicle is older than 10 years, only purchase comprehensive and collision if it is worth more than $3000, if you can't afford to replace the vehicle, or if you want additional protection.
According to CarInsurance.com, the average annual collision coverage is $529 and $228 for comprehensive coverage.
Uninsured and Underinsured Motorist Coverage
These two types of optional coverage should match whatever liability limits you have. It pays for damages if your vehicle is hit by a driver without insurance or insufficient coverage to pay for damages and medical expenses.
The medical coverage can pay for medical or funeral expenses after an accident of those who are already covered, regardless of who is at fault. In Texas, as in most states, this coverage is optional.
Gap Insurance
Gap insurance covers the difference between your vehicle's cash value and the outstanding balance on your lease or loan. You don't need it if you own your vehicle outright.
This type of insurance works if you don't own your vehicle outright and get into an accident. It's best to secure gap insurance if your vehicle is less than one year old and you only put down less than 20 percent.
If you're leasing your vehicle, it's best to purchase gap insurance even if your agreement doesn't state that you need it.
Knowing your options for car insurance while in Texas can save you money. Knowing the difference between the different types of insurance options as well as what factors can cause your rates to rise can help you make smart decisions.
Sources
https://www.caranddriver.com/research/a31267624/how-to-get-cheap-car-insurance/
https://www.caranddriver.com/research/a31268325/what-does-comprehensive-car-insurance-cover/
https://www.caranddriver.com/news/a15338986/mind-the-gap-insurance-what-to-know-about-this-auto-dealer-add-on/
https://www.carinsurance.com/state/Texas-car-insurance.aspx
https://www.carinsurance.com/what-is-collision-coverage-insurance
https://www.nerdwallet.com/blog/insurance/cheapest-car-insurance-in-texas-tx/
https://quotewizard.com/auto-insurance/texas
https://www.valuepenguin.com/car-insurance-rates-texas-study
https://www.thezebra.com/texas-car-insurance/#cheap-car-insurance
Hearst Autos Research
Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.
