Best car insurance in Texas for 2024

The Texas Department of Insurance mandates all drivers to carry specific amounts of liability coverage.  Texas auto insurers must also offer uninsured motorist coverage, underinsured motorist coverage and personal injury protection (PIP), although these options can be declined in writing. Bear in mind that the state-required minimum coverages might not provide adequate financial protection if you cause a car accident. To better protect your assets, you may want to buy higher levels of liability coverage or full coverage car insurance.

Texas law may not be the only thing that influences how much insurance you need to carry. On top of state requirements, drivers who have leased or financed their vehicles may be required by their financial lenders to carry more insurance. Typically, this entails adding comprehensive and collision coverage to your policy. Because a lender has a vested financial interest in your vehicle, it is common for them to want to ensure that you are protecting their investment. With comprehensive and collision coverage, you are financially protecting your vehicle from additional types of losses.

While looking at financial strength ratings, customer satisfaction scores, average rates and discount offerings are all excellent moves to make throughout your insurance shopping journey, it’s helpful to start by evaluating your own needs. After all, the best car insurance company will depend on what you need from an insurer. If you have a DUI on your record, you may need to look for an insurer that will file an SR-22 on your behalf. Or, if you have multiple speeding tickets on your record, looking into a high-risk insurer may be a smarter move. If you have a newer car, you may want to search for a company that offers features like new car replacement and gap coverage, if you have a loan or lease.

Although there are a handful of companies writing cheap car insurance in Texas, no single company always has the cheapest option all the time for every driver. Every insurer has their own method for determining rates, with each one weighing the various factors differently. Finding the best option for you is easiest if you consider your priorities. For example, if you have prior incidents on your record, you may need to look at high risk carriers to find the best rate. If you have a teen driver in your family, on the other hand, a company with multiple discounts for young drivers may be a better option. If you are retired or work from home, you may benefit most from a company with mileage-based coverage. The best auto insurance in Texas for your needs will be easier to locate once you've identified what's most important for your coverage.

Driving without insurance in Texas is punishable by fines or possibly a license suspension. If it’s your first offense, the fines could total $350, while fines for subsequent offenses could reach $1,000 and a license suspension. To avoid this situation, Texas drivers are required to carry the minimum amount of car insurance coverage set by the state.

Like almost everything else, the average national cost of car insurance went up for a full coverage policy. Bankrate identified a few main reasons as to why: inflation, premium give-backs, an uptick in claims and labor shortages have all contributed to more expensive car insurance premiums. When you factor in that car insurance rates are highly individualized, how much your rates went up may vary (and, for a small number of people, rates could have even gone down; if, for instance, a hefty moving violation just dropped off their record).

Texas is considered an at-fault state. This means that the driver who is found to be at fault for an accident is responsible for covering the costs of the other party’s damages, whether property, medical or both. Uniquely for an-fault state, though, personal injury protection coverage (PIP), must also be offered in Texas but can be declined by car owners. PIP is typically offered in no-fault states, as it is a coverage that pays for injuries and lost wages for each driver and their passengers, regardless of who caused the accident.

As in most states, Texas law requires drivers to carry at least a minimum amount of liability insurance that covers both injuries and property if you cause an accident. Uninsured and underinsured motorist coverage must be offered but can be declined, as well.

Regardless of whether you elect to purchase the additional coverage on offer in Texas, you may want to consider opting for higher liability limits than required by law. That way, you’ll have better financial protection in the event you’re responsible for pricey vehicle damage or expensive medical bills in the wake of an accident you cause.