2024 Texas Auto Insurance Cost Roundup
By Michael Giusti
Auto insurance rates have grown faster in Texas than almost anywhere else in the nation over the past few years.
Nationwide, auto premiums increased 30% over the past five years according to the Bureau of Labor Statistics Consumer Price Index.
Texas auto rates have increased 46.5% in that timeframe according to S&P Global, driven largely by huge back-to-back statewide increases over the past two years.
But despite the high auto insurance prices, premiums aren’t the same in every corner of the Lone Star State.
To evaluate the auto insurance costs in Texas, InsuranceQuotes.com along with Quadrant researched the premiums drivers paid in the 50 most populous cities across the state, and the results varied widely. While the average monthly premium drivers in Texas’s 50 most populous cities pay comes out to $182.81, drivers in the city of Dallas paid the most at $218.89, while drivers in Killeen enjoyed the lowest premiums at $149.93. There were wide variances between the metro areas as a whole as well.
This report aims to break down some of those differences and drill into the underlying drivers for insurance premiums in Texas. For our data we used a “base line Texas driver” across all of the state who is considered middle aged, single, owns a 2020 – 2024 year vehicle and has a clean driving record with no accidents. Click below for a full list of the details used throughout this report.
Click below for a full list of the details used throughout this report.
2024 Average Driver Data Details List:
- Age: 24 – 55 years.
- Vehicles Age: 2020 to 2024 year models.
- Vehicles Used: Cadillac Escalade, Chevy Bolt (EV Hybrid), Chevy Silverado, Dodge Ram, Ford F-150, Honda Accord, Honda CR-V, Nissan Altima, Nissan Titan, Toyota, Camry, Toyota Corolla. – For content regarding luxury vehicles: Acura MDX, Audi BMW X3, Lexus ES and Tesla Model 3.
- Insurance Score Alignment: Fair & Good status.
- Accident History: Clean record w/ no accidents.
- Texas Cities: All zip codes.
- Data Source: 2024 Quadrant Auto Insurance Information Systems – a highly detailed car insurance costs data analysis company known for their reports on car insurance premiums.
Top Takeaways
While the average premium for drivers in the 50-biggest cities in Texas was $182.81, some trends emerged in the data regarding which areas of the state are paying more than others.
To start, many of the highest rates were in the biggest metropolitan areas. Along with Dallas ranking as the highest premium, Houston and San Antonio were right behind, with drivers paying $211.12 and $201 respectively – well above the $182.81 average. Additionally, cities in Dallas County like Mesquite, Garland and Grand Prairie all reported average monthly premiums of above $200, while cities like Baytown and Pasadena in the Houston metropolitan area are paying just shy of $200 per month ($198 and $199 respectively). Taken as a whole, cities within the Houston Metropolitan Area pay premiums that are about 5% higher than the 50-city average. Dallas/Fort Worth area drivers paid around 4% more than the 50-city average.
According to Ben Gonzalez, spokesman for the Texas Department of Insurance, some common factors tend to drive rates up in densely populated areas.
“Generally speaking, higher traffic volumes, the frequency and severity of accidents, and the number of claims filed in urban areas can lead to higher costs,” Gonzalez said.
Another outlier when it comes to premiums are the communities bordering Mexico where drivers also had many of the highest rates.
Border communities paid on average 6% more than the 50-city average. Specifically, Brownsville/ McAllan drivers pay premiums that are 8.75% higher than the 50-city average — the highest of any combined metro area.”
Gonzalez said that factors outside of population density also weigh in on why a rate might be higher in one community than another.
“Along with traffic volume, insurance companies would also consider the amount of claims filed for non-accident losses in an area such as theft and vandalism,” Gonzalez said.
One general rule often cited by law enforcement is that communities near international borders or major ports tend to pay more in auto insurance because it tends to be easier for criminals to smuggle the stolen vehicles or strip them for parts that can then be easily exported.
Drivers living outside major metro areas enjoyed the lowest average premiums, paying on average 7 percent less than the 50-state average.
Policy costs by age in Texas followed a predictable pattern, with 16-year-olds paying the most, but then rates fell by more than half by the time they were 24. Rates continued down gradually until drivers hit their mid 60s, when premiums started to gradually increase.
The “Why”
Insurance premium pricing can seem daunting and infuriating, but several factors weigh in on why some drivers pay more than others.
“Factors that insurance companies will be watching in the coming year will be the same ones that have affected costs over the past few years — inflation, supply chain disruptions, and the frequency and severity of auto accidents,” Gonzalez said.
The number-one driver for community-wide insurance premiums is loss history. Communities with more crashes tend to pay higher premiums. Congested or poorly maintained streets lead to more crashes, which leads to higher rates.
But crashes aren’t the only thing insurers look at when setting community rates. Premiums also tend to correlate with the number of miles driven by the typical driver in that community.
Weather-related claims history also weighs in to pricing, so communities with weather events that lead to losses, such as hailstorms and floods, will tend to pay more in premiums.
Repair costs also drive up premiums. If there are only a few mechanics in a community who can set a higher market rate, that will lead to costlier insurance. And pricy parts also make for pricy repairs.
Lawsuit trends are another major driver. Communities that tend to sue more after a crash tend to pay more in premiums as well — so beware of all of those billboards offering big checks after a crash.
Health costs are a major factor as well. Fixing the car is only part of the post-accident costs. The cost of potentially treating injuries, from hospital to rehab bills, can weigh on premiums as well.
Additionally, theft statistics can also drive rates up. If vehicles are being stolen or stripped for parts, the community is going to pay more to insure them.
Insurers take all these factors into consideration and then propose their new rates to the insurance commissioner.
“The Texas Department of Insurance does not set insurance rates or premiums. We review rate filings to make sure they comply with state law and are not unfairly discriminatory,” Gonzalez said.
What are the Cheapest Texas Cities for Car Insurance?
| Texas City: | Monthly Premium: | Annual Premium: |
|---|---|---|
| Killeen | $149.93 | $1,799 |
| Wichita Falls | $151.91 | $1,823 |
| College Station | $155.97 | $1,872 |
| San Angelo | $156.49 | $1,878 |
| Temple | $158.72 | $1,905 |
| Bryan | $160.28 | $1,923 |
| Waco | $164.94 | $1,979 |
| Abilene | $164.97 | $1,980 |
| New Braunfels | $167.52 | $2,010 |
| Midland | $167.53 | $2,010 |
| League City | $167.60 | $2,011 |
| Lewisville | $168.83 | $2,026 |
| Georgetown | $169.97 | $2,040 |
| McKinney | $171.50 | $2,058 |
| Denton | $171.63 | $2,060 |
| Longview | $172.26 | $2,067 |
| Round Rock | $172.85 | $2,074 |
| Fort Worth | $176.91 | $2,123 |
| Lubbock | $176.94 | $2,123 |
| Austin | $178.79 | $2,145 |
| Laredo | $179.73 | $2,157 |
| Corpus Christi | $180.51 | $2,166 |
| Allen | $180.87 | $2,170 |
| Conroe | $181.06 | $2,173 |
| Frisco | $181.63 | $2,180 |
| Odessa | $182.50 | $2,190 |
| Tyler | $182.62 | $2,191 |
| El Paso | $183.37 | $2,200 |
| Plano | $184.64 | $2,216 |
| Irving | $185.10 | $2,221 |
| Pearland | $185.64 | $2,228 |
| Brownsville | $185.89 | $2,231 |
| McAllen | $188.99 | $2,268 |
| Carrollton | $190.48 | $2,286 |
| Sugar Land | $190.93 | $2,291 |
| Arlington | $191.68 | $2,300 |
| Richardson | $192.16 | $2,306 |
| Beaumont | $195.97 | $2,352 |
| Baytown | $198.13 | $2,378 |
| Amarillo | $198.83 | $2,386 |
| Pasadena | $199.24 | $2,391 |
| San Antonio | $201.05 | $2,413 |
| Mission | $202.13 | $2,426 |
| Pharr | $202.98 | $2,436 |
| Grand Prairie | $204.52 | $2,454 |
| Garland | $208.69 | $2,504 |
| Houston | $211.12 | $2,533 |
| Edinburg | $211.14 | $2,534 |
| Mesquite | $214.66 | $2,576 |
| Dallas | $218.89 | $2,627 |
Tips for Drivers
Just because there is a number representing the average auto insurance premium, that doesn’t mean that is what everyone pays as an individual. Half of drivers will pay more, and half will pay less.
Getting the best rate in many ways is in the hands of individual drivers.
“Our advice for consumers is to shop regularly, make sure the coverage you’re buying meets your needs, and do what you can to drive safely and avoid accidents,” Gonzalez said.
Having that good driving record is really the single-biggest thing a driver can do. By avoiding accidents and moving violations, drivers are putting themselves in the best position to save. Speeding, reckless driving, and DUI tickets weigh especially hard on individual drivers’ rates.
Using tools to shop for the lowest premium allows consumers to see multiple premiums at once, giving them the best chance to save.
Drivers should consider looking at insurers that solely rely on a driver’s history and demographics to set premiums, but they should also look at ones that include credit score.
Some people will benefit from one more than the other, depending on their life situation.
Drivers should also look for places where it might make sense to reduce coverage. Opting for higher deductibles or dropping the comprehensive and/or collision coverage might make sense, especially if the vehicle is older and paid off.
Evaluating coverage limits can also save money, but drivers should beware of being underinsured. Setting smaller limits brings down premiums, but that also means they may not be fully covered in case of a big accident. The state minimums rarely are enough to truly protect a family.
Safe and conscientious drivers can consider telematics devices or usage-based insurance. These use smart phone apps or devices that are plugged into the vehicle to monitor how the vehicle is driven. Avoiding speeding, hard stops, and late-night driving can translate to lower rates. However, in the worst-case, they can actually raise rates. And many drivers balk at handing over so much personal information to their insurers.
Finally, drivers should look for discounts. When a driver is buying a new vehicle, an easy discount is opting for dealer VIN etching, which is a theft deterrent, and often pays for itself in just a few months of lower premiums. Drivers should also look for easy discounts, such as bundling different policies with their auto insurance to save on both.
Young drivers pay the most, but offerings like student discounts and discounts for completing drivers’ education classes can go a long way in bringing premiums down. A student may also be able to cut costs by leaving their vehicle at home when they go off to college.
Asking a knowledgeable agent about places to save is usually the best place to start.
Final Thoughts
Auto insurance rates in Texas are rising fast, and the data reveals significant variations in premiums based where drivers live within the state.
Despite regional and demographic disparities, Texas drivers do have options to lower their premiums. By understanding the factors at play and making informed decisions, drivers can better manage the rising costs of auto insurance in the Lone Star State.
Michael Giusti is senior writer an analyst at InsuranceQuotes.com
