See Texas new and used car insurance cost by car value, coverage and credit score. Learn what coverage you need, how your car’s value and credit score affect your rate, and where you can cut costs without leaving yourself in a hole.
Texas drivers pay about 10-20% more for car insurance than the national average. Large urban populations, severe weather (hurricanes, hail, tornadoes), high vehicle theft rates, and the nation’s highest speed limits all push premiums up.
Curious about car financing? See real Texas car loan rates shared by our community.
Texas’ Liability Rule: 30/60/25
Texas requires liability insurance to register a vehicle. The state uses a “30/60/25” minimum:
- $30,000 for injuries to one person.
- $60,000 for injuries to multiple people in one accident.
- $25,000 for property damage.
This coverage pays for damage and injuries you cause to others. It does not cover your own injuries or vehicle damage.
Texas is an “at-fault” state. If you cause an accident, you’re responsible for the other party’s losses. If your insurance limits run out, you pay the rest out of pocket — or face a lawsuit.
MFP Tip: The $25,000 property damage minimum disappears fast. A moderate collision with a newer truck or SUV can easily run $20,000-$30,000 in repairs. If you total someone’s $50,000 vehicle, you’re on the hook for the difference.
Texas New Car Insurance Cost
Your new car monthly premium depends on three main factors: the value of your car, how much coverage you carry, and your credit score. The table below show estimated monthly costs across different scenarios.
| Car Value | Coverage | 750+ (Excellent) |
700–749 (Good) |
650–699 (Fair) |
600–649 (Below Fair) |
|---|---|---|---|---|---|
| Under $30K | Full | $211 | $247 | $292 | $607 |
| Standard | $153 | $179 | $212 | $440 | |
| Liability only | $101 | $119 | $140 | $292 | |
| $30K–$60K | Full | $249 | $292 | $344 | $717 |
| Standard | $182 | $213 | $251 | $522 | |
| Liability only | $111 | $130 | $153 | $318 | |
| Over $60K | Full | $307 | $360 | $424 | $883 |
| Standard | $221 | $259 | $305 | $635 | |
| Liability only | $120 | $140 | $166 | $345 |
Texas Used Car Insurance Cost
Your used car monthly premium depends on three main factors: the value of your car, how much coverage you carry, and your credit score. The table below show estimated monthly costs across different scenarios.
| Car Value | Coverage | 750+ (Excellent) |
700–749 (Good) |
650–699 (Fair) |
600–649 (Below Fair) |
|---|---|---|---|---|---|
| Under $15K | Full | $123 | $144 | $169 | $353 |
| Standard | $103 | $121 | $142 | $296 | |
| Liability only | $70 | $82 | $97 | $201 | |
| $15K–$25K | Full | $147 | $173 | $203 | $423 |
| Standard | $123 | $144 | $169 | $353 | |
| Liability only | $81 | $95 | $112 | $233 | |
| $25K–$40K | Full | $167 | $195 | $230 | $480 |
| Standard | $139 | $163 | $193 | $401 | |
| Liability only | $88 | $103 | $121 | $252 | |
| Over $40K | Full | $192 | $224 | $264 | $550 |
| Standard | $159 | $186 | $220 | $457 | |
| Liability only | $97 | $113 | $134 | $278 |
Understanding Coverage Levels
Full Coverage: Pays to repair or replace your car (collision and comprehensive) plus covers damage and injuries you cause to others, with higher limits (typically $100,000 per person / $300,000 per accident for injuries, $100,000 for property). Best for newer cars, financed vehicles, or anyone who couldn’t afford to replace their car out of pocket.
Standard Coverage: Same protections as full coverage but with lower limits and higher out-of-pocket costs when you file a claim. A middle-ground option that balances protection and cost.
Liability Only: Covers damage and injuries you cause to others, but nothing for your own vehicle. Makes sense for older cars where the yearly premium would exceed the car’s value over a few years.
Credit Scores Hit Texas Drivers Hard
In Texas, insurers use your credit history to set premiums. Two drivers with identical cars and driving records can pay vastly different amounts based on credit alone.
Drivers with excellent credit (750+) pay the lowest rates across every coverage level and car value. Those with fair credit (650-699) typically pay 15-20% more. Drivers with below-fair credit (under 650) often pay 50-65% more than someone with excellent credit for the exact same policy.
This credit penalty adds up fast. A driver with poor credit insuring an expensive car with full coverage faces premiums that can be double or triple what a high-credit driver pays for the same vehicle.
MFP Tip: Before shopping for car insurance, check your credit report for errors. Disputing inaccuracies and improving your score — even by 50 points — can lower your premium more than most discounts.
Picking the Right Coverage
New Cars
If you finance or lease a new car, your lender requires full coverage until you pay off the loan. You don’t have a choice here.
Even if you buy outright, full coverage makes sense for new vehicles. A totaled $40,000 car with only liability coverage means you absorb the entire loss.
Gap insurance is worth adding for new cars. If your car is totaled, standard insurance pays the current market value — which drops the moment you drive off the lot. Gap insurance pays the difference between what you owe on your loan and what the insurer pays out. Most lenders offer this at purchase, but standalone policies from insurers often cost less.
Used Cars
The decision gets more nuanced with used vehicles. The key question: does paying for collision and comprehensive coverage make financial sense given your car’s value?
Here’s a simple test. Look up your car’s current market value (check Kelley Blue Book or similar). Multiply by 10%. If your annual collision and comprehensive premium exceeds that number, liability-only coverage may be the better bet.
Example: Your car is worth $8,000. Ten percent is $800. If your collision and comprehensive costs $900/year, you’re paying more than 10% of the car’s value just to insure against total loss. At that ratio, you’d break even in less than nine years of premium payments — and cars depreciate faster than that.
MFP Tip: Reassess your coverage each year. A car worth $20,000 three years ago may only be worth $12,000 today. The coverage that made sense at purchase might not make sense now.
Picking the Right Coverage
The 30/60/25 minimums look affordable on paper. In practice, they create gaps that can wreck your finances.
When You Damage Someone’s Property
Average vehicle repair costs after a collision exceed $4,000 for minor damage. A moderate accident with a newer SUV or truck can hit $15,000-$30,000. Your $25,000 limit covers part of that — but if you total a $50,000 vehicle, you owe the difference.
If You Injure Someone
Medical costs add up fast. A single ER visit with imaging and minor treatment can exceed $10,000. A serious injury involving surgery, hospitalization, and rehabilitation can reach six figures. Your $30,000 per-person limit won’t come close.
Without enough coverage, your personal assets — savings, home equity, future wages — are on the table.
1 in 6 Texas Drivers Has No Insurance
About 14-20% of Texas drivers carry no insurance at all — one of the highest rates in the country. If one of them hits you, your liability coverage doesn’t help. Uninsured motorist coverage fills this gap. Texas insurers are required to offer it, but many drivers decline without understanding the risk.
MFP Tip: Uninsured motorist coverage typically costs $50-75 per year. Given the odds, it’s some of the cheapest protection you can buy.
What factors influence Texas Rates
At-Fault State
Texas follows an at-fault system. The driver who causes an accident is responsible for the other party’s damages. This means your liability coverage gets used when you’re at fault, and you can sue (or be sued) for damages beyond insurance limits.
Hurricanes, Hail, and Tornadoes
Texas faces hurricanes along the Gulf Coast, hailstorms across the central and northern regions, tornadoes (averaging 132 per year), and occasional flooding. Comprehensive coverage pays for weather damage — a car totaled by hail in your own driveway, a flooded vehicle after a sudden storm.
In Texas, this coverage matters more than in most states.
Second-Highest Theft Rate in the Country
Texas recorded nearly 33,000 motor vehicle thefts in the fourth quarter of 2024 alone. If you drive a commonly stolen vehicle (Ford F-150s and Chevrolet Silverados top the list), expect higher comprehensive premiums.
Where You Live Changes Everything
Rates vary by ZIP code based on traffic density, accident rates, and theft. Houston drivers pay some of the highest rates in the state — sometimes double what drivers in smaller cities like Killeen or Lubbock pay for identical coverage.
How to Lower Your Texas Car Insurance Costs
Bundle home and auto. Most insurers offer 10-25% discounts when you carry multiple policies. If you rent, renters insurance bundled with auto often qualifies for the same discount.
Take a defensive driving course. Texas-approved courses can reduce your premium by up to 10%. The course takes a few hours and the discount typically lasts three years.
Ask about safe-driver tracking programs. Some insurers offer apps or devices that monitor your driving habits. Safe drivers can earn discounts of 10-30%. If you don’t drive much or avoid hard braking, this can pay off.
Compare quotes from multiple carriers. Texas’s insurance market is competitive, with both national carriers and regional specialists. Rates for identical coverage can vary by hundreds of dollars per year between companies. Get at least three quotes before deciding.
Raise your deductible. Moving from a $500 to a $1,000 deductible (the amount you pay out of pocket before insurance kicks in) typically lowers your premium by 15-20%. Just make sure you can cover the higher amount if you need to file a claim.
Ask about pay-per-mile insurance. If you drive under 10,000 miles per year, usage-based policies charge a low base rate plus a per-mile fee. Urban drivers working from home or those with short commutes can save with this option.
Buying a Car in Texas? Here’s What to Do
Get Insurance Before You Drive
Texas requires proof of insurance before you can legally drive. If you’re buying from a dealer, they won’t release the car without it. If you’re buying private-party, you’re uninsured the moment you take the keys without a policy in place.
Call your insurer before finalizing the purchase. Most can add a vehicle to your policy within minutes and email proof of insurance immediately.
Register and Title Your Vehicle
Within 30 days of purchase, visit your county tax assessor-collector’s office to register and title the car. Bring:
- Proof of Texas insurance.
- The signed title (or dealer paperwork).
- A valid ID.
- Payment for sales tax and fees.
Starting in 2025, Texas no longer requires annual vehicle inspections — but you still need valid registration and insurance.
Review Coverage Annually
Your car loses value every year. The full coverage that made sense for a new $35,000 car may not make sense when that car is worth $18,000 five years later. Check your coverage at each renewal and adjust based on your car’s current value.
End Note
Texas’s minimum requirements keep you legal but leave you exposed. Base your coverage decisions on your car’s actual value, your ability to absorb a loss, and the real costs of accidents — not just state minimums.
Use the rate tables above to estimate what you’ll pay, then shop around. A few hours comparing quotes can save you hundreds per year without sacrificing the protection you need.