Auto insurance in Texas is not only mandatory but can help protect your finances and your vehicle from devastating losses. Finding the right coverages to keep you protected should help drivers mitigate their risks all while receiving policies that are affordable, providing personalized coverage at a reasonable price.
Here at Freedom Insurance Group (FIG), we help motorists throughout Texas navigate the best car insurance coverage on the market all while saving you money in the process. There are property damages, medical bills, legal fees, and general liability issues drivers need to consider.
There are more lane miles in the great state of Texas than in any other state in the country. As the second most populous state and second-largest in the United States, this should surprise no one. These stats speak for themselves on why auto insurance in Texas is important for every motorist in the Lone Star State, and by staying protected, you can save yourself thousands of dollars should an accident occur.
Our experts are ready to serve you by providing more than 25 top-rated insurance brands to you. By comparing the best auto insurance policies for you, we can deliver the best coverage for the lowest price that will be there when you need it. On average, customers who switch to FIG save 40% on their auto insurance premiums.
Auto Insurance Requirements in Texas
It is illegal for motorists to drive in Texas without auto insurance. You may be tempted to push your luck and avoid paying for auto coverage, but going without the proper insurance policies can cost you dearly:
- Legal costs stemming from tickets, court fees, attorney fees, and potential liability
- Loss of potential income due to court appearances or the loss of a vehicle
- Expensive bills related to property damage and medical bills
To remain legal in Texas, motorists must maintain the following liability limits for your coverage known as 30/60/25:
- $30,000 worth of coverage for Bodily Injury Liability per person
- $60,000 worth of coverage for Bodily Injury Liability per accident
- $25,000 worth of coverage for Property Damage Liability per accident
Assessing the state minimums is a great place to start when deciding your coverage but drivers who are looking for more protection options will need to assess their needs a bit further. Luckily, Texans have plenty of options for their car insurance coverage.
The Different Types of Auto Insurance Coverages
Drivers with more coverage will pay higher premiums and vice versa. Understanding the different types of protection available, however, will help you find the right auto insurance policies for your needs.
Underinsured motorists may find themselves suffering a loss that exceeds their coverage. Overinsured motorists could be overpaying for coverage they are unlikely to ever use. Take a closer look at the different policies for auto insurance in Texas available and speak with an agent to best determine which coverages meet your needs:
There are two main types of liability coverage motorists will depend upon to keep them legal in Texas and protected when they are at fault for an accident:
- Property Damage Liability Coverage- Protection to help restore property damage to another party involved in an accident. This may include their vehicle, personal property, or damage to additional structures, such as a home.
- Bodily Injury Liability Coverage- Drivers who cause physical injury to another party and are at fault can rely on this coverage to mitigate the damages. This includes paying for medical bills, legal fees, and lost wages.
Liability coverage also applies to your passengers but it does not cover your vehicle.
Many perils can harm your vehicle that falls outside the realm of driving. Some common examples include:
- Accidents with animals (hitting a deer)
- Falling trees/branches and other objects
- Rocks or other objects kicked up by cars
- Storms, floods, wind, hail, earthquakes, and lightning
- Vandalism, riots, explosions, and fire
- Windshield and glass damage
With comprehensive coverage, you’ll receive compensation to help restore the miscellaneous losses that may occur to your vehicle. Drivers should note that comprehensive coverage comes with a deductible that can range from $500 to $1,500. Higher deductibles will provide lower rates while lower deductibles will cost drivers more in premiums.
You can restore the damage to your car with cheap collision coverage without any regard to who is at fault. This includes an accident involving another vehicle, hitting an object, and flipping your vehicle.
In the state of Texas, you may also submit a claim should you damage your vehicle from pesky potholes. Similar to Comprehensive Coverage, you’ll need to pay a deductible and the more you pay out of pocket, the less you’ll pay in premiums and vice versa. Most drivers pay between $200 and $1,000 for their deductible.
Medical Payments or Personal Injury Protection (PIP) Coverage
Medical Payments and PIP Coverages are similar but PIP is only available in states, such as Texas, that are required to offer such protection. The basic perils you are protected from here stem from medical bills, regardless of fault, that come as a result of an accident.
This includes the bills of you and your passengers while traveling in your vehicle as well as you and your family while traveling in someone else’s vehicle. You can also file a claim should you or a family member become injured while walking or riding a bike.
PIP is a little different as it is broader. It can help you pay for additional costs that may be related to such accidents including funeral costs, lost wages, and rehabilitation costs.
Uninsured/Underinsured Motorist Coverage
No one should have to face a hit-and-run nor should a motorist abiding by the law have to pay out of pocket due to another motorist who is at fault but without insurance. According to the National Association of Insurance Commissioners, as many as 13% of all motorists in the U.S. are uninsured.
By purchasing Uninsured and Underinsured Motorist Coverage, you’ll gain the protection that can help you restore a loss when others fail to act responsibly. Your coverage may also help you restore a loss to your property should another motorist be underinsured, leaving you with damages that exceed their policy limits.
These are the extra coverages that are affordable to add:
Rental car fees
Rental car reimbursement: Pays rental car fees while your car is being repaired. This is important because getting a rental car can be expensive, as the average repair at Progressive takes 13 days and the cost (across the rental industry) can go up to $120 a day, according to USA Today.
Your loan if you total your car
Gap coverage: Also called loan/lease payoff and helps pay off your car loan if you total your car. It pays off the “gap” between what your car is worth and how much is left on your loan.
Lockouts, towing, jump starts, etc.
Roadside assistance: So you’re never stranded on the side of the road. At Progressive, we’ll pay for:
- Towing to the nearest repair facility (we’ll tow you to the mechanic of your choice if it’s within 15 miles)
- Pulling your stuck car out of mud, snow, water, or sand (called winching)
- Battery jump-start
- Fuel delivery (you only pay the cost of fuel)
- Flat tire changes
Full Coverage Auto Insurance
Drivers who wish to protect against all of the above can enroll in a full coverage auto insurance policy that combines all of the previously mentioned coverages into one. As you’ll receive a much more complete form of protection than using one or a few of the other coverages to protect you, expect higher premiums, however, there are many benefits to enrolling in full coverage:
- Peace of mind should you face a loss and are at fault, dealing with a hit and run, in need of covering costs that may exceed a policy’s limits or are needing to restore a loss from a non-accident related incident
- A streamlined claims process and faster payment
- Better protection for all of the extra costs associated with an accident that is not related to property damage or liability including lost wages and funeral costs
Full coverage auto policies may come with a higher price tag but they can save you thousands in the aftermath of a wreck. Here at Freedom Insurance Group, we can help you find the right coverage no matter what your needs for the best price on the market.
Through bundling, discounts, and comparing rates, we can provide the best coverage option. Whether you are just looking to stay legal or protect against more, we’ve got you covered.
Your out-of-pocket costs
Deductible: It’s a common misconception that if you have car insurance, you don’t ever have to pay for anything. Unfortunately, no insurer can promise that. All insurers have deductibles for a few coverages. Your deductible is simply the amount you have to pay for repairs or claims (your out-of-pocket costs).
For example, you have a $200 deductible, hit a telephone pole, and your car repairs cost $2,000. You’d pay $200, and your insurer would pay the rest. You can pick your deductible amount.
The higher your deductible, the more of the repair or claim cost you’ll have to take on. That means your out-of-pocket costs will be higher, but you’ll have a lower overall rate and vice versa.
The Cost of Auto Insurance in Texas
The average cost of auto insurance in Texas will from city to city. We are proud to help drivers throughout Flower Mound, Texas, but serve throughout the entire state. Take a look at some of these averages from our most popular markets:
Using the average auto insurance rates near where you live can help you paint a picture of what to expect for your own coverage, though each driver’s rate will vary. The rates shown above are based on averages found through the Texas Department of Insurance and the Office of Public Insurance Counsel.
Factors That Affect Your Texas Auto Insurance Rates
Your auto insurance rates are determined by assessing the amount of risk you pose as a driver to your insurance provider. The less risk you pose, the lower your premiums will be. Drivers with more risk will likewise pay higher rates.
There are a variety of factors that go into crafting your rate. Some of them are based on your personal factors and others rely on the characteristics of your vehicle and policies. Better understand these factors to gain a clearer picture of what you can control to lower your rate:
|Factor That Determines Your Rate||Description||Can You Control It?|
|Age||Auto insurance companies use complex algorithms from vast data pools and age is one of the biggest factors for determining your car insurance rate. Drivers with more experience are less likely to get into accidents as compared to younger drivers with less experience.||No|
|Gender||From an insurance standpoint, gender is a large factor in determining your rate. Overall, men will pay more for their premiums than women as they pose more of a risk. It should be noted, however, that even gender will be affected by age for industry trends as in some age groups women are considered riskier than men.||N/A|
|Marital Status||Married couples are seen to pose less of a risk as they are less likely to engage in risky driving habits. If you’re single, you’re likely going to pay a higher premium for your car insurance.||Yes|
|Your Driving Record||Safe driving is always encouraged and can even open up the opportunity for you to receive discounts. If your driving record has fewer blemishes, you’ll spend less on car insurance.||Yes|
|Your Location||Just as different states will have different premiums, so too will different cities and zip codes. Areas with higher crime rates or an elevated amount of accidents may see higher rates than those who don’t.||Yes, but moving to save on auto insurance is rarely practical.|
|The Amount of Coverage You Choose||Drivers with more coverage options will pay higher premiums. The fewer coverages you enroll in, the less you’ll pay. It is important, however, to maintain an appropriate level of protection for your needs to avoid paying much more in the event of an accident.||Yes|
|Your Claims History||Submitting claims to your insurance provider will cause your rate to go up because you’ll be seen as a higher risk to do so in the future. Especially if you are at fault for an accident. Drivers should avoid claims when they aren’t necessary as excessive amounts can even lead to your insurance provider dropping you as a client.||Yes, to a degree.|
|The Type of Vehicle You Drive||Your vehicle affects the amount you pay for your premium because the cost to replace a mid size sedan is far less than a high-performance, luxury vehicle. But you can go ahead and get the red paint, your vehicles’ color will not affect your premium.||Yes|
|Your Vehicle’s Usage||The more your vehicle is in use, the higher the chance of an accident. Drivers with less usage will see lower premiums and may even be eligible for discounts.||Yes|
|Deductibles||Comprehensive and Collision coverages come with deductibles. If you pay a high deductible, you’ll enjoy cheaper insurance rates whereas drivers with lower deductibles will pay more for their monthly premiums.||Yes|
|Your Insurance Score||Insurance companies will assess your risk partly on what is known as an “insurance score”. Some of these factors will vary from provider to provider and will include things such as your claims history. Even your credit score will be a factor here, with drivers having higher scores receiving lower rates and those with lower scores seeing a premium increase.||Somewhat|
Car Insurance Discounts and Ways to Save on Your Premiums
You have plenty of opportunities to save money on car insurance. The good news is that there are many different ways for drivers to save money. Although not every discount will apply to your situation, the vast amount of discounts means that there is something for nearly everyone! Take a closer look at some of the best ways for drivers across the Lone Star State to lower their auto insurance rates.
Bundling Your Auto Insurance
Overall, bundling is the best way to save money for the majority of drivers. You can save by combining your auto insurance coverage with a homeowners insurance policy and/or an umbrella policy, for example. Insurance carriers want clients who insure multiple policies with their brand.
As a reward for doing so, you can enjoy lower rates across the board. Bundling your auto insurance in Texas with other policies built to protect you and enjoy some of the finest discounts available on the market!
Similar to bundling, insurance carriers love to encourage homes with multiple vehicles to insure them all under a single brand. By adding multiple vehicles to your auto coverage, you’ll receive a discount for being a loyal customer.
Safe Driver Discount
Safe driving is a practice from which everyone benefits. You’ll benefit from creating a safer roadway for you and those around you, and are less likely to cause an accident as a result.
Auto insurance companies want to minimize risk and driving in a fast or dangerous manner does the opposite of that. Many auto insurance brands offer safe driving discounts that will reward you for navigating Texas responsibly.
Good Student Discount
Younger drivers pay some of the highest premiums due to their risk and inexperience. For many, the cost of insuring a teen or young adult can be burdensome, however, students with good grades may be awarded discounts that can help lower their rates.
As a thank you for your service, if you are actively serving in the military or a veteran, many insurance companies offer discounts to lower your car insurance rate.
Some alumni and professional groups have established partnerships with various auto insurance brands. If you are a member, you may qualify for lower car insurance premiums with the participating insurance companies.
Paperless/Electronic Payment Discount
Cutting down on paper billing is good for the environment and your pocketbook. When you consider the cost of paper, ink, postage, and overhead, there are a lot of ways insurance companies save when customers pay online.
By brands passing a part of these savings to their customers, you can benefit from lower auto insurance with this discount.
Additional Auto Insurance Coverages
Some Texans may need a bit more coverage than others and here at FIG, we can help. Take a quick look at some of the other auto insurance options drivers like you may benefit from:
- Accident Forgiveness- Different brands have different qualifiers and benefits but with accident forgiveness, drivers can avoid rate increases if they are involved in an accident. This is a great option for drivers who find themselves in more accidents than normal, however, your insurer can still drop you as a client due to too many claims being submitted.
- Gap Insurance- This coverage provides you with cash to pay off your vehicle if you are in an accident, it becomes totaled, and you still owe a note. Your reimbursement will be based on the difference between the amount you owe and your vehicle’s actual cash value (ACV).
- Rideshare Insurance- The rise of the gig economy continues to expand through various apps such as Uber and Lyft. Whether you are delivering food, groceries, or people, you’ll need the proper rideshare insurance policies to stay protected while out on the road.
Freedom Insurance Group Keeps Your Auto Covered for Less
It doesn’t matter if you are just looking to stay legal or need more protection, the team at Freedom Insurance Group is ready to serve. We save the average driver 40% on their auto insurance by comparing coverages among 25+ top-rated insurance brands. We’ll help you find the right coverages for your needs without overpaying. You can even bundle with your homeowners insurance for more savings. Contact us today and see how much we can help you save.
FAQs on Auto Insurance in Texas
Here at Freedom Insurance Group, we’re ready to answer any of your questions concerning auto insurance in Texas. We pride ourselves on being a resource for drivers all over Texas and are here to guide you to the right policies for your needs. Take a look below at some of the more common questions we face here at FIG, or, be sure to ask an agent today!
How Much Auto Insurance Do I Need to Be Legal in Texas?
As you’ll see above, Texans need a minimum of what is known as 30/60/25 coverage: $30,000 of coverage for Bodily Injury Liability/person, $60,000 of coverage for Bodily Injury Liability/accident, and $25,000 of coverage for Property Damage Liability/accident.
How Do I File a Claim for My Auto Insurance?
Filing your auto insurance claim can be done in a few easy steps:
- Document everything if it is safe to do so at the accident site
- Contact your insurance agent/company immediately
- File a report with the local police station
- Submit all documents to your insurance company
- Wait for an insurance adjuster to conduct their investigation
- Receive your compensation and use it to restore your losses
Which Auto Insurance Discounts Save the Most Money?
The best discounts for your auto insurance come from bundling with other insurance policies such as your homeowners insurance and multi-vehicle discounts. But because each driver is different and there are so many different discounts available, to get the best savings it is best to ask your agent which discounts you qualify for.