- Texas averages around $3,136/year — rates have risen +61% since 2020 across the state
- Dallas-Fort Worth, Houston, and San Antonio each run well above the state average for their metro areas
- Texas Farm Bureau has held the J.D. Power #1 spot for 11 years and prices ~25% below the TX average
- Major hailstorms, high accident frequency, and litigation costs drive Texas above the national average
- Switching carriers in Texas has among the highest absolute dollar impact in the country — $600–$1,200/year savings are common
No state has seen a steeper climb in auto insurance costs over the past five years than Texas. Rates are up more than 60% since 2020 — the largest increase of any state in the country. The Texas average now sits at roughly $3,136 per year for full coverage.
The causes are well-documented: Texas is catastrophe-exposed on a massive scale. Hailstorms, flooding, and winter weather events have driven claims costs through the roof. The February 2021 winter storm alone generated billions in insurance losses. Add in rapid population growth across the Dallas, Houston, Austin, and San Antonio metros, and you have more cars on the road, more accidents, and higher repair costs hitting simultaneously.
What to know about shopping in Texas
Texas is a competitive market — all major national carriers write business here, and the rate spread between them can be substantial. Progressive and GEICO have historically priced aggressively in Texas. State Farm and Allstate tend to run higher. But the ranking shifts depending on your profile, vehicle, and ZIP code.
One Texas-specific factor: hail coverage. If you drive a newer vehicle, confirm your comprehensive coverage includes hail damage and understand your deductible. Texas ZIP codes in Hail Alley — a corridor running from the Panhandle through Dallas — see disproportionately high comprehensive claims.
Texas average: $3,136/year full coverage — 25% above the national average. Dallas and Houston metros run significantly higher than the state average.
The bottom line for Texas drivers: if you haven't compared quotes since 2022 or earlier, you're likely on a rate that was set before the worst of the surge. Shopping now means you're comparing carriers on 2026 pricing — which for many will be meaningfully lower than what a mid-pandemic renewal locked in.
Frequently asked questions
What is the cheapest car insurance in Texas?
Texas Farm Bureau is the state-exclusive option that has won J.D. Power's Texas customer satisfaction award 11 consecutive years — members typically save 15-25% versus national carriers. Among national carriers, Progressive and GEICO are consistently the most competitive. Rates vary dramatically by city — Dallas and Houston ZIP codes can be 40-60% above rural Texas. Enter your ZIP to compare.
What are Texas's minimum auto insurance requirements?
Texas requires 30/60/25 liability coverage — $30,000 per person / $60,000 per accident bodily injury and $25,000 property damage. Texas is a tort state with no mandatory PIP. Uninsured motorist coverage is offered but can be waived. Personal Injury Protection (PIP) of $2,500 is automatically included unless rejected in writing.
Why have Texas rates increased so much since 2020?
Texas has experienced the largest auto insurance rate increase of any state — up 60%+ since 2020. Multiple catastrophic events drove the surge: the February 2021 winter storm caused billions in auto and property losses, while ongoing hail events (Texas is in Hail Alley) keep comprehensive claims elevated. Rapid population growth in Dallas, Houston, Austin, and San Antonio has increased traffic density and accident frequency simultaneously.
Is Texas a no-fault state?
No — Texas is a tort state. The driver at fault for an accident is responsible for damages. Texas includes $2,500 in default PIP coverage that pays your own medical bills regardless of fault, but this can be waived in writing to lower your premium. If you have good health insurance, waiving the default PIP and keeping liability limits high is a common approach.