You opened your renewal, saw the number and wondered whether it’s normal. Then you searched how much car insurance costs in Texas and found a dozen “averages” that don’t agree. The honest answer starts with one official figure and a lot of context about what it does and doesn’t measure.
This guide sticks to numbers we can source: the National Association of Insurance Commissioners (NAIC), the Texas Department of Insurance (TDI) and Texas law. For the full coverage rulebook, start with our statewide walkthrough of Texas auto coverage and quotes.
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How much does car insurance cost in Texas on average?
The short answer: The NAIC put the 2024 Texas average auto insurance expenditure at $1,578.45 a year, about $131.54 a month, compared with $1,431.63 nationally; it’s a statewide average, not a quote.
The NAIC is the national organization of state insurance regulators, and its supplement is built from statistical-agent data plus data from the Texas Department of Insurance, according to the NAIC’s October 2026 release. As of October 2026, it’s the latest state-by-state figure the regulators have published. The monthly figure is our math ($1,578.45 ÷ 12).
| 2024 NAIC measure | Texas | Countrywide |
|---|---|---|
| Average expenditure | $1,578.45 | $1,431.63 |
| Combined average premium | $1,917.05 | $1,612.81 |
| Liability average premium | $892.78 | $813.27 |
| Collision average premium | $569.26 | $516.39 |
| Comprehensive average premium | $455.00 | $283.15 |
Texas sits above the national figure on every line. The widest gap is comprehensive, about 61% higher in Texas (our math). The NAIC doesn’t give a reason, and the supplement doesn’t rank the states.
Why are there two different Texas “averages”?
The short answer: Average expenditure spreads all spending across every insured car, including liability-only cars, while the combined average premium adds up the average cost of liability, collision and comprehensive as if one car carried all three.
The NAIC defines average expenditure as total written premium for liability, collision and comprehensive divided by liability car-years. It notes this “assumes that all insured vehicles carry liability coverage but do not necessarily carry the physical damage coverages.” Some Texas cars carry only liability, which pulls the figure down to $1,578.45.
The combined average premium is simpler: liability plus collision plus comprehensive averages. In Texas, $892.78 + $569.26 + $455.00 comes to $1,917.05 in the NAIC’s table (figures rounded). It’s closer to a car carrying all three coverages, but still an average.
Neither number describes a person. The NAIC says its figures make “no distinction as to policyholder classifications, vehicle characteristics, or the selection of specific limits or deductibles, all of which significantly impact the cost of coverage.” Rate websites that show a single monthly figure usually price one sample driver. Different math gives different numbers, and none of them is your price.
Has car insurance in Texas gotten more expensive?
The short answer: Yes, the NAIC’s Texas average expenditure rose every year from 2020 to 2024, from $1,085.40 to $1,578.45, an increase of about 45% by our math.
| Year | Texas | Change | Countrywide | Change |
|---|---|---|---|---|
| 2020 | $1,085.40 | n/a | $1,047.75 | n/a |
| 2021 | $1,123.12 | +3.48% | $1,060.83 | +1.25% |
| 2022 | $1,232.79 | +9.76% | $1,124.61 | +6.01% |
| 2023 | $1,428.94 | +15.91% | $1,281.61 | +13.96% |
| 2024 | $1,578.45 | +10.46% | $1,431.63 | +11.71% |
The steepest Texas jump came in 2023. And in 2024, Texas rose a bit more slowly than the nation, though it stayed above it. Nationally, the NAIC says average expenditure grew 36.64% since 2020 and comprehensive average premiums rose 18.66% in 2024 alone.
TDI doesn’t set auto rates. Companies file their own, and TDI’s auto guide says rates must be “fair, reasonable, and adequate for the risks they cover.” If your bill rose, TDI’s consumer column suggests asking your company to explain the increase and whether you’re getting every discount available.
What does TDI say moves your car insurance price?
The short answer: TDI lists your driving record and claims, where you live and how much you drive, your age and household, the car and your credit; each company weighs them its own way, and your coverage choices matter too.
TDI’s guide to how auto and home insurance costs are calculated lists the factors companies use. The last card, your limits and deductibles, comes from other TDI consumer guides:
Tickets, crashes and claims
TDI lists your driving record and claims history first.
Where you live and drive
Your ZIP code and how much you drive are both on TDI’s list.
Age and household
TDI lists age, gender, marital status and occupation. A new teen driver changes the picture.
Cost to replace it
A pricier car costs more to repair or replace, which matters for collision and comprehensive.
Credit-based insurance score
Companies that use credit must follow Texas rules, covered in the next section.
Limits and deductibles
Higher deductibles could lower the premium, TDI notes, but mean more out of pocket after a claim.
When we review a Texas auto policy, we start with the factors you can actually change: limits, deductibles, who’s listed on which car, and whether the garaging address and mileage are still right.
How does your credit affect car insurance in Texas?
The short answer: Texas lets insurers use credit information in pricing, within limits: it can’t be the sole basis to deny, cancel or nonrenew a personal policy, and insurers that use it must generally refresh it at least every 36 months.
Under Insurance Code chapter 559, section 559.052, an insurer may not deny, cancel or nonrenew a personal policy “solely on the basis of credit information” without considering other underwriting factors. It also limits how an insurer can treat someone with no credit history.
In practice: if your credit has improved since your policy started, a renewal is a reasonable time to ask whether a re-rate applies. Whether it changes your premium depends on the company’s filed rating plan.
How much more does fuller coverage cost than minimum liability?
The short answer: No official source publishes a Texas minimum-only average, but the NAIC’s 2024 Texas liability average was $892.78, while liability plus collision plus comprehensive averaged $1,917.05 combined.
Texas requires at least 30/60/25 liability: $30,000 per injured person, $60,000 per accident and $25,000 for property damage, according to TDI’s auto insurance guide. Liability pays for damage you cause to others; it doesn’t fix your own car. Our guide to what car insurance Texas requires walks through PIP and uninsured motorist rules.
The NAIC liability average blends every liability limit people buy, not just the minimum. So it’s a rough marker, not a “minimum coverage price.” What it does show is that collision and comprehensive are where a lot of the money goes, and they’re also what pays when your own car is damaged.
- Liability only: you pay the full $4,500 yourself.
- With comprehensive and a $1,000 deductible: you pay $1,000, and the policy may pay the remaining $3,500, depending on your policy and the adjuster’s findings.
By clicking Get My Free Quote, I give Robinson Legacy Partners LLC, an Allstate agency, and its licensed agents my prior express written consent, by electronic signature, to contact me with calls and text messages — including marketing calls and texts made using automated technology or an artificial or prerecorded voice — and by email, at the number and email I provided, about my insurance quote and related insurance products and services, even if my number is on a Do Not Call list. My information is never sold or shared with other agencies for their own marketing. Consent is not a condition of purchase; I can call (817) 262-5300 instead. Message frequency varies. Message and data rates may apply. Reply STOP to opt out, HELP for help. I agree to the Privacy Policy and Terms of Use, including the arbitration clause and E-SIGN consent.
Do Dallas-Fort Worth drivers pay more than the Texas average?
The short answer: No regulator or official public source publishes a DFW or city average, so we can’t say honestly; where your car is kept is a rating factor, and North Texas hail makes comprehensive matter.
The NAIC publishes statewide figures only. TDI lists where you live among the factors companies use, so two drivers in the same city can get different prices from one ZIP code to the next. For local detail, see our guides to car insurance in Arlington and car insurance for Mansfield drivers.
What we can source is weather. Texas led the nation with 902 major hail events (one inch or larger) in 2025, according to the Insurance Information Institute, citing NOAA’s Storm Prediction Center. Comprehensive is the coverage that pays for hail on your car, and Texas’s comprehensive average was well above the national one in 2024. The NAIC doesn’t link the two, but when we talk with North Texas drivers, the comprehensive deductible is usually the first number they want explained.
How can you lower your premium without cutting the wrong coverage?
The short answer: Start from your declarations page, keep strong liability and uninsured motorist limits, test a higher deductible you could actually pay, and ask about discounts and a credit re-rate at renewal.
Here’s the order we use with Texas drivers at our office in Arlington:
- Pull your declarations page
TDI says it lists your drivers, cars, coverages, deductibles, premium and discounts. It’s your baseline.
- Ask what changed at renewal
Ask your company to explain the increase: a new driver, a claim, a ticket, a new car or a rate change.
- Keep liability and uninsured motorist limits strong
These protect what you own. Lower the premium somewhere else first.
- Price a higher deductible you could pay next week
A higher deductible could lower the premium. Pick one you could cover from savings after a storm.
- Ask about discounts and a credit re-rate
Each company decides its discounts, TDI notes. Bundling or multiple cars may help, and a credit re-rate may apply at renewal.
Bundling is one of the most common questions we get; our explainer on whether bundling home and auto can lower your cost covers how it works in Texas. Discounts and eligibility vary.
The bottom line
Car insurance in Texas costs more than the national average: the NAIC put the 2024 Texas average expenditure at $1,578.45 and the combined average premium at $1,917.05. Those figures are useful context, but your price comes from your driving record, your ZIP code, your car, your credit and, above all, the limits and deductibles you choose.
Send us your ZIP below or call (817) 262-5300. We’ll read your declarations page with you, price two or three coverage levels side by side, and quote Allstate coverage that fits your household. You can also start on our auto insurance page. We’re open Monday through Friday from 8:30 to 5, with help in 7 languages.
By clicking Get My Free Quote, I give Robinson Legacy Partners LLC, an Allstate agency, and its licensed agents my prior express written consent, by electronic signature, to contact me with calls and text messages — including marketing calls and texts made using automated technology or an artificial or prerecorded voice — and by email, at the number and email I provided, about my insurance quote and related insurance products and services, even if my number is on a Do Not Call list. My information is never sold or shared with other agencies for their own marketing. Consent is not a condition of purchase; I can call (817) 262-5300 instead. Message frequency varies. Message and data rates may apply. Reply STOP to opt out, HELP for help. I agree to the Privacy Policy and Terms of Use, including the arbitration clause and E-SIGN consent.
Texas car insurance cost FAQ
What is the average cost of car insurance in Texas?
The National Association of Insurance Commissioners put the 2024 Texas average auto insurance expenditure at $1,578.45 per insured vehicle, in its Average Premium Supplement released October 1, 2026. The combined average premium, which adds liability, collision and comprehensive averages, was $1,917.05. These are the latest regulator figures as of October 2026. They are statewide averages across every insured car and driver, not a quote, and your own price depends on your record, location, car, credit and the coverage you choose.
How does Texas compare with the national average for car insurance?
Texas is higher, on the NAIC’s 2024 figures. Texas average expenditure was $1,578.45, against $1,431.63 countrywide, and Texas was higher on liability, collision and comprehensive averages too. The biggest gap was comprehensive, $455.00 in Texas against $283.15 nationally. The NAIC doesn’t explain the difference or rank the states, and its figures don’t account for differences in tort laws, traffic or the drivers being insured. Treat them as context, not as a measure of your price.
How much does minimum liability car insurance cost in Texas?
No regulator or official public source publishes a Texas average for minimum-only policies, so we won’t guess. The NAIC’s 2024 Texas liability average premium was $892.78, but that blends every liability limit drivers buy, not just the 30/60/25 minimum. Minimum liability also pays nothing toward your own car. Before choosing it, ask a licensed agent to price stronger limits on your own policy so you can see the difference in dollars, along with what each level would and wouldn’t pay after a serious crash.
Does my credit score affect car insurance in Texas?
It can. The Texas Department of Insurance lists credit among the factors companies may use. Texas law limits that use: an insurer may not deny, cancel or nonrenew a personal policy solely on the basis of credit information. Under SB 1644, for policies issued or renewed on or after January 1, 2026, insurers that use credit must generally update it at least every 36 months, and at renewal must re-rate on request no more than once every 12 months. Some exceptions apply.
Why did my Texas car insurance go up at renewal?
Often it’s a mix of your own changes and broader costs. The NAIC’s Texas average expenditure rose every year from 2020 to 2024, by about 15.91% in 2023 and 10.46% in 2024 (our math). Your own factors matter too: a new driver, a ticket or claim, a new car, a move or a change in credit. TDI suggests asking your company to explain the increase and whether you’re getting every discount available. A licensed agent can walk you through your declarations page line by line.
Last reviewed by the Robinson Legacy Partners team on .
