Yes, car insurance in Texas is relatively affordable compared to many other states, but recent trends indicate rising premiums.
💰 Average Car Insurance Costs in Texas
In 2025, the average annual cost for full-coverage car insurance in Texas is approximately $2,607, which translates to about $217 per month. This is slightly below the national average of $2,775 for full coverage .
📈 Rising Premiums
Despite being more affordable than some states, Texas has experienced significant increases in car insurance premiums. Between 2022 and 2024, premiums rose by 42%, and in 2024 alone, the average annual cost increased by 15% to $2,712 . Factors contributing to these hikes include inflation, higher repair costs, and extreme weather events.houstonchronicle.com+1houstonchronicle.com+1houstonchronicle.com
🏙️ City-Specific Rates
Insurance costs can vary within the state. For instance, in 2025, average annual premiums in major Texas cities are as follows:
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Houston: $2,696
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Dallas: $2,504
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Fort Worth: $2,276
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San Antonio: $2,262
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Austin: $2,151experian.com
These variations are influenced by factors like traffic density, accident rates, and local repair costs .
🔮 Future Outlook
Analysts predict that by 2026, the average annual premium in Texas could exceed $3,000, marking a significant increase from current rates . This projection underscores the importance of proactive measures to manage insurance costs.ourautoworld.com
✅ Tips to Save on Car Insurance in Texas
To mitigate rising premiums, consider the following strategies:
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Compare Quotes: Obtain quotes from multiple insurers to find the best rate.
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Maintain a Clean Driving Record: Avoid accidents and traffic violations to keep premiums low.
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Choose a Higher Deductible: Opting for a higher deductible can lower your monthly premium.
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Bundle Policies: Combine auto insurance with other policies, like homeowners insurance, for potential discounts.
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Utilize Discounts: Inquire about discounts for safe driving, vehicle safety features, or low annual mileage.
While Texas offers relatively affordable car insurance compared to some states, it’s essential to stay informed about rising costs and take proactive steps to manage your premiums effectively.