Does Texas have higher-than-average car insurance costs?
By Drew Shaw
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YES
The average annual cost for full-coverage car insurance in Texas is $2,938, compared to a national average cost of $2,118 per year, according to Forbes estimates from January.
That makes Texas the eighth most expensive state for full coverage, according to Forbes, though exact numbers vary by source. New York and Florida have the highest rates, with average full-coverage costs over $4,000.
Texas’ average cost for minimum coverage is $650 per year, closer to the national average of $591.
Beyond driver history, insurance rates vary depending on an area’s population density, crime rates and frequency of severe weather events. In turn, the rates of New York City drive up the state’s average, as do hurricane-prone areas of Florida.
This fact brief is responsive to conversations such as this one.
Sources
Forbes: Car Insurance Rates by State
Insurance Information Institute: What determines the price of an auto insurance policy?
Value Penguin: Car Insurance Rates by State: 2024 Comparison
CarInsurance.com: Car insurance rates by state in July 2024
Bankrate.com: Average cost of car insurance in August 2024
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