Auto Insurance rates over the past decade have continued to increase in Texas including this year when the state upped the minimum insurance limits on bodily injury.  Texas auto insurance premium costs are about average compared to national costs.  (see table below). There are many variables that affect cost, but there are ways to save money on auto insurance in Texas.

Some of the factors involved in determining insurance rates, and not necessarily in order of importance, are your age, gender, driving record, number of claims filed, credit history (with some companies), coverage limits, where you live, and the type of vehicle you drive.  Car insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft.

Money Saving Tips on Auto Insurance Premiums

  • If you’re buying a new or used vehicle check the model’s rate costs before you purchase.  Consider what safety options are available.
  • Make sure you don’t buy protection you don’t need.  Consider the value of your car before you acquire comprehensive coverage.  Insurance companies won’t compensate you on what you owe on the car, only on the determined value.
  • Consider combining other insurance coverage (home, boat, etc.) with the same company.
  • Ask for discounts, (age, driving record, driver training classes, etc.)
  • And of course compare rates with various companies

Uninsured Motorists Drive up the Cost of Insurance

According to recent estimates, Texas is above the national average for uninsured motorists.  1 in 5 vehicles on the road in Texas carry no insurance coverage.  The estimate is closer to 1 in 4 in a number of counties in the state.  It is estimated that insured drivers pay an additional $1 billion a year to protect themselves from uninsured or underinsured drivers.  The Texas Legislature has developed an insurance verification program called “TexasSure” to combat this problem.  Texas Department of Insurance, Motor Vehicles, Public Safety and Information Resources can have access to an integrated database that connects all registered vehicles by plate number, VIN number and liability insurance policy number.

The most and least expensive states for car insurance, 2010 (from

Rank, State, Average Premium
1.   Louisiana $2,510.87
2.   Michigan $2,098.29
3.   Oklahoma $1,869.39
4.   Montana $1,857.96
5.   California $1,774.41
24. Texas $1,462.65


For more information on how to save money on your Houston auto insurance, give ABC Insurance a call at 713-782-2886.
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