Austin, TX Car Insurance
Compare Progressive, Allstate, GEICO and Nationwide (+ other top companies) to find the best and cheapest car insurance in Austin.
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How much does car insurance cost in Austin?
Drivers in Austin can expect to pay an average of $983 for a six-month policy or $164 per month. According to our data in 2022, GEICO is the cheapest car insurance company in Austin with rates at $680 for a six-month policy. This breaks down to only $113 per month.
The Texas state average for car insurance is about $993 every six months, so Austin comes in slightly under that amount, but the city's rates are higher than the national average of $742. Even though Austin's rates are less than those of other cities in Texas, 48% of our customers in Austin feel that they're paying too much for their car insurance. If you are one of these folks, or if you simply want to learn more about the cost of car insurance in Austin, keep reading to find out about the factors that go into rates and ways you may be able to save on your premium.
|Car Insurance in Austin vs. Texas||Avg. 6 Mo. Premium|
The cheapest car insurance companies in Austin
GEICO offers the cheapest auto insurance policy in Austin at $113 per month or $680 for a six-month policy.
The next most affordable auto insurance company in Austin is Nationwide. On average, a Nationwide policy in Austin costs $741 for six months, or $124 per month.
To finish off our list of the cheapest insurance options in Austin is State Farm, which costs about $136 per month, or $813 for a six-month policy.
The Zebra's key takeaways about car insurance in Austin:
- The average cost of an auto insurance policy in Austin is $983 per six-month policy — $164 per month.
- The cheapest company in Austin is GEICO ($113 per month).
- Rates in Austin are actually lower than most other major cities in Texas.
- 48% of Zebra customers in Austin stated they used our product because their current insurer is too expensive.
Are you paying too much for auto insurance?
Austin car insurance rates by company
The cheapest company for full coverage auto insurance in Austin is GEICO, according to our 2022 data. A six-month policy runs about $680, which is $113 per month. Nationwide is the second cheapest, at $124 per month ($741 for a six-month policy).
Learn more about top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey.
Cheapest car insurance companies in Austin, TX
|Company||Avg. 6 Mo. Premium|
|Texas Farm Bureau||$887|
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Shop around to find the best rates on car insurance
Comparing companies and rates is the simplest way to save money on auto insurance. The Zebra is here to help! Simply enter your ZIP code to start comparing rates from top companies like Progressive, Allstate, GEICO and many more top names in the insurance business. Find the best cheap auto insurance in Austin with coverage that meets your needs.
Average car insurance in Austin by rating factor
When it comes to the price of car insurance, there are things that are both in and beyond your control. Rating factors are individual characteristics that are specific to your profile — such as credit score, claims history and age. Generally, companies will use the same factors, but sometimes they weigh them differently. One insurer may place more weight on your credit score, while another might focus on previous claims.
One key point to remember is that the coverage, and company, that's best for you can change over time. As you get older and have more driving experience under your belt, your profile will change. It's important to get new quotes on your auto insurance once in a while to make sure you're still getting the best deal on your rates.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings (revenue of premiums versus the cost of paying insureds’ claims) have a direct impact on car insurance rates in Austin. You might be a fantastic driver without any prior claims, but as the cost of doing business in certain areas increases the companies have to increase their rates, as well.
Auto insurance premiums by age in Austin
Age is actually one of the most important rating factors when it comes to car insurance, and the data that insurance companies have can show them which age group is most likely to file claims. Teen drivers take the lead when it comes to the number of accidents, which means that they also face the highest cost of premiums. The difference in rates paid by teenage drivers and those in their 20s is $1,731 for a six-month policy in Austin. This is the largest gap in price between any two age groups for a new car insurance policy.
It can be shocking to see the cost of insuring a young driver, but remember that it isn't personal. Insurance companies have to offset the cost of paying claims, so by charging the riskiest group of drivers higher rates the companies are able to continue their business as accidents occur.
Cheapest car insurance companies for teen drivers in Austin, TX
|Company||Avg. 6 Mo. Premium|
|Texas Farm Bureau||$1,701|
|Age Bracket||Cheapest Companies||Avg. 6 Mo. Premium|
|70s||Texas Farm Bureau||$730|
Zebra Tip: The cheapest companies for Austin drivers between ages 20-40 are GEICO, Nationwide and Texas Farm Bureau.
Statistics show us that the majority of drivers in Austin are between the ages of 20 and 40. On average, this group of drivers pays $1,130 every six months. By going with one of these companies, these drivers can save as much as 23%.
Auto insurance premiums for minimum coverage in Austin
One detail of your auto insurance has a huge impact on what you pay — the level of coverage you choose. The options can seem overwhelming when you are shopping for a new policy, but it's important to consider your choices and specific needs. According to our research, 18% of Austin drivers have the state minimum coverage. This technically meets Texas' requirement, but carrying the bare minimum does present more risk if you're involved in an accident.
By carrying collision coverage or comprehensive coverage (usually known as "full coverage" when you have both) your rates can go up significantly. But, depending on the deductible you choose, you can have a bit more choice on how much. The higher the deductible, the cheaper your rates will be. If you prefer to have a smaller deductible, then you'll pay a higher premium.
Other additions that will impact your rates are roadside assistance or uninsured motorist coverage. These are both nice to have for additional peace of mind. Uninsured motorist coverage helps protect you against drivers who don't carry auto insurance, or just don't have enough coverage. Although these extras will increase your rate, they're worth considering, and The Zebra recommends carrying them for those unexpected situations where you and your vehicle need extra support.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
Our data shows that 49% of drivers in Austin own their vehicles. When leasing or financing your vehicle, you may have a certain level of coverage that is required. But if you own your vehicle outright you might want to consider if dropping comprehensive or collision coverage is an option. We suggest that you find out the actual cash value of your car through a source like Kelley Blue Book. Typically, if your vehicle isn't worth more than $4,000 you can go without collision coverage. Just know that the risk of dropping collision coverage is that you'd have to pay for repairs yourself if there was an incident.
Cheapest car insurance companies for minimum coverage in Austin, TX
|Company||Avg. 6 Mo. Premium|
|Texas Farm Bureau||$358|
|Coverage Bucket||% of The Zebra Customers|
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. This may include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits, better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in Austin choose to carry basic coverage for their car insurance, but that doesn't mean it's the best for every driver. Carrying the state minimum is one way to save money on your insurance premiums, but it does have more risk involved. If you were to get into a fender-bender, then it would probably be enough to take care of things. However, with traffic incidents involving multiple vehicles or injuries, you could be in a tricky situation without enough coverage.
Texas' 30/60/25 liability limits provide coverage for damage you cause up to $30,000 per person in bodily injury, $60,000 per accident in bodily injury and $25,000 for property damage. Take time and consider whether the bare minimum is actually the best option and whether there may be alternative ways to save money on your auto insurance.
Learn more about insurance laws in Texas.
|Vehicle Ownership||% of The Zebra Customers|
Austin car insurance rates by credit score
Although it may seem like your credit score and your car insurance rates aren't really connected, they're more related than you'd think. Texas, like most states, considers credit score a factor in the insurance premiums you pay.
There are several reasons for this: data has shown that drivers with lower credit scores are more likely to file claims, more likely to have lapses in car insurance coverage and tend to take more risks behind the wheel. Because lower credit scores can be statistically associated with higher risk, insurance companies have to take this into consideration when determining rates.
To give you an idea of how credit differences may affect rates, consider that Austin drivers with poor credit (300-579) pay 108% more than drivers with excellent credit (800-850). This can be a shocking statistic! On the bright side, our data shows us that most drivers in Austin actually have "Excellent" credit. The cheapest insurance company for drivers in this credit tier is Texas Farm Bureau. If your credit isn't quite in the "Excellent" category yet, keep reading to identify some options for improving your score.
Cheapest car insurance companies for bad credit in Austin, TX
|Company||Avg. 6 Mo. Premium|
|Texas Farm Bureau||$1,688|
Zebra Tip: If you recently improved your credit score, shop around for car insurance!
In Austin, our data shows drivers with "Fair" credit pay $978 less for car insurance in a year than drivers with "Poor" credit. The difference between these levels of credit might only be a few points, depending on where your score currently falls. If you have recently paid off a loan or other credit-improving actions, check your preferred credit monitoring software to see if your recent efforts could save you on your car insurance!
Auto insurance rates with an at-fault accident
At-fault and collision-type accidents are the most common type of insurance claims. In 2022, an at-fault accident raised the average car insurance rates in Austin by about $100 per month — 60% more than the going rate for accident-free drivers. The cheapest insurance company in Austin after an at-fault accident is State Farm.
No matter where you live, keeping a clean driving record by avoiding accidents and citations is the best way to keep your auto insurance rates affordable. Speeding citations, reckless driving charges, DUIs and DWIs and at-fault accidents all result in rate increases. Depending on the type of citation or ticket, your premium will be impacted for several years. Typically, at-fault accidents and speeding tickets will be on your record for three to five years whereas DUIs or DWIs can follow you for longer.
Cheapest car insurance companies after an at-fault accident in Austin, TX
|Company||Avg. 6 Mo. Premium|
|Texas Farm Bureau||$1,424|
Austin car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Austin.
Car insurance rate increases after violations and citations in Austin, TX
|Accident/Violation||Avg. 6 Mo. Premium||% Rate Increase||$ Rate Increase|
|One Med/PIP claim||$992||1%||$8|
|One comp claim||$1,045||6%||$62|
|Failure to show documents||$1,050||7%||$66|
|Driving with expired registration||$1,058||8%||$75|
|Two Med/PIP claims||$1,063||8%||$80|
|Driving without lights||$1,065||8%||$82|
|Failure to wear a seat belt||$1,066||8%||$83|
|Child safety restraint||$1,072||9%||$89|
|Cell phone violation||$1,091||11%||$108|
|Texting while driving||$1,091||11%||$108|
|Speeding 11 - 15 MPH over limit||$1,095||11%||$111|
|Speeding 16 - 20 MPH over limit||$1,095||11%||$111|
|Speeding 6 - 10 MPH over limit||$1,095||11%||$111|
|Driving too slowly||$1,099||12%||$116|
|Speeding in school zone||$1,099||12%||$116|
|In 65 MPH zone||$1,101||12%||$118|
|Failure to stop at a red light||$1,102||12%||$119|
|Two comp claims||$1,104||12%||$120|
|Speeding 21 - 25 MPH over limit||$1,106||13%||$123|
|Wrong way/wrong lane||$1,108||13%||$125|
|Failure to yield||$1,110||13%||$127|
|Following too closely||$1,113||13%||$129|
|Passing school bus||$1,118||14%||$134|
|Operating a vehicle without permission||$1,124||14%||$141|
|At-fault accident - less than $1000||$1,220||24%||$237|
|Driving with a suspended license||$1,392||42%||$409|
|Leaving scene of an accident/hit and run||$1,443||47%||$459|
|At-fault accident - $1000-$2000||$1,576||60%||$593|
|At-fault accident - greater than $2000||$1,582||61%||$599|
|Refusal to submit to a chemical test||$1,637||66%||$653|
Why is car insurance in Austin so expensive?
Auto insurance in Austin is expensive for a variety of reasons. One reason is that the cost of living in Austin is high, which means that car insurance companies have to charge more to cover their costs. But there's more to it than that — on top of your coverage level, credit history and driving record, there are other factors that impact your rates.
Below you'll find a rundown of why car insurance is so expensive in Austin, regardless of your driving profile.
Where you live, specifically, in Austin also affects how much you pay for car insurance. Besides your driving history and credit score, this is one of the biggest contributing factors to your insurance premiums.
But what does this have to do with your driving? High rates of crime or theft, as well as the number of uninsured motorists, vary by ZIP code. Some areas of the city are more prone to crime, which makes them riskier for insurance companies. If you live (and drive) in a high-crime area, you will likely pay more for auto insurance than someone who lives in a safer neighborhood.
Rates by ZIP code
Expensive Austin ZIP codes: 72710, 78617, 78741, 78724, 78744
Cheap Austin ZIP codes: 78717, 78749, 78759, 78728, 78756
Texas may be unlikely to experience ten feet of snow, but it does have its fair share of severe weather. Texas as a whole actually ranked #1 in 2021 for hail events — 688 that year, to be specific.
Damage from hurricanes has a serious impact on insurance companies, too. Although Austin isn't on the coast and affected in the same way that Houston is, for example, the ramifications of a hurricane can be felt quite a ways inland in the form of intense rain and wind. Because weather-related damage can be devastating for an insurer, certain regions can be more expensive in which to do business. Rates are increased in these areas in anticipation of weather-related claims.
Other risks that can affect drivers in Austin are flooding and wildfires, both of which are covered under your comprehensive car insurance. For Austin drivers with a very nice or newer vehicle, we highly recommend carrying comprehensive coverage to support you in the event of a natural disaster or weather-related loss.
Zebra Tip: Use your comprehensive coverage to protect your vehicle against wildfires
Carrying comprehensive coverage gives you an extra layer of protection for claims involving weather. In 2021, Texas experienced over 5,000 wildfires that burned almost 170,000 acres across the state. Although no one anticipates these major incidents actually affecting them personally, it does happen, so if you're concerned about Mother Nature ruining your ride then it may be worth adding this coverage to your policy.
Number of drivers
Austin, one of the fastest-growing cities in America during 2022, continues to be a popular landing place as flexible work options become more commonplace. With more people moving to the area, there comes additional risk with more cars on the road. As claims increase in an area then rates will typically go up for local drivers, as well, to offset the increased costs of claim payouts.
You may be a very safe driver with a great track record on the road, but as we've learned, insurance rates aren't always within our control. According to our data, about 24% of drivers in Austin are not currently insured. Although this isn't the highest percentage compared to other Texas cities, it is still significant. You can be on the hook for damages yourself if you're involved in an accident with an uninsured driver.
The Zebra's customers in Austin by insured status
|Insured Status||% of The Zebra Customers|
|Not Currently Insured||24%|
Zebra Tip: Consider uninsured property damage coverage
Austin's rate of uninsured drivers is 24%, which means drivers in the city run the risk of being involved in a traffic incident where the damages may not be covered by insurance. One option to help in this situation is uninsured motorist coverage (also called UMPD). It will be there to help in the event that an uninsured or underinsured driver damages your vehicle, or yourself. One bonus of UMPD is that it's usually cheaper than collision insurance, often has a lower deductible and you'll generally see a lower rate increase after making a claim.
Bundling insurance policies in Austin
Car insurance rates are increasing, but there are still ways you can help cut down on some of the costs. Take advantage of the potential savings that could come with bundling home and car insurance policies. Many people are able to benefit from discounts worth up to 10%, making it an attractive option for those looking for budget-friendly rates without compromising on coverage.
If your home and auto policies are currently separate, take a few minutes to ask about bundling them. If you're shopping for a new insurer, be sure to explore if bundling your coverage can make things more affordable.
Cheapest car insurance companies for bundling home and auto insurance in Austin, TX
|Company||Avg. 6 Mo. Premium|
|Texas Farm Bureau||$809|
There are quite a few factors that go into determining insurance rates. Many of these are out of your hands, but there are still things you can do as a driver to help keep your car insurance more affordable. We highly recommend shopping around when it's time to get auto insurance quotes so you can thoroughly compare your options and find the most affordable rate.
By educating yourself and looking at a variety of car insurance providers you can find the right coverage for your needs and budget. It's a great idea to regularly get quotes, especially when personal factors change, such as milestone birthdays or credit improvement, as these events can help save you money. It may feel a little uncomfortable to switch insurance companies, but some are just more expensive than others, so don't be afraid to make a change.
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Frequently asked questions
How much is car insurance in Austin?
The average for a six-month auto insurance policy in Austin is $983 for a six-month policy or $164 per month. This is more expensive than the national average but slightly less than the Texas state average.
What is the cheapest car insurance in Austin?
GEICO is the carrier with the cheapest rates in Austin, coming in at an average of $680 per six-month policy.
How much is car insurance in Austin for teenagers?
Teenagers in Austin pay about $3,000 for a six-month policy or $500 per month. Because car insurance is so expensive for teen drivers who have their own policy, we recommend that young drivers be added to their parents' policies to significantly bring down the cost.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.