Are Auto Insurance Rates Going Up in Texas?

As most drivers know, car insurance rates usually rise each year. But car insurance is complex: justifications for rate hikes and price cuts vary and may differ based on the driver's location.

Among the primary rating factors insurance companies use to set rates is a driver's location. The state, city, and ZIP code in which a vehicle is parked and driven help determine car insurance rates, depending on state laws and the variable risk associated with insuring a vehicle in a particular area.

Due to the multi-faceted nature of car insurance pricing, annual changes in rates diverge by state. Auto insurance prices might increase annually in a given state while they drop in a neighboring state.

See below auto insurance pricing trends in Texas. If you're paying too much, consider shopping around to find a better rate.

Car insurance price trends in Texas

In Texas, average annual auto insurance costs increased by $31 in the past year. A typical Texas driver pays an average of $1,827 per year.

The recent pricing trend in Texas leans toward less expensive car insurance costs. Between 2015 and 2018, rates went down by an average of $58 each year. At the same time, car insurance rates across the United States have jumped in the past few years, jumping from $1,280 in 2015 to $1,470 in 2018.

Year Avg. Annual Premium — Texas Yearly Change — Texas Avg. Annual Premium — US Yearly Change — US
2018 $1,827 $31 $1,470 $32
2017 $1,796 $234 $1,437 $69
2016 $1,562 -$323 $1,368 $88
2015 $1,885 $216 $1,280 $51
2014 $1,669 $155 $1,229 $34
2013 $1,514 -$63 $1,195 -$80
2012 $1,577 $323 $1,276 $82

If your rates are rising faster than the average in your state, compare quotes and find a better deal. The Zebra's car insurance comparison engine furnishes quotes based on your specific profile — enter your ZIP below to get started.

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How are auto insurance rates trending in the most populous cities in Texas?

Car insurance policies are priced at a granular geographic level with a variety of location-specific variables impacting how much you pay. That means drivers could see major differences in their insurance rates, based solely on their ZIP code or city. For example, Dallas drivers experienced a larger premium increase (6.8%) than did drivers in San Antonio (6.5%) between 2018 and 2017.

See below annual rate changes in large Texas cities. If rates are rising in your city — and moving isn't a feasible option — you can get quotes in an effort to find a lower rate.

City Avg. Premium Increase — 2018 vs. 2017
Dallas 6.8%
San Antonio 6.5%
Austin 6.5%
Fort Worth 6.4%
Houston 6.2%

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Ross MartinManager, Content Quality

As a licensed insurance agent, Ross researches and writes insurance content intended to help users make informed decisions.

Ross's background is in writing and education. He holds a master's degree from Royal Holloway, University of London.

Ross's work has been cited by The New York Times, Investopedia, The Simple DollarThe BalanceCar and Driver and Fox Business. He has been quoted by CNET, I Drive Safely and Kin Insurance