Is Car Insurance Cheaper in California or Texas?

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By Kristine Lee

Updated February 7, 2025

Edited By Ross Martin

Comparing auto insurance in California and Texas

If you are plotting a move from California to Texas, you are probably focusing on the major expenses and concerns: contracting a reliable long-haul moving service, getting a new apartment or house in your new state, and setting your move-in schedule.

With all of this going on, it can be easy to forget the details. Auto insurance is often treated as a detail, but it’s critical. To find a cheap rate and stay street legal, plan to update your policy — or find a new policy altogether — when you move between states.

Read our guide to car insurance in California versus Texas and ensure your move is pain-free. We'll cover the following topics:

Insurance cost comparison
Rates by coverage level
Affordable companies by state
Rates in major cities
Additional resources

California vs. Texas auto insurance — average rates

Expect to pay more for auto insurance once you move. The average annual auto insurance rate in Texas is $418 more expensive than the cost in California. The precise cost will depend on your coverage choice, insurance history, and your choice of insurance company.

AUTO INSURANCE RATES IN CALIFORNIA VS. TEXAS

State	Average Annual Rate
California	$1,707
Texas	$2,125

Average car insurance prices by coverage level

The amount you pay for an auto insurance policy depends on how you use your vehicle and what level of coverage you desire.

If you go with your state's minimum liability auto insurance coverage, you will get bodily injury, property damage liability, and medical payment coverages, along with uninsured and underinsured motorist coverage and personal injury protection (PIP) in some states.

AUTO INSURANCE RATES — BASIC LIABILITY COVERAGE IN CALIFORNIA vs. TEXAS

State	Time Period	Premium
California	Annual	$573
Texas	Annual	$782
California	6-Month	$286
Texas	6-Month	$391
California	Monthly	$48
Texas	Monthly	$65

Electing full-coverage car insurance will raise your premiums, but you’ll get the peace of mind that comes with collision and comprehensive coverage levels, plus such perks as rental reimbursement and roadside assistance. The main benefit of full coverage is that it protects you and your vehicle more comprehensively than does basic coverage. If you want to do everything possible to protect your investment, consider bumping up your policy to full coverage.

AUTO INSURANCE PREMIUMS FOR FULL COVERAGE IN CALIFORNIA vs. TEXAS

Location	Duration	Cost
California	Annual	$1,626
Texas	Annual	$2,120
California	6-Month	$813
Texas	6-Month	$1,060
California	Monthly	$135
Texas	Monthly	$177

Cheap auto insurance companies in California and Texas

One of the top contributing factors to auto insurance costs is your choice of car insurance company. Insurance companies assign premiums in a variety of ways, leading to major price variations. Location plays a role, too: some auto insurance companies have limited geographic range, while major insurers' rates change by state.

When moving across state lines, it's crucial to find the best cheap auto insurance company in your new location. Get started below by viewing the five most affordable car insurance companies in California and Texas.

AFFORDABLE AUTO INSURANCE COMPANIES IN CALIFORNIA

Company	Average Annual Rate
USAA	$1,132
Wawanesa	$1,169
Century National	$1,202
CSAA	$1,210
Nationwide	$1,238

See additional cheap auto insurance companies in California.

AFFORDABLE CAR INSURANCE COMPANIES IN TEXAS

Car Insurance Company	Average Annual Rate
Travelers	$1,031
USAA	$1,106
Texas Farm Bureau	$1,223
Germania Mutual	$1,269
Esurance	$1,393

View more affordable auto insurance companies in Texas.

Car insurance rates by city in California and Texas

While car insurance is regulated on a state-by-state level, underwriters assign rates by ZIP code to adjust for unique factors such as density and the likelihood of a crash. The exact location to which you relocate will play a major role in deciding your auto insurance rates.

The below tables show auto insurance rates in major cities in Texas and California.

CAR INSURANCE COSTS BY CITY IN CALIFORNIA

City	Average Annual Rate
Los Angeles	$2,125
San Diego	$1,354
San Jose	$1,409
San Francisco	$1,728
Fresno	$1,487

View a longer list of car insurance rates in California cities.

AUTO INSURANCE PREMIUMS BY CITY IN TEXAS

City	Average Annual Rate
Houston	$1,872
San Antonio	$1,705
Dallas	$1,874
Austin	$1,643
Fort Worth	$1,637

Your new city not listed above? View other Texas cities here..

More resources: relocating from California to Texas

When you relocate from California to Texas, you’ll encounter unfamiliar driving laws, different FR-44 or SR-22 requirements, and more. Ensure your move is as easy as possible with our data on your new state:

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 editorial 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.

Car Insurance Comparison: California vs. Texas

Kristine Lee

Ross Martin