Auto Insurance: Texas Vs Utah — Who Wins?

The average cost of car insurance in Texas is $1,716 per year, which is higher than the national average of $1,543. The average cost of car insurance in Utah is $1,407 per year, which is lower than the national average. Therefore, auto insurance is cheaper in Utah than in Texas.

Texas Farm Bureau has the cheapest car insurance in Texas

Texas Farm Bureau offers the cheapest car insurance in Texas, with rates that are nearly half the statewide average. The company's average annual rate of $863 is more than $100 per year less expensive than the next cheapest option.

Texas Farm Bureau's rates are especially competitive for married, 35-year-old drivers. Female drivers in this category pay, on average, $754 per year, compared to a statewide average of $1,555. For male drivers, the rate is slightly higher at $794 per year, compared to a statewide average of $1,623.

The company also offers the cheapest rates for teen drivers in Texas. A minimum coverage policy for an 18-year-old costs $64 per month, while full coverage costs $143 per month.

In addition to its low rates, Texas Farm Bureau also provides good customer service. In the 2023 J.D. Power Insurance Study, the company ranked third in Texas for overall customer satisfaction, scoring eight points above the state average.

Texas Farm Bureau's cheap rates and good customer service make it a great option for drivers looking for affordable car insurance in the Lone Star State.

Texas has higher-than-average traffic density

In fact, Texas has seen a significant increase in traffic density in recent years. Between 2012 and 2017, traffic density in the state rose by 14.4%, causing Texas to jump five spots in the rankings of the worst states for traffic problems. By 2017, Texas traffic was 13.0% worse than the national average. This is particularly notable considering that Texas has the most miles of public roads of any state.

The high traffic density in Texas is likely a contributing factor to the state's relatively high auto insurance rates. According to a 2024 study, the average cost of car insurance in Texas is $1,716 per year, which is $173 more than the national average of $1,543. Texas drivers seeking minimum coverage pay an average of $1,200 per year, while those with higher levels of coverage pay around $1,339 annually.

The high traffic density in Texas is influenced by several factors. The state has a fast-growing population, with many people moving there from other states. Additionally, Texas has the highest speed limits in the country, allowing drivers to travel at speeds of up to 85 mph. This combination of high population density and high speeds can increase the risk of accidents and contribute to higher insurance rates.

To mitigate the impact of high traffic density on insurance rates, Texas drivers can consider various strategies. Shopping around for quotes from multiple insurers and taking advantage of discounts can help lower premiums. Maintaining a clean driving record, choosing a higher deductible, and improving credit scores are also effective ways to reduce auto insurance costs in Texas.

Texas has the highest speed limits in the country

Texas is known for doing things bigger and better, and that includes its speed limits. The state has the highest speed limits in the country, with drivers allowed to go as fast as 85 miles per hour on certain roads. While that may be great for those who enjoy driving fast, it's important to remember that higher speeds can also mean more risk. In fact, Texas's high speed limits are one of the reasons why insurers may consider driving in the state to be more dangerous.

Texas first adopted its high speed limits in 1995 when the federal speed limit cap of 55 miles per hour was repealed, and the state was given the freedom to set its own standards. Texas State Highway 130, a toll road bypassing the Austin metropolitan area, is the only place in the country where drivers are legally allowed to go as fast as 85 miles per hour. This stretch of highway is about 41 miles long, and the rest of the highway has a speed limit of 80 miles per hour.

While Texas may have the highest speed limits in the country, it's not the only state with speeds above the former federal cap. Several other states, including Idaho, Montana, Nevada, Oklahoma, South Dakota, Utah, and Wyoming, also have roads with speed limits of 80 miles per hour. And in some states, like Maine and Michigan, drivers can even go as fast as 75 miles per hour on certain interstate highways.

However, it's important to note that higher speed limits don't necessarily mean more dangerous roads. In fact, some states with high speed limits, like Texas, have implemented safety features and engineering improvements to ensure that their roads are still safe for drivers. Additionally, speed limits are just one factor that insurers consider when assessing risk. Other factors, such as traffic density, weather conditions, and driving behaviour, also play a significant role in determining insurance rates.

Texas auto insurance rates jumped more than 25% last year

Texas auto insurance rates jumped by more than 25% last year, with the Texas Department of Insurance reporting a rise of 23.8%. This is the highest increase in at least 20 years, with the previous year's increase sitting at just 3-4%.

There are several factors contributing to this unprecedented rise. Firstly, the value of cars, especially used cars, has increased significantly during the pandemic. Secondly, there has been a rise in the number and severity of accidents, with fatalities up by 18%. This is attributed to people getting "out of practice" with driving during the lockdowns. Thirdly, general inflation has increased the cost of replacement parts by 50% in 2021, and there are ongoing labour shortages. Finally, the fast-growing population in Texas is also a contributing factor, as insurance companies try to predict future risk.

The Insurance Council of Texas has been monitoring the increasing auto insurance rates since 2018 and has observed that the hikes are due to a combination of factors, including inflation, the cost of gas, rental cars, and used cars. The Council's communications director, Rich Johnson, recommends that consumers shop around for the best rates and take steps to lower their interest rates, such as raising their deductible or taking a defensive driving course.

Texas has the cheapest car insurance for military families

Texas is one of the more expensive states for car insurance, with average annual premiums 4% higher than the national average. However, Texas has the cheapest car insurance for military families.

USAA, which offers exclusive insurance to military members, veterans, and their families, has the cheapest average rates in Texas for a number of driver categories. These include the cheapest rates for young adults, seniors, good drivers, drivers after an accident, and drivers after a DUI.

USAA also has the cheapest sample car insurance rates in Texas for drivers seeking the state-mandated minimum coverage. Its average annual rate of $786 per year is $414 cheaper than the statewide average cost for this level of coverage, which is $1,200 per year.

USAA also has the lowest annual rates, on average, for Texas drivers looking for higher levels of coverage. Its average annual rate of $886 is $453 cheaper than the statewide average of $1,339.

In addition to cheap rates, USAA also offers great service tailored to the military lifestyle. It offers discounts of up to 15% if you live on a military base, and up to 60% if you're deployed or storing your car. USAA also has great customer satisfaction reviews, scoring a perfect five out of five in J.D. Power's survey for shopping experience, claims processing, and overall satisfaction.

If you are a member of the military, a veteran, or an immediate family member, USAA is the best option for cheap car insurance in Texas.

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