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What You Need to Know About Auto Insurance in Austin, Texas

In Austin, Texas, you need at least the minimum liability coverage required by the state. For bodily injury liability, you need $30k for each person and $60k per accident, which pays for medical bills of injured parties if you are responsible for an accident, plus $25,000 for property damage liability. For this type of coverage, you will see it written as 30/60/25. Even though it is the most affordable type of auto insurance, it does not offer complete coverage. Find out more about affordable insurance company in Austin by reading this guide.

Austin Auto Insurance Costs on Average

According to auto insurance in Austin, Texas, drivers pay an average of $5737.03 per year for car insurance. For drivers living in the city, USAA offers the most affordable rates.

For four sample drivers, Compare.com obtained quotes for basic coverage. According to the site, the following average rates were found for a 30/60/25 liability, uninsured motorist liability, and comprehensive and collision policy:

  • An at-fault collision claim for a 21-year-old male costing 127 dollars per month
  • 119 dollars a month for a 23-year-old woman with no violations or accidents
  • 111 dollars per month for a 27-year-old man without violations or accidents
  • An at-fault accident and a speeding ticket in the past three years cost a 32-year-old woman $102 per month

In Austin, women pay about $1330 per year for auto insurance, while men pay about $1272 per year, according to quotes from Johnny Jet for an individual who owns a house, has a Toyota RAV4 2014, drives about 12,000 miles annually, and hasn’t had an accident or claim in the last three years.

Austin drivers pay an average of $83 a month and $999 a year for a minimum liability policy according to ValuePenguin. In the city, the average cost of a full coverage policy is $225 per month or $2698 per year. According to these numbers, Austin’s average auto insurance rates are just 5 percent higher than Texas’ average. Apart from USAA, which is reserved for military families, Chubb, State Farm, and Loya have the cheapest minimum coverage policies.

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Factors Affecting Austin Auto Insurance Prices

According to Johnny Jet, Austin adults purchasing auto insurance for the first time pay an average of $73 a month for minimum liability coverage. A few factors that affect premiums include:

  • The average price for women under 21 and men under 25 tends to be higher. Rates steadily decrease after age 25 until drivers reach their 70s, when insurance costs begin to increase again. Data from the Insurance Institute for Highway Safety show drivers between the ages of 16 and 19 have 300 percent the accident risk of drivers 20 and older, according to ValuePenguin. This risk is the reason for the higher premium, which is often more than 200 percent of the premium older drivers pay. Teen drivers can save about 44 percent on insurance if they sign up with a parent.
  • The cost of insurance is higher for those who have had at-fault accidents and tickets in the past three years. Multiple traffic violations, accidents, collisions, and/or arrests can cause insurance providers to decline to issue policies to high-risk drivers.
  • Drivers in Austin pay higher insurance premiums than those in suburban and rural areas. As a result of higher population density, insurance companies face higher risks of accidents. In Austin, auto insurance rates can vary by as much as 13 percent based on zip code.
  • If you drive a sports car, a high-performance vehicle, or a luxury vehicle, you will pay more for insurance because your vehicle will cost more to repair or replace in the event of an accident. The costs of insuring imports are higher than those of domestic vehicles.
  • Using your car for business purposes is more expensive than using it for personal reasons. They also take into account your annual mileage.
  • Low credit score: Low credit score drivers are charged more by insurance companies. In contrast, insurers argue that drivers with good or excellent credit have a lower risk of accidents and claims. According to Cheapest Auto Insurance, if you have poor credit, you should consider buying insurance from a nonstandard provider, such as Falcon, Save Money Car Insurance, E-Z Insurance, or Texas Ranger.

After an accident, the cheapest full coverage in Austin

You may have to pay more for auto insurance after filing an accident claim, even if you did not cause the accident. According to ValuePenguin, these insurance companies offer the most affordable full coverage policies in this situation:

  • Allstate: $7142
  • Chubb: $4002
  • Dairyland: $4924
  • Loya: $1438
  • MetLife: $9944
  • Nationwide: $2276
  • State Farm: $1783
  • GEICO: $3451
  • USAA: $1913

After an accident, you may be able to find lower premiums by shopping around if your insurance rates increase. Most drivers would benefit from comparing rates at least once a year since the most expensive insurance policy could cost up to $15,000 more than the cheapest. It is also beneficial to compare rates from local and national providers

If you have auto insurance, don’t forget to ask about discounts. You can save money by taking safe driving courses, installing anti-theft equipment, getting good grades, or bundling more than one policy with the same company.

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