Shopping for auto insurance in Austin, Texas, means purchasing at least the state minimum required liability coverage. You need $30,000 per person in bodily injury liability and $60,000 per accident, which pays the medical bills for injured parties if you cause an accident, as well as $25,000 for property damage liability that kicks in if you are at fault. When you get insurance quotes, you'll see this type of coverage written as 30/60/25. While this is the most affordable type of auto policy, it does not offer complete financial protection. Review this guide to learn more about auto insurance for Austin motorists.
Average Austin Auto Insurance Costs
The website autoinsurance.org reports that Austin, Texas, drivers pay an annual average premium of $5737.03 per year for car coverage. The site notes that USAA offers the most affordable rates for drivers who live in the city.
Compare.com got quotes for basic coverage for four sample drivers. The site found the following average rates by driver for a policy with 30/60/25 liability, uninsured motorist liability, and comprehensive and collision coverage:
- $127 per month for a 21-year-old man with a collision claim after an at-fault accident
- $119 per month for a 23-year-old woman with no violations or accidents
- $111 per month for a 27-year-old man with no violations or accidents
- $102 per month for a 32-year-old woman with an at-fault accident and a speeding ticket in the past three years
Travel and finance website Johnny Jet reports that Austin women pay about $1333 per year and men about $1272 per year for auto insurance in Austin, based on quotes for a single individual who owns a home, has a 2014 Toyota RAV4, drives about 12,000 miles per year, and has no accidents or claims in the previous three years.
ValuePenguin reports that Austin drivers pay an average of $83 per month and $999 per year for a minimum liability policy. The average for a full coverage policy in the city is $225 per month or $2698 per year. These numbers put Austin average rates just 5 percent over the Texas average auto insurance premium. The website notes that Chubb, State Farm, and Loya have the cheapest minimum coverage policies apart from USAA, which is exclusive to military families.
Factors That Influence Austin Auto Insurance Prices
Austin adults purchasing auto insurance for the first time pay an average of $73 a month for minimum liability coverage, according Johnny Jet. Factors that influence premium rates include:
- Age: Women younger than 21 and men younger than 25 typically pay the highest average prices. After 25, rates decrease steadily until drivers reach their 70s, when insurance costs begin to increase again. ValuePenguin cites data from the Insurance Institute for Highway Safety indicating drivers in the 16 to 19 age range have 300 percent the accident risk of drivers ages 20 and older. The higher premium, which is often more than 200 percent of the premium older drivers pay, results from this risk. However, teen drivers can save about 44 percent on insurance if they sign onto a policy with a parent.
- Driving record and claims history: Those who have had at-fault accidents and tickets in the past three years experience higher costs. Insurance providers can decline to issue policies to high-risk drivers who have had multiple driving-related tickets, violations, collisions, and/or arrests.
- The geographic location of your vehicle: Austin drivers pay higher insurance premiums than the rates for drivers who live in suburban and rural areas. Higher population density translates to a higher risk of accidents and a higher associated risk for the insurance company. Rates in Austin for auto insurance can vary by zip code by as much as 13 percent.
- Make and model of vehicle: If you drive a sports car, high-performance vehicle, or luxury car, you will pay more for insurance because of the increased cost of repairing or replacing your vehicle if you have an accident. Imports tend to cost more to insure than domestic vehicles do.
- Use of the vehicle: Insurance companies charge more for business use of your car than they do for personal use. They also look at your average annual mileage.
- Credit score: Many insurance companies charge more for drivers who have low credit scores. Conversely, insurers reason that drivers who have good or excellent credit have a lower risk of accidents and claims. If you have poor credit, the website Cheapest Auto Insurance recommends buying a policy with a nonstandard insurance provider, such as Falcon, Save Money Car Insurance, E-Z Insurance, or Texas Ranger.
Cheapest Full Coverage in Austin after an Accident
An accident claim will raise your auto insurance premiums, even if you did not cause the collision in some cases. ValuePenguin reports that these insurance companies offer the most affordable full coverage policies for drivers in this situation:
- Allstate: $7142
- Chubb: $4002
- Dairyland: $4924
- Loya: $1438
- MetLife: $9944
- Nationwide: $2276
- State Farm: $1783
- GEICO: $3451
- USAA: $1913
Shopping around after an accident can help you find lower premiums if your rates increase with your current insurance provider. Most drivers can benefit from comparing rates at least once a year, as ValuePenguin notes that the most expensive insurance policy could cost up to $15,000 more than the least affordable policy on the market. Comparing rates from local and national providers is also beneficial.
Don't forget to ask about possible discounts for your auto insurance coverage. Savings include programs for those who take safe driving courses, install anti-theft equipment, get good grades, or bundle more than one policy with the same company.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Best Cheap Car & Auto Insurance Rates in Austin, Texas (2020) | johnnyjet.com
Who Has the Cheapest Car Insurance in Austin, Texas? | valuepenguin.com
Auto Insurance in Austin, TX (The Complete Guide) | autoinsurance.org
How Do You Find Cheap Car Insurance in Austin, TX? | compare.com
Cheapest Auto Insurance | Austin, Texas | aautoandhomeinsurance.com
Car Insurance | caranddriver.com
2014 Toyota RAV4 FWD Tested| caranddriver.com
Hearst Autos Research
Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.
