FAQ: Common Questions About Why Auto Insurance Is So Expensive in Texas

I talk to drivers every day who are confused about why their car insurance keeps going up. To make things simple, I put together a list of the questions I hear the most and the straightforward answers that can help you understand what’s really happening in Texas and what you can do to save.

1. Why is auto insurance so expensive in Texas?

Rates are high due to repair costs, lawsuits, uninsured drivers, and high-risk traffic environments.

2. Why did my auto insurance go up when nothing changed?

Even if your personal situation stayed the same, statewide claim costs, lawsuits, and inflation can increase premiums.

3. Why are Texas rates higher than other states?

Texas has higher claim frequency, more severe accidents, and a strong legal environment that increases payout amounts.

4. What is the average cost of car insurance in Texas in 2026?

Most drivers pay between $180–$260 per month depending on ZIP code and driving history.

5. Why did my premium increase by $500 or $1,000?

Carriers adjust pricing based on claim trends, repair costs, and overall losses in your area — not just your personal record.

6. Which city in Texas has the highest auto insurance rates?

Houston, Dallas, and parts of San Antonio typically have the highest premiums due to high traffic and accident frequency.

7. Why does ZIP code affect auto insurance so much?

ZIP codes reflect local risk: accident rates, theft, storms, fraud, and lawsuit history.

8. Who has the cheapest auto insurance in Texas?

No company is cheapest for everyone. Rates vary by driver profile, credit, age, and ZIP code.

9. How do I lower my car insurance in Texas?

Maintain good credit, increase deductibles, avoid claims, and shop multiple carriers.

10. Is $200 a month for car insurance normal in Texas?

Yes. For many areas of Texas, $180–$220 is now considered average for clean drivers.

11. Why am I paying $300 a month for car insurance?

High-risk ZIP code, claim history, young driver rating, or vehicle type can push rates higher.

12. Does having no previous insurance raise my rate in Texas?

Yes. A lapse in coverage or no prior insurance usually increases the premium.

13. Do small claims affect my insurance rates?

Yes. Even minor claims can stay on your record and raise your rate for 3–5 years.

14. How long do accidents stay on my record in Texas?

Most accidents affect your premium for 3–5 years depending on the carrier.

15. How does credit score affect car insurance pricing?

Texas allows credit-based insurance scoring; better credit usually results in lower premiums.

16. Why is insurance expensive in Houston?

High traffic, more accidents, uninsured drivers, weather losses, and higher vehicle theft rates. High-risk ZIP codes affect not only auto insurance but also business insurance rates in Texas.

17. Does bundling home and auto really lower insurance costs?

Yes. Bundling your home insurance and auto insurance can reduce premiums by 10–25% depending on the company.

18. How do repair costs impact insurance rates?

Modern cars require expensive parts and advanced calibration, which increases claim costs.

19. Why are so many people in Texas uninsured?

High costs, income challenges, and lack of enforcement contribute to uninsured-driver conditions.

20. How do uninsured drivers raise my insurance rate?

Insurance companies pay out more in accidents involving uninsured drivers, raising overall rates.

21. Are staged accidents a real problem in Texas?

Yes. Fraud and staged crashes in certain cities significantly increase claim costs.

22. Can switching carriers lower my auto insurance?

Often, yes. Different companies rate your profile differently, especially by ZIP code.

23. What factors make my premium go up automatically?

Inflation, carrier losses, local claim frequency, population growth, and rising medical costs.

24. Does my type of car affect insurance cost?

Absolutely. Cars with expensive technology, high repair costs, or high theft rates cost more to insure.

25. What is the best way to avoid surprise increases in Texas?

Stay insured continuously, avoid claims, monitor your credit, and review rates annually with an agent.

If you’d like to compare prices across different carriers, you can request a free quote right here. Click Get a Quote, fill in your basic information, drivers, VIN number, and the type of coverage you want — and our team will take care of the rest.

👉 Read the full guide:
Why Auto Insurance Is So Expensive in Texas (2026)