Why Is Texas Car Insurance So Expensive?

Downtown El Paso

If you’re a vehicle owner in Texas, you’re probably all too familiar with pricey auto insurance policies. While the Lone Star State isn’t the most expensive in the nation, Texas auto insurance policies are still often higher than average. The El Paso car accident lawyers at the Law Offices of Michael Gopin, PLLC explore the reasons for the high insurance rates here in Texas and what you can do to keep your premiums low.

What Are Average Car Insurance Rates Across the Country?

According to the Insurance Information Institute, the cost of auto insurance premiums has increased nationwide in recent years. One recent study conducted by AAA reported that the average cost of full-coverage car insurance for mid-sized sedans is roughly $1,403 per year. The average cost of insuring a midsize SUV is reportedly $1,296 per year, while the average annual cost of insuring any vehicle is $1,342.

Furthermore, financial services company Bankrate reported car insurance rates in 2022 were $1,771 nationwide for full-coverage auto insurance. For minimum auto insurance coverage, the average nationwide rate is $545 per year. On a state-by-state basis, the most expensive state for auto insurance is New York ($2,996 per year) while the least expensive state is Maine ($876 per year).

In Texas, the annual average cost for full auto insurance coverage is $1,868 per year, more than five percent above the national average. And in certain Texas cities, the average annual costs of full coverage are even higher: 

  • Houston – $2,146 per year (18 percent higher than the state average)
  • Dallas – $2,093 per year (15 percent higher than the state average)
  • Laredo – $2,015 per year (11 percent higher than the state average)
  • Pasadena – $2,027 per year (11 percent higher than the state average)

What Factors Can Impact Car Insurance Rates?

A number of factors can affect car insurance premiums, including:

  • Frequent claims – If you make frequent claims, the insurance company will likely decide that covering you is risky and raise your premiums.
  • Fraudulent claims – Similarly, if you have a history of fraudulent claims, it will likely contribute to an increase in your rates.
  • Driving record – Drivers who consistently incur traffic tickets or other violations may also see their premiums rise due to added risk to the insurance company.
  • Age and sex – Older drivers with longer safe driving records tend to receive better rates. Younger drivers, especially younger males, are more expensive to insure.
  • Where you live – If you live in a congested, high-traffic area that is prone to accidents, you are more likely to pay higher insurance premiums.

Injured in an Accident? Michael Gopin Can Help

If you have been injured in an accident that wasn’t your fault, don’t hesitate to seek legal help to pursue the compensation you deserve. At The Law Offices of Michael Gopin, PLLC, our El Paso car crash accident attorneys can answer your questions and evaluate your case for free during an initial consultation. Contact us today to learn more.

Michael J. Gopin

Michael J. Gopin has practiced law in El Paso since 1987. Even after more than 30 years, he still remembers his first jury case. It was two weeks after receiving his license, when he represented a person whose life had been forever changed after being blinded in a work-related incident...


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