Average car insurance cost in Austin, TX

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The average car insurance cost in Austin, Texas is $1,930 per year, according to Insure.com data analysis. Also, the car insurance rates in Austin is $113 less than the average rates in Texas and $35 more than the national average.

Most insurance providers consider factors such as location, city demographics, population density, and average resident age, accident rates, theft and vandalism rates while determining your car insurance premium. This may lead to either lower or higher costs compared to other regions.

This article provides details on the most and least expensive car insurance companies in Austin, the average car insurance rates categorized by age and gender, and the cost of car insurance in Austin based on coverage limits. Whether you’re a new driver or an experienced driver, this article will help you find the most cost-effective auto insurance in Austin. Read on to learn more.

Cheap car insurance companies in Austin

At an average of $1,406 per year with full coverage limits of 100/300/100, Nationwide provides the most affordable car insurance in Austin.

Ranked as the second most affordable company in Austin, Texas Farm Bureau provides car insurance at $1,418 per year.

As previously noted, car insurance rates differ among companies due to variations in the factors used for calculating the rates. So, it is best to compare quotes from several insurers to secure affordable car insurance rates in Austin that align with your needs before selecting a policy.

The table below lists the average annual and monthly costs for the various car insurance companies providing coverage in Austin, Texas:

Read about the best car insurance companies.

Average car insurance cost in Austin by coverage limits

In Austin, the average car insurance rates the coverage levels are as follows:

• State minimum coverage: $600 per year (limits are 25/50/25)
• Liability only coverage: $775 per year (limits are 50/100/50)
• Full coverage: $1,930 per year (limits are 100/300/100)
• Non-owners coverage: $500 per year

In most states, drivers are required to have state minimum coverage to drive legally, although these requirements vary by state. However, it’s important to note that state minimum coverage does not provide coverage for any vehicles listed on your policy in the event of an at-fault accident.

To prevent compromising on coverage and out-of-pocket expenses, it’s advisable to opt for full coverage or non-owner coverage if you frequently borrow or rent a car but do not own one.

Average car insurance rates by gender in Austin

Based on an analysis by Insure.com, female drivers in Austin, Texas pay an average annual car insurance premium of $1,922. In comparison, male drivers pay $1,938 annually, which is $16 more than what female drivers pay.

According to the Insurance Information Institute, statistics indicate that women are generally considered safer drivers than men. Also, women pay less for car insurance due to the lower rate of severe accidents.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Austin

In Austin, teenagers have the highest car insurance rates, at $4,607 per year or $384 per month. This higher rate is attributed to the increased risk of road accidents among teenagers (aged 16 to 19) due to their limited experience on the road, according to the Insurance Information Institute.

However, there are driving laws for teens to improve their driving habits. Additionally, the cost of teen insurance can be reduced by adding them to a parent’s auto insurance policy. As teens mature and establish a positive driving history, their car insurance rates are likely to decrease.

Young adults, pay an average of $2,972 annually for car insurance, which is $1,635 less than what the teens pay for their insurance policy.

Meanwhile, adult, and senior drivers in Austin have car insurance rates of $1,943 and $1,896 per year, respectively. The car insurance rates for adults and seniors are lower than those for teens and young adults. “This is because they are more likely to obey the speed limits and follow the rules of the road,” says the Insurance Information Institute.

Read more on auto insurance for seniors.

The table below shows the average annual rates for drivers of different age groups:

Car insurance rate trends in Austin

Examining the trends in car insurance rates in Austin, Texas, there was an upward trend from 2022 to 2023. Between 2022 and 2023, rates increase overall by 5% or $94.

The table below illustrates the trend over the three years:

Conclusion

In conclusion, the insurance rates in Austin, are lower than the average insurance cost in Texas. Shopping around and taking advantage of available discounts, drivers in Austin can find affordable car insurance options. Additionally, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

• Insurance Information Institute. “What determines the price of my auto insurance policy,” Accessed September 2024.
• Insurance Information Institute. “Auto insurance for teen drivers,” Accessed September 2024.
• Insurance Information Institute. “Senior driving safety and tips,” Accessed September 2024.

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your individual rates may vary.

Prachi Singh

Contributing Researcher

 

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Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.