Car insurance in Austin: Cheapest insurance and average rates

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Car insurance in Austin costs $1,930 per year for full coverage – $161 per month. In 2024, Nationwide offers the cheapest car insurance policy in Austin at $117 per month.

Austin, Texas, is the third-largest city in Texas, following Houston and Dallas. And in contrast to cities on the Eastern Seaboard, Texas cities are spread out, which means lots of drive time. Drivers in the Austin metro area – which includes Round Rock and Georgetown – lose 77.7 hours per year more per year due to commute time – 20th in the nation.

Learn about the cheapest car insurance companies in Austin, how much car insurance you need and how Austin insurance rates compare to other large U.S. cities.

How to find the best car insurance in Austin

When looking for car insurance quotes in Austin, getting multiple quotes is the best way to save money on car insurance. Get quotes from at least three companies comparing similar coverage limits and coverage options and ask about any discounts you qualify for. It’s always best to buy as much coverage as you can afford.

Cheapest car insurance company in Austin

Nationwide offers the cheapest full coverage car insurance policy in Austin, Texas, at $1,406 – followed closely by Texas Farm Bureau at $1,418 annually. However, the numbers change when you look at the state minimum rates where Texas Farm Bureau offers the cheapest policy at $448 per year.

See other cheap car insurance rates in Austin in the table below.

Average annual rates from insurers in Austin, TX

How much is car insurance in Austin per month?

The average rate for full coverage car insurance in Austin, TX, is $161. However, Nationwide and Texas Farm Bureau offer the cheapest full coverage insurance at rates of $117 and $118 per month, respectively. See monthly rates from California insurers in the table below.

Monthly rates for car insurance in Austin, TX

How do rates in Austin compare to other large cities in the U.S.?

Car insurance in Austin costs the same as in Chicago, Illinois. Austin drivers pay less than their counterparts in Dallas and Houston, though. Dallas drivers pay $2,278 and Houston drivers pay $2,317 per year for full coverage insurance.

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Full-coverage car insurance costs in major U.S. metropolitan areas

Here’s what you need to know when driving in Austin

Austin is the capital of Texas nestled in the heart of Texas hill country. It grew from a population of 790,390 in 2010 to 961,900 in 2020, according to the U.S. Census. 

With the University of Texas situated in central Austin and near the vibrant nightlife of Sixth Street, the city is filled with pedestrians, so be vigilant when driving in crowded areas. Keep an eye out for road closures due to special events.

Driving regulations in Austin:

• Don’t drive in, on or across a bicycle lane except: (1) to enter or leave a driveway, building, or alley; (2) to enter or leave a parking space; or (3) for a bus, to enter or leave a bus stop.
• Do not follow within 100 feet of a police car that: (1) is traveling on a public street in response to an emergency; and (2) is displaying or using emergency devices, including lights and sirens.
• Texting while driving is illegal everywhere in Texas. 
• Do not use a portable electronic device while the vehicle is in motion or operating a micro-mobility device or bicycle.

Parking: People can use up to two free 15-minute parking sessions every 24 hours through the Park ATX app. Use validation codes FREE15ATX1 and FREE15ATX2.

Tips for driving in Austin, Texas: 

• Rush hour is from 7-9 a.m. and 4-6 p.m.
• Crosswalks are not necessarily marked, but drivers must still observe unmarked crosswalks. Vehicles must yield to pedestrians within or approaching a crosswalk.
• Drivers stopping at an intersection should not block the crosswalk.
• The operator of a vehicle approaching from the rear of a vehicle that is stopped at a crosswalk to permit a pedestrian to cross a roadway may not pass the stopped vehicle.

How much car insurance do I need in Austin?

Texas state law requires people who drive in Texas to pay for accidents they cause, according to the Texas Department of Insurance. A liability policy pays to repair or replace the other driver’s car and pays other people’s medical expenses if you’re at fault in an accident.

In Texas, you must have at least $30,000 in liability coverage for each injured person, bodily injury coverage of $60,000 per accident and $25,000 for property damage per accident – written as 30/60/25.

Average cost of car insurance in Austin

The average cost of full-coverage car insurance in Austin is $1,930 annually. That compares to a statewide average of $2,043 and a nationwide average of $1,895. 

Annual average rates in Austin for state minimum coverage and full coverage

How much does car insurance in Austin cost with violations?

Moving violations on your driving record will increase your car insurance rates. Violations like speeding tickets often cause a significant but manageable rise in rates. 

“Since the cost of car insurance is largely based on the driving history of the rated driver, the best way to save on car insurance is to maintain a good driving record,” says Rick Kautzer, director of personal lines product management for Dairyland Insurance.

Other types of violations can make rates climb much higher. This is particularly true if you are convicted of a DUI. See rate increases in Austin in the table below by violation.

Cheapest car insurance in Austin, by age

Teen drivers in Austin pay more reasonable rates than in other large cities – more than $1,200 less than in Chicago, for example, though rates for 40-year-olds are the same in both cities. See other rates by age in the table below.

Annual rates for state minimum and full coverage car insurance in Austin, by age

Compare auto insurance rates in Austin by ZIP code 

Where you live also affects how much you pay for car insurance. In Austin, the cheapest ZIP codes for car insurance are 78799, 78717 and 78732. The most expensive ZIP codes are 

78617, 78701 and 78702.

See the tables below for the cheapest and most expensive ZIP codes for car insurance in Austin. 

Cheapest annual car insurance rates in Austin, by ZIP code 

Most expensive annual car insurance rates in Austin, by ZIP code 

Our recommendations: Car insurance for drivers in Austin

If low prices are your top focus when shopping for car insurance, Nationwide or Texas Farm Bureau might be your best choices for cheap car insurance rates in Austin.

However, it’s often a mistake to shop by price alone. It is crucial to ensure you have the coverage you need, even if you have to pay a little more for it. Shopping around and gathering quotes from several insurance companies is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Austin.

What our expert says

Q. Why do insurance rates vary from city to city?

Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Laura Longero

Executive Editor

 

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Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media.