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Car insurance in Dallas costs $2,278 per year for full coverage – $190 monthly. In 2024, Texas Farm Bureau offers the cheapest car insurance policy at $137 per month.

Dallas is home to 50 companies in the Fortune 1000 and has a vibrant culture, from arts to great restaurants. Hispanic heritage is deeply felt here, with Latinos making up nearly half of the city’s population. 

If you are moving to Dallas — or already live there — it is important to find the right car insurance policy. Fortunately, there are ways to get cheap car insurance in Dallas that will provide the coverage you need. 

Learn more about what a typical policy costs in Dallas and what you need to know if you are new to the city. 

Key Takeaways

  • Full-coverage car insurance in Dallas costs an average of $2,278 per year, higher than the nationwide average of $1,895.
  • The cheapest car insurance company for a full-coverage policy in Dallas is Texas Farm Bureau, at $137 monthly.
  • Car insurance rates in Dallas are reasonable compared to other large cities across the U.S. 

How to find the best car insurance in Dallas

With the right tools and a little work, you can find the best car insurance policy in Dallas that provides the coverage you need at a cost you can afford. 

Before shopping for car insurance, determine the type of policy you need, including the amount of coverage necessary to protect yourself. Make sure you get quotes from at least three companies comparing similar coverage limits and 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 Dallas

Texas Farm Bureau provides the cheapest car insurance in Dallas, according to our rate analysis. It costs an average of $1,644 annually to purchase a full-coverage policy from the insurer.  The next cheapest car insurance companies are Nationwide and Geico.

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

Company Average annual rates for state minimum Average annual rates for full coverage
Auto Club Enterprises (AAA)$696$2,397
Redpoint County Mutual$783$1,948
State Farm$560$2,290
Texas Farm Bureau$522$1,644

How much is car insurance in Dallas per month?

Dallas residents can expect to pay an average of $190 per month in full coverage car insurance costs – $56 per month for the state minimum coverage.

Of course, some drivers pay less than this average, while others pay more. Factors that determine how much you pay for car insurance include the insurance company you choose and the amount of coverage you need. 

Other factors — including your age and gender, the type of car you drive, and your history of accidents and violations — also influence car insurance costs.  

Company Average monthly rates for state minimum Average monthly rates for full coverage
Auto Club Enterprises (AAA)$58$200
Redpoint County Mutual$65$162
State Farm$47$191
Texas Farm Bureau$44$137

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

The cost of coverage in Dallas compares favorably to other major cities. However, Dallas and Houston drivers pay more than other Texas drivers – the statewide rate is $2,043 annually, compared with Dallas’ $2,278 and Houston’s $2,317.

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.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

CityFull coverage cost
Los Angeles$3,149
New York$2,600
San Antonio$2,181
San Diego$2,324
San Jose$2,406

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

The Dallas metro area has around 8 million residents. So, it should be no surprise that the city’s roadways are among the most congested in the nation. Furthermore, the Dallas/Fort Worth metropolitan area is very spread out and large – 9,286 square miles – larger than the state of Connecticut. 

Dallas is the Los Angeles of Texas when it comes to traffic congestion. In 2022, drivers in North Texas lost an average of 56 hours in traffic, according to INRIX, which looks at traffic patterns.

If you are driving in the Dallas area during rush hour, you can expect to spend an extra 17.1 minutes in traffic, according to the website CoPilot. That places Dallas at No. 31 among all cities in the nation when it comes to losing time due to rush hour. 

Other things to remember when driving around Dallas:

  • Speed limits in Dallas are typically 30 mph on streets and 15 mph in alleys. Variations on these limits should be posted on roads where other speed limits apply.
  • Dallas has several toll roads, most of which lead into or out of the city. The city’s freeways also have TEXpress Lanes, which are less-congested express roadways. As with toll roads, you must pay to use these lanes.  
  • Owners of electric vehicles should find many places to charge their cars. Currently, more than 350 such spots can be found in the city. 

How much car insurance do I need in Dallas?

Texas law requires you to purchase a minimum amount of liability car insurance coverage. These amounts are: 

  • $30,000 per person for bodily injury liability
  • $60,000 per accident for bodily injury
  • $25,000 of coverage for property damage

This is often referred to as “30/60/25 coverage.”

However, these minimum levels of coverage will not be adequate for most drivers. Many drivers will prefer to carry much higher levels of liability coverage so they are better protected financially. 

Drivers also might be interested in protecting their own vehicles by purchasing comprehensive and collision coverage. 

If you are unsure of how much coverage you need, consult with an insurance agent who can help. 

Average cost of car insurance in Dallas

The average cost of full-coverage car insurance in Dallas is $2,278 annually. That compares to a statewide average of $2,043 and a nationwide average of $1,895. 

State minimum coverage in DallasAnnual full coverage rates in Dallas

How much does car insurance in Dallas cost with violations?

Moving violations on your driving record are likely to push your car insurance rates higher. Violations such as 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 Dallas in the table below by violation.

Violation typeRate increase percentage
At-Fault accident81%
Bad credit68%

Cheapest car insurance in Dallas by age

Your age will impact how much you pay for car insurance. The youngest drivers tend to pay the highest rates, although the rates aren’t as high for teens as in other large cities such as New York and Philadelphia. Older drivers also are likely to pay more. See how much you can expect to pay by age in the table below.

AgeState minimum coverageFull coverage

Compare auto insurance rates in Dallas by ZIP code 

Where you live also affects how much you pay for car insurance. Here are the Dallas area ZIP codes with the cheapest and most expensive car insurance rates. 

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

ZIP codeAverage annual rate
ZIP codeAverage annual rate

Our recommendations: Car insurance for drivers in Dallas

If low prices are your top focus when shopping for car insurance, Texas Farm Bureau might be your best choice. It has the lowest average rates in our survey. 

However, it’s often a mistake to shop by price alone. It is crucial to make sure you have exactly 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 Dallas.


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


  • Texas Municipal League. “Speed Limits.” Accessed January 2024.


In 2024, 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.

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Chris Kissell
Contributing Researcher


Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.