Austin Car Insurance

Experts break down car insurance costs, coverages, companies, and more.

Written by Meg Stefanac
Written by Meg Stefanac

Financial blogger and business owner, Meg Stefanac, has more than 15 years experience working in the financial services industry and enjoys helping individuals make solid financial decisions. Meg has extensive experience writing about insurance and finances and is a key contributor to

Mother driving her son to the school. Find Austin Texas car insurance.

From crashes on Interregional Highway 35 to fender-benders on Airport Boulevard, accidents can happen anytime, anywhere, and to anyone. That is why if you own a car in Austin, you are required by Texas state law to carry car insurance.

Independent agents are available to help you find the best and most affordable policy to meet your coverage needs. Contact an insurance agent near you to get more information and to start comparing customized car insurance quotes.

How Much Does Car Insurance Cost in Austin, TX?

The average cost of car insurance in Texas is higher than the national average. Shopping around for the best rate has the potential to save you hundreds of dollars a year.

  • National average annual car insurance cost: $1,311
  • Texas average annual car insurance cost: $1,449

Car insurance costs can vary a lot between drivers. They are based on factors such as:

  • The year, make, and model of the vehicles you are insuring
  • Your age, occupation, and driving record
  • Information about the other licensed drivers in your household
  • Whether you own or rent your home
  • The amount of liability insurance you are purchasing
  • The coverage options you are including in your policy
  • The size of your deductible

If you are getting your car insurance from the same insurance company that provides some of your other policies, like home insurance or renters insurance, you can frequently get significant discounts on all your bundled policies.

You may also qualify for other discounts such as a safe driver discount or a good student discount.  

What Does Austin Car Insurance Cover?

Car insurance policies are a mixture of required and optional coverage. As a vehicle owner in Austin, you are required by law to have a policy that meets or exceeds the state’s minimum liability coverage requirements.

All car insurance companies in Texas will offer the coverage that is required by law. In Texas, this means your policy must include:

  • Liability insurance: This can cover third-party injuries and property damage if you cause an accident. Your policy must include:
    • Bodily injury liability coverage of at least $30,000 per person and $60,000 per accident
    • Property damage liability coverage of at least $25,000 per accident

If you are leasing or financing your car, your dealership or lender will most likely require you to carry the following types of coverage, which you can expect your insurance company to also offer:

  • Collision insurance: This can pay to replace or repair your vehicle if it is totaled or damaged in a collision, regardless of fault.
  • Comprehensive insurance: This can pay to replace or repair your vehicle if it is lost or damaged due to a non-collision event such as a hailstorm or tornado.

Most insurance companies will also offer a variety of coverage options, including:

  • Uninsured motorist insurance: This can cover the cost of your property damage as well as any medical treatment needed by you and your passengers if you are in a collision caused by an uninsured driver. Though optional, all insurance companies are required to offer it.
  • Personal injury protection (PIP) or medical payments insurance: These two types of insurance cover the cost of medical treatment for you and your passengers if you are injured in a collision, regardless of fault. PIP and MedPay have different levels of coverage, so be sure to review each before choosing one.
  • Towing and roadside assistance: This can cover the cost of any assistance that may be necessary if your vehicle becomes disabled while you are out on the road, such as if it gets a flat tire or the engine overheats.
  • Gap insurance: This can bridge the gap between what you still owe for your vehicle and what it is currently worth if it is totaled in a covered event. That way you aren’t stuck paying on a car loan for a vehicle you no longer have.
  • Rental reimbursement coverage: This can cover the cost of renting a vehicle while repairs are being made to your own car following a covered event.

Even though a minimum-coverage policy is your least expensive option, it is not always the most economical choice. If you only carry liability insurance, you will not have coverage for repairs to your own vehicle if the accident was your fault.

Also, if you cause a collision and your liability limits are too low, you will be on the hook for making up the difference. In the case of a serious accident that involves a lot of injures, this can get very expensive very quickly.


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How Can Uninsured Motorist Insurance Help Austin Drivers?

Driving without insurance is illegal in Texas. If caught, uninsured drivers can be penalized with:

  • Fines ranging from $175 to $1,000
  • The requirement to pay a surcharge fee of $250 a year for three years
  • Car impoundment for up to 180 days with the requirement to pay a $15/day impoundment fee
  • The suspension of your license and registration for two years if you cause a collision while uninsured
  • Possible jail time for up to one year if you cause a serious accident that involves significant injuries or property damage while driving without insurance

Additionally, having an uninsured driving conviction on your record can result in higher car insurance rates for years to come. Despite this, more than one in ten drivers in this state are operating uninsured vehicles.

  • Percentage of US drivers who are uninsured: 13.0%
  • Percentage of Texas drivers who are uninsured: 14.1%

If your policy includes uninsured motorist coverage, you can rest assured that if an uninsured, underinsured, or hit-and-run driver is responsible for a collision with your vehicle, you will be covered.

This insurance enables you to receive the compensation you are entitled to without needing to go through expensive lawyers or time-consuming lawsuits.

How High Is the Auto Theft Rate in Austin?

The auto theft rate in Texas is higher than the national average, and in Austin, the rate is even higher. Residents of this city report more than 2,000 auto thefts every year.

  • National auto theft rate per 1,000 people: 2.29
  • Texas auto theft rate per 1,000 people: 2.43
  • Austin auto theft rate per 1,000 people: 3.07

Be aware that the only way you can be reimbursed for a stolen car is if your auto insurance policy includes comprehensive coverage.

If you are currently leasing or financing your car, chances are good you have this coverage already. If not, you may want to ask about how much it will cost for you to add comprehensive coverage to your car insurance policy. That way, you can best decide if this coverage is a good fit for you and your family.

How Can an Independent Agent Help Me Find the Best Car Insurance in Austin, TX?

Independent agents take the guesswork out of buying insurance. They can be a great source of information when you are looking for the best car insurance policy or any other type of insurance coverage.

These experienced professionals can explain your various coverage options, answer your insurance-related questions, and help you compare prices from some of the best car insurance companies in Austin, Texas. That way you can choose the policy that offers you the coverage you want at the lowest price.

It doesn’t cost anything to talk to an independent agent. Contact an insurance agent with an office near you to start comparing customized car insurance quotes.

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