What is the Average Cost of Car Insurance in Austin?

The capital of the Lone Star State, Austin, also serves as the Travis County seat and is the largest city in the county. Named for the Father of Texas, Stephen F. Austin, it is the fourth-largest city in the state. Approximately 1 million people call Austin home and the population has grown by 22% over the past decade. Overall, the Austin-Round Rock metropolitan area has a population of roughly 2.2 million.

With a vibrant cultural and economic life, the city has gained a reputation as one of the best places to live in the US. Austin calls itself “The Live Music Capital of the World”. It is also a strong Central Texas tech hub. Several Fortune 500 companies are headquartered in Austin or Round Rock including Whole Foods Market, Dell and National Instruments.

The mean travel time for residents commuting to work is 24.6 minutes, a full two minutes faster than the national average. According to the National Insurance Crime Bureau, in 2018 the Austin-Round Rock metropolitan statistical area was ranked #181 in the nation for crimes relating to motor vehicles. In 2018, 4,215 vehicles in this area were reported stolen. Both the average commute and vehicle thefts can affect your annual insurance premium.

What is Required for Austin Drivers?

Under Texas law, all motorists must carry at least $30,000 of insurance coverage for injuries per person, up to a total of $60,000 per accident. Motorists must also carry a minimum of $25,000 in coverage for property damage. This formula is known as 30/60/25 coverage. These amounts do not cover medical expenses or property damage to the at-fault driver’s own vehicle. If you want this type of coverage, you’ll need to purchase medical payments coverage, which does pay the medical expenses up to the policy limits if you are injured. Personal Injury Protection (PIP) coverage is another option. While similar to medical payments coverage, PIP will also pay for expenses such as lost wages during recovery.

Most drivers should carry more than the minimum amount if they can. If there is a serious accident and the damages exceed the policy limits, the injured party could file a personal injury lawsuit against the at-fault driver to recover compensation. This puts assets owned by the at-fault driver at risk. Also, if you lease your car or still owe payments on it, your lender will likely require you to purchase comprehensive and collision insurance to protect the vehicle.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Austin by Insurer

The average annual car insurance premium in Austin is $1,583. That is considerably less than the Texas average of $1,746 and the national average of $1,679. That means consumers are already at an advantage since local premiums are lower than average. Farmers Texas County Mutual Insurance Company boasts the cheapest rates, at $370 annually for 50/100/25 coverage and $905 for full coverage. The latter includes comprehensive and collision coverage and uninsured motorist insurance.

Compare cheap auto coverage quotes by state.

Low Cost Auto Insurance for Bad Credit in Austin

While a person’s driving record is the biggest indicator of what they will pay for car insurance, low credit scores will mean that driver must pay more. Choices for low cost auto insurance for Texans with bad credit include State Farm Mutual Auto Insurance Company and Progressive County Mutual Insurance Company.

Check out this bad credit guide to help get lower auto insurance rates.

Full Coverage Vs. Liability, Which is Best For You?

What is Liability Only Insurance Coverage?

Liability-only coverage means coverage that only pays for the loss others incur if you are at fault in an automobile accident. These are for the medical expenses, other property damage or car repairs that you cause to another or their property in an accident.

One has the option of paying for more than the state minimum requirements outlined above for liability insurance. That is a good idea because you will be personally liable from your own finances and assets if you harm someone else or their property in an accident and your state minimum coverage levels do not fully reimburse the losses of the other party.

What is Full Coverage Car Insurance?

Full coverage means that you not only have adequate insurance to cover the losses of others if you are at fault in an accident. Full coverage means you have all the liability coverage you need to care for the harm to others if you have an accident and are at fault, and you have coverage for your own losses as well. There are two main kinds of other coverages that drivers purchase in order to repair their vehicles in the event of an accident they cause:

What is Collision Coverage?

Collision insurance covers the cost of repairing your own car if you are in an accident that is your fault. A way to save money on collision insurance is to purchase it with a higher deductible. For example, it will likely be very expensive to have collision coverage on your vehicle with a $500 deductible, but a $1,500 deductible or a $2,000 deductible will save considerable money on your automobile full coverage policy.

What is Comprehensive Coverage?

Comprehensive insurance covers the cost of repairing your vehicle for those things that were not your fault, like extreme weather that damaged your vehicle, or a deer that walked in front of you, theft, or vandalism. Comprehensive insurance tends to be much cheaper than collision. Even those with older vehicles may benefit from carrying comprehensive insurance because it is relatively cheap and will cover things like windshield replacement.

What is the Difference Between the Two Types of Car Insurance?

The main difference between liability and full coverage insurance is that full coverage will cost more than liability insurance and this is because it protects you against many more possible risks that liability doesn’t cover.

In addition, liability insurance only covers other people’s injury claims and damages to other vehicles where full coverage will cover other’s injuries and vehicle damages as well as your injuries and damage to your own vehicle.

Average Annual Car Insurance Rates in Texas by City

Additional cities in Texas you can check out.

Car Insurance Discounts to Lower Your Policy Rates

Save on Your Insurance Policy Rates With These Discounts in Austin:

  • Don’t Speed

    If you are caught speeding, your license will accrue points. With each additional point, your insurance company considers you more of a liability and so will charge you more for insurance. Stick to local in-town limits and use your cruise control on the highway to avoid excessive speed.

  • Shop Around

    Different insurers charge different premiums for virtually the same policies. Since the essential service is often identical from company to company, you are sure to save money by comparing rates from multiple companies.

  • Avoid Accidents

    When you are at fault in an accident, law enforcement will add points to your license. Further, the other party is likely to file a claim against your policy. When insurers pay out on claims, they typically raise the premiums for those policy holders.

  • Bundled Insurance Packages

    If you have renter’s insurance or are a homeowner, you may be able to add your automobile to the policy. This also goes for other vehicles or even health insurance. Insurance companies love to bundle policies and offer incentives for customers to do so. You will only have one premium payment to make, which makes things easy, and you’ll save money, as well.

  • Insure Multiple Cars

    If you own multiple cars, your per-car rates are bound to be lower if you put them all on the same policy. You can also include a car owned by your spouse or domestic partner. You could also add your partner to health insurance or cover their recreational vehicles under your policy.

Check out this guide to learn about insurance premium discounts you may qualify for.

These are the Common Reasons for Insurance Rates in Austin, TX

Austin drivers are likely to see their insurance rates change over time. There can be many factors, both positive and negative, that impact your regular premiums. One key thing that all drivers face is aging. As you mature as a person and as a driver, your insurance rates are likely to fall. Typically, older drivers are safer drivers. They are less likely to drink and drive, speed, or take unnecessary risks on the road.

Your rates are also dependent, in part, on the type of car you drive. Drivers who love high-powered sports cars will likely spend more for automobile insurance than those who drive less-exciting SUVs and sedans.

Rates are also tied to the deductible on the policy. If you carry collision or comprehensive (full) coverage and opt for a higher deductible, your premiums could be lower. That is, if a tree hits your car, you will pay more up front for the damage to offset the lower premiums you’ve been paying over time.

If you have a bad driving record and need cheap insurance, compare rates here.

Helpful Austin, Texas Vehicle Resources:

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