In addition, property damage coverage can cover legal costs if the insured driver is involved in a lawsuit after the accident. MoneyGeek's study on average car insurance costs for various driver profiles also provides information on the topic. Insurance companies set rates based on the perceived risk posed by a driver, and many believe that drivers with a low credit score are more likely to file a claim than drivers with fair, good, or excellent credit. SmartFinancial Insurance is a digital insurance comparison engine that provides real-time insurance rates and services across all 50 states through its relationships with company and agency partners.
State Farm is the cheapest auto insurance company for full coverage policies in Texas, among those surveyed. Other than that, the best way to reduce your car insurance costs is to compare the rates of at least three insurance companies. Insurers consider younger drivers to be riskier due to their lack of driving experience and charge them higher premiums. The average cost of car insurance in Texas is 8% higher than the national average auto insurance premium, and Texas ranks 34th out of 50 for the most affordable auto insurance rates in the United States.
Drivers in their 40s tend to have better insurance rates than their younger counterparts on average, but they still pay more than older age groups. In other cases, drivers who don't own a vehicle, but want coverage when they drive a rental vehicle or other type of car, buy non-owner policies. State Farm, Geico, and USAA remain the most affordable insurers for drivers, offering rates that are 36%, 16%, and 32% cheaper than the state average, respectively. Drivers with a good driving record will generally pay less for car insurance than someone who had a DUI, speeding tickets, or an accident.
Data for average car insurance rates by age shows that drivers tend to pay higher rates until age 26, when rates begin to drop as drivers gain more experience on the road. In addition to comparing car insurance companies, seniors may qualify for discounts for mature drivers that can reduce costs. Typically, car insurance companies charge younger drivers more and offer discounted rates for older drivers.