Annual car insurance rates have gone up 24 percent nationwide since 2011, but in 2021 have fallen nationally for the first time since 2013. Texas hasn’t been so lucky. It’s one of the few states where rates have actually increased year-over-year for 2021, according to a new report by TheZebra.com.
The company’s fifth annual national study explored 83 million car insurance premiums across every zip code in the U.S. as impacted by common variables such as driver age, gender, driving record, financial behaviors, and the cars themselves.
Rates in the State of Texas top the national average, far exceeding it in some major cities. In Houston, the average annual cost for car insurance is $1,598. Dallas-Fort Worth is close behind with $1,506. Rates for Austin and San Antonio are below the state average of $1,498 annually, coming in at $1,465 and $1,477 respectively.
Annual car insurance rates in Austin, Texas are below the state average.Photo courtesy of Maven
“Despite a drop in driving with COVID-19 related lockdowns, Houston car insurance rates defied the trend and rose more than five percent,” said Nicole Beck, licensed insurance agent and Head of Communications at The Zebra. “Flash flooding and an increase in risky driving behavior could be the culprit. An increase in claims in Houston means an increase in insurance rates for all. Drivers should continue to be safe behind the wheel and protect their vehicles from snow and other hazards to prevent individual rates from rising.”
Aldine, Texas, just north of Houston, has the highest car insurance rates in the state, averaging $1,852 per year. Langtry, Texas, which sits near where the Pecos River meets the Rio Grande, has the lowest rate, just $1,281 annually. Other low-cost areas for insurance include Kenney, Edna, Port O’Connor, Alleyton, and Chappell Hill, all cities that are west of Houston but east of Austin.
Texas is near the top when it comes to annual car insurance costs though the state average of $1,498 is not nearly as high as it is in the three most expensive states for car insurance: Louisiana ($2,304), Florida ($2,324), and Michigan ($2,535).
