Texas may be famous for being big, but that doesn’t have to be true of your car insurance rates. We analyzed data provided by Moneygeek that pinpoints the main determinants that affect Texas auto insurance premiums – factors such as age, coverage levels, vehicle type and driving record have an effect on your rate.

Age

Car insurance premiums tend to decrease with age as less of a risk is perceived by insurance companies. Young drivers still pay more due to being involved in accidents or traffic violations more likely. 16-17 year-old drivers can save money by remaining on their parents’ policy until age 18.

Vehicle Type

Your car model plays an integral part in determining the cost of car insurance in Texas. Insurance providers take into account both its likelihood and cost if stolen or damaged; older, lower value cars usually cost less to insure than more likely to be stolen and more costly to fix or replace models.

Driving Record

Any accidents or violations on your Texas driver’s license could have an enormous impact on your car insurance rates, but as your driving history improves over time and clears up, so will your rates.

Credit Score

Texas insurers generally use a credit-based insurance score to determine your rate, which takes into account personal financial information and data about how likely it is that you will make a claim. Unfortunately, drivers with poor credit tend to pay more on average.

Your neighborhood and its safety will have an effect on the car insurance rates you pay, with urban areas often having higher crime rates and thus more accidents, while rural locations tend to be safer, often offering reduced premiums.

Texas requires liability insurance; comprehensive and collision policies are optional to give additional peace of mind when driving. As more coverage increases costs more, but knowing you’re protected in case of an accident could make the expense worthwhile. Also if you have an auto loan or lease contract it will likely require full coverage as part of their requirements.