Things You Should Know About Car Insurance (2026 Texas Guide)
1. Texas minimums (30/60/25) are not enough for most drivers
Texas minimum liability is $30,000 per person / $60,000 per accident / $25,000 property damage. Sounds like a lot, until a single ER visit averages $12,000 and Texas medical bills from a serious accident easily exceed $100,000. Most Texas drivers need at least 100/300/100 to protect their assets.
2. Your credit score affects your rate more than your driving
Texas allows insurers to use credit-based insurance scores. A driver with poor credit pays 50-80% MORE than the same driver with excellent credit – for the exact same coverage. This is the #1 reason “shop around” actually works in Texas.
3. SR-22 is not insurance – it is a certificate
SR-22 is a form your insurance company files with the Texas DPS proving you carry the state minimums. Required after DUI, license suspension, or driving without insurance. Costs $15-25 to file, but the high-risk premium that comes with it can be 2-3x normal rates for 2-3 years.
4. Usage-based insurance now saves 30%+ for safe drivers
Telematics programs (Progressive Snapshot, GEICO DriveEasy, Allstate Drivewise, All Star own safe-driver program) use a phone app or device to track your driving. Hard brakes, late-night driving, and phone use raise your rate. Smooth drivers save 10-30% on average.
5. Gap insurance matters if you owe more than the car is worth
If you financed a new car that depreciates faster than you pay it off, gap insurance pays the difference if it is totaled. Worth it for the first 3 years of a new car loan. Texas drivers who lease are usually REQUIRED to carry gap insurance.
6. Uninsured motorist coverage is critical in Texas
1 in 5 Texas drivers is uninsured (per the Texas Department of Insurance 2025 report). Uninsured motorist coverage pays your medical bills and car repairs when the at-fault driver has no insurance. Cheap to add – usually $50-100/year. Skipping it is the most common mistake Texas drivers make.
7. Your policy follows the car, not the driver (usually)
In Texas, auto insurance is typically attached to the vehicle, not the person. Letting someone borrow your car usually means your policy covers them. Exception: household members must be listed on your policy or have their own.
8. Filing a claim always raises your rate
Texas insurers may not raise rates for “not-at-fault” claims, but they often do. Even a single at-fault claim raises your rate 23% on average for 3 years. Filing claims under $1,500 is usually a bad financial decision.
9. Shop your policy every 2 years
Carriers change rates annually. The carrier that was cheapest 2 years ago may not be today. Get fresh quotes from at least 3 carriers every 2 years. Most Texas drivers save $400-800/year by switching.
All Star Insurance Agency has been serving Killeen and Central Texas since 2007. Free comparison quotes from 5+ carriers in 10 minutes.
Call (254) 690-9400Things You Should Know About Car Insurance (2026 Texas Guide)
1. Texas minimums (30/60/25) are not enough for most drivers
Texas minimum liability is $30,000 per person / $60,000 per accident / $25,000 property damage. Sounds like a lot, until a single ER visit averages $12,000 and Texas medical bills from a serious accident easily exceed $100,000. Most Texas drivers need at least 100/300/100 to protect their assets.
2. Your credit score affects your rate more than your driving
Texas allows insurers to use credit-based insurance scores. A driver with poor credit pays 50-80% MORE than the same driver with excellent credit – for the exact same coverage. This is the #1 reason “shop around” actually works in Texas.
3. SR-22 is not insurance – it is a certificate
SR-22 is a form your insurance company files with the Texas DPS proving you carry the state minimums. Required after DUI, license suspension, or driving without insurance. Costs $15-25 to file, but the high-risk premium that comes with it can be 2-3x normal rates for 2-3 years.
4. Usage-based insurance now saves 30%+ for safe drivers
Telematics programs (Progressive Snapshot, GEICO DriveEasy, Allstate Drivewise, All Star own safe-driver program) use a phone app or device to track your driving. Hard brakes, late-night driving, and phone use raise your rate. Smooth drivers save 10-30% on average.
5. Gap insurance matters if you owe more than the car is worth
If you financed a new car that depreciates faster than you pay it off, gap insurance pays the difference if it is totaled. Worth it for the first 3 years of a new car loan. Texas drivers who lease are usually REQUIRED to carry gap insurance.
6. Uninsured motorist coverage is critical in Texas
1 in 5 Texas drivers is uninsured (per the Texas Department of Insurance 2025 report). Uninsured motorist coverage pays your medical bills and car repairs when the at-fault driver has no insurance. Cheap to add – usually $50-100/year. Skipping it is the most common mistake Texas drivers make.
7. Your policy follows the car, not the driver (usually)
In Texas, auto insurance is typically attached to the vehicle, not the person. Letting someone borrow your car usually means your policy covers them. Exception: household members must be listed on your policy or have their own.
8. Filing a claim always raises your rate
Texas insurers may not raise rates for “not-at-fault” claims, but they often do. Even a single at-fault claim raises your rate 23% on average for 3 years. Filing claims under $1,500 is usually a bad financial decision.
9. Shop your policy every 2 years
Carriers change rates annually. The carrier that was cheapest 2 years ago may not be today. Get fresh quotes from at least 3 carriers every 2 years. Most Texas drivers save $400-800/year by switching.
All Star Insurance Agency has been serving Killeen and Central Texas since 2007. Free comparison quotes from 5+ carriers in 10 minutes.
Call (254) 690-9400