Car Insurance in Dallas: Costs, Requirements, and Savings Tips

Amani TurnageUpdated February 19th, 2025

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Although the average car insurance cost in Texas is a touch below the national average, that's not the case in Dallas. Like most cities, car insurance in Dallas is more expensive than the state average due to population density, accident statistics, theft rates, and more factors. Nonetheless, you can still get affordable car insurance in Dallas​. You just need to know how to do it.

Here, we break down everything you need to know about car insurance in Dallas, including Texas' mandatory insurance requirements, factors that impact Dallas's increased insurance rates, ways to meet your savings goals, and additional protection worth considering, such as uninsured motorist and comprehensive coverage.

Dallas Car Insurance Costs: What's Driving Your Rates?

According to Bankrate, the average car insurance in Dallas is $2,927 per year for full coverage. That's about 13% higher than the state's average cost. There are several reasons why this is the case:

• Location: Residents of cities almost always have higher insurance premiums than those in rural or suburban areas. This is due mostly to population density, since areas with many people tend to have more drivers on the road, which increases the likelihood of accidents or Texas traffic violations. If you live in a very densely populated ZIP code, you'll likely have higher auto insurance rates.
• Driving record: Keeping a clean driving record is one of the best ways you can control your own rates. Traffic violations and accidents will cause your rates to rise.
• Age: Teen drivers and drivers over the age of 65 often pay higher premiums while drivers in between those ages won't see as much of a change.
• Credit scores: Your credit score plays a big role in your auto insurance premiums because it informs how reliably you pay off debt. Lower credit scores typically lead to higher rates.

Texas Car Insurance Laws & Requirements: What You Must Know

Dallas is subject to Texas minimum coverage laws. Like almost every other state, Texas requires all drivers to meet minimum liability coverage requirements.

Minimum Liability Coverage Requirements in Texas

Texas has what's known as 30/60/25 coverage. This means that your policy must have at least:

• $30,000 of bodily injury liability per accident for one person
• $60,000 of bodily injury liability per accident for more than one person
• $25,000 of property damage liability per accident

What Happens If You Drive Without Insurance?

Driving without insurance isn't as serious as a violation of DUI laws in Texas, but it's still a serious offense. You may face fines of up to $350 for a first offense or up to $1,000 for subsequent offenses. Continued failure to drive without insurance may lead to a license suspension, vehicle impoundment, and an insurance surcharge that increases your premiums automatically.

Additional Coverage Options for Dallas Drivers

You must have minimum coverage. However, this coverage often isn't sufficient if you're in a serious accident. While it saves you money upfront, it may cost you in the long run. Some good additional coverages to consider include:

• Collision coverage: This coverage compensates you for medical expenses and property damage in the event of a collision with another vehicle or a stationary object.
• Comprehensive coverage: This coverage compensates you for non-collision damages, like theft, vandalism, or acts of nature.
• Uninsured motorist coverage: This coverage protects you in the event you get into an accident with an uninsured driver who cannot pay for your medical expenses or damages so you don't have to tap into an emergency fund.

Smart Strategies to Save on Car Insurance in Dallas, Texas

While it may be more expensive than in other parts of the state, you can still find the best car insurance in Dallas for your budget. Some steps you can take:

• Regularly review and adjust coverage: Situations change, so if you're driving less and feel like you're paying too much for car insurance, it's a good idea to check in with your provider or compare the costs of switching to a new one.
• Maintain a good driver profile: Keeping a clean driving record and paying off debts to improve your credit score can increase your likelihood of getting better premiums.
• Look for discounts: Insurance companies may offer discounts for safe driving, low mileage, student discounts, and more.
• Bundling: Bundling your car insurance with a renter's or homeowners' insurance policy is a very common way people save on car insurance.

What Are the Cheapest Cars to Insure in Dallas?

Evaluating and ranking the insurance costs for every car make, model, and year in the city is challenging. However, if you're interested in finding out which newer models are generally more affordable to insure, here are the top 10 most cost-effective car makes and models to consider in Dallas:

Compare and Find the Best Car Insurance in Dallas

Although the average rate of car insurance in Dallas is higher than the rest of the state, that doesn't mean you can't find a great policy for your budget. Use EverQuote's comparison tools to shop quotes in real time and find the best coverages for your budget.

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