Finding cheap full coverage car insurance feels like a contradiction to many drivers, since full coverage is, by definition, more comprehensive and more expensive than a bare-minimum liability policy. Of course, ‘cheap’ and ‘full coverage’ need not be mutually exclusive, and knowing what makes the difference in price and where the “real savings” opportunities lie makes all the difference. 

When Texas motorists shop around, they may find that they can obtain comprehensive, collision, and full liability coverage at a premium similar to, if not lower than, what they would be quoted if they only wanted liability coverage.

What Full Coverage Actually Includes

Full coverage is not a cover for an actual policy; it’s an abbreviated reference to a combination of coverages that exceeds the state-mandated liability limits. That minimum in Texas is 30/60/25, $30,000 in bodily injury coverage per person, $60,000 per accident, and $25,000 in property damage coverage. 

A full-coverage policy also includes collision coverage, which repairs or replaces your car following an at-fault collision, and comprehensive coverage, which covers an accident that is not related to the collision, such as theft

, vandalism, flooding and the hailstorms that happen in many parts of Texas. 

The average Texas full-coverage car insurance policy costs approximately $2,470 annually, while a liability-only policy averages $1,320 annually, according to recent industry statistics, which can be much higher or lower based on driver characteristics and geography.

Nearly all lenders and leasing companies will require full coverage for cars being financed or leased because the lender has a financial stake in the vehicle until the loan is paid off.

While the State does not require full coverage, almost all lenders and leasing companies will expect it for cars that are being financed or leased, as the lender has a vested interest in the car until the loan is paid. Only the owner of the car legally has the option of dropping down to liability, and even then, the owner is responsible for paying the full repair/replacement cost after an accident or weather event.

Where the Savings Actually Come From

The deductible is the one biggest factor that can reduce a full coverage premium. A higher deductible of $500 to $1,000 lowers the deductible part of the premium by a significant margin on collision coverage, and is one of the most efficient swaps available to those who could afford the deductible if a claim occurs. 

Another consistently effective discount is to bundle a full-coverage auto policy with a homeowners or renters policy from the same carrier – this discount is often more valuable than having each policy separately.

With full coverage, the specifics of the vehicle matter more than with liability coverage because comprehensive and collision rates are based on the value of the vehicle and the cost of repairs. A vehicle with a high safety rating, factory-installed anti-theft security and a lower average repair cost can have a significant impact on costs for an individual who has the same coverage limits. 

Another legitimate option for low-mileage and safe drivers to save a significant percentage from premiums is telematics or usage-based programs, which involve logging driving habits through a mobile app or plug-in that calculates mileage and driving patterns.

Monthly Plans vs. Paying in Full

More than most drivers realize, the way payments are structured can have an impact on the total cost. When people pay a 6 month or year premium upfront, rather than monthly premiums, it is usually offered to them as a discount, because it is easier on the insurer’s end to have one lump payment, but is more risky if they don’t pay it off right away. 

However, monthly car insurance plans are still a good option for many homes, as it’s still the same amount of money every month, and the extra cost of having the plan monthly might be less than most people think, it may be just a few percent more, not a huge deal! Typically, setting up monthly automatic payments, even if paid in small increments, will still entitle you to a small discount, which a manual payment schedule would not.

Comparing Quotes the Right Way

With a full coverage policy having more factors than a liability-only policy, quotes must be compared on the same factors, such as deductibles (the same on comprehensive and collision), coverage (the same limits) and length of policy (the same term). Another quote with a $500 deductible is not necessarily the better deal than the one with the $1,500 deductible, as the low deductible quote merely places more risk on the driver if there is a claim. 

This is a benefit to working with an independent agency as one conversation can reveal a variety of different carriers’ pricing on the same coverage for the same structure without having to go through the application process on each insurer’s website with separate default settings for each.

Since 1987, AMCO USA, an independent agency in the state of Texas based in Houston, has represented drivers nationwide, through a wide agent network of carriers, to help drivers secure full coverage pricing that’s truly competitive and not just the best that the agency they’re connected to can offer. 

It works best for drivers looking for the cheapest car insurance, as the agency will compare the underwriting criteria of various carriers with a driver’s profile (including vehicle, location, driving history and credit score) rather than forcing the driver into one insurer’s rate table if it does not suit their needs.

Discounts Worth Confirming Every Renewal

Discounts often change more frequently than drivers realize and it’s best to speak directly with your agent before renewals to ensure you are getting the right discount for your driving and the most current one as well. Most “good student” discounts are contingent upon the receipt of a new transcript. Discounts offered for defensive driving courses may be limited and must be repeated after a certain period of time. 

If a household acquires or loses a vehicle, the multi-vehicle discount may change. In no case are any of these automatic and carriers are not likely to make much effort to inform you that you are now eligible for a discount you earned since the last time you renewed the policy, it’s usually up to you to inquire.

Some insurance companies also offer a loyalty discount or a discount for a period of time without claims, so it’s also important to find out if your carrier has one of these options that gradually builds over time. Having a “heads up” loyalty benefit as opposed to a competitor’s lower “heads up” rate is a way to ensure that the seemingly cheaper quote is “cheaper”.

Final Thoughts

Best cheap car insurance is realistic for most Texas drivers, but it depends on active comparison rather than passive renewal. Reviewing your deductible, confirming your discount eligibility, and requesting quotes from more than one carrier at least once a year are the habits that consistently separate drivers who overpay from those who do not.