Given the fact Texas is home to the Cowboys, Rockets, Spurs, and Stars, it's obvious there is more than one luminary in The Lone Star State. Yes, everything's big in Texas, including insurance costs. Texas ranks above the national average in auto and homeowners insurance, but you'll champion your Texas auto insurance rates by using a free service like LocalInsurance to shop companies in your area for the best rates. Getting to know Texas' laws and regulations is the first step to finding savings.

To the Point

In 2007, the average cost of auto insurance in The Lone Star State was $808, slightly over the U.S. average ($795), according to the Insurance Information Institute. However, your Texas auto insurance rates could vary outside this average depending on factors like where you live, the kind of vehicle you own, and the type of coverage you require. For example, if you reside in Laredo (the number one U.S. Hot Spot for vehicle thefts in 2009, according to the National Insurance Crime Bureau), own a 2004 Dodge Ram Pickup (Texas' number one most stolen car in 2008, according to the NICB), and need full coverage auto insurance, you're more than likely paying well above this average.

TexasSure

According to the Texas Department of Insurance (TDI), an estimated 20 percent of all Texas vehicles are uninsured at any given time. In order to scale back that estimate, reduce the number of fraudulent or false proof auto insurance cards, and lessen the chances of drivers dropping their coverage after receiving a valid insurance card, the State of Texas has implemented a new program called TexasSure that allows law enforcement officers and designated state users to immediately verify whether a vehicle is insured, the TDI reports.

New Liability Requirements

To be a legal driver in Texas you must establish financial responsibility for your vehicle to the sum of $25,000 for the death or injury of one person, $50,000 for two or more injuries or deaths, and $25,000 for property damage (25/50/25). However, starting January 1, 2011, this limit will increase to 30/60/25, according to the TDI. Failure to show proof of Texas auto insurance can result in fines or driver's license suspension.

Know Your Allies

Your Texas auto insurance rates are established on a myriad of factors like your age, sex, and marital status; the type of car you drive; your driving record, and credit history. Where you drive and how often you drive will also have an impact on your auto insurance premium. If you drive an hour to and from work every day it will raise your rates, especially if you drive in a highly congested area like Dallas/Fort Worth, the fifth most congested metropolitan area in the United States in 2009, according to the INRIX National Traffic Scorecard. If carpooling or public transportation aren't an option, don't fret. Most insurance companies offer discounts to those who safeguard their vehicles with anti-theft devices or to those who combine their auto and homeowners insurance policies. Check with your Texas auto insurance company to see if you're eligible for any additional discounts. Better yet, let LocalInsurance shop around for you to see if you're getting the best, most-affordable Texas auto insurance rates.

To find more information on the auto insurance requirements in Texas, visit these useful links: