If you're living in Allen, you've probably noticed the traffic. Whether it's the daily crawl on US-75 Central Expressway during rush hour or the weekend congestion around Allen Premium Outlets, this rapidly growing Collin County suburb keeps drivers on their toes. With more than 3,200 vehicle crashes reported in Allen last year and over 113,000 residents calling this city home, having the right auto insurance isn't just a legal requirement—it's essential protection for your wallet and peace of mind.
Here's what you need to know about auto insurance in Allen, from understanding Texas's at-fault insurance system to finding coverage that actually protects you on Central Expressway.
Understanding Texas's At-Fault Insurance System
Texas operates under what's called a tort liability or at-fault system. This means that when an accident happens, the person who caused it is financially responsible for the damages. Their insurance company pays for injuries and property damage to the other party. This is different from no-fault states, where each driver's insurance covers their own expenses regardless of who caused the crash.
Texas also uses a modified comparative negligence rule. As long as you're less than 51% at fault for an accident, you can still recover damages. But if you're found to be 51% or more responsible, you're barred from collecting compensation. This makes having adequate liability coverage absolutely critical—if you cause an accident, you're on the hook.
Texas Minimum Coverage: The 30/60/25 Rule
Texas law requires every driver to carry at least 30/60/25 liability coverage. Here's what those numbers actually mean:
$30,000 per person for bodily injury—the maximum your insurance will pay for one person's injuries in an accident you cause. $60,000 per accident for bodily injury—the total your insurance will pay for all injuries combined in a single accident. $25,000 for property damage—coverage for damage to another person's vehicle or property.
The average cost to meet these minimums in Texas is around $526 per year or $44 per month. But here's the problem: these minimum requirements were set back in 2008 and haven't changed since. Medical costs have skyrocketed in the nearly two decades since then. A serious accident on US-75 involving multiple vehicles could easily exceed these limits, leaving you personally liable for tens or even hundreds of thousands of dollars in damages.
Also important to understand: liability insurance only covers the other party. It doesn't pay for your own medical bills or vehicle repairs. For that, you need collision and comprehensive coverage.
Auto Insurance Costs in Allen
Allen drivers pay an average of $160.85 per month for auto insurance, which comes out to about $1,930 annually. That's slightly below the national average of $169.67 per month and also cheaper than some other Texas cities. Full coverage in Allen averages around $195 per month, or $2,340 per year.
But those rates are rising. The average annual cost of full-coverage insurance in Texas hit $2,712 in 2024, up 15% from 2023. In 2025, that's expected to climb another 6% to $2,886 statewide. Factors driving these increases include higher medical costs, more expensive vehicle repairs, increased litigation, and rising severe weather claims across Texas.
Your personal rate depends on several factors. Age matters significantly—teenage drivers pay Allen's most expensive rates, while senior drivers typically pay less. Your credit score plays a major role in Texas. Your driving record, the type of vehicle you drive, your annual mileage, and even your ZIP code all affect your premium. If you commute daily on US-75, some insurers may view that as higher risk due to the heavy accident frequency on that corridor.
The US-75 Central Expressway Factor
Let's talk about the elephant in the room—or more accurately, the traffic jam on the highway. US-75 Central Expressway through Allen is one of the busiest and most accident-prone stretches of road in North Texas. The stretch from Allen through Plano and into Dallas sees hundreds of accidents every month.
If you're a daily commuter on Central Expressway, comprehensive and collision coverage isn't optional—it's essential. Minimum liability won't help if someone rear-ends you in stopped traffic or if you need to swerve to avoid an accident and hit the guardrail. Collision coverage pays for repairs to your vehicle regardless of fault. Comprehensive covers non-collision incidents like hail damage, theft, or hitting a deer.
Allen-Specific Considerations
Allen's rapid growth adds another layer to your insurance needs. The city's population has grown by over 66,000 residents since 2000, reaching 113,300 in 2025 with a 1.4% annual growth rate. More residents means more cars, more congestion, and statistically more accidents.
The Allen Premium Outlets on Stacy Road is another traffic hotspot. This major shopping destination draws crowds year-round, especially on weekends and holidays. Parking lot accidents are common, and the congestion entering and exiting the mall area creates additional collision risk. Some drivers report it taking 15 minutes just to enter the parking lot during peak times. If you frequently shop or work near the outlets, consider whether your coverage is adequate for parking lot incidents.
Allen is an affluent suburb with a median household income of $137,627 and high property values. This matters for insurance because if you cause an accident involving an expensive vehicle, the property damage liability portion of your policy needs to be sufficient. That $25,000 minimum won't go far if you total someone's luxury SUV.
Finding Affordable Coverage in Allen
Here's how to save money without sacrificing protection. First, shop around—rates vary dramatically between insurers for the same coverage. Get quotes from at least three companies. Second, bundle your auto and homeowners or renters insurance with the same company for a multi-policy discount. Third, ask about discounts for good drivers, good students, low mileage, anti-theft devices, and defensive driving courses. Fourth, consider raising your deductible—moving from a $500 to $1,000 deductible can lower your premium significantly, just make sure you have that amount saved for emergencies.
Allen has approximately nine local insurance agencies that can help you compare options and find coverage suited to your specific situation. Working with a local agent who understands Allen's unique traffic patterns and risks can be valuable.
What Coverage Do You Actually Need?
Most experts recommend going well beyond the 30/60/25 minimums. Consider 100/300/100 coverage—$100,000 per person, $300,000 per accident for bodily injury, and $100,000 for property damage. This provides far better protection for a modest increase in premium.
Add uninsured and underinsured motorist coverage. Not every Texas driver carries adequate insurance, and if you're hit by someone with minimum coverage or none at all, this protects you. Medical payments coverage (MedPay) pays for your and your passengers' medical expenses regardless of fault—helpful since Texas doesn't have personal injury protection like no-fault states.
For newer vehicles or anything with a loan or lease, you'll need comprehensive and collision coverage. If your car is paid off and has minimal value, you might consider dropping these coverages, but think carefully given Allen's accident rates.
Getting Started
Start by gathering the information you'll need to get accurate quotes: your driver's license, vehicle identification number (VIN), current insurance information if you have it, and your driving record. Be honest about your annual mileage and where you park overnight—these factors affect your rate.
Get quotes for the same coverage levels from multiple insurers so you're comparing apples to apples. Don't just look at the bottom-line price—read reviews about claims handling and customer service. The cheapest policy won't feel like a bargain if the company makes it difficult to file a claim after an accident on Central Expressway.
Auto insurance in Allen isn't just about meeting the legal minimums—it's about protecting yourself in a growing city with challenging traffic conditions. Whether you're navigating US-75 daily or dodging shopping carts at the Premium Outlets, the right coverage gives you financial protection and peace of mind. Take the time to shop around, understand what you're buying, and make sure your policy actually covers the risks you face on Allen's roads.
