02/18/2026
🚗 “My car is cheap… why is my full coverage so expensive?!”
This is one of the most common questions I get in Texas.
Insurance isn’t based only on what you paid for your car.
It’s based on repair cost and overall risk.
Even a $7,000 vehicle today can include:
• Sensors built into bumpers
• Backup cameras
• Lane assist & safety systems
• LED or adaptive headlights
• Expensive or imported parts
A “minor” accident can quickly become a $5,000–$8,000 repair.
In Texas, a vehicle is generally considered a total loss when repair costs reach its actual cash value. However, carriers may sometimes decide earlier based on repair economics and overall claim exposure.
So yes…
👉 Sometimes an $8,000 car can cost MORE to insure than an $18,000 car.
Insurance pricing is about risk exposure — not just sticker price.
If your premium doesn’t make sense, ask questions.
A good agent should always be able to explain the “why.”
