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State Farm, Texas Farm Bureau and USAA offer the cheapest minimum liability and full-coverage car insurance rates for drivers in the Lone Star State.
Daniel is a MarketWatch Guides team writer and has written for numerous automotive news sites and marketing firms across the U.S., U.K., and Australia, specializing in auto finance and car care topics. Daniel is a MarketWatch Guides team authority on auto insurance, loans, warranty options, auto services and more.
Rashawn Mitchner is a MarketWatch Guides team editor with over 10 years of experience covering personal finance and insurance topics.
They say everything’s bigger in Texas, but that doesn’t have to apply to your auto insurance premium. It’s possible to find cheap car insurance in Texas if you know where to look.
We at the MarketWatch Guides team researched the best car insurance companies nationwide and will introduce our top picks for the state of Texas here. We will also go into more detail about cost breakdowns for different driver profiles and Texas car insurance requirements and regulations.
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Powered by The MarketWatch Guides Team is committed to providing reliable information to help you make the best decision possible about insuring your vehicle. Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. After 800 hours of research, the end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Learn more about our methodology and editorial guidelines.
While cheap auto insurance in Texas can be hard to find, there are many great companies that offer low rates in the Lone Star State. In this section, we will take a look at the cheapest car insurance companies in Texas and the best deals for different coverage levels.
The companies with the cheapest car insurance in Texas include State Farm, Texas Farm Bureau Insurance, Geico, USAA and Fred Loya Insurance. Below is a breakdown of the companies’ ratings overall, for coverage and for cost.
*Our research team considers nationwide factors when scoring providers. However, the order of providers in this table is specific to car insurance in Texas.
While these options are some of the best in Texas, your quotes will differ based on many factors, and may not result in a cheap car insurance rate. We recommend that you compare multiple quotes and weigh your options so you can find the best provider for you.
The coverage level you choose has a major impact on rates, and most quotes from providers include estimates for minimum liability and full-coverage car insurance. Minimum liability is all that is required, but it’s best practice for drivers to consider full coverage. In the sections below, we’ll detail the cheapest options for minimum liability and full-coverage car insurance in Texas.
At a rate of $29 per month or $348 per year, Texas Farm Bureau Insurance offers the cheapest average car insurance rates in Texas with State Farm and USAA not far behind. Here are the cheapest minimum coverage cost averages in Texas based on our research:
We found the cheapest full coverage estimates in Texas at $84 per month or $1,013 per year. The table below shows the companies with the cheapest averages for full-coverage auto policies in the Lone Star State.
*These rates are based on a 35-year-old driver with good credit and a clean driving history. Your rates will vary depending on a number of factors.
Factors that determine car insurance rates generally include age, driving history and a person’s credit score. Below we break down cheap car insurance estimates for Texas drivers in these categories.
Young drivers typically pay much more for car insurance than older adults. The tables below show the cheapest car insurance companies and estimated costs for young drivers in Texas.
According to our research, Redpoint Insurance and Texas Farm Bureau offer some of the cheapest auto insurance rates on average for young drivers. 16-year-old drivers typically pay some of the highest rates for car insurance coverage in Texas.
Redpoint Insurance is the cheapest car insurance for 17-year-olds at an average of $138 per month or $1,656 per year. On average, Redpoint Insurance and Texas Farm Bureau offer the cheapest full-coverage car insurance rates for 17-year-old drivers in the Lone Star State.
Redpoint Insurance generally provides some of the most affordable car insurance rates for 18-year-olds, with costs averaging at $138 per month. Texas motorists with driving experience can expect to see their insurance rates go down as they age.
According to our research, Texas Farm Bureau, Redpoint Insurance and Geico offer some of the cheapest car insurance rates for 21-year-old drivers. Coverage from Texas Farm Bureau averages around $136 per month or $1,629 per year.
Drivers 25 years of age can find the cheapest car insurance coverage through Texas Farm Bureau and State Farm. According to our rate averages, drivers tend to pay about $115 per month or $1,385 per year for full-coverage car insurance from Texas Farm Bureau.
The cheapest car insurance in Texas for drivers with a speeding ticket comes from Farmers at a rate of $150 per month. Getting a speeding ticket usually means you’ll end up paying more for car insurance. The average cost of car insurance in Texas for drivers with a speeding ticket on their record is $206 per month or $2,476 per year.
State Farm offers the cheapest car insurance for drivers with a recent accident. Being found at fault in a car accident will likely cause your premiums to rise. The average rate estimate for drivers in Texas with a recent accident is $260 per month or $3,118 per year.
State Farm and Farmers offer the cheapest average auto insurance rates for drivers with a DUI. If you have a DUI on your record, you’ll pay significantly higher rates for car insurance. Texas drivers with a DUI pay an average of $273 per month or $3,280 per year.
Farmers and Texas Farm Bureau Insurance offer some of the cheapest car insurance rates for drivers that have poor credit. In Texas, insurers are allowed to use your credit score as a factor in the cost of your premiums. The average rate for drivers in Texas with poor credit is $285 per month or $3,422 per year.
If you would like to know more about the cheapest auto insurance companies in the Lone Star State, we have detailed coverage details and ratings for each company below:
J.D. Power regional rating: 838/1,000
AM Best financial strength score: A++
Better Business Bureau (BBB) rating: B
We rate State Farm as the best car insurance in Texas for its extensive coverage options, strong reputation and reliable claims. It’s also one of the most affordable choices on average for many Texans — especially for students. State Farm has the best student discounts among leading auto insurance companies with up to 25% off and offers its Steer Clear® educational program.
Keep reading: State Farm insurance review
J.D. Power regional rating: 824/1,000
AM Best financial strength score: A-
BBB rating: A+
Texas Farm Bureau Insurance is one of the best options for drivers in the Lone Star State. It offers the lowest average rates for good drivers in the state and affordable coverage for many types of drivers. It also placed third for customer satisfaction in Texas in the J.D. Power 2023 U.S. Auto Insurance Study℠.
Annual membership to the Farm Bureau is cheap (under $100 per year), and it comes with extra perks like discounts on vehicles, travel and technology products.
J.D. Power regional rating: 801/1,000
AM Best financial strength score: A++
BBB rating: A+
Geico is another top provider of car insurance in Texas. The company is known for cheap coverage, and many drivers find below-average rates. Since 1936, Geico has grown to become the second-largest car insurance provider in the country and the third-largest in the state of Texas.
Drivers can take advantage of 16 discount opportunities, plus access to a usage-based insurance program called DriveEasy.
Keep reading: Geico insurance review
J.D. Power regional rating: 860/1,000
AM Best financial strength score: A++
BBB rating: Not currently rated
USAA provides cheap Texas car insurance to military members, veterans and their immediate family members. According to the U.S. Department of Veterans Affairs, there are over 1.5 million veterans in Texas, meaning many have access to USAA coverage.
In addition to reliable coverage and low average rates, the company provides helpful military resources like guides on deployment, military moves and transitioning back home.
Keep reading: USAA insurance review
J.D. Power regional rating: NR
AM Best financial strength score: NR
BBB rating: F
Fred Loya is a small car insurance company headquartered in El Paso that focuses on providing affordable rates for high-risk drivers in Texas. The company caters to Spanish-speaking customers and has been in business since 1974.
If you’ve had issues finding affordable coverage from other companies, Fred Loya auto insurance is worth considering. Many drivers find cheap car insurance in Texas through the company.
The average estimated rate for full-coverage car insurance in Texas is $146 per month or $1,752 per year, based on the profile of a 35-year-old driver with good credit and a clean driving history. This is only 1% higher than the national average of $1,730. State minimum coverage for Texas averages around $54 per month or $642 per year.
Teen drivers pay more for car insurance coverage in Texas than most other drivers. Costs average around $7,703 per year for a 16-year-old, while a 30-year-old typically pays $1,904 per year on average for full-coverage insurance.
Where in Texas you live is an important factor in your rates. Typically, drivers in urban areas like Austin and San Antonio pay more for coverage than those in rural areas. Other risk factors like weather patterns also play a role.
The table below shows the average estimated rates for different cities in Texas.
*Average rates above apply to the top three companies in each city
Your rates will differ from these averages. Insurers in Texas use a number of variables related to you and your vehicle to determine your rates.
While it isn’t the most expensive state for coverage, a Texas car insurance policy can still be pricey. Urban areas in Texas may be more expensive than the state average since there’s a higher rate of accidents and theft. Natural disasters also increase car insurance prices in some geographic regions.
Like in most states, drivers in Texas must carry the state minimum required coverage. Minimum coverage limits include:
The minimum required liability insurance only covers injuries and property damage you cause to other drivers, not damage to your own vehicle. Texas car insurers are required to offer uninsured motorist coverage (UM), underinsured motorist coverage (UIM) and personal injury protection (PIP), all of which you can decline in writing.
Full-coverage auto insurance policies include collision and comprehensive coverage to cover your own vehicle after an accident or non-collision event.
Texas is one of a handful of states in which you can self-insure as an alternative to buying coverage from an insurance company. This means that you provide evidence to the state that you can cover costs related to an accident.
To self-insure, you’ll need to make a deposit with the state comptroller and apply for a certificate certifying your self-coverage with the Department of Public Safety. Once you receive this certificate, you can treat it as you would your insurance card, keeping it handy in case of an accident.
Under Texas law, it is illegal to operate a motor vehicle without the minimum required insurance or certified self-coverage. Texas issues fines to drivers caught behind the wheel without the proper coverage.
On your first offense, you could be fined up to $350. If you are caught a second time, you could be fined up to $1,000 and your license may be suspended.
These may not be the only consequences of driving without insurance. You may also be required to carry SR-22 insurance and you’ll likely see your insurance rates go up.
State Farm is our top recommendation for car insurance in Texas. Additionally, Texas Farm Bureau, Geico, USAA and Fred Loya can be good options. Whether you’re just shopping around or need to get car insurance coverage today, the best thing to do is to compare multiple car insurance quotes.
Each provider weighs factors in your profile differently, so you might find expensive rates from one company and cheap rates from another.
Our article explored the cheapest auto insurance companies by coverage option and driver profile in Texas. We also looked into the average costs of car insurance in the Lone Star State and detailed Texas state law regarding car insurance policies.
There are a few ways to lower your car insurance premiums in Texas. In the short term, you can choose a higher deductible or try a telematics program that adjusts your rates based on your driving habits. In the long term, you can try to boost your credit score and avoid any accidents or moving violations.
Insurers are required to offer PIP coverage in Texas. However, drivers can choose to decline this coverage if they want.
You can carry both PIP and MedPay coverage in Texas, but coverage may be redundant in some ways, meaning you could end up paying twice for similar coverage. Since PIP is more comprehensive — covering lost wages and other expenses in addition to medical bills — it may make more sense to increase your PIP coverage amounts.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
*Data accurate at time of publication.
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