Best Car Insurance in Texas (June 2023)

On average, Texas drivers pay $242 per month for auto insurance coverage – about 4% less than the national average cost. Dozens of car insurance companies in the Lone Star State offer excellent discounts, a wide range of coverage options, affordable premiums, and good online and mobile policy-management tools.

The best car insurance for someone else might not be the best option for you, so comparing quotes from several auto insurers is essential. 

Best car insurance companies in Texas

Texas drivers have many choices when it comes to auto insurance. USAA, GEICO, and State Farm are among the best insurance companies in Texas. 

Whether you value low rates, coverage designed for high-risk drivers, or something else, you can find an auto insurer from the following list of best auto insurers in Texas.

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Best car insurance overall: USAA

USAA

One of the highest-rated car insurance companies on the market, USAA has excellent scores for overall customer satisfaction, claim satisfaction, and financial strength.^{[1] [2]} Additionally, USAA offers a wide selection of discounts for customers, with savings for safe drivers, good students, and many others.

Out of the best car insurance companies in Texas, USAA earned an Insurify Quality (IQ) Score of 4.5 out of 5. However, only military service members, veterans, and their families can purchase coverage. On average, USAA policyholders pay $115 per month for liability coverage and $149 for full coverage.

Best value car insurance in Texas: GEICO

GEICO

GEICO provides excellent car insurance to Texas drivers at a relatively low price. Insurify rate data shows that GEICO offers some of the cheapest car insurance in Texas, at $70 per month for liability coverage and $91 for full coverage.

The company also earned an IQ Score of 4.3. GEICO stands out for its impressive list of discounts, with savings for military personnel, federal employees, smart students, vehicles with an anti-theft device, and many others.

Most affordable car insurance in Texas: State Farm

State Farm has the cheapest car insurance premiums in Texas, with average monthly rates of $65 for liability coverage and $84 for full coverage. And with an IQ Score of 4.4 — one of the highest ratings on the list — State Farm doesn’t sacrifice quality for affordability.

State Farm doesn’t offer many insurance endorsements, but it does provide a big selection of discounts. State Farm also has two safe-driver rewards programs: Drive Safe & Save and Steer Clear. The Steer Clear program is exclusively for drivers younger than 25.

Best for commuters: Nationwide

Nationwide

If you commute to work or school but drive infrequently otherwise, you might benefit from SmartMiles, Nationwide’s pay-per-mile car insurance policy. This program provides the same car insurance coverage you get with a regular policy, but it has a flexible monthly rate that could help you save money.

Nationwide also offers good discounts and several endorsements for added protection. Nationwide policyholders pay $190 per month for minimum coverage and $224 for full coverage, on average.

Best for families: Allstate

Allstate

Allstate offers excellent car insurance to consider if you need to cover your family. The company offers many different discounts, including a multi-policy discount that could help you save up to 25% when bundling home and auto insurance.

Allstate also offers several discounts for high school and college students that can benefit families with young adult drivers on their insurance plan. Out of the Texas car insurance companies reviewed, Allstate has some of the lowest average rates. On average, Allstate car insurance costs $91 per month for liability coverage and $118 for full coverage.

Best for college students: Liberty Mutual

Liberty Mutual

If you’re a college student, Liberty Mutual is a good car insurance option. The company offers discounts for high school and college students with at least a “B” grade point average, as well as savings for students away at school.

College students can also enroll in RightTrack, Liberty Mutual’s telematics-based safe driver program. You can instantly save 10% for signing up for the program and up to 30% for practicing safe driving habits. On average, Liberty Mutual car insurance costs $194 per month for liability coverage and $307 for full coverage.

Best for high-risk drivers: Direct Auto

Direct Auto

High-risk drivers with a history of accidents, a poor driving record, or a low credit history should look into coverage from Direct Auto. Direct Auto specializes in high-risk auto insurance and provides more flexible eligibility requirements than some other companies.

Direct Auto sells very few endorsements but does have a number of discounts available. You can save money by having continuous insurance, bundling your policies, having an anti-theft device in your car, and more. Direct Auto policyholders pay $173 per month for liability coverage and $224 for full coverage, on average.

Best for sports car owners: Progressive

Progressive

If you drive a sports car, you should consider purchasing a car insurance policy from Progressive. Not all insurance companies cover sports cars, but Progressive will insure vehicles valued up to $150,000.

With Progressive, you can take advantage of many discounts, including savings for teen drivers, good students, homeowners, getting a policy online, enrolling in autopay, opting into paperless documents, and more. On average, Progressive policyholders pay $108 per month for liability coverage and $194 for full coverage.

Best temporary car insurance in Texas: Hugo

Hugo

Hugo is a reputable pay-as-you-go car insurance company that offers short-term car insurance in Texas. Drivers who need temporary car insurance can purchase coverage for as little as three days, or in intervals of seven or 14 days, or one or six months. Three different coverage options allow drivers to choose minimum liability coverage, liability plus medical and accidental death coverage, or full coverage that includes liability, comprehensive, collision, medical, and accidental death coverages.

How Insurify’s experts used internal proprietary data to rate the top auto insurers

Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from the company’s partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. 

The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. 

With this information, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across all driver ages, gender, credit scores, and driver profiles for Texas drivers.

How to shop for the best car insurance in Texas

To find the best car insurance in Texas, you should carefully consider the following factors:

1. Your coverage needs: First, think about what coverage you really need. If you have teen drivers in your household, you may want accident forgiveness. Or, if you lease or finance your vehicle, you might want gap insurance. When comparing insurers, make sure the companies you look into offer the type of coverage you need.

2. Your budget: Auto insurers personalize auto rates for every driver, but companies charge different rates for similar types and amounts of coverage. Get quotes from at least three or four insurance companies to maximize your chances of finding the cheapest policy for your financial situation.

3. What discounts you qualify for: Look for car insurance companies that offer discounts you can qualify for. Some insurers offer more discounts than others, and the average savings potential can also vary. You might need to call an agent at a specific auto insurer to confirm the company does offer advertised discounts in Texas.

4. What you value in an insurance company: Consider what you value most in an insurance company — perhaps excellent customer service, online or mobile policy-management tools, or the highest discounts. While you might not find an insurer that offers everything you want, choose one that checks most of the boxes for you.

How to get the cheapest car insurance in Texas

Car insurance rates vary for each driver, so you may face expensive premiums due to factors like your age and driving record.

“Texas drivers have multiple ways to lower their insurance premiums,” says David Trump, Mercury Insurance product manager for Texas. Here are a few ways to get the cheapest car insurance in Texas:

• Look for discounts. Most car insurance companies in Texas offer discounts. You can typically find discounts for good students, safe drivers, bundling your policies, taking a defensive driving class, installing vehicle safety features, and insuring multiple vehicles.

• Pick high deductibles. For policies that require a deductible, like collision insurance, setting a higher deductible will result in a lower monthly premium.

• Improve your credit. If you don’t have a good credit score, improving your credit could help you qualify for a cheaper car insurance premium.

• Pay your premium up front. You can often save money on your auto insurance policy if you pay your annual premium up front and in full.

• Shop around. Before you purchase car insurance, shop around and compare quotes from several insurers. You can use a quote-comparison tool like Insurify to simplify the process.

Minimum car insurance requirements in Texas

All motor vehicles operated or parked on Texas roadways must be insured. You need to carry proof of insurance in your car at all times so you can provide it in the following situations:

• When requested by law enforcement

• Vehicle registration renewal

• A car accident

“Texas has a specific coverage requirement, which is often called 30/60/25 coverage,” adds Trump. The table below includes the minimum coverage requirements in the state:^[3]

Liability-only vs. full-coverage insurance in Texas

Texas requires all vehicle owners to carry a minimum amount of liability insurance, which pays for another driver’s medical bills and vehicle repairs if you cause an accident. Liability-only insurance might make sense if you have a tight budget or you drive infrequently.

However, experts generally recommend purchasing a full-coverage insurance policy for higher levels of protection. Full-coverage insurance includes collision coverage, which pays for your vehicle damages when you cause an accident. It also comes with comprehensive coverage, which covers theft and vehicle damages stemming from vandalism, weather-related damage, and other non-collision incidents.

If you lease or finance your vehicle, you may contractually need to purchase full-coverage insurance. But even if you own your car outright, a full-coverage policy can provide extra financial protection and peace of mind.

In Texas, State Farm and GEICO provide the cheapest car insurance for both liability-only and full-coverage car insurance.

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Texas car insurance rates by driving and accident history

When you apply for an auto insurance policy, the insurance company will carefully review your driving record. If you have a history of violations, like speeding tickets, at-fault accidents, or DUI convictions, you’ll most likely pay a higher rate than drivers with clean records.

Below, you can see the cheapest car insurance companies in Texas based on driving records and accident history. These quotes are for a full-coverage policy.

SR-22 insurance in Texas

Texas requires certain high-risk drivers to file an SR-22 form. The forms are filed with the help of your auto insurer to prove you have the state minimum required insurance and financial stability.

You might need an SR-22 form if you get convicted of a DUI, get caught driving without a license, or have been found driving while uninsured multiple times. If you have an SR-22 form, you need to maintain it for two years, beginning on either the date of conviction or the date of the judgment against you.^[4]

Not all car insurance companies in Texas offer SR-22 insurance. You can get this certificate from the following insurers:

• USAA

• Progressive

• Allstate

• Safeco

• Liberty Mutual

• Dairyland

• Direct Auto

• Mercury

Texas car insurance quotes by credit tier

“Insurance companies are allowed to use insurance credit scores in Texas,” says Trump. That means your credit score can affect your car insurance premium. Drivers with excellent or good credit scores generally pay lower rates than drivers with poor credit scores.

Car insurance quotes in Texas cities

While car insurance rates vary by state, the city you live in can also have an effect on your premium. For example, drivers who live in major cities might pay more than drivers who live in rural areas. Cities with a high risk of severe weather, like hurricanes, or a high vehicle theft rate, often have more expensive average premiums.

In the table below, you can see the cheapest cities in Texas for auto insurance, as well as their average premiums. Drivers in Waco pay the cheapest average rates in the state, while Houston drivers face the highest rates.

Population density can affect car insurance rates for an area, driving significant variations between cities and ZIP codes. For example, Houston is the largest city in Texas, with a population of more than 2.3 million, which likely contributes to the city’s comparatively high cost of car insurance. The table below illustrates where car insurance costs the most in Texas.

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Texas car insurance rates by driver age

Age has an effect on car insurance premiums. In general, young drivers pay the highest rates because they have less experience behind the wheel. As drivers get older, car insurance rates generally decrease if they maintain a good driving record. Texas teenagers earn the highest average rates in the state, at $433 per month.

Texas car insurance FAQs

Insurify Insights

Insurify Insights

How Texas Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Texas below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Texas drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Ford F-Series Pickup

Most Popular Car in Texas

#34

State with the Most Speeding Tickets Rank

#35

State with the Moving Violations Rank

#37

State with the Most DUIs Rank

#25

State with the most Suspended Licenses

• Accidents in Texas

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Texas is the #32 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #32
  • Percent of drivers in Texas with an accident: 8.2%
• DUIs in Texas

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Texas is the #37 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #37
  • Percent of drivers in Texas with a DUI: 1%
• Reckless Driving in Texas

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Texas is the #43 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #43
  • Percent of drivers in Texas with a reckless driving offense: 0.9%
• Rude Driving in Texas

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Texas is the #45 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #45
  • Percent of drivers in Texas with a rude driving violation: 1%
• Speeding in Texas

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Texas is the #34 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #34
  • Percent of drivers in Texas with a speeding ticket: 7.5%
• Failure to Yield Rates in Texas

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Texas is the #50 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #50
  • Percent of drivers in Texas with a failure to yield violation: 0%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.