Car Insurance Discounts for Texas Drivers

If you’ve ever been to Texas, you know that the Lone Star State isn’t just big — it’s also expensive. Without a strong public transportation infrastructure, its residents rely heavily on their cars, making auto insurance coverage a must-have.

Texas car insurance costs $239 monthly for full coverage and $120 for liability insurance, on average. Thankfully, whether you’re a cattle rancher, military service member, or AAA customer, insurers offer many discounts for all types of Texas drivers.

Here’s a look at some of the best Texas car insurance discounts and how to qualify.

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Car insurance discounts for Texas drivers

Drivers in Texas can save hundreds or even thousands of dollars per year on their auto insurance premiums when they shop around for discounts.

Depending on the insurance company, these discounts may be available to drivers nationwide, while others might only be available to Texas drivers.

Membership discounts

Active members of certain organizations may qualify for a discount, though discounts may vary depending on the membership group’s eligibility requirements. 

For example, AAA offers discounts nationally, but other organizations may require Texas residency. Check with your insurer or membership group to see what discounts are available.                                                                                                                                                                           

• AAA members: In addition to enjoying roadside benefits, AAA members may save on auto insurance premiums.

• AARP: Eligible drivers get discounted premiums and added car insurance policy benefits for being an AARP member.

• National Education Association (NEA): Teachers and other educators can enjoy discounts on auto insurance (and more) through NEA partner insurers.

• TSCRA members: Members of the Texas and Southwestern Cattle Raisers Association can get assistance with buying insurance policies while also being eligible for discounts through partner car insurance companies.

Alumni discounts

Texas college or university graduates may be eligible for alumni association discounts. Here’s a look at what’s available through some of the state’s largest schools:

• Association of Former Students of Texas A&M: Members of the Aggie Network may qualify for auto insurance discounts from insurers like Farmers.

• Texas Exes: Graduates of the University of Texas, including satellite schools like the University of Texas at San Antonio, can qualify for discounts from companies like Liberty Mutual.

• Texas Tech Alumni Association: Former Red Raiders can also qualify for lower auto insurance premiums through Liberty Mutual in addition to savings on other insurance products.

• University of Houston Alumni Association: UH alumni get special discounted pricing on their auto insurance coverage through Liberty Mutual.

• University of North Texas Alumni: Former UNT students can save money by getting their coverage through Liberty Mutual.

Occupational discounts

Lastly, you may be able to unlock discounts based on what you do and where you work. These discounts are often available to:

• First responders: Paramedics/EMTs, police officers, and nurses may qualify for insurance discounts.

• Lawyers: In Texas, the State Bar Association offers discounts through partner insurers. Car insurance discounts are available to all drivers.

• Military: Many insurance companies offer military discounts for active-duty service members, veterans, and people in the guard reserves.

• Teachers: Depending on the insurer, you may get discounts just for showing proof of your job, or you may need to be a member of organizations like the NEA or Texas State Teachers Association.

Car insurance discounts available to all drivers

Each insurance company offers its own specific combination of discounts. Some of these are available to all eligible drivers, while others may vary from one type of policy to the next or be based on specific driver factors.

Be sure to ask which discounts are available and how you can qualify when shopping for or renewing your auto coverage.^[1]

Driver-specific discounts

Some insurers offer auto insurance discounts to drivers who meet specific criteria. These discounts are typically available to consumers who pose less risk. For example, people with a safe driving record, who have taken a recent safe driving course, or who drive very little may qualify for savings.

Here are some common types of driver-specific discounts and the savings they typically offer.

Vehicle-specific discounts

Some auto insurance discounts are tied to the vehicle you drive, especially if it has features that may keep you safer or help you avoid accidents. Here are some common auto insurance discounts specific to your car.

Policy and insurer-specific discounts

Lastly, some auto insurance discounts are specific to the insurance company and car insurance policy. Many of these are based on how you manage your coverage and the type of coverage you buy.

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Cheapest insurers for Texas drivers

Texas auto insurance premiums vary widely depending on the type of policy you buy and the insurance company you choose. The average cost of car insurance in Texas is $120 per month for liability coverage and $239 per month for full coverage.

To compare, the nationwide liability average is $105 per month, and full coverage averages $202 per month.

These auto insurance rates are going higher each year, too, with the Texas Department of Insurance reporting a 25.5% increase in premiums in 2023. And, unfortunately, Texas isn’t alone. Climbing rates across the country show no signs of slowing.

Check out the cheapest car insurance companies for Texas drivers in the table below.

How to find cheap car insurance in Texas

Finding cheap car insurance in Texas can be challenging with premiums increasing each year. But you still have ways to lower your auto insurance costs:

• 

  Shop around

  Compare car insurance quotes to see what options (and prices) are available to you. Consider repeating this process every time your policy is set to renew.

• 

  Raise your deductible

  Plans with lower deductibles usually cost more, so if you’re able to choose a higher deductible you may be able to save on your rate.

• 

  Ask about discounts

  Take advantage of any discounts available through your workplace, alumni association, or other organizations.

• 

  Get minimum coverage

  Opt for liability-only coverage, which provides you with state-minimum insurance protection. Keep in mind that a liability policy won’t cover damage to your vehicle, and if you finance your car, your lender will probably require full-coverage insurance.^[2]

• 

  Drive safely

  Accidents and traffic violations can make your rate go up. Practice safe driving habits to keep your driving record clean.^[3]

How much car insurance do you need in Texas?

Texas requires drivers to maintain the following minimum liability limits:^[4]

• At least $30,000 per person in bodily injury liability coverage toward eligible medical expenses, and $60,000 or more per accident

• At least $25,000 in property damage liability

You’ll need to buy at least the state’s minimum amount of liability insurance, but a higher limit might be a good idea. Texas is an at-fault state. This means the driver responsible for the accident is liable for any property damage or personal injury expenses incurred.

And, if you lease or finance your vehicle, your leasing company or auto lender will probably require you to buy full-coverage car insurance to better protect its investment in your car.

Car insurance discounts in Texas FAQs