Whether you live in San Antonio or Dallas, car insurance in Texas is required for all drivers. But where can you get the best car insurance in Texas? We researched the ins and outs of Texas car insurance to help you make an informed decision.
Whenever you shop for car insurance, we recommend getting quotes from multiple providers so you can compare coverage and rates. Factors such as your age, vehicle make and model, and driving history can affect your premium.
Enter your zip code in our tool below to start comparing personalized car insurance quotes.
In this article:
- Cheapest Texas Car Insurance
- The Best Car Insurance Options In Texas
- An Overview Of Texas Car Insurance
- Why Are Texas Car Insurance Rates So High?
- What To Consider When Looking For Texas Car Insurance
- Final Thoughts On Car Insurance In Texas
Cheapest Texas Car Insurance
According to our rate estimates, the Texas Farm Bureau provides the cheapest full coverage car insurance for good drivers at $1,010 per year. Additionally, State Farm and Farmers Insurance are both cheap options.
|Car Insurance Provider||Average Annual Cost Estimate|
|Texas Farm Bureau||$1,010|
What Is The Average Cost Of Car Insurance In Texas?
Compared to the national average, car insurance in Texas can seem expensive. According to the NAIC, the cost of Texas car insurance was $1,152 in 2018, while the national average was $1,057. Here’s a breakdown of the coverage costs that year based on data from the Insurance Information Institute:
|Type of Coverage||Average Annual Expenditure in 2017|
*Most drivers carry liability coverage but not necessarily other types of auto insurance. Total average annual expenditure measures what Texas drivers actually spent on auto insurance in 2018.
Annual Texas Car Insurance Estimates By Age
A 24-year-old in Texas may pay about 39 percent more than a 35-year-old for full coverage car insurance, according to our rate estimates.
|Age||Texas Annual Car Insurance|
Annual Texas Car Insurance Estimates By Gender
In our Texas car insurance cost research, we found that men pay about six percent more than women for coverage.
|Gender||Texas Annual Car Insurance|
Annual Texas Car Insurance Estimates For Drivers With Bad Credit
In Texas, having a fair credit score can raise your rate by about 21 percent, while having a poor score can raise it by 63 percent.
|Credit Rating||Texas Annual Car Insurance|
Annual Texas Car Insurance Estimates For Bad Drivers
A driver with a speeding ticket may pay 18 percent more for car insurance in Texas, while a driver with a DUI could pay 57 percent more.
|Driving Record||Texas Annual Car Insurance|
The Best Car Insurance Options In Texas
Below, we have laid out five companies in Texas that stood out against the rest. We researched providers based on price, overall customer satisfaction, and coverage options available in Texas, and USAA came out on top.
With over 15 million licensed drivers on Texas roads and over 25 options for car insurance in Texas, it’s may seem hard to make a decision. But it is important to arm yourself with quality information so you can choose the best possible coverage and stay safe on the road.
|Best Texas Car Insurance||Motor1 Rating||Average Cost Estimate|
*Not all companies were included in our state cost estimates. Also, you may notice that some car insurance companies are listed above those with higher star ratings. This is because our ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Texas.
#1 USAA Car Insurance
USAA is an insurance provider for military personnel and their immediate family members. It offers auto insurance in all 50 states, but stands out as the best overall provider of car insurance in Texas.
Our research team found that this company has a strong reputation among auto insurance industry leaders, offers affordable rates, and has competitive discount opportunities.
USAA stands for United Services Automobile Association. The provider is based out of San Antonio and has more than 12.8 million members. It was founded in 1922 and is ranked #101 on the Fortune 500 List. The company has an AM Best financial strength rating of an A++ and a J.D. Power claims satisfaction rating of 5 out of 5.
With USAA car insurance, you can get standard coverage and add-ons like:
- Roadside assistance: Including towing, lockout service, battery jump-starts, flat tire changes, and fuel delivery
- Rental reimbursement: Coverage for a rental vehicle while yours is in the shop for a covered repair
- Glass coverage: Protects automotive glass parts like the windshield or window (available in most states)
- Guaranteed asset protection (GAP): Covers the difference between what insurance covers and what a financed car is worth after a total loss
- Car replacement assistance (CRA): Pays 20 percent more than the actual cash value of your car after a total loss
USAA offers various discounts for drivers, including 15 percent off for customers who garage their car on a military base.
Learn more about coverage in our complete USAA insurance review.
|Affordable rates and numerous discounts||Only available for military and their families|
|Good option for military members and young drivers|
|Superior financial rating from AM Best|
#2 Texas Farm Bureau
Based in Waco, Texas Farm Bureau Insurance has provided insurance to Texans since 1952. Today the company handles auto, home, property, farm, life, and health insurance for over 300,000 Texas customers and their families. Texas Farm Bureau has 250 offices statewide and employs over 750 multi-line agents.
Texas Farm Bureau is accredited by the Better Business Bureau (BBB) and maintains an A+ rating. It also holds an Excellent rating from AM Best for financial strength and has been recognized as best in customer satisfaction in Texas by J.D. Power numerous times.
Texas Farm Bureau offers standard auto insurance coverage plus:
- Roadside assistance and towing coverage
- Auto death indemnity coverage
- Rental car reimbursement
The 2021 J.D. Power U.S. Auto Insurance Study ranks Texas Farm Bureau as the top provider in Texas. Texas Farm Bureau offers discounts for multiple policies or cars, safe driving, and more.
Although Texas Farm Bureau doesn’t offer online quotes, you can obtain a quote over the phone or from the nearest Texas Farm Bureau agent.
|Offers some of the lowest rates in the state||Must be a Farm Bureau member|
|A+ rating from the BBB||Mixed customer service reviews|
|Excellent financial standing|
|Easy claims process|
To learn more about the car insurance provider, check out our review of the Texas Farm Bureau.
#3 Geico Car Insurance
Geico is one of the largest car insurance companies on the market and offers competitive car insurance in Texas.
In addition to standard coverage, you can get mechanical breakdown insurance, rideshare coverage, and accident forgiveness. Additionally, Geico offers substantial discounts, making its already low rates even more impressive.
One of the biggest appeals of Geico is its state-of-the-art online tools and mobile app. Although many companies offer these now, Geico continues to prove itself as top-of-the-line when it comes to ease of use with both. In our nationwide review, we rated Geico the Best Overall choice for car insurance.
|A+ rating from the BBB and A++ financial strength rating from AM Best||Average quotes experience|
|Many choices for coverage|
|High level of customer satisfaction|
|Available in 50 states|
To learn more about the car insurance provider, check out our complete Geico review.
#4 Progressive Car Insurance
Progressive might be the right car insurance for Texas drivers in their 20s or those with a history of high-risk driving. On top of being one of the top auto insurance providers in the nation, Progressive also has thousands of positive reviews from satisfied customers and awards from top names in the auto industry like AM Best and the BBB.
- AM Best financial strength rating: A+
- BBB rating: A+
Costs for Progressive auto insurance can vary depending on where you’re located. Progressive car insurance in Texas costs less for drivers who live in more rural cities like Memphis or Ballinger compared to more expensive car insurance rates experienced by drivers in Dallas or Houston.
Progressive offers many coverage plans in all 50 states, ranging from standard coverage to more comprehensive add-ons. Plus, Progressive has many money-saving features:
- Name Your Price® tool: Enter the price you want to pay for car insurance to be matched with policies to fit your budget.
- Snapshot®: An app on your phone monitors your safe driving habits and could qualify you for savings.
- Deductibles savings bank: For every six months that you go claim-free, get $50 off your deductible the next time you need to bring your car in for a repair.
Read our Progressive insurance review and the pros and cons listed below to learn more about what the provider has to offer.
|One of the top auto insurers in the United States||Average claims process|
|A+ financial strength rating from the AM Best||Mixed customer service reviews|
|Great choice for high-risk drivers|
|Several money-saving features|
#5 State Farm Car Insurance
With nearly a century of experience, State Farm is the largest provider of Texas car insurance. It has over 380 local agents available throughout the state. The company started with founder George J. Mecherle, who sold his first auto insurance policy in 1922.
State Farm has numerous awards and accolades. It has a superior financial strength rating from AM Best, and according to the National Association of Insurance Commissioners (NAIC), State Farm receives "fewer than the median number of complaints to state regulators relative to its size for auto, home, and life insurance."
State Farm offers the same basic coverage options as other top Texas car insurance providers, and it has a number of discounts that can help offset costs. The provider also has great perks, including:
- Online quotes and purchase options for most coverage policies
- A mobile app that provides policy information, roadside assistance, and a place to submit claims
- Rideshare insurance policies in most states
|Comprehensive coverage offerings||Reported errors with autopay|
|Extensive selection of discounts|
|Positive customer reviews|
|Easy online quotes process|
To learn more about the car insurance provider, read our in-depth State Farm insurance review.
If you are looking to get a quote from one of our top recommended insurance providers, enter your zip code in the tool below to find the best plan and price for you.
An Overview Of Texas Car Insurance
To legally drive a vehicle in Texas, you must carry auto insurance. In fact, the minimum requirements in Texas are actually more intensive than in many other states, however some types of coverage are optional.
But before we dive into minimum requirements, it’s important to know all the insurance lingo. Essentially, there are five types of car insurance coverage that most car insurance companies include in their policies. Each one also comes with price ranges that vary by state. Here’s a basic summary of these types of car insurance:
|Insurance Type||Range of Mandatory Limits||Who and What It Benefits|
|Bodily Injury Liability (BI)||$15,000–$50,000/person
|Another driver's injuries|
|Property Damage Liability (PD)||$5,000–$25,000/accident||Another driver's car or other property damages|
|Uninsured Motorist BI||
|Your injuries (if other driver is uninsured)|
|Uninsured Motorist PD||$5,000–$25,000/accident||Your car/property (if other driver is uninsured)|
|Personal Injury Protection (PIP) and Medical Benefits||$1,000–$50,000||Your injuries and your passengers’ injuries|
What Car Insurance Is Required By Law In Texas?
Each state has individual laws that govern the minimum coverage requirements for car insurance coverage. A multitude of factors determine why each state sets specific minimum requirements, but often these rules are impacted by accident report history and the demographics of each state’s citizens. This is what you need in Texas:
|Insurance Type||Required Coverage Amount in Texas|
|Bodily Injury Liability||$30,000 per person and $60,000 per accident|
|Property Damage Liability||$25,000 per accident|
|Personal Injury Protection||Optional; state requires that providers offer at least $2,500|
|Uninsured Motorist Bodily Injury||Optional; state requires that providers offer at least $30,000/person and $60,000/accident|
|Uninsured Motorist Property Damage||Optional; state requires that providers offer at least $25,000 with a $250 deductible|
|Collision and Comprehensive||Optional|
Texas drivers are required to provide proof of insurance at the following times:
- When registering a car or renewing vehicle registration
- When completing a required vehicle inspection
- When completing certain transactions related to your driver’s license
- When pulled over by law enforcement
Is It Illegal To Not Have Car Insurance In Texas?
Drivers in Texas can face some serious fees and penalties if caught driving without car insurance. If law enforcement officials pull you over for any reason and you cannot show proof of insurance, you will face a fine of $175–$350. Furthermore, you’ll be required to pay an uninsured motorist surcharge of $250 for three years upon license renewal.
Even first-time offenders face rate increases on their insurance coverage as a result of this one infraction. Repeat offenders can face fines up to $1,000, potential vehicle impounding, and other legal fees.
Why Are Texas Car Insurance Rates So High?
The fact that Texas has such a large population is just one of the reasons why Texas has insurance higher than the national average. Here are a few more factors that affect the state’s insurance prices:
- According to the Insurance Information Institute, over eight percent of drivers in Texas are uninsured.
- According to the AARP, the rural landscape of Texas means that drivers spend an average of 26 minutes per day commuting, with less than 3 percent of Texans using public transportation for commuting purposes.
- Backgroundcheck.org ranks Texas with the 11th worst DUI rate in the country, while WorldAtlas reports Texas as having the 6th highest number of car accidents in the country.
If you receive a DUI conviction in Texas, state law requires that you provide proof of Texas car insurance with a form known as an SR-22. Your insurance company sends this form directly to the Texas Department of Public Safety so your license can be reinstated. Expect to pay more for Texas car insurance after a DUI conviction.
Rates can change day by day. We recommend getting multiple quotes that are personalized to your location and driving history. Enter your zip code in the tool below to get started.
What To Consider When Looking For Texas Car Insurance
1. How much coverage do you need?
As we mentioned above, the Texas car insurance minimum requirements may not fit your needs. For example, if you’re driving a vehicle under loan or lease, you will probably need full coverage auto insurance. Also, if you own a luxury vehicle, the minimum Texas auto insurance might not include enough coverage for more costly repairs.
Keep in mind that no car insurance company covers repairs caused by manufacturer defects. If you want protection against breakdowns, you might be looking for an extended car warranty.
2. What’s your driving record like?
Your driving history will definitely impact your insurance rates, and Texas has a fairly harsh drivers license points system. In fact, it can take years to clear your record of a major violation. If you have an extensive record, do your homework on which insurance companies are best for people with poor driving records.
3. What discounts can you get?
Most car insurance companies offer discounts to drivers for a multitude of reasons. See where you can stack them to maximize your savings. Also, if you need multiple types of insurance, consider choosing companies that offer a variety of services so you can get a multi-policy discount.
Final Thoughts On Car Insurance In Texas
You will need at least bodily injury and property damage liability with your Texas car insurance policy. Due to the excessive DUI rates in the state, high average time spent on the road, and high number of uninsured motorists, expect to pay more than the national average. However, if you shop around and collect car insurance quotes from a few highly rated providers, you can still get cheap car insurance in Texas with great coverage.
Enter your zip code in the tool below to collect and compare car insurance quotes from providers available in your state:
In an effort to provide accurate and unbiased information to consumers, our expert review team collects data from dozens of auto insurance providers to formulate rankings of the best insurers. Companies receive a score in each of the following categories, as well as an overall weighted score out of 5.0 stars.
- Industry Standing: Insurers with strong financial ratings and customer-first business practices receive the highest scores in this category.
- Availability: We consider availability by state as well as exclusions for specific groups of drivers.
- Coverage: This rating is based on types of insurance available, maximum coverage limits, and add-on policies.
- Cost and Discounts: Our research team reviews auto insurance rate estimates generated by Quadrant Information Services for a variety of drivers in every state. Companies with lower prices and many car insurance discount opportunities receive the best scores.
- Customer Service: We comb through customer reviews and consumer feedback studies from experts like J.D. Power.
- Technology: Auto insurers with mobile apps, advanced online services and telematics are more likely to meet consumer needs.
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