Best Car Insurance Companies in Texas

Discover our top picks for auto coverage that protects you every minute of every mile.

byRyan TronierJun 2, 2022 7:56 AM
Best Car Insurance Companies in Texas
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People in the Lone Star State have places to go, and they can get there with the peace of mind afforded by the best car insurance companies in Texas. Whether you’re zipping around Austin in a hybrid or cruising through Houston with the top down, we’ve got the best coverage for you.

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Best Car Insurance Companies in Texas

Best Value: State Farm

Best for Minimum Coverage: Texas Farm Bureau

Best for Full Coverage: Farmers

Best for Good Driving Records: Progressive

Best for Poor Driving Records: Esurance

Best for Military Families: USAA

Best Value: State Farm

Pros

  • Competitive auto insurance rates
  • Rideshare insurance available
  • Extensive network of insurance agents and adjusters

Cons

  • Higher than average number of complaints with NAIC
  • No online quotes available

Summary

Motorists who are looking for value may have a lot to like about State Farm’s price points. Not only does this provider generally offer competitive rates for both liability-only and full-coverage insurance, it will also insure those with more than a few blemishes on their driving records. Those who want to do business online might find having to deal directly with a State Farm agent less than desirable.

State Farm provides the standard protections that one expects to see with a larger insurance provider. But it also offers Texans optional emergency roadside service that covers the cost of on-site mechanical breakdown, towing, tire changing and locksmith services, and delivery of gas, oil, and batteries. Texas gig workers can also find rideshare insurance for those Uber and Lyft rides conducted with their personal vehicles.

Not only are these policies often more affordable than others, Texans with poor driving records and even a DUI might be able to find competitive auto insurance with State Farm. Policyholders can get premium discounts for enrolling in the provider’s Drive Safe & Save or Steer Clear programs, being accident free, completing an approved defensive driving course, bundling policies, and insuring multiple cars. 

Although it does have more complaints than one would like to see, according to the NAIC, State Farm regularly wins top marks for customer satisfaction in J.D. Power and Associate ratings

Best for Minimum Coverage: Texas Farm Bureau

Pros

  • Highest-ranked provider in Texas for customer service
  • Multiple savings opportunities

Cons

  • Annual membership fee required
  • Limited information available online
  • No online quotes available

Summary

Texans who are searching for a deal on minimum coverage might have a lot to like about the Texas Farm Bureau. This local underwriter just might deliver your lowest rate for liability-only insurance, without cutting any corners.

This award-winning insurance carrier has a reputation for providing high-quality service to any motorist insuring their vehicle in Texas. In addition to the expected coverages, Texas Farm Bureau also offers policyholders a wealth of optional protections, including death indemnity, ridesharing insurance, emergency roadside assistance, and car rental reimbursement. Those who want value for money in a minimum liability policy might find the most competitive rates with the lowest deductibles and highest policy limits with the Texas Farm Bureau. You may be able to further reduce the cost of coverage with discounts for bundling policies, insuring multiple vehicles and multiple drivers, having a good motor-vehicle record, and driving a car with safety and security features, like anti-theft devices, airbags, or anti-lock brakes. 

Not everyone will find this provider ideal. The Texas Farm Bureau requires policyholders to pay an annual membership fee, and rates vary depending on which county you live in. This carrier provides customers with a traditional in-person experience. This can be a draw for those who enjoy a personal touch, but can also be a disadvantage if you prioritize easy online quotes and online claims management.  

J.D. Power and Associates has ranked Texas Farm Bureau highest for customer satisfaction for 10 years in a row. You’ll also be pleased to know that this provider has few complaints logged with the NAIC

Best for Full Coverage: Farmers Insurance

Pros

  • Customizable policies to fit your needs
  • Few complaints with the NAIC
  • Multiple discounts available

Cons

  • No online quotes available
  • Must deal with insurance agents

Summary

Texas drivers who are in the market for full coverage with a few additional bells and whistles might find what they’re looking for with Farmers Insurance. But those who don’t like dealing with insurance agents should consider looking elsewhere.

Farmers Insurance provides Texans with a smorgasbord of optional auto insurance policies for those with high-dollar vehicles, custom or vintage cars, and automobiles with specialized aftermarket upgrades. Farmers will pay out an agreed-upon value in instances of total loss, cover the cost of repair or replacement for custom wheels, paint jobs, infotainment systems, original equipment manufacturer parts, and more. You can even secure umbrella coverage above your policy limits that protects you and your family in the event of lawsuits.

Furthermore, you can drive down the cost of full coverage or custom coverage with multiple discount options. Farmers offers discounts for smart account management, and you’ll save when you pay your premium in full, go paperless, and enroll in autopay. Homeowners will earn a discount, as will good students who maintain a B average. Alternative-fueled vehicles will save money, and so will cars with select safety features and security devices. When you add up these money-saving opportunities, Farmers may well be your cheapest option for full coverage. Although many will find Farmers level of service amiable, not everyone appreciates working directly with insurance adjusters and agents. If you’re the type who would prefer to receive quotes online or file claims using a mobile app, then you may want to consider a more digital-forward insurer, like Progressive.

Farmers won an above-average customer satisfaction rating in the most recent J.D. Power survey, and it has fewer than expected complaints with the NAIC.

Best for Good Driving Records: Progressive

Pros

  • Usage-based insurance available
  • Savings with multiple discounts
  • Quotes available online, by phone, and in person

Cons

  • Premiums higher depending on how you buy
  • Not always the cheapest option

Summary

Good drivers deserve a break on car insurance rates, and Progressive understands this. It’s why this underwriter provides deep discounts to Texas drivers who have no moving violations or at-fault accidents on their records. 

Progressive claims that it can save Texans an average of $700 a year when they switch their policies. Whether that estimate is true or not will depend on how well you leverage this carrier's multiple discounts, the biggest of which is extended to those with good driving records. Motorists without any tickets or at-fault accidents in the past three years pay about 31 percent less than those with marks on their records, according to Progressive. That’s considerable savings for good drivers.

You’ll also save money on your policy premiums when you pay in full, go paperless, enroll in automatic payment, sign documents digitally, and purchase a policy online. Progressive also gives discounts to the continuously insured, homeowners, good students, and to households that bundle policies and insure more than one car. It’s discounts like these that can cascade into significant price reductions, especially for Texans with a clean driving history. 

Policyholders can save even more money on their auto insurance when they level-up their relationship with Progresive. Using app-gathered data, its Snapshot program gives customers a personalized rate based on their real-time driving habits. Progressive says that those who use Snapshot save an additional $156 per year when they drive defensively and less frequently. 

Progressive boasts above-average rankings for customer satisfaction in J.D. Power surveys, and it has fewer complaints than one would expect from such a large underwriter, according to the NAIC

Best for Bad Driving Records: Esurance

Pros

  • High-risk driver insurance available
  • Online quotes available

Cons

  • Higher-than-average complaints with the NAIC

Summary

High-risk drivers with speeding tickets, at-fault accidents, or DUIs may find a friend in Esurance. But this carrier’s poor track record of customer service may cause others to look elsewhere.

Acquired by Allstate in 2011, Esurance is technically an Allstate company. But these two insurance underwriters feature vastly different coverages and price points. There are other differences as well. Where Esurance was one of the first providers to offer auto insurance to online consumers, Allstate still hasn’t ditched its brick-and-mortar network of agents and adjusters. Allstate is well regarded for providing high-quality coverage, and Esurance is known as more of a budget insurance company.

It’s because of this low-cost coverage that drivers with blemished motor vehicle records and DUIs may find affordable car insurance in Texas. Beyond initially low prices, policyholders can further lower their premiums by taking advantage of a number of discounts including savings for starting an insurance quote online, paying premiums upfront, insuring multiple vehicles, bundling policies, and driving a car with certain safety and security features, such as airbags, anti-lock brakes, and an anti-theft system.

Texans can also enroll in Esurance’s DriveSense program that uses either an app or a telematic device to monitor real-time driving behavior like speed, cornering, hard braking, and the time of day you drive. You can earn a discount for signing up, and continue saving each policy term when you drive defensively.

Despite its low rates for high-risk drivers, some may think twice about doing business with this carrier. Esurance has above-average complaints filed with the NAIC, and it also received low marks for customer satisfaction with J.D. Power and Associates. 

Best for Military Households: USAA

Pros

  • Low-cost coverage
  • Available to children, spouses, and former spouses of military service personnel

Cons

  • Not available to the general public

Summary

Even though the general public isn’t eligible for car insurance through USAA, veterans, active-duty military personnel, and their families will likely find the most affordable auto coverage with this government-backed underwriter.

The United States Automobile Association (USAA) was created in 1922 to provide affordable car insurance to military families. Although USAA no longer underwrites its own auto insurance, it has contracted Progressive to manage policies on its behalf. This can equal big savings for eligible military households in Texas because USAA claims to beat Progressive’s lowest price by at least 5 percent. These low rates are among the many benefits the U.S. makes available to those who honorably serve their country.

For the most part, USAA is a no-frills insurance company. It has the standard protections one would expect, and its few optional coverages can be found with similar underwriters. If you’re a classic car collector or have expensive aftermarket alterations to your vehicle, you may find another carrier better suits your policy limit needs. But for eligible military families who require general insurance, USAA’s price points are hard to beat.

Apart from offering discounts to those who bundle policies and manage their accounts well, USAA will reduce the premiums of Texans with good driving records and those who complete an approved defensive driving course. It even offers discounts to deployed service members who garage their cars and trucks on a military base. Texas policyholders can further drive down the cost of their premiums by enrolling in the USAA SafePilot program that uses an app to personalize your premium based on your driving behavior and frequency.

USAA claimed the top spot for customer satisfaction in the J.D. Power and Associates 2021 report.

Average Cost of Insurance in Texas

The average cost of car insurance in Texas is $109 per month ($1,305 annually), according to data from insurance aggregator QuoteWizard. The average cost of auto insurance in Texas is slightly lower than the national average, which is $1,321 per year ($110 monthly).

Keep in mind that this average price is for middle-aged motorists with a good driving record. Insurance rates can be two to three times more for younger drivers and even higher for those with multiple at-fault accidents, speeding tickets, or a DUI. So, the rate you’ll pay in the state of Texas will depend on cost variables such as your motor vehicle record, claims history, your policy limits and deductible, and the type of car you drive. Personal details will also influence your car insurance rate, such as your credit score, age, gender, and address.

How to Save on Insurance

Whether you’re buying coffee beans or car insurance, the first rule of saving money is to comparison shop. The best way to save on car coverage is to request quotes from three to five insurance carriers and compare price points. Even a policy that is $10 cheaper could save you hundreds of dollars over the life of your car.

Comparison shopping will always yield your lowest insurance rate. Plus, there’s nothing stopping you from leveraging your best quote to negotiate an even lower rate with an insurance agent. 

More tips to save money on car insurance:

Keep a Clean Driving Record

Speeding tickets, at-fault accidents, and other traffic violations will cause your auto insurance premiums to skyrocket. Slow down and drive safely to avoid overpaying for coverage. If you do get a ticket for a moving violation, inquire about traffic school to dismiss it from your motor-vehicle record. Keeping your driving record clean can save you hundreds of dollars each year.

Avoid Overinsuring Your Car

It’s easy to get caught up in the “what if” of car insurance, and many agents are skilled salespeople. But when your vehicle is worth less than your deductible and what you pay each year for insurance, it’s time to reevaluate your policy. 

Similarly, don’t purchase coverage that you won’t really use. Add-ons such as roadside assistance and rental car reimbursement can be nice to have, but calculate how much you’re paying for those goodies over the course of several years. In many instances, it’s cheaper just to hail an Uber home and pay out of pocket for a towing service.

Increase Your Deductible

Raising your deductible is the fastest way to lower your monthly or annual premium. A deductible is the amount you have to pay before your provider kicks in for damages during a claim. For example, if you have a $250 deductible and it costs $1,000 to repair your car, then your insurance company will pay a total of $750.

So increasing your deductible to $500 or $1,000 means that you have to pay more out of pocket for repairs, but doing so will also lower your premium. In theory, you can apply the money you save with lower premiums to your deductible, should you ever need to. 

Take Advantage of Discounts

Insurance companies incentivize loyalty and safe driving habits by offering customers discounts. The amount of a discount and its qualifying guidelines will vary by carrier, but policyholders who can take advantage of multiple discounts can lower their premiums by upwards of 50 percent.

Discounts

Even though car insurance in the Lone Star State is already slightly lower than the national average, choosing a provider that offers multiple discounts can help you pay even less. Discounts vary by provider, but here are a few common ones you’ll find in Texas.

  • Multi-policy: Also referred to as bundling, policyholders who bring all of their insurance needs to one underwriter can save a significant amount of money. As an example, when you purchase homeowners, term life, and RV insurance—along with your car policy—your provider will give you a deep multi-policy discount. 
  • Safe driving: Driving safely doesn’t have to be its own reward. Policyholders who maintain a driving record free from at-fault accidents and moving violations will save money on their insurance. This is also true for those who take an approved defensive driving course or enroll in a provider's app-based safe-driving program.
  • Smart account management: You may get discounts when you go paperless, pay in full, sign documents digitally, enroll in autopay, or purchase your policy online.
  • Car safety features: Cars that come equipped with safety features such as anti-lock brakes, daytime lighting, airbags, or anti-theft devices may also fetch discounts for their owners.

Essential Cost Variables for Insurance

There are a host of variables that will affect the cost of your insurance. 

Age

Car insurance rates can vary wildly based on age. In many cases, teen drivers (ages 16 to 19) pay the most for coverage, with young drivers close behind (ages 20 to 25). Insurance companies will use age as a proxy for experience, which is why these two age groups pay more. Drivers between the ages of 40 and 60 pay the least for car insurance. However, drivers older than 65 can see a dramatic increase in their rates. Similar to teens, senior drivers are also statistically more likely to be the cause of a traffic accident.

Gender

Although some states no longer allow underwriters to use gender to determine the cost of car insurance, Texas isn’t one of them. Research reveals that women generally pay less to insure their vehicles than men do. This gender gap is widest for teen drivers and young drivers, but prices begin to level out as motorists age.

Credit Score

Insurance carriers often use your credit score to forecast the probability that you’ll be involved in an auto accident and file a claim. As a general rule of thumb, those with higher credit scores will pay less for car insurance. Car owners with lower credit scores will typically pay more for the same policy. According to one study, drivers with good credit paid $1,500 less each year than those with bad credit.

Some states do not allow carriers to use a motorist’s credit rating as an insurance cost variable. However, Texas does. So, improving your credit score could be a great way to save money on car insurance.

Location

Your ZIP code is an important variable in the cost of your car insurance. Location-based factors such as crime rate, traffic congestion, and the likelihood of storm damage can all cause your insurance rates to fluctuate in Texas.

Vehicle Model

Providers use the age, value, make, and model of your vehicle to assess its cost to insure. For example, newer cars are more expensive to insure than older cars. Similarly, high-performance vehicles have a higher rate of accidents than family cars, such as sedans or SUVs, so they cost more to insure. Some car makes are also more durable in a crash and will be less expensive to insure than their contemporaries. Car brands such as Toyotas and Hondas will generally have higher safety ratings, and, therefore, often cost less to insure than a Mitsubishi.

Type of Coverage

Drivers must carry 30/60/25 liability insurance to legally operate a car in the state of Texas. Still, many policyholders should think about higher policy limits and additional coverage to ensure they protect themselves and their passengers. A minimum liability policy of 30/60/25 pays out $30,000 to cover the medical costs of someone else when you are at fault in an accident, $60,000 in total injury payments per accident, and $25,000 to cover damage to the other party’s property. Any costs above these policy limits will come out of your pocket. Also, liability-only insurance doesn’t pay a dime for your injuries or your vehicle’s damage.

While higher policy limits and additional protections—typically called full coverage—add to the cost of your premium, it’s highly recommended for those who can afford the extra expense. Here are a few standard policies that you’ll come across in Texas.

  • Liability: Liability is the minimum coverage required in Texas, and this policy protects you in two ways. Bodily injury liability covers someone else’s medical costs when you’re at fault in an accident, and property damage liability covers the damage to somebody else’s car also when you’re at fault. 
  • Comprehensive: Covers your vehicle from non-accident damage such as fire, theft, or vandalism.
  • Collision: Covers damage to your vehicle caused by an accident, regardless of fault.
  • Medical payments: Covers medical costs, funeral expenses, and loss of wages for both you and your passengers, regardless of fault.
  • Uninsured and underinsured motorist: Covers medical and property damage expenses when the at-fault motorist is inadequately insured.

FAQs

You’ve got questions. The Drive has answers. 

Q. Who has the cheapest car insurance in Texas?

A. The cheapest auto insurance in Texas is typically State Farm with policies around $118 per month ($1,412 per year), according to Quadrant data compiled by insurance aggregator QuoteWizard. On the other hand, eligible military families will often find the cheapest auto insurance rates in Texas come from USAA. But this provider doesn’t underwrite policies for the general public. You’ll also find cheap coverage from Texas Farm Bureau and Geico.

It’s important to note that the amount you’ll pay for car insurance in Texas depends on multiple factors, including your driving record, claims history, age, credit score, and ZIP code. Be sure to gather quotes from three to five providers to verify you’re getting the best deal on your auto insurance. 

Q. How much coverage do you need in Texas?

A. Texas requires 30/60/25 liability-only insurance to legally drive a car in the state. This pays $30,000 in medical expenses for each person injured and $60,000 total per accident when you’re at fault. It also covers $25,000 for damages to the other party. However, liability-only coverage doesn’t protect your injuries or property, so you will pay out of pocket to cover those expenses. You are also financially responsible to cover any injury and damage costs sustained by the other party beyond the policy limits.

Q. How much is car insurance in Texas?

A. The average annual cost of auto insurance in Texas is about $1,305 annually ($109 per month), according to Quadrant data from QuoteWizard. This rate is based on a middle-aged driver with a good record. What you’ll pay for car insurance in Texas could be higher or lower depending on your motor-vehicle record, credit score, claims history, age, and other determining factors.

Q. Why is car insurance so expensive in Texas?

A. The cost of car insurance in Texas could be so expensive because of your personal risk profile. Insurance providers use a number of details about you to determine the likelihood that you’ll be involved in an accident or file a claim. Perhaps you have moving violations on your driving record, a low credit score, or too many insurance claims filed in the past.

Our Methodology

To choose the best companies and products for this list, I looked at a large number of financial products from various providers. I focused on cost, product features and options, ease of use, customer service, and past customer ratings as the most important factors in our ratings.