The best car insurance in Texas

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By

Rachael Brennan

Rachael Brennan

Property and Casualty Insurance Expert

Rachael Brennan is a senior insurance editor at Policygenius, specializing in auto insurance. She worked for 21st Century Insurance, BlueCross BlueShield Massachusetts, and HealthPass New York. She also spent two years working as a content expert for dozens of auto insurance websites through 360Quote LLC.

Published October 1, 2021

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The average cost of a full coverage policy in Texas is $1,840 per year. The price of insurance can vary significantly based on your driving history and from one city or ZIP code to another, however, which means your rates could be considerably higher or lower than average.

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No matter where in Texas you live, you can find cheap car insurance by comparing quotes from multiple companies. Policygenius can help you easily compare options from top companies.

Key Takeaways

  • With a score of 850, Texas Farm Bureau has the highest JD Power rating in the state

  • With an annual rate of $1,229, Texas Farm Bureau has the lowest average rate for full coverage

  • With an annual rate of $4,685, Foremost County Mutual Insurance has the highest average rate for full coverage

Cheapest car insurance companies in Texas

There are a number of factors that can impact your insurance rates, including your driving history, the type of car you drive, your ZIP code, your age, and your credit history, to name a few. 

While each company uses these metrics when determining your rates, they get to decide how much emphasis to put on each individual factor, which means two different companies could offer very different rates for the same person. The table below shows the five cheapest car insurance companies in Texas.

Company

Average cost

JD Power Rating

Texas Farm Bureau

$1,036

--

State Farm

$1,162

881

Germania Insurance

$1,231

--

GEICO

$1,383

871

USAA

$1,531

890

JD Power ranks insurance companies on a 1,000 point scale, based on customer satisfaction. Combining a company’s quoted rates with their JD Power ranking can give you a good idea of which companies offer the best overall insurance coverage for your needs.

Cheapest car insurance companies by age in Texas

Teens and young adults don’t have much driving experience, which means they are more likely to be in an accident than older drivers. Because of this, insurance companies charge significantly higher rates for younger drivers.

However, it isn’t just young adults who are rated by age. Drivers typically see a reduction in their rates as they get older until they are in their sixties, at which point rates slowly start to increase because of the slowed reaction time and worsening vision that typically comes with being a senior citizen. The table below shows the company with the lowest rates for every age group.

Age

Cheapest company

Average cost

16

Texas Farm Bureau

$2,535

18

Texas Farm Bureau

$1,752

21

Texas Farm Bureau

$1,463

25

Texas Farm Bureau

$1,240

30

Texas Farm Bureau

$1,058

35

Texas Farm Bureau

$1,025

45

Texas Farm Bureau

$1,025

55

Texas Farm Bureau

$888

Choosing the right car insurance company in Texas

Choosing the best car insurance company for you doesn’t have to be an overwhelming experience. There are several factors to consider, including:

  • Cost: Finding the company that has the best rates and the most available discounts can help keep your insurance costs low.

  • Coverage: Having enough coverage is vital. For example, if you don’t have enough liability coverage you will still be held accountable for damages that go beyond your coverage levels, so having the highest levels of liability coverage you can afford is an important consideration when choosing an insurance policy.

  • Customer service: Feeling valued by your insurance company is an important part of choosing coverage. Having an insurance company that treats you with kindness and respect can be worth paying a little more for insurance.

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Car insurance rates for drivers with driving violations in Texas

Because your driving history is one of the biggest factors insurance companies use to help determine your rates, a single accident or a traffic ticket could have a significant impact on your insurance costs. This means that avoiding accidents and violations is one of the best ways to keep your insurance costs low.

The rates in the chart below are from the five cheapest insurance companies in the state:

Violation

Texas Farm Bureau

State Farm

Germania Insurance

GEICO

USAA

At-fault Accident

$1,752

$1,395

$1,686

$2,183

$2,460

DUI

$4,281

$1,873

$2,833

$2,398

$2,436

Driving with a suspended license

$1,782

$1,634

$2,259

$2,398

$2,261

Driving with an open container

$4,281

$1,778

$1,318

$2,398

$1,849

Driving with expired registration

$1,128

$1,181

$1,318

$1,656

$1,849

Driving without Lights

$1,128

$1,181

$1,318

$1,656

$1,849

Failure to show documents

$1,128

$1,181

$1,318

$1,656

$1,849

Failure to stop at a red light

$1,128

$1,181

$1,318

$1,656

$1,849

Cheapest car insurance for drivers with bad credit in Texas

Insurance companies in Texas can use your credit score to help determine your rates. Drivers with poor credit histories and low credit scores can expect to pay more for their insurance than drivers with high credit scores, which means working to improve your credit score can save you money on car insurance. The table below shows the car insurance companies with the lowest average rates for drivers with low credit.

Company

Rates for drivers with bad credit

Germania Insurance

$2,428

State Farm

$2,432

Redpoint County Mutual

$2,473

Texas Farm Bureau

$2,590

Auto Club Group

$2,621

Car insurance costs in Texas cities

Every city has a different average insurance rate because local factors like crime rates, population density, or the number of accidents in a given area all impact the cost of insurance. Below are the rates for the ten largest cities in the state, based on population.

  • Houston, average rate $3,392

  • San Antonio, average rate $2,927

  • Dallas, average rate $3,295

  • Austin, average rate $2,799

  • Fort Worth, average rate $2,865

  • El Paso, average rate $2,664

  • Arlington, average rate $2,883

  • Corpus Christi, average rate $2,861

  • Plano, average rate $2,885

  • Laredo, average rate $3,017

The annual cost of insurance in Plano is less than the cost of insurance in Dallas, largely because Dallas has a much higher population, and more people on the road means more accidents and claims.

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Buying car insurance in Texas

Texas requires everyone who owns a vehicle in the state to be able to pay for damage they may cause in an accident. The best way to meet this requirement is to have car insurance.

Texas minimum levels of liability insurance are:

  • $30,000 per person/$60,000 per accident for bodily injury liability

  • $25,000 for property damage liability

Drivers who don’t have at least the minimum levels of liability insurance or higher and cause an accident will receive a ticket from the police. Uninsured drivers may also have their driver’s license suspended for up to two years or face other penalties. This hasn’t stopped some people, however, and about 20% of Texas drivers are uninsured.

Texas only requires drivers to purchase basic bodily injury and property damage liability coverage. This means drivers who purchase the minimum required levels of insurance have no coverage for damage to their own vehicle and they have no protection against uninsured or underinsured motorists. 

Comprehensive and collision coverage will pay to repair or replace your vehicle in the event of a covered peril, while uninsured and underinsured motorist coverage will protect you if the person who hits your car doesn’t have insurance. These coverages can be purchased for an additional cost as part of your insurance policy.

While some states have programs that allow low income residents to purchase insurance at reduced rates, Texas is not one of them. Texans who are looking for cheaper car insurance should work with an insurance expert to compare quotes from multiple companies to make sure they are getting the lowest possible rate.

How to get cheap car insurance in Texas

Most insurance companies have a variety of discounts available to their customers, including:

  • Good student discount - Students who maintain a B average or higher can earn up to 15% off of their car insurance.

  • Bundling discount - Insurance companies typically offer a substantial discount to customers who carry multiple insurance policies  (home, auto, renters, etc.) through the same company.

  • Safe driver discount - Taking a safe driver course can sometimes earn drivers a discount on their insurance, but some companies offer discounts on your premium for drivers who maintain a clean driving record for three years or more.

  • Group discount - Insurance discounts are often available to people based on profession. For example, teachers are often given a discount on their car insurance. Some insurance companies also partner with larger employers and offer discounts as part of an employee benefits package.

  • Low mileage discount - Insurance companies often charge lower rates for drivers who have short commutes.

  • Military discount - Many insurance companies offer a discount to active military members and their families.

Drivers who don’t qualify for these discounts or want even lower insurance rates can work to improve their credit score, clean up their driving record and compare quotes from multiple companies to make sure they are getting the cheapest price for their car insurance.

Frequently asked questions

Is there low-income car insurance in Texas?

Many states offer an alternative insurance policy for residents who fall below the poverty line, but Texas is not one of them. Texas residents who cannot afford a standard insurance policy should work with an insurance agent to find the cheapest possible plan available to them.

What is recommended for car insurance in Texas?

Texas drivers must carry minimum levels of liability coverage, but given the number of uninsured motorists in the state it is recommended that drivers carry comprehensive, collision, and uninsured motorist coverage in addition to liability insurance. It is also recommended that drivers carry the highest levels of liability coverage they can afford to protect themselves in case they are at fault in a serious accident.

Why is car insurance so expensive for drivers under 25?

The less time someone has been driving, the more likely they are to be in an accident or file a claim. Insurance companies charge more for younger drivers to account for the increased risk of insuring them. Young drivers can stay on their parent’s policy and take advantage of good student discounts to keep their insurance costs low.

Methodology

Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:

  • Bodily injury liability: 50/100

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: 50/100

  • Comprehensive: $500 deductible

  • Collision: $500 deductible

In some cases, additional coverages were added where required by state or insurer.

Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.

Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.

Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.