Best car insurance in Texas (2024)

Texas Farm Bureau is the cheapest car insurance in Texas, with an average rate of $87 per month.

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By

Rachael BrennanSenior Editor & Licensed Auto Insurance ExpertRachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.&Andrew HurstSenior Editor & Licensed Auto Insurance ExpertAndrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Edited by

Anna SwartzAnna SwartzSenior Managing Editor & Auto Insurance ExpertAnna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.
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Reviewed by

Ian Bloom, CFP®, RLP®Ian Bloom, CFP®, RLP®Certified Financial PlannerIan Bloom, CFP®, RLP®, is a certified financial planner and a member of the Financial Review Council at Policygenius. Previously, he was a financial advisor at MetLife and MassMutual.

Updated|5 min read

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Texas Farm Bureau has the cheapest car insurance rates in Texas at $87 per month for a full-coverage policy. That’s 43%, or $777 per year, cheaper than the state average in Texas, which is $1,818 per year.

Our other picks for the best cheap car insurance companies in Texas are State Farm, Germania, Redpoint, and GEICO. You can find your cheapest company in Texas by comparing quotes from multiple providers.

Company

Average cost per month

Texas Farm Bureau

$87

State Farm

$90

Germania

$112

Redpoint

$113

GEICO

$122

Methodology & why you can trust our rates

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: $50,000 per person/$100,000 per accident

  • Property damage liability: $50,000

  • Uninsured/underinsured motorist: $50,000 per person/$100,000 per accident

  • 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.

The cheapest car insurance companies in Texas

Texas Farm Bureau

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.4

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

All 50 states

Bundle home & auto

Good student discount

Mobile app

Offers classic car insurance

Usage-based discount

Why we chose itchevron icon

Texas Farm Bureau is one of the top car insurance companies in Texas thanks to its affordable rates, even for young and newly-licensed drivers, and its high customer service ratings.

Pros and conschevron icon

Pros

  • Lower-than-average rates

  • Offers a death indemnity benefit

  • Owned by its policyholders

Cons

  • Only available in Texas

  • Limited coverage options

  • Texas Farm Bureau membership required

More detailschevron icon

Why we chose Texas Farm Bureau

Average rates with Texas Farm Bureau are hundreds of dollars cheaper than the statewide average, plus it offers discounts for bundling, taking a driving safety class, and owning a safe vehicle that lower your rates even more.

Texas Farm Bureau makes up for its lack of customization options with its high customer service ratings. According to the National Association of Insurance Commissioners (NAIC), Texas Farm Bureau received fewer complaints than expected for its size.

You do need to become a member to get car insurance, but membership fees are minimal.

How does the cost of car insurance from Texas Farm Bureau compare to the average in Texas?

The average cost of car insurance from Texas Farm Bureau in Texas is $87 a month or $1,1044 per year, which is 43% cheaper than the statewide average.

State Farm

State Farm logo

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.8

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Coverage for rideshare drivers

Good student discount

Mobile app

Usage-based discount

Offers classic car insurance

Offers motorcycle insurance

Why we chose itchevron icon

State Farm is one of the best and cheapest car insurance companies in Texas thanks to its cheap rates for lots of different types of drivers and its solid reputation for customer service.

Pros and conschevron icon

Pros

  • Available in almost every state

  • Low rates for teens and drivers with accidents

  • High customer satisfaction ratings

Cons

  • Limited coverage options

More detailschevron icon

Why we chose State Farm

State Farm has some of the best car insurance rates in Texas. State Farm also offers affordable coverage for drivers who have been in an accident, or have a speeding ticket or DUI on their records.

One of the things we like most about State Farm is its customer service. State Farm has high customer satisfaction ratings and receives fewer complaints than is average for the industry, according to the National Association of Insurance Commissioners.

How does the cost of car insurance from State Farm compare to the average in Texas?

The average cost of State Farm car insurance in Texas is $90 a month or $1,080 per year, which is 41% cheaper than the statewide average.

Germania

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starEmpty gray starEmpty gray star

3.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

B

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Bundle home & auto

Good student discount

Why we chose itchevron icon

Germania is a top car insurance company in Texas, especially if you want to work with a local company with cheaper-than-average rates.

Pros and conschevron icon

Pros

  • Cheap car insurance rates

  • Affordable car insurance for high-risk drivers

  • Lots of discounts, many of which are easy to qualify for

Cons

  • Few ways to customize a car insurance policy besides roadside assistance

  • Only available in Texas, so drivers who leave the state will have to switch insurance companies

More detailschevron icon

Why we chose Germania

Brenham-based Germania only offers car insurance in Texas, so it’s a good choice if you want coverage from a company with lots of local experience and good customer service scores.

Germania offers straightforward coverage that’s easy to understand, but not many add-ons; although roadside assistance protection and coverage for recreational vehicles are available.

How does the cost of car insurance from Germania compare to the average in Texas?

The average cost of car insurance from Germania in Texas is $112 a month or $1,344 per year, which is 26% cheaper than the statewide average.

Redpoint

Logo for the redpoint auto insurance company

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starEmpty gray starEmpty gray star

3.0

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

NA

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Why we chose itchevron icon

Redpoint is one of the cheapest car insurance companies in Texas, especially for high-risk drivers who are having trouble finding coverage anywhere else.

Pros and conschevron icon

Pros

  • Some of the cheapest rates in Texas

  • Much cheaper rates than competitors for high-risk drivers

  • Affordable coverage for teens and new drivers

Cons

  • Sparse online presence makes it necessary to work with Redpoint in person

More detailschevron icon

Why we chose Redpoint

Redpoint is one of the cheapest car insurance companies in Texas if you’re a high-risk driver, like a teen or newly-licensed driver, you have bad credit, or you have a spotty driving record.

Even if you’re not a high-risk driver, Redpoint still offers some of the best car insurance rates in the Lone Star State. Rates are nearly $500 cheaper than average for Texas drivers with a clean driving record.

How does the cost of car insurance from Redpoint compare to the average in Texas?

The average cost of car insurance from Redpoint in Texas is $113 a month or $1,356 per year, which is 25% cheaper than the statewide average.

GEICO

Logo for GEICO insurance company

Policygenius rating 

Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.

Full orange starFull orange starFull orange starFull orange starHalf orange star

4.7

AM Best rating 

AM Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).

A++

Cost 

Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).

$

$

$

$

$

Offers classic car insurance

Offers motorcycle insurance

Usage-based discount

Mobile app

All 50 states

Good student discount

Why we chose itchevron icon

GEICO is among the top car insurance companies in Texas for its low rates, highly rated customer service, and convenient mobile app.

Pros and conschevron icon

Pros

  • Available in all 50 states

  • Easy-to-use digital tools

  • Plenty of discounts

Cons

  • Only sells through GEICO agents

  • Doesn’t underwrite its other products

More detailschevron icon

Why we chose GEICO

Nationally-known GEICO receives fewer complaints than expected, according to the National Association of Insurance Commissioners. GEICO also ranks higher-than-average for claims satisfaction on J.D. Power’s 2022 Claims Satisfaction Study.

GEICO doesn’t offer as many ways to customize a policy as some competitors, but it has all the basic coverage most drivers need. We also like GEICO’s convenient mobile app. You can make a claim, access your policy details, and call for roadside assistance whenever you need it, all through the GEICO smartphone app. You can even estimate your vehicle’s damage after an accident to see what repairs might cost using a photo tool.

How does the cost of car insurance from GEICO compare to average in Texas?

The average cost of car insurance from GEICO in Texas is $122 a month or $1,464 per year, which is 19% cheaper than the statewide average.

Best car insurance companies in Texas

The best car insurance in Texas is USAA, which is only available to drivers affiliated with the military. USAA scored the highest on J.D. Power’s 2023 Auto Insurance Survey for the Texas region, which measures how policyholders in the Lone Star State feel about their company’s customer service, billing, claims, and price. [1]

State Farm and Texas Farm Bureau also earned top scores and are available to the general public, which USAA is not.

Rank

Company

Score

1

USAA

860

2

Auto Club of Southern California

839

3

State Farm

838

4

Texas Farm Bureau

824

5

Farmers

813

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, it can be harder for young adult drivers to find cheap car insurance.

We found that Redpoint has the cheapest average car insurance rates in Texas for younger drivers.

Age

Cheapest company

Average cost

16

Redpoint County Mutual

$1,356

35

Farm Bureau

$1,031

18

Redpoint County Mutual

$1,356

45

Farm Bureau

$1,031

21

Redpoint County Mutual

$1,356

55

Farm Bureau

$893

25

State Farm

$1,233

60

Farm Bureau

$862

30

Farm Bureau

$1,063

65

Farm Bureau

$844

70

Farm Bureau

$846

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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. If you don’t have enough liability coverage you'll still be held accountable for damage that goes beyond your coverage levels, so having the highest levels of liability coverage you can afford is an important consideration when choosing a policy.

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

Are you ready to start shopping for insurance? Our insurance experts at Policygenius are ready to help you find the right insurance coverage for your needs

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Car insurance rates for drivers with driving violations in Texas

Your driving history is one of the biggest factors insurance companies use to help determine your rates. A single accident or a traffic ticket can make your auto insurance much more expensive.

The cheapest car insurance in Texas for drivers with a single driving violation on their records is State Farm.

A bar graph showing the average cost of car insurance for a driver with a violation on their record.

Violation

Farm Bureau

State Farm

Germania Insurance

Redpoint County Mutual

GEICO

USAA

At-fault accident

$1,761

$1,280

$1,821

$1,356

$2,231

$2,460

Suspended license

$1,133

$1,488

$2,424

$1,356

$2,451

$2,261

Open container

$2,162

$1,612

$1,434

$1,356

$2,451

$1,849

Expired registration

$1,133

$1,091

$1,434

$1,356

$1,718

$1,849

Driving without lights

$1,133

$1,091

$1,434

$1,356

$1,718

$1,849

Running a red light

$1,133

$1,091

$1,434

$1,356

$1,718

$1,849

Following too closely

$1,133

$1,091

$1,434

$1,356

$1,718

$1,849

Hit and run

$1,133

$1,697

$3,028

$1,356

$2,451

$2,436

Not-at-fault accident

$1,133

$1,091

$1,491

$1,356

$1,442

$1,635

Passing a school bus

$1,133

$1,091

$1,434

$1,356

$1,718

$1,849

Reckless driving

$1,133

$1,697

$3,028

$1,356

$2,451

$2,436

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Cheapest car insurance after an accident in Texas

The cheapest car insurance company in Texas for drivers with an at-fault accident on their records is State Farm. On average, coverage from State Farm costs $107 a month or $1,280 per year after an accident.

Company

Rates for drivers with an at-fault accident

State Farm

$1,280

Redpoint

$1,356

Farm Bureau

$1,761

Germania

$1,821

GEICO

$2,231

USAA

$2,460

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Cheapest car insurance for drivers with a DUI in Texas

Texas drivers with a DUI or DWI are likely to see a significant increase in their car insurance rates. Drivers in Texas pay an average of $1,818 per year for car insurance, but the average rate for a driver with a DUI is $2,962 per year, which is 63% higher than the state average.

But drivers with a DUI can still save money by comparing rates. According to our research, Redpoint County Mutual, State Farm, and Farm Bureau have the lowest rates for drivers with a DUI on their record.

Company

Rates for drivers with DUIs

Redpoint County Mutual

$1,356

State Farm

$1,697

Farm Bureau

$2,162

USAA

$2,436

GEICO

$2,451

Germania Insurance

$3,028

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Cheapest car insurance for drivers with a speeding ticket in Texas

A speeding ticket can also make your car insurance rates go up. Texas drivers with a speeding ticket on their record have an average car insurance rate of $2,296 per year, which is almost $500 higher than the average rate for drivers with a clean driving history.

We found that State Farm, Farm Bureau, and Redpoint had the cheapest average rates for Texans with a speeding ticket on their record.

Company

Rates for drivers with speeding tickets

State Farm

$1,091

Farm Bureau

$1,133

Redpoint County Mutual

$1,356

Germania Insurance

$1,434

USAA

$1,849

GEICO

$2,451

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→ Read more about finding SR-22 insurance in Texas

Cheapest car insurance for drivers with bad credit in Texas

Drivers with poor credit histories and low credit scores can expect to pay more for their insurance than drivers with high credit scores. Working to improve your credit score is one way to lower your insurance rates.

On average, the company with the cheapest car insurance in Texas for drivers with poor credit is Redpoint.

Company

Rates for drivers with bad credit

Redpoint County Mutual

$1,356

Farm Bureau

$2,606

Germania Insurance

$2,638

Auto Club

$2,728

Southern County Mutual

$2,860

Cheapest car insurance in Texas by city

Local factors like crime rates, population density, or the number of accidents in a given area all impact the cost of insurance. 

Here are the cheapest car insurance companies in the 10 most populated cities in Texas.

City

Cheapest company

Average yearly rate for the cheapest company

Overall citywide average

Houston

Texas Farm Bureau

$1,243

$2,231

San Antonio

Texas Farm Bureau

$1,125

$1,938

Dallas

State Farm

$1,293

$2,170

Austin

State Farm

$1,111

$1,836

Fort Worth

Texas Farm Bureau

$1,129

$1,888

El Paso

Texas Farm Bureau

$959

$1,790

Arlington

Texas Farm Bureau

$1,127

$1,906

Corpus Christi

State Farm

$1,101

$1,889

Plano

Texas Farm Bureau

$1,130

$1,877

Lubbock

State Farm

$1,060

$1,787

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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 insurance or higher and cause an accident will receive a citation.

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. [2]

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.

Graphic explaining why it's a bad idea to cut coverage in exchange for cheap rates.

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.

Find car insurance in your city:

Frequently asked questions

How much is car insurance per month in Texas?

The average cost of car insurance in Texas is $152 per month, or $1,818 per year.

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 most drivers probably also have to carry comprehensive and collision insurance. That’s because most auto loan lienholders require these forms of insurance.

Is Texas a fault or no fault state?

Texas is an at-fault state, which means the driver who is at fault for an accident is responsible for all the bodily injury and property damage costs caused by the accident, whether or not they have enough insurance to cover those costs.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. J.D. Power

    . "

    Auto Insurance Customer Satisfaction Plummets as Rates Continue to Surge, J.D. Power Finds

    ." Accessed September 23, 2023.

  2. Texas Department of Motor Vehicles

    . "

    TexasSure - Insurance Verification

    ." Accessed December 16, 2021.

Authors

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Andrew Hurst is a senior editor and a licensed auto insurance expert at Policygenius. His work has also been featured in The New York Times, The Wall Street Journal, Forbes, USA Today, NPR, Mic, Insurance Business Magazine, ValuePenguin, and Property Casualty 360.

Editor

Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

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