Best and cheapest car insurance in Texas

Texas Farm Bureau is the best car insurance in Texas; at $86 per month it’s the cheapest insurance company in the state.

Rachael Brennan headshotAndrew Hurst

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Rachael Brennan

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

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

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

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.

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Ian Bloom, CFP®, RLP®

Ian Bloom, CFP®, RLP®

Certified Financial Planner

Ian 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.

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Texas Farm Bureau has the cheapest car insurance rates in Texas at $86 per month for a full-coverage policy, 44% cheaper than the state average in Texas, which is $1,840 per year.

Our other picks for the best cheap car insurance companies in Texas are State Farm, Germania, GEICO, and, if you're a vet or in the military, USAA.

Company

Average cost

Texas Farm Bureau

$86/month

State Farm

$97/month

Germania

$103/month

GEICO

$115/month

USAA

$128/month

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.

The cheapest car insurance companies in Texas

Texas Farm Bureau

4.2

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

Texas Farm Bureau logo

Texas Farm Bureau, a part of the national Farm Bureau group, has cheap rates and highly-rated customer service to match. It doesn’t offer the same range of coverage as its competitors, but Texas Farm Bureau offers membership discounts and perk.

Pros

  • Cheap car rates, even for younger drivers

  • Highly-rated customer service and low complaints

  • A few discounts that vary by location

  • Member discounts on goods and services from several retailers, travel and entertainment providers, and auto manufacturers

  • Members can access Farm Bureau’s other financial services

Cons

  • Not many options for customizing a policy with extra endorsements or other add-ons

Texas Farm Bureau has the cheapest car insurance in Texas for drivers of all ages. Texas Farm Bureau costs $708 less per year than the state average, and is a full $1,768 cheaper than the most expensive company in the state. Plus, Texas Farm Bureau drivers get access to membership benefits, including discounts to retailers and auto manufactures.

State Farm

3.8

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

State Farm logo

As the country’s biggest car insurance company, State Farm makes it easy for drivers to get coverage, make claims, and stay in contact. Also, State Farm is one of the cheapest insurers for most drivers, and tends to have great customer service.

Pros

  • Coverage available in nearly every state (along with in-person offices)

  • Cheap car insurance, including for some high-risk drivers

  • Consistently high customer service ratings

  • Some discounts, especially for good drivers

Cons

  • Doesn’t offer as many coverage options as some competitors

State Farm has some of the cheapest auto insurance in Texas — $678 cheaper per year than the statewide average. State Farm is also the cheapest auto insurance in Texas for drivers with violations on their records. Those with a DUI, speeding ticket, or at-fault accident can still get low rates for their insurance from State Farm.

Germania

Germania logo

Germania is a small insurance company that only operates in Texas. Auto insurance from Germania is fairly standard, but you can add roadside assistance for more protection. Germania also has many discounts that can help drivers save.

Pros

  • Cheap car insurance rates

  • Affordable car insurance for high-risk drivers

  • Cheapest overall insurance in Texas with drivers with bad credit

  • 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

Germania Insurance only operates in Texas, so it’s a good choice for drivers looking for a local company with experience in the Lone Star State. Rates with Germania were ​​33% less than average in the state — and 29% less than average for drivers with bad credit.

GEICO

4.6

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

GEICO logo

GEICO is nationally available and often has some of the cheapest rates. GEICO gets fewer service complaints than average, even though claims satisfaction can be mixed. Drivers can also customize their car insurance from GEICO with a few useful add-ons.

Pros

  • Available in every state and the District of Columbia

  • Usually has some of the cheapest rates

  • Gets fewer complaints than expected for its service

  • Allows drivers to add different types of useful coverages to a basic policy

Cons

  • Mixed reputation for claims satisfaction

GEICO, known for low rates and ubiquitous ads, is another one of the most affordable car insurance companies in Texas, at $1,383 per year for a full coverage policy. GEICO is also our top pick for overall best car insurance companies.

USAA

4

Policygenius rating

How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.

USAA logo

USAA is one of the most reliably cheap car insurance companies in the country. It also has a long-standing reputation for great customer service. Unlike other providers, USAA is only offered to drivers who are affiliated with the military.

Pros

  • Offers coverage in every state and the District of Columbia

  • Usually has some of the cheapest car insurance rates of any company

  • Drivers can use discounts to lower their rates

  • Consistently high customer satisfaction

Cons

  • Limited options for adding extra coverage

  • Only available to members of the military, veterans, and their families

At $1,531 a year, USAA rounds out our picks for the cheapest car insurance companies in Texas. Coverage from USAA is 17% cheaper than average in the state. USAA also has cheap auto insurance for drivers in Texas who have gotten into an accident, received a speeding ticket, or been cited for a DUI.

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

60

Texas Farm Bureau

$856

65

Texas Farm Bureau

$838

70

Texas Farm Bureau

$841

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 damages that go 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 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

Suspended license

$1,782

$1,634

$2,259

$2,398

$2,261

Open container

$4,281

$1,778

$1,318

$2,398

$1,849

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

Not showing documents

$1,128

$1,181

$1,318

$1,656

$1,849

Running a red light

$1,128

$1,181

$1,318

$1,656

$1,849

Failure to yield

$1,128

$1,181

$1,318

$1,656

$1,849

Following too closely

$1,128

$1,181

$1,318

$1,656

$1,849

Hit and run

$2,164

$1,873

$1,318

$2,246

$2,436

Illegal turn

$1,128

$1,181

$1,318

$1,656

$1,849

Improper passing

$1,128

$1,181

$1,318

$1,656

$1,849

Not-at-fault accident

$1,128

$1,181

$1,371

$1,385

$1,635

Passing a school bus

$1,128

$1,181

$1,318

$2,398

$1,849

Racing

$2,164

$1,873

$1,318

$2,398

$2,436

Reckless driving

$2,164

$1,873

$1,318

$2,398

$2,436

Speeding

$1,128

$1,181

$1,318

$2,398

$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. Working to improve your credit score is one way to lower your insurance rates.

This table 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.

Here are the rates for the ten largest cities in the state, based on population.

  • Houston: $3,392

  • San Antonio: $2,927

  • Dallas: $3,295

  • Austin: $2,799

  • Fort Worth: $2,865

  • El Paso: $2,664

  • Arlington: $2,883

  • Corpus Christi: $2,861

  • Plano: $2,885

  • Laredo: $3,017

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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 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. [1]

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.

Find car insurance in your city:

Looking for home insurance? Find the best homeowners insurance in Texas

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.

How much is car insurance per month in Texas?

Drivers in Texas pay an average of $1,840 per year for car insurance, which breaks down to $153.33 per year.

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.

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.

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 our

editorial standards.
  1. Texas Department of Motor Vehicles

    . "

    TexasSure - Insurance Verification

    ." Accessed December 16, 2021.

Authors

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

gray linkedin icon link

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.

Senior Editor & Licensed Auto Insurance Expert

Andrew Hurst

Senior Editor & Licensed Auto Insurance Expert

gray linkedin icon link

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.

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