The best, cheapest car insurance in Texas

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Best car insurance company in Texas

Drivers in Texas pay an average of $2,043 a year or $170 a month for car insurance coverage which makes it the 15^th most expensive state in the country.

Even though car insurance is pretty expensive in Texas, it’s possible to find affordable coverage with top insurers such as Texas Farm Bureau, Nationwide, GEICO, and other insurers.

Texas Farm Bureau is our choice for the best car insurance in Texas. It finished first in our rankings with 4.67 out of 5 stars and an average premium of $1,301 a year, or $108 a month, which is $742 less than the state average.

GEICO was second with a score of 4.26 stars followed by State Farm with 4.11 stars.

The best car insurance companies in Texas

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights, to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Texas

Texas Farm Bureau has the cheapest average rate in the state at $1,301 a year.

While Texas Farm Bureau is the cheapest for many drivers, the perfect insurer for you may be a different company.

Insurers consider a wide variety of factors when setting a premium including your driving record, credit score, age, marital status as well the vehicle. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Florida, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

Insurance companies crunch all this data with proprietary algorithms, which can result in dramatic differences in premium quotes.

The data clearly shows the range of premiums for similar drivers.

In Texas, as mentioned earlier, the cheapest policy is Texas Farm Bureau with an average rate of $1,301 a year. Nationwide follows with an average premium of $1,502 a year or $125 a month and GEICO with premiums of $1,644 a year or $137 a month.

Farmers is the most expensive insurer with an average premium of $4,127.

Make sure you’re taking advantage of all the discounts you qualify for to ensure you’re getting the best possible rate. Ask your agent to review your policy for any available savings you might be missing.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Texas

Full coverage car insurance in Texas

As noted, the rates above are for full coverage car insurance. Full coverage car insurance simply means you are carrying liability and any other state requirements as well as collision and comprehensive.

Full coverage insurance includes collision and comprehensive, which protects your own vehicle. Collision insurance will pay to repair your vehicle when it is damaged after colliding with another vehicle or object. Comprehensive covers damage that is done by perils such as fire, theft, flooding, vandalism, and more.

Shopping for car insurance in Texas

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. “However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – I am going to recommend and quote at least 50/100/100. Depending on their age/income and profession, I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Texas by age

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in Texas, Texas Farm Bureau is the most affordable coverage with an average rate of $1,301 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

Cheapest car insurance for senior drivers in Texas

According to our data, senior drivers pay roughly 31% more than middle-aged drivers.

Seniors tend to pay slightly higher car insurance rates than younger drivers. In Texas, the cheapest insurance company for senior drivers is Texas Farm Bureau at $1,072 a year or $89 a month. Nationwide grabbed the second-place spot with premiums running $1,478 annually or $123 a month, GEICO was third at $1,536.

Seniors pay higher rates thanks to age-related issues. They often suffer from vision and hearing issues as well as slowing reflexes and medical issues. This all leads to more accidents and claims, which pushes up the cost to insure seniors.

The chart below shows the average premium for senior drivers.

Average rates for seniors in Texas

Car insurance for young drivers in Texas

While rates start to drop for teen drivers as they become young adults, they still pay slightly higher rates than more experienced drivers. According to our data, Texas Farm Bureau is the cheapest insurer for drivers in their early 20s with an average premium of $1,775 a year or $148 per month.

GEICO was the second cheapest insurer at $2,235 and Nationwide will insure a young driver in Texas for $2,684 a year.

Rates will continue to drop (assuming a clean driving record) as drivers hit their late 20s and move into their 30s.

The chart below shows the average premiums for young drivers.

Average rates for young drivers in Texas

Car insurance for teen drivers in Texas

Adding a teen to a car insurance policy will always push up the rate. Teens are the least experienced drivers out on the road which leads to more accidents and claims and higher premiums.

“Teen drivers are statistically more likely to be involved in accidents due to their lack of driving experience and tendency to engage in risky behaviors like speeding,” says Eliezer Zupnick, founder of East Leads Group LLC. “Teens are involved in three times as many auto accidents per mile compared to drivers aged 20 and up, making them a high-risk category for insurers.”

For Texas teens, Texas Farm Bureau is the most affordable option with a premium of $2,411 a year or $201 a month. GEICO is the next most affordable at $3,944 a year or $329 a month followed by State Farm running $5,075 a year.

If your teen has a B average or better, ask for a good student discount to help save a bit of money. Having your teen drive an older vehicle will also help save some money. If the car is old enough that you wouldn’t repair it after an accident, you may be able to drop collision and comprehensive.

The chart below shows average premiums for teens in Texas:

Average rates for teens in Texas

Average cost of car insurance in Texas

The average cost of car insurance in Texas is $2,043, which makes it the 15^th most expensive state in the country behind Louisiana and Florida.

Metropolitan areas – and all states have them – equals lots of drivers, which often leads to car crashes and claims.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Texas,” says Gao.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Average rates for a 40-year-old in Idaho

Which Texas ZIP codes are most expensive for car insurance?

Car insurance costs in Texas can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Balch Springs area came out as the most expensive with an average annual premium of $2,384. Alief was No. 2 and Garciasville was No. 3.

Here are the most expensive ZIP codes in Texas for car insurance:

Most expensive ZIP codes in Texas

Which Texas ZIP codes are the cheapest for car insurance?

The cheapest ZIP codes for car insurance in Texas tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Troy has the most affordable ZIP code in Texas with an annual premium of $1,689.

Least expensive ZIP codes in Texas

Cheapest car insurance for high-risk drivers in Texas

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $2,579 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $3,586.

A DUI is considered a major violation and will raise the average premium to $3,526.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Texas after a traffic incident

Minimum car insurance requirements in Texas

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. Texas requires drivers to carry 30/60/25 in liability coverage, which translates into:

• $30k for bodily injury and $50,000 for death for a person involved in an accident
• $60k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Texas.”

Explore other insurance options in Texas

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Average homeowners insurance cost in Texas

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.