The best, cheapest car insurance in Texas

Why you can trust Insure.com

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

Best car insurance company in Texas

In Texas, the average premium for car insurance is $2,043 a year or $170 a month, which is the 15^th highest in the country – Louisiana was number one.

For drivers looking for cheap car insurance in Texas, Texas Farm Bureau, Nationwide, GEICO, State Farm and others on our list are great options, offering plenty of coverage options at affordable rates.

Our research found Texas Farm Bureau offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. Texas Farm Bureau was our top scorer and was awarded 4.67 out of 5 stars.

GEICO finished second in our rankings with a score of 4.26 stars and State Farm was third at 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/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%

You might find interesting

Explore related topics

• Average car insurance cost in Texas
• Car insurance calculator for teens in Texas
• Cheapest SR-22 insurance in Texas
• Do you need insurance to register a car in Texas?
• How long does a speeding ticket stay on your record in Texas
• How much is gap insurance in Texas
• Low-cost car insurance in Texas
• Non-owner car insurance in Texas: Which company has the cheapest rates?
• Texas car insurance calculator
• Texas car insurance: Rates, state minimum requirements and best companies

See more

Cheapest car insurance in Texas

Texas Farm Bureau has the lowest average rate in Texas at $1,301 a year or $108 a month.

Nationwide is the next most affordable at $1,502 annually and GEICO at $1,644. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. 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. “Texas, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While Texas Farm Bureau had the lowest average rate at $1,301, Farmers was the most expensive at $4,127.

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

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

Our agents make it hassle-free to get the right quote.

Call (844) 814-8854

Ethan Available Now

Jack Available Now

Robbie Available Now

Ellie Available Now

Full coverage car insurance in Texas

As noted, the rates above are for full coverage car insurance. Full coverage car insurance adds collision and comprehensive to your liability insurance coverage, so your vehicle is repaired or replaced after an incident.

Full coverage insurance includes collision and comprehensive which will pay to repair your vehicle. Collision covers damage caused by a collision with another vehicle or object while comprehensive repairs damage done by perils such as fire, theft, flooding, vandalism, and more.

Learn more about liability, collision and comprehensive coverage.

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

Seniors pay more for car insurance than other drivers, excluding teens. Texas Farm Bureau is the best choice for seniors in Texas, according to our data, with an average premium of $1,072 annually, which translates to $89 a month.

Nationwide was the second most affordable at $1,478 and GEICO was next with a premium of $1,536.

“Seniors tend to have slower reaction times and may suffer from vision or hearing impairments, which can impair their driving ability. This makes them more prone to accidents and thus considered high-risk by insurance companies,” says Tariro Goronga, CEO of DriveSafe driving schools in Colorado.

The table 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

Insuring a teen is always expensive; statistics show that inexperienced teen drivers get into more accidents and file more claims than more experienced drivers. In Texas, the best insurer for teen drivers is Texas Farm Bureau with an annual premium of $2,411 or $201 a month. GEICO was second most affordable at $3,944 a year or $329 monthly while State Farm was number three at $5,075.

While teens are expensive to insure, there are a few ways to save some money. Most insurers offer a good student discount so if your teen is carrying a B average or above you should ask for a discount. Putting them in an older vehicle will also lower your insurance costs.

The chart below shows average premiums for teens.

Average rates for teens in Texas

Average cost of car insurance in Texas

Texas is the 15^th most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $2,043.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Texas

Which Texas ZIP codes are the most expensive for car insurance?

Insurers consider the ZIP code where your car is parked when setting a premium. High crime rates or frequent severe weather will result in a higher premium.

According to our analysis, the following ZIP codes are the most expensive in Texas for car insurance. Balch Springs tops the charts at $2,384 a year.

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?

When it comes to cheap car insurance in Texas, these ZIP codes have the most affordable coverage. The area around Troy has the lowest premiums in Texas with an average 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 drivers to carry a minimum amount of liability car insurance, and Texas is no exception. Drivers are required to carry 30/60/25 in liability coverage, which translates into:

• $30k for injury/death per person
• $60k for injury/death per accident
• $25k for damage to property

But state-required minimums are rarely enough coverage in a serious accident. If you cause an accident and the damages exceed your coverage levels, you will need to cover the damages out of pocket.

The most common required coverages are $25,000 bodily injury liability per person, $50,000 bodily injury liability per accident and $25,000 property damage.

Experts typically recommend carrying 100/300/100 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.”

Mark Vallet

Contributing Researcher

 

|

 . .

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.

Explore other insurance options in Texas

Non-owner car insurance in Texas

Average renters insurance cost in Texas

Average homeowners insurance cost in Texas