Best and Cheapest Car Insurance in Texas (Top 9 Low-Cost Companies for 2024)
USAA, State Farm, and Travelers have the best and cheapest car insurance in Texas. USAA is the top pick for its excellent customer service and competitively low rates for military families.
State Farm is the cheapest and best car insurance for high-risk drivers. Review more rankings of the best insurance companies in Texas:
| Company | Rank | Monthly Rates | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 |
#1 | $23 | Military Benefits | A++ | USAA |
 |
#2 | $33 | High-Risk Policies | B | State Farm |
 |
#3 | $37 | Unique Coverage | A++ | Travelers |
 |
#4 | $39 | Online Convenience | A++ | Geico |
 |
#5 | $45 | Coverage Options | A+ | Progressive |
 |
#6 | $51 | Group Discounts | A | Farmers |
 |
#7 | $57 | Deductible Options | A+ | Nationwide |
 |
#9 | $66 | Add-on Availability | A | Liberty Mutual |
 |
#10 | $75 | Pay-Per-Mile Rates | A+ | Allstate |
USAA and State Farm are the cheapest overall, but Allstate is the best option for Texans who want usage-based coverage. Farmers also has more discounts than other Texas companies to help lower rates.
Interested in learning more about cheap auto insurance in Texas? Just enter your ZIP code to start comparing free quotes from multiple providers in your city. Keep reading for more car insurance reviews and detailed comparisons to find the best car insurance in Texas.
On this page:
- #1 – USAA: Top Pick Overall
- #2 – State Farm: Cheapest High-Risk Insurance
- #3 – Travelers: Best for Unique Coverages
- #4 – Geico: Cheapest for Young Drivers
- #5 – Progressive: Best Policy Perks and Coverage Options
- #6 – Farmers: Best Car Insurance Discounts
- #7 – Nationwide Best Deductible Options
- #8 – Liberty Mutual: Best Car Insurance Add-Ons
- #9 – Allstate: Best Usage-Based and Pay-Per-Mile Insurance
- Best and Cheapest Car Insurance Rates in Texas
- Texas Car Insurance Rates by Coverage
- Texas Car Insurance Rates for Teens
- Texas Car Insurance Rates for Seniors
- Texas Car Insurance Rates for Married Couples
- Texas Car Insurance Rates by Driving Record
- Texas Car Insurance Rates by City
- Vehicle Insurance Requirements in Texas
- Optional Car Insurance in Texas
- How to Save Money on Texas Car Insurance
- How to Get Free Car Insurance Quotes in Texas
- Methodology: Best and Cheapest Texas Car Insurance
#1 – USAA: Top Pick Overall
Pros
- Cheapest Rates: Cheapest car insurance in Texas for $23/mo.
- Big Discounts: Save up to 30% with safe driving and usage-based discounts.
- Excellent Customer Service: USAA outperforms the competition when it comes to customer and claims satisfaction.
Cons
- Exclusive Coverage: Insurance is only available to military members and their families. Find out who is eligible for USAA Insurance.
- Limited Coverage Options: USAA is missing common coverages available with other providers, like gap insurance.
#2 – State Farm: Cheapest High-Risk Insurance
Pros
- Cheap High-Risk Insurance: Drivers with speeding tickets or DUIs get lower rates with State Farm than other companies.
- Big Discounts: Texans save 20% when insuring multiple vehicles or bundling policies.
- Usage-Based Savings: State Farm Drive Safe and Save won’t raise rates for bad driving habits. Learn more in our Drive Safe and Save Review.
Cons
- Low Financial Ratings: State Farm A.M. Best rating dropped to “B” (Fair) from “A” (Excellent) due to the company’s inability to stabilize after increased claims.
- Long Repair Times: Despite positive claims reviews, customers do report delays and poor work when it comes to repairing damaged vehicles.
#3 – Travelers: Best for Unique Coverages
Pros
- Responsible Driver Savings: Sign up for this plan to earn safe driving discounts and accident forgiveness.
- Named Non-Owner Insurance: Get liability coverage for frequent drivers who don’t own a car.
- Strong Financial Ratings: Travelers has an A++ financial rating from A.M. Best. Get full ratings in our Travelers Review.
Cons
- Poor Claims Handling: Travelers ranks below average in annual J.D. Power surveys.
- Usage-Based Rate Increases: Travelers Intellidrive raises rates for bad driving.
#4 – Geico: Cheapest for Young Drivers
Pros
- Cheapest Teen Insurance: Best car insurance in Texas for young drivers with rates $200/mo cheaper on average.
- Strong Financial Ratings: Geico has an A++ financial rating from A.M. Best.
- Online Convenience: Drivers can manage everything from claims to policy changes through the Geico app. Compare car insurance mobile apps here.
Cons
- Usage-Based Rate Increases: Geico DriveEasy will raise rates if it tracks poor driving habits.
- Low Customer Satisfaction: Customers report poor claims handling, and Geico receives more complaints than average.
#5 – Progressive: Best Policy Perks and Coverage Options
Pros
- Cheap Rates: Progressive is a top competitor for State Farm and Geico for cheapest Texas car insurance. Compare more in our Geico vs.Progressive insurance review.
- Pet Coverage: Automatically included with collision insurance to pay for vet bills if your pet is injured in an accident.
- Small Accident Forgiveness: Progressive automatically forgives your first fender bender. Drivers earn full accident forgiveness after five years.
Cons
- Usage-Based Rate Increases: Progressive Snapshot can save 30%, but rates do go up for bad driving habits like speeding and hard braking.
- Expensive Rates for Teens: Teens and young drivers pay $100/mo more than average with Progressive.
#6 – Farmers: Best Car Insurance Discounts
Pros
- Long List of Discounts: Farmers has more car insurance discounts than any other company. Check out the list of discounts in our Farmers review.
- Usage-Based Savings: Sign up for Farmers Signal and save up to 30% on Texas insurance.
- Defensive Driving Discount: Usually only available to teens, older drivers can earn this discount by taking a mature driver improvement class.
Cons
- Slow Roadside Assistance: Texans say it can take over an hour or more for roadside assistance to arrive.
- Unexpected Rate Hikes: Some drivers report Texas car insurance rates going up even without any changes in claims or driving history.
#7 – Nationwide Best Deductible Options
Pros
- Vanishing Deductible: Earn $100 off your deductible (up to $500) every year you go without filing a claim
- Waived Deductibles: Nationwide drivers don’t pay a deductible if the vehicle is declared a total loss.
- Cheap Rates for Teens: Some of the lowest auto insurance rates in Texas for drivers under 21.
Cons
- Low Usage-Based Satisfaction: Texas drivers prefer State Farm or Allstate UBI over Nationwide SmartRide.
- Mixed Customer Service Reviews: Nationwide has fewer customer complaints but ranks below average in claims support. Get the details in our Nationwide review.
#8 – Liberty Mutual: Best Car Insurance Add-Ons
Pros
- Cheap Minimum Coverage: Liberty Mutual costs less than average for minimum insurance at $63/mo.
- Affordable Add-Ons: Its extensive list of add-ons includes new car replacement, accident forgiveness, and a deductible fund.
- Teacher Insurance: Texas teachers enjoy personal item coverage up to $2,500 and no deductibles for vandalism or collisions that happen on school property.
Cons
- Low Customer Satisfaction: Liberty Mutual receives twice as many complaints, and Texas drivers rank it lowest for overall satisfaction.
- Expensive Full Coverage Rates: Liberty Mutual is more expensive than other Texas insurers, especially for teens and drivers with accidents. Compare Liberty Mutual vs. State Farm insurance.
#9 – Allstate: Best Usage-Based and Pay-Per-Mile Insurance
Pros
- Usage-Based Discounts: Sign up for Allstate Drivewise and save up to 30% with good driving habits.
- Low-Mileage Savings: Drivers who sign up for Allstate Milewise get discounted rates based on how many miles they drive, not driving habits.
- Deductible Rewards: Get $100 off your deductible (up to $500) every year you’re accident-free.
Cons
- Low Customer Satisfaction: Allstate receives twice as many complaints as other Texas insurers. Read our Allstate review to find out why.
- Expensive Rates: Although Allstate is affordable, you can find cheaper car insurance companies in Texas.
Best and Cheapest Car Insurance Rates in Texas
What's the cheapest auto insurance in Texas? USAA and State Farm have the lowest rates overall, but the cheapest company for you depends on:
- Age & Gender
- Driving Record & Mileage
- Location & Marital Status
- Vehicle Make, Model, & Year
- Coverage Level
While there is no exact formula that each car insurance company uses when providing quotes, there are many factors that do contribute to the price you pay for your insurance. Our car insurance guide breaks it down for you.
Scroll down to compare different Texan auto insurance demographics:
Texas Car Insurance Rates by Coverage
Minimum coverage in Texas has the cheapest rates, averaging $47/mo. USAA, State Farm, Travelers, Geico, and Progressive are all cheaper than average.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
| USAA | $23 | $62 |
| State Farm | $33 | $90 |
| Travelers | $37 | $101 |
| Geico | $39 | $105 |
| Progressive | $45 | $121 |
| Farmers | $51 | $137 |
| Nationwide | $57 | $154 |
| Liberty Mutual | $66 | $178 |
| Allstate | $75 | $201 |
USAA and State Farm are the cheapest for both minimum and full coverage policies, but USAA is only available to military families.
Read our consumer guide to buying car insurance to make sure you get the right coverage.
Texas Car Insurance Rates for Teens
New driver car insurance for teens can be expensive! Out of the major insurers analyzed, State Farm and Travelers offer the cheapest auto insurance rates for both male and female teen drivers in Texas.
In the table below you can see how average Texas teen car insurance rates compare to adult drivers.
| Driver | USAA | State Farm | Travelers | Geico | Progressive | Farmers | Nationwide | Liberty Mutual | Allstate |
|---|---|---|---|---|---|---|---|---|---|
| Age: 16 Female | $123 | $133 | $137 | $139 | $145 | $151 | $157 | $166 | $175 |
| Age: 16 Male | $143 | $153 | $157 | $159 | $165 | $171 | $177 | $186 | $195 |
| Age: 20 Female | $93 | $103 | $107 | $109 | $115 | $121 | $127 | $136 | $145 |
| Age: 20 Male | $113 | $123 | $127 | $129 | $135 | $141 | $147 | $156 | $165 |
| Age: 30 Female | $63 | $73 | $77 | $79 | $85 | $91 | $97 | $106 | $115 |
| Age: 30 Male | $73 | $83 | $87 | $89 | $95 | $101 | $107 | $116 | $125 |
| Age: 40 Female | $53 | $63 | $67 | $69 | $75 | $81 | $87 | $96 | $105 |
| Age: 40 Male | $63 | $73 | $77 | $79 | $85 | $91 | $97 | $106 | $115 |
If you have teen drivers who are still students, you can always look into a student discount.
Geico is our top pick for teens for its low rates and 15% student discount. Geico also offers additional savings to teens who practice safe driving habits and take a defensive driving course. Read more tips to keep teen drivers safe on the road.
Texas Car Insurance Rates for Seniors
The top three car insurance companies also have the cheapest Texas auto insurance for seniors. State Farm has the lowest rates at $53/mo.
| Driver | USAA | State Farm | Travelers | Geico | Progressive | Farmers | Nationwide | Liberty Mutual | Allstate |
|---|---|---|---|---|---|---|---|---|---|
| Age: 50 Female | $43 | $53 | $57 | $59 | $65 | $71 | $77 | $86 | $95 |
| Age: 50 Male | $53 | $63 | $67 | $69 | $75 | $81 | $87 | $96 | $105 |
| Age: 60 Female | $33 | $43 | $47 | $49 | $55 | $61 | $67 | $76 | $85 |
| Age: 60 Male | $43 | $53 | $57 | $59 | $65 | $71 | $77 | $86 | $95 |
| Age: 70 Female | $23 | $33 | $37 | $39 | $45 | $51 | $57 | $66 | $75 |
| Age: 70 Male | $33 | $43 | $47 | $49 | $55 | $61 | $67 | $76 | $85 |
USAA has the lowest rates and retirement and financial services for seniors, but coverage is only available to military members.
If you aren't in the military, don't worry — there are other ways to save on senior car insurance in Texas.
Texas Car Insurance Rates for Married Couples
The top three providers — USAA, State Farm, and Travelers — have the cheapest insurance for Texas couples.
The table below displays average Texas rates for a married couple with two cars on a policy for the five largest auto insurance providers.
| Insurance Company | Married Driver | Single Policy |
|---|---|---|
| USAA | $23 | $62 |
| State Farm | $33 | $90 |
| Travelers | $37 | $101 |
| Geico | $39 | $105 |
| Progressive | $45 | $121 |
| Farmers | $51 | $137 |
| Nationwide | $57 | $154 |
| Liberty Mutual | $66 | $178 |
| Allstate | $75 | $201 |
Car insurance companies for married couples think they're less likely to file a claim and reward them with discounts and cheaper rates. Having a decent driving history is also part of the battle.
Texas Car Insurance Rates by Driving Record
Texas has the highest fatal accident rate and the fastest highway speeds in the country, which contribute to the state's expensive insurance costs. So if you have speeding tickets or accidents on your record, expect rates to skyrocket.
| Insurance Company | Speeding Ticket | At-Fault Accident | DUI/DWI |
|---|---|---|---|
| USAA | $53 | $92 | $123 |
| State Farm | $43 | $73 | $103 |
| Travelers | $47 | $77 | $107 |
| Geico | $42 | $72 | $102 |
| Progressive | $48 | $78 | $108 |
| Farmers | $49 | $79 | $109 |
| Nationwide | $50 | $80 | $110 |
| Liberty Mutual | $51 | $81 | $111 |
| Allstate | $52 | $82 | $112 |
State Farm and Geico have the lowest rates for high-risk drivers in Texas. Even Allstate, which is traditionally more expensive on average, has better rates than USAA. Compare Allstate vs. USAA insurance to learn more.
Texas Car Insurance Rates by City
There are many factors that help determine your car rates in Texas, including where you live.
How much does car insurance cost in my area of Texas? If you live in a major city or an area with more accident claims, you'll likely see higher rates. Even small cities can have high rates, and you might see car insurance in Mansfield, TX go up if you have a long commute into Dallas/Fort Worth.
Don't wait for a storm to hit before taking action. Prepare your home and loved ones with these simple safety steps. https://t.co/ZOq5Nml31h pic.twitter.com/BQCPZw6cSN
— State Farm (@StateFarm) July 5, 2024
Weather and natural disasters also increase risk, which is why auto insurance in Victoria, TX is more expensive than Dallas or insurance in Gainesville, TX.
The table below displays Texas car insurance based on average rates for a single adult living in different cities:
| Insurance Company | Austin | Dallas | Gainesville | Houston | Mansfield | Victoria |
|---|---|---|---|---|---|---|
| USAA | $23 | $25 | $27 | $30 | $28 | $26 |
| State Farm | $33 | $35 | $37 | $40 | $38 | $36 |
| Travelers | $37 | $39 | $41 | $44 | $42 | $40 |
| Geico | $39 | $41 | $43 | $46 | $44 | $42 |
| Progressive | $45 | $47 | $49 | $52 | $50 | $48 |
| Farmers | $51 | $53 | $55 | $58 | $56 | $54 |
| Nationwide | $57 | $59 | $61 | $64 | $62 | $60 |
| Liberty Mutual | $66 | $68 | $70 | $73 | $71 | $69 |
| Allstate | $75 | $77 | $79 | $82 | $80 | $78 |
Who has the best car insurance rates in Houston? USAA and State Farm sell cheap insurance in Houston, but Geico and Travelers are also competitive in terms of cost and coverage options.
Keep in mind that, even if you're in a high-cost area, you can still do your part to get the cheapest insurance products and insurance discounts for your needs.
Comparing carriers is the best way for consumers to find the best savings. For instance, you might find that Progressive in Dallas is cheaper than State Farm based on your driving habits. So, even though car insurance in Texas is more expensive than the national average, you can still save money.
Vehicle Insurance Requirements in Texas
In order to be a legal Texas driver, the state requires you to obtain bodily injury liability coverage and property damage liability insurance.
Learn how to register a car in Texas.
Minimum requirements in Texas are higher than most states, but it's still important to consider obtaining higher coverage limits to ensure you're covered in the event of a costly accident.
Texas law outlines the minimum coverage requirements, detailed below. Vehicle insurance in Texas requires minimum liability protection:
- Bodily injury: $30,000 per person and $60,000 per accident
- Property damage: $25,000 per accident
What does liability car insurance cover? Bodily injury liability provides coverage for injuries sustained by the other vehicle's driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims.
Property damage liability provides coverage in the event you damage someone else's property in a car accident, most commonly the other vehicle, but also things like a home or fence. This way, you're not stuck having any out of pocket expenses.
Texas insurance laws automatically also provide $2,500 in personal injury protection (PIP) to cover you and your passengers' medical bills and lost wages if you're injured in an accident. You have to let your insurance company know if you want to opt out of coverage.
Optional Car Insurance in Texas
There are plenty of optional coverage choices that you can make, depending on what you want to insure.
Some of the optional coverages that may be required if you're leasing or financing your vehicle is collision and comprehensive insurance:
- Collision Insurance: Covers damage to your own car in accidents when you're at-fault
- Comprehensive Insurance: Offers protection from damage other than a collision such as vandalism or hail
Did you know that Texas has the most hail damage and insurance claims of any state in the country? Minimum liability won't pay for weather-related claims, so be sure to add comprehensive and collision insurance for full coverage.
How to Save Money on Texas Car Insurance
At the end of the day, we'd all like to have the best coverage at a cheap, affordable price from one of the best Texas car insurance companies. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance rates.
Here are six ways you may be able to lower your car insurance rates:
- Bundle your car insurance with other policies.
- Consider raising your deductibles.
- Pay your car insurance policy in full.
- Try usage-based car insurance.
- Monitor policy price changes and shop for better rates.
You can also inquire about discounts to your current policy, or if you're taking the last bullet into consideration, mention that you're shopping around to see if there's any sort of loyalty program available.
You don't want to give up valuable coverage just to save a few dollars, so it's best to start looking not at the cheapest companies out there, but rather at the insurer you already have. Plus, with the information you have from your previous policy, you can get a more accurate quote from another provider.
How to Get Free Car Insurance Quotes in Texas
USAA, State Farm, and Travelers have the best and cheapest car insurance in Texas. Most drivers get better rates from State Farm because USAA is military car insurance. You must be active-duty, a veteran, or immediate family member to buy USAA.
When shopping for car insurance in Texas, you want to make sure your insurance company meets all your needs. It's important to know how an insurance company treats their policyholders, and how satisfied their policyholders are with the service they receive.
Both State Farm and USAA outperform the competition when it comes to customer satisfaction.
Understanding the different car insurance coverage options near you is a must. We want to make sure you're equipped with a proper knowledge of car insurance, so check out our free comparison tool to see how much car insurance costs and what coverage is available in your city.
Methodology: Best and Cheapest Texas Car Insurance
Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:
- Price
- Customer Service
- Claim service
- Likelihood to renew
The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better.
Finally, there is also a confidence factor based upon the number of reviews a company has by product. If the total number of reviews is less than 100, then a confidence deduction is applied to the star rating. The maximum impact of this deduction occurs when there are less than 25 reviews. Companies with 100 or more reviews, aged two years or less, receive 100% weighting (no deduction), while companies with 50 to 99 customer reviews receive a weighting of 95%, 25 to 49 reviews receive a weighting of 90% and companies with less than 25 reviews a weighting of 85%.
The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings.
Read More: Car Insurance Calculator
Frequently Asked Questions
What's the cheapest car insurance in Texas?
USAA, State Farm, and Travelers have the cheapest auto insurance in Texas.
Who offers the best car insurance rates for a married couple in Texas?
USAA, State Farm, and Travelers offer the cheapest car insurance rates for married couples in Texas. Coverage per person doesn't change just because you're grouping your insurance together. Rather, it splits the financial responsibility between the two parties and helps to provide more affordable coverage.
Who offers the best senior car insurance rates in Texas?
State Farm is the cheapest car insurance option in Texas for male and female senior drivers on average. There is a wide range of companies out there that cater to senior drivers because they can sometimes require more financial stability. Having a senior driver talk to a customer service agent to find the best policy that suits their lifestyle can be a financially savvy move.
How many Texas drivers are uninsured?
The percentage of uninsured drivers in Texas is 14.1%, the 16th highest in the U.S. By having uninsured or underinsured motorist coverage, you can save yourself from potential medical expenses. Uninsured motorist coverage is not required in Texas but does offer protection in the event that an uninsured or underinsured driver is at fault in an accident with you.
Who offers the best teen car insurance rates in Texas?
State Farm and Geico have the best rates for Texas teens. Teenage drivers may need to reach out to find a more affordable rate on their auto policies, because they may end up needing more than just the basic coverage, or they may be seen as high-risk drivers by some companies out there. With teen drivers, it's best to research the types of coverage that are best for them, as well as discover what could grant them the cheapest rates.
Is Geico cheaper than Progressive car insurance in Texas?
Geico costs $39/mo in Texas compared to Progressive at $45/mo. However, Progressive might be cheaper if you have speeding tickets or accidents on your record.
Is Allstate cheaper than Geico?
Although affordable, Allstate is one of the more expensive Texas car insurance companies at $75/mo. Geico only costs $39/month.
What is the minimum car insurance required in Texas?
Texas requires 30/60/25 in liability coverage and provides up to $2,500 in non-mandatory personal injury protection.
What is the average car insurance premium in Texas?
Texas minimum car insurance costs $57/mo on average while full coverage is $184/mo.
Why is insurance so high in Texas?
Commute times, high accident rates, and fast highway speeds increase insurance quotes for Texas drivers.