The Best Car Insurance Companies in Texas

With more than 300,000 drivable miles, Texas has more public roads than any other state. Whether you’re braving Houston’s soul-crushing traffic or hitting the open road, you’ll need to make sure you have a Texas car insurance policy that protects you and your assets. Our list of the best car insurance in Texas is the perfect place to start your search.

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    In this article

      The best car insurance in Texas

      Best overall – Texas Farm Bureau

      Texas Farm Bureau is the place to go for stellar customer service, as long as you don’t mind giving up a few high-tech conveniences.

      J.D. Power Rating
      N/A
      AM Best Rating
      A-
      Standard & Poor’s
      N/A
      SimpleScore
      3.5 / 5.0
      close
      SimpleScore Texas Farm Bureau 3.5
      Discounts 2
      Coverage Options 4
      Customer Satisfaction N/A
      Support 4
      Accessibility 4

      It’s rare for a local insurer to receive as many accolades as Texas Farm Bureau. The company was given the top spot in the J.D. Power 2020 U.S. Auto Insurance Satisfaction Study, receiving a score that dwarfed longstanding national carriers. The Texas Department of Insurance also records Texas Farm Bureau as having one of the lowest rates of complaints in the state. The company issues policies through local agents, so you’ll benefit from top-notch personalized service and expertise — although you won’t be able to get a quote without speaking to your nearest office.

      Best coverage options – Progressive

      If you’re having trouble finding an insurer who will cover your car’s hot pink spoiler, we’d recommend getting a quote from Progressive.

      J.D. Power Rating
      3/5
      AM Best Rating
      A+
      Standard & Poor’s
      AA
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore Progressive 4.2
      Discounts 4
      Coverage Options 5
      Customer Satisfaction 3
      Support 5
      Accessibility 4

      Auto insurance policies are far from one size fits all. Whether you have specific coverage concerns or need to protect non-standard parts or usage, Progressive has plenty of options to fit the bill. Aside from the usual options like gap insurance and rental car coverage, you’ll also find policy options for ridesharing, custom equipment and more. Progressive even sells policies for niche vehicles from classic cars and motorcycles to ATVs, snowmobiles and even Segways.

      Best discounts – GEICO

      It’s almost impossible not to qualify for at least one discount with Geico.

      J.D. Power Rating
      3/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA+
      SimpleScore
      4.2 / 5.0
      close
      SimpleScore GEICO 4.2
      Discounts 4
      Coverage Options 4
      Customer Satisfaction 4
      Support 4
      Accessibility 5

      Saving money on car insurance is never a bad thing. With Geico, you can qualify for multiple discounts on policies without lifting a finger. Certain vehicle equipment you may already have, like air bags, anti-lock brakes and security features, can qualify you for a discount of anywhere from 5% to 40% per item. Drivers who go five years without an accident are rewarded with a 26% discount, and those who purchase coverage multiple vehicles or sign up for another type of policy through Geico can get additional savings. In addition to a 15% reduction for military members, Geico even works with hundreds of professional organizations and associations to offer various membership discounts.

      Best for young drivers – State Farm

      State Farm has created a win-win driving program that teaches young drivers to be safer on the road while letting them save money.

      J.D. Power Rating
      4/5
      AM Best Rating
      A++
      Standard & Poor’s
      AA
      SimpleScore
      4.6 / 5.0
      close
      SimpleScore State Farm 4.6
      Affordability 4
      Coverage Options 5
      Customer Satisfaction 4
      Support 5
      Accessibility 5

      Finding affordable coverage for young drivers can be a challenge since those under the age of 25 are generally considered to be a higher accident risk. With State Farm’s Steer Clear program, these new license holders participate in a five-part training course from their smartphone with the Steer Clear app. There’s even an option to share results with an adult instructor through a mentor login. Once the course is complete, drivers complete five hours of practice sessions to apply what they’ve learned. As long as the driver remains accident-free, program completion can translate to a discount of up to 15%. Bonus: if they keep their grades up while they’re at it, as much as 25% in additional savings can be applied.

      Best for ridesharing – Mercury Insurance

      Mercury Insurance’s personal auto insurance policies are great on their own, but having the option to add ridesharing coverage is a huge bonus for often-ignored gig workers.

      J.D. Power Rating
      N/A
      AM Best Rating
      A
      Standard & Poor’s
      AA-
      SimpleScore
      4 / 5.0
      close
      SimpleScore Mercury Insurance 4
      Discounts 3
      Coverage Options 5
      Customer Satisfaction N/A
      Support 4
      Accessibility 4

      Car insurance is a common woe for drivers who make a living by offering rides through platforms like Uber and Lyft. Regional carrier Mercury Insurance’s auto policies can be supplemented with ridesharing insurance for as little as 90 cents per day. The coverage protects you between fares when the ridesharing company’s policy drops off and your own personal coverage isn’t effective. There’s even an option to add a family member who takes turns offering rides with the same vehicle. It all becomes part of your personal auto policy so that you don’t have to worry about managing multiple accounts.

      Compare Affordable Auto Insurance Rates in Texas

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        How much does car insurance cost in Texas?

        According to data from the Insurance Information Institute, Texas drivers pay an average of $1,097 per year on insurance. This is just slightly above the national average of $1,005, putting Texas at the 14th overall most expensive state for car insurance. Texas insurers can use several different factors in determining your premiums: your age, driving history, credit score and the details of what type of car you drive, where you keep it, and how you use it.

        [ Read: Best Cheap Car Insurance for Teens ]

        An important thing to keep in mind is that auto insurance policies are made up of several different types of coverage, some of which are more expensive than others. In Texas, more than half of the average car insurance premium goes to liability insurance. This is because liability claims – which include bodily injury and property damage – tend to be much higher than collision and comprehensive claims. However, liability is the only type of insurance required by Texas law, so you won’t be able to avoid paying those premiums.

        Texas average full coverage car insurance cost per carrier

        Insurance CompanyTexas full annual avg. costTexas full monthly avg. costTexas full weekly avg. cost
        Texas Farm Bureau$709$59.08$13.63
        Progressive$552$45.98$10.61
        Geico$558$46.50$10.73
        State Farm$1,079$89.90$20.75
        Mercury Insurance$938$78.17$18.04

        The cheapest car insurance in Texas

        There are countless factors that go into determining auto insurance premiums, and each carrier considers them differently. Depending on your driver profile, you may be surprised which company is willing to offer you the cheapest rate; the only way to find out is to compare quotes from several providers.

        [ Read: How Aftermarket Parts Affect Your Car Insurance ]

        To look for the cheapest Texas car insurance, we analyzed sample rates from the Texas Department of Insurance for a middle-aged man with good credit and no driving violations. For a mid-level 50/100/50 policy, Progressive and Geico nearly tied for first place in most cities. In the end, Progressive scored a narrow victory with an average annual premium of $552. Geico fell just $6 behind at $558.

        RankCompany nameAvg. annual premium
        1Progressive$552
        2Geico$558
        3Texas Farm Bureau$709
        4Mercury Insurance$938
        5State Farm$1,079

        The cheapest car insurance in Texas, by city

        85% of Texans live in and around its major cities, and many use their cars to get around. Unlike some states, there isn’t much of a price discrepancy in auto insurance prices between four largest cities by population. Average premiums among the carriers we analyzed fall within $100 of each other on an annual basis. With that said, San Antonio and Austin residents incur slightly lower auto insurance costs at $726 and $727 per year, respectively. Houston follows with an average premium of $801, and Dallas is the most expensive at $814.

        CityCompanyAvg. annual premium
        HoustonProgressive$801
        San AntonioProgressive$726
        DallasGeico$814
        AustinProgressive$727

        Choosing your provider

        While shopping for the best car insurance in Texas, you may notice that policies are available both from local carriers and national carriers. Make sure you include both types of companies as you gather quotes to see the difference in price and service.

        Local carrier

        Pros

        • Personalized service
        • Local expertise

        Cons

        • Slower process to get a quote
        • Requires working through an agent

        National carrier

        Pros

        • Digital tools and resources
        • More policy bundling opportunities

        Cons

        • Not necessarily cheaper
        • Lack of personal touch

        Things to know about car insurance in Texas

        When looking for car insurance, Texas drivers should think about more than just the dangers on the road. Texas suffers from more natural disasters than any other state, including hurricanes, tornadoes, wildfires, flooding and even sinkholes. Comprehensive coverage can protect your vehicle from these events so you won’t have to pay for repairs or replacement out of pocket.

        Compare Affordable Auto Insurance Rates in Texas

        Save money on auto coverage with our simple comparison tool.

        Matching you with providers.
        We found results in
        Click at least 2-3 companies to find the very best rate.

          Texas’ minimum car insurance requirements

          All drivers registered in Texas are required to carry liability insurance. The state minimums are $30,000 in bodily injury per person with a total of $60,000 per accident and $25,000 in property damage. This is known as a 30/60/25 policy.

          Texas insurance companies are also mandated by law to include personal injury protection in every policy. However, drivers aren’t necessarily required to keep the coverage and can opt out by requesting a waiver in writing. It’s still a good idea to carry personal injury protection as it pays for the medical costs of you and anyone in your vehicle during an accident, which isn’t covered under bodily injury liability insurance. Personal injury protection can also cover lost wages and other costs not directly related to medical care.

          Texas car insurance FAQs

          All Texas drivers are required by law to have car insurance. Policies should include a minimum of 30/60/25 liability insurance and personal injury protection.

          Texas Farm Bureau gets the best ratings among Texas auto insurers for customer service and satisfaction.

          To reduce your auto insurance premiums, the Texas Department of Insurance recommends purchasing a car with good safety and anti-theft features and practicing safe driving habits to reduce the chance of having to file a claim.

          We welcome your feedback on this article and would love to hear about your experience with the car insurance companies we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

          Methodology

          SimpleScore

          The SimpleScore makes it easy to compare products and services featured here on The Simple Dollar in a transparent, open and honest way. We rate these products and services using five factors and average them to calculate a single SimpleScore. For auto insurance, we compare:

          • Discounts
          • Coverage options
          • Support
          • Customer satisfaction
          • Accessibility

          You can read more about each factor and the details of each score in our auto insurance methodology. Use our ratings and editorial recommendations as you shop for the best auto insurance that fits your coverage needs.

          Car insurance rates: We used insurance rates from Quadrant Information Services. This includes analyzing thousands of rates from all 50 states that were publicly sourced from 2019 insurer filings. Rates are based on a 30-year-old male or female that had a clean driving record. Full Coverage premiums assumed a $500 collision and comprehensive deductible, and we looked at those who had both good and poor credit. These rates should be used to inform your car insurance shopping process, but your own quote may differ.

          Why do some brands have different SimpleScores on different pages?

          To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
          However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare State Farm’s home insurance according to our criteria for the best home insurance, it scores a 3.8 out of 5. But when we compare State Farm according to the criteria for the best auto insurance, it scores higher, since the features the company offers can vary by the type of insurance.

          Discounts

          We looked at the number of discounts each company offers — more discounts mean a higher score.

          Coverage Options

          We awarded higher scores to the companies that have the most coverage options.

          Support

          We awarded higher scores to lenders with the most channels for customer support.

          Customer Satisfaction

          We leveraged the J.D. Power 2019 Auto Insurance Satisfaction Study℠ to see how customers rated their experience with each company. (If a company wasn’t included in J.D. Power’s study, we skipped this aspect and averaged the four remaining aspect scores.)

          Accessibility

          We looked at the level of accessibility of each company –– the more resources they have the higher their score.

          Lisa Mellio

          Contributing Writer

          Lisa Melillo is a freelance writer and entrepreneur with a background in personal finance, insurance, and international business. In addition to contributing to Bankrate, she has appeared in Money and Reviews.com and frequently ghostwrites for other entrepreneurs.

          Lisa’s career has taken her around the globe; she has lived in four countries, speaks three languages, and holds two international degrees, including a Master’s in International Business from Universitat Pompeu Fabra in Barcelona. She currently spends most of her time in Connecticut, where she lives with her husband and two dogs.

          Reviewed by

          • Nashalie Addarich
            Nashalie Addarich
            Insurance Editor

            Nasha Addarich is an editor at The Simple Dollar and a former attorney who specializes in home insurance, auto insurance, life insurance, and savings. She is a former contributing editor to Reviews.com.