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The Best Car Insurance Companies in Texas
The best car insurance in Texas
- Best Overall: Texas Farm Bureau
- Best Coverage Options: Progressive
- Best Discounts: Geico
- Best for Young Drivers: State Farm
- Best for Ridesharing: Mercury Insurance
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 Company||Texas full annual avg. cost||Texas full monthly avg. cost||Texas full weekly avg. cost|
|Texas Farm Bureau||$709||$59.08||$13.63|
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.
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.
|Rank||Company name||Avg. annual premium|
|3||Texas Farm Bureau||$709|
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.
|City||Company||Avg. annual premium|
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.
- Personalized service
- Local expertise
- Slower process to get a quote
- Requires working through an agent
- Digital tools and resources
- More policy bundling opportunities
- 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.
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.
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 email@example.com with comments or questions.