Cheapest car insurance in Texas (TX) of November 2023
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BLUEPRINT
Updated 9:37 a.m. UTC Nov. 16, 2023
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Everything’s bigger in Texas, including the average car insurance premium. Texas is the eighth most expensive state for carrying car insurance, beat only by New York, Florida and a handful of other high-cost states.
Texas drivers looking to cut costs should consider insurers like USAA, Geico and Nationwide. These are the cheapest car insurance companies in Texas — and the only three with average annual rates below $2,000 for good drivers.
Summary
Why trust our insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 780 companies analyzed.
- 7,800 rates reviewed.
- 5 levels of fact-checking.
Compare cheap car insurance rates for Texas
Cheapest car insurance companies in Texas
USAA
Geico
Nationwide
State Farm
Texas Farm Bureau
Compare the cheapest car insurance companies in Texas
| Company | Rating | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|---|
| USAA | 5.0 stars | $1,853 | $154 | Compare Rates | Compare rates offered by participating partners | |
| Geico | 5.0 stars | $1,861 | $155 | Compare Rates | Compare rates offered by participating partners | |
| Nationwide | 4.5 stars | $1,987 | $166 | Compare Rates | Compare rates offered by participating partners | |
| State Farm | 4.0 stars | $2,052 | $171 | Compare Rates | Compare rates offered by participating partners | |
| Texas Farm Bureau | 4.0 stars | $2,058 | $172 | Compare Rates | Compare rates offered by participating partners |
Average annual and monthly rates are based on those for good drivers, or those with a clean driving record.
Methodology
Our insurance experts evaluated the rates of 19 Texas car insurance companies to determine which ones offered the best rates to residents. The data used for this analysis is from Quadrant Information Services and rates are based on a 40-year-old female driver shopping for coverage for a Toyota Rav4. Policy rates include the following types of coverage:
- Bodily injury and property damage liability insurance (100/300/100).
- Uninsured motorist coverage (100/300).
- Collision and comprehensive coverage ($500 deductible).
To determine the cheapest overall car insurance companies in Texas, we used the rates for a good driver, or someone who has a clean driving record.
We also analyzed average rates for various driver profiles and identified the cheapest insurer for each. Driver profiles include:
- Drivers with an accident, speeding ticket or DUI on their record.
- Drivers with a gap in coverage.
- Senior drivers.
- Teen drivers added to a parent’s policy.
- High-risk drivers.
Why some companies didn’t make the cut
Car insurance companies in Texas with high good driver rates may have made our best auto insurance companies rating but not made the cut for our cheapest car insurance in Texas. This rating was determined by a company’s average rates in Texas for a good driver with a clean record.
In some cases, an insurer didn’t make the cut for our overall cheapest car insurance in Texas but offers the cheapest car insurance for a specific driver profile. When applicable, these companies are included in the list of insurers for the relevant driver profile category.
How much does car insurance cost in Texas?
Car insurance in Texas costs $2,938 a year on average for drivers with a clean record. That’s $245 a month to maintain full coverage insurance. It’s $650 a year, or about $54 a month, to carry only the state minimum.
In comparison, the average national cost of car insurance is $2,150 a year, nearly $800 less than what you’ll pay in Texas.
If you’ve been in an at-fault accident, have racked up speeding tickets or have poor credit, expect to pay even more each year. High-risk drivers in Texas pay an average of $4,486 a year for full coverage, about a 35% increase over what a good driver pays, though rates vary based on your infraction.
Car insurance companies can also use other personal information to generate your rate, including your age, your gender, the car you drive and where you live within the Lone Star State.
Average cost of car insurance in Texas by driver profile
Average car insurance rates in Texas by company
| Company | Annual rate | Monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| USAA | $1,853 | $154 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $1,861 | $155 | Compare Rates | Compare rates offered by participating partners | |
| Nationwide | $1,987 | $166 | Compare Rates | Compare rates offered by participating partners | |
| State Farm | $2,052 | $171 | Compare Rates | Compare rates offered by participating partners | |
| Texas Farm Bureau | $2,058 | $172 | Compare Rates | Compare rates offered by participating partners | |
| National General | $2,103 | $175 | Compare Rates | Compare rates offered by participating partners | |
| Mercury | $2,118 | $177 | Compare Rates | Compare rates offered by participating partners | |
| Esurance | $2,302 | $192 | Compare Rates | Compare rates offered by participating partners | |
| Auto Club | $2,539 | $212 | Compare Rates | Compare rates offered by participating partners | |
| State Auto | $2,756 | $230 | Compare Rates | Compare rates offered by participating partners | |
| Chubb | $3,135 | $261 | Compare Rates | Compare rates offered by participating partners | |
| Allstate | $3,173 | $264 | Compare Rates | Compare rates offered by participating partners | |
| Safe Auto | $3,192 | $266 | Compare Rates | Compare rates offered by participating partners | |
| Foremost | $3,872 | $323 | Compare Rates | Compare rates offered by participating partners | |
| Home State Insurance | $4,094 | $341 | Compare Rates | Compare rates offered by participating partners | |
| Sentry | $4,426 | $369 | Compare Rates | Compare rates offered by participating partners | |
| 21st Century | $5,192 | $433 | Compare Rates | Compare rates offered by participating partners | |
| Permanent General | $5,234 | $436 | Compare Rates | Compare rates offered by participating partners |
Average annual and monthly rates are based on those for good drivers, or those with a clean driving record.
Cheapest car insurance companies in Texas
USAA is the cheapest car insurance company in Texas, with an average annual rate of just $1,853 for good drivers. That’s nearly $300 less than the national average cost of car insurance and more than $1,000 less than the state average.
USAA coverage may be unavailable for many Texas drivers, as its car insurance policies are only available to USAA members. Membership is limited to active or retired military members and their eligible family members.
A close second is Geico, with good drivers paying $1,861 a year, on average. Nationwide is also under $2,000 a year.
Of the top four cheapest car insurance companies in Texas, three — USAA, Geico and Nationwide — earned top scores in our analysis of the best car insurance companies.
Cheapest car insurance in Texas by driver profile
- After a speeding ticket.
- After an accident.
- After a DUI.
- With poor credit.
- After a gap in coverage.
- High risk.
- 16-year-old driver added to parent policy.
- Senior drivers.
Cheapest car insurance in Texas after a speeding ticket
If you just got a speeding ticket, check out Geico, Texas Farm Bureau and USAA. Geico offers an average rate that’s over $1,300 less than the national average. Texas Farm Bureau and USAA offers rates that are only slightly higher than Geico.
Cheapest car insurance after a speeding ticket in Texas
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Geico | $2,000 | $167 | Compare Rates | Compare rates offered by participating partners | |
| Texas Farm Bureau | $2,058 | $172 | Compare Rates | Compare rates offered by participating partners | |
| USAA | $2,098 | $175 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance after an accident in Texas
Texas Farm Bureau and Nationwide are top options for drivers who’ve made mistakes behind the wheel. If you caused a wreck involving injuries, then Texas Farm Bureau offers the cheapest average rate – $194 a month, which is over $160 less than the national average for drivers in this category.
If you’re at-fault for an accident that resulted in only property damage, consider Nationwide. Drivers in this category pay an average of $204 a month with Nationwide.
Geico and State Farm are also solid contenders for either type of wreck.
Cheapest Texas car insurance after an accident with injuries
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Texas Farm Bureau | $2,328 | $194 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $2,523 | $210 | Compare Rates | Compare rates offered by participating partners | |
| State Farm | $2,559 | $213 | Compare Rates | Compare rates offered by participating partners |
Cheapest Texas car insurance after an accident with property damage
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Nationwide | $2,444 | $204 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $2,523 | $210 | Compare Rates | Compare rates offered by participating partners | |
| State Farm | $2,559 | $213 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance after a DUI in Texas
Drivers will struggle to find cheap car insurance after a DUI, but there are insurers out there that are willing to give you a second chance.
If you’re a Texan with a DUI, your best bet is Esurance, with an average annual rate of $2,302, about 50% less than the state average for drivers with a DUI. National General and Geico are two other good options.
Cheapest car insurance after a DUI in Texas
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Esurance | $2,302 | $192 | Compare Rates | Compare rates offered by participating partners | |
| National General | $2,451 | $204 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $2,635 | $220 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance with poor credit in Texas
In Texas, insurance companies can factor in your credit score when setting rates — and many insurers don’t look too favorably on drivers with bad credit scores. If you have poor credit, consider getting quotes from Nationwide ($2,959) and Geico ($3,000). Mercury also has competitive rates.
Cheapest Texas car insurance with poor credit
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Nationwide | $2,959 | $247 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $3,000 | $250 | Compare Rates | Compare rates offered by participating partners | |
| Mercury | $3,290 | $274 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance after a gap in coverage in Texas
Drivers who let their coverage lapse may find they’re getting higher quotes when they go to re-enroll. If you’re frustrated by the high prices after a gap in coverage, check out Geico, which has an average annual rate of $2,057 for such drivers.
USAA is also more forgiving — and the only other insurer with an average annual rate below $2,500.
Cheapest Texas car insurance in after a gap in coverage
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Geico | $2,057 | $171 | Compare Rates | Compare rates offered by participating partners | |
| USAA | $2,357 | $196 | Compare Rates | Compare rates offered by participating partners | |
| Texas Farm Bureau | $2,540 | $212 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance for high-risk drivers in Texas
Insurance providers might consider you high risk for a number of reasons: You have tickets, you’ve been at fault in accidents, you have a DUI, your credit score is in bad shape, etc. Some insurance providers may also consider teens and seniors high risk solely because of their age.
The bad news? There’s not much you can do to shake the designation (not immediately, at least). The good news? Quite a few insurers provide policies with manageable premiums.
Geico is the cheapest car insurance company for high-risk Texas drivers at $2,671 a year, but Nationwide and National General also have lower-than-average rates.
Cheapest Texas car insurance for high-risk drivers
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Geico | $2,671 | $223 | Compare Rates | Compare rates offered by participating partners | |
| Nationwide | $2,766 | $231 | Compare Rates | Compare rates offered by participating partners | |
| National General | $3,104 | $259 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance for adding a teen driver in Texas
Teens have some of the highest car insurance rates in Texas (and the nation), but if you have a teen driver in the house, adding them to your policy can lower their coverage costs. Nationwide is the only insurer in our analysis that offers an average monthly rate under $100 a month, but Geico and Chubb also have competitive rates for this age group of new drivers.
Cheapest car insurance in Texas for adding a 16-year-old to a parent policy
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| Nationwide | $1,174 | $98 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $1,542 | $129 | Compare Rates | Compare rates offered by participating partners | |
| Chubb | $1,615 | $135 | Compare Rates | Compare rates offered by participating partners |
Cheapest car insurance for senior drivers in Texas
Senior drivers in Texas may be able to unlock serious savings with State Farm. Its average rates are about $100 less than the national average of $225. Geico and Nationwide also offer some of the most competitive average rates for Texans in their 60s, 70s and 80s.
Cheapest Texas car insurance for seniors
| Company | Average annual rate | Average monthly rate | LEARN MORE | ||
|---|---|---|---|---|---|
| State Farm | $1,422 | $119 | Compare Rates | Compare rates offered by participating partners | |
| Geico | $1,609 | $134 | Compare Rates | Compare rates offered by participating partners | |
| Nationwide | $1,746 | $146 | Compare Rates | Compare rates offered by participating partners |
Car insurance requirements in Texas
Texas state law requires that all drivers carry at least a minimum amount of liability insurance.
Specifically, drivers need at least the following:
- $30,000 in bodily injury liability coverage per person.
- $60,000 in bodily injury liability coverage per accident.
- $25,000 in property damage liability coverage per accident.
If you’re checking your state’s department of motor vehicles or getting quotes online, you may see this presented as a 30/60/25 liability insurance policy. Insurance companies licensed in the state of Texas will know what minimum coverage you need.
How to find cheap car insurance in Texas
The cost of car insurance in Texas is steep, but we’ve got a few tips to help you find the best cheap car insurance while still maintaining the coverage you need.
Switch policies
Staying with your current insurance provider may earn you a loyalty discount or a vanishing deductible, but even then, you might be spending too much money on car insurance. At the very least, it never hurts to shop around when your policy is up for renewal.
Use our list of the cheapest car insurance companies in Texas to generate quotes for the same level of coverage (same limits, same deductibles) and see how much you could save. You can also use an online insurance marketplace or work with an independent insurance agent to compare prices.
Take advantage of discounts
Your insurance provider likely offers a lot of discounts that are easy to qualify for. Talk with your agent or review your policy to see which you’re already getting — and which you might be able to add.
Discounts vary by insurer, but these are some of the most common:
- Multi-policy: Bunding your home and auto insurance can usually result in decent discounts for both policies. Not a homeowner? Many insurance companies offer the same deal for condo and renters insurance.
- Multi-vehicle: Even if you and your partner like to keep your finances separate, you both might be able to save some cash by putting your cars on the same policy.
- Usage-based insurance: Taking part in an insurance company’s usage-based insurance policy means they’ll monitor your driving habits — and reward you for being a safe driver. Careful, though: Unsafe driving can actually result in a rate increase.
- Defensive driving course: Want to lower your premium? Most insurers will offer a rate decrease for several years if you complete an approved defensive driving course.
- Paying in full: Rather than pay your premium every month, write one big check (or arrange for one major ACH withdrawal) at the start of the policy. Insurers usually offer discounts when you pay in full upfront.
Fine-tune your coverages
You can get a lower car insurance rate by decreasing your limits, raising your deductible and dropping coverages you don’t need.
For instance, if you have an old car with a lot of miles on it, rethink the high limits you might have on comprehensive and collision. If the limit is higher than the vehicle is even worth, you’re paying for too much coverage. Drop the limits, and watch your premium fall.
On the flip side, raising your deductible — the amount of money that’s deducted from your claim payout — can significantly lower your monthly insurance costs. Look at the deductibles on your current plan. If you could afford to spend a little more in the event of an accident, raise your deductibles. Doing so is one of the best ways to lower your car insurance premium.
Finally, coverages like rental car reimbursement, mechanical breakdown insurance and emergency roadside assistance are nice. But if you’re struggling to afford car insurance and looking to trim costs, cut these out of your policy to lower your rates.
USAA has the cheapest car insurance in Texas for good drivers with an average annual rate of $1,853. USAA’s rates for high-risk drivers, however, are less competitive.
Because USAA membership is only available to the military community and eligible family members, the next cheapest car insurance option in Texas is Geico, with an average annual cost of $1,861, just $8 more than USAA.
If you’re shopping for a basic policy that meets the minimum car insurance requirements in Texas, you can expect an average rate of $650 a year. That includes the following levels of state-mandated liability coverage:
- 30,000 in bodily injury/death coverage for per person.
- 60,000 in bodily injury/death coverage for per accident.
- 25,000 in property damage coverage per accident.
This policy, also known as a 30/60/25 liability policy, will allow you to legally drive on Texas roads, but it will only cover injuries and property damage to others if you’re at fault for an accident. It won’t cover medical bills for you or your passengers or repairs to your vehicle after a collision or other type of incident, such as a tree falling on your car or theft.
For stronger financial protection, it’s wise to consider a 100/300/100 liability policy, which costs $941 a year. Full coverage in Texas — which includes liability insurance, uninsured motorist insurance and collision and comprehensive coverage — will cost around $1,853 a year, or $154 a month.
Basic car insurance in Texas costs $941 a year. That’s based on $544 for bodily injury liability and $397 for property damage liability. At a minimum, Texas state law requires drivers to carry these coverages, though we always recommend getting a full-coverage plan with comprehensive and collision, medical coverage and uninsured motorist coverage.
Vehicle registration in Texas costs between $50.75 and $840. Most drivers will pay either $50.75 (vehicles 6,000 pounds or less) or $54 (vehicles between 6,001 and 10,000 pounds), plus applicable fees including local county fees. Rates go up from there, depending on vehicle weight.
It costs $6.50 to get a replacement license plate in Texas. That includes a $6 plate fee and a $0.50 automation fee.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
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