Auto Insurance in Texas: A Complete Guide
Texas law requires drivers to carry 30/60/25 in minimum liability. Rates start at $45/mo but comparing auto insurance quotes by city gets you the best rates.
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Written by
Rachel Bodine |
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Reviewed by
Daniel Walker
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UPDATED: Nov 16, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Nov 16, 2022
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Table of Contents
Table of Contents Finding the best auto insurance company in Texas will take some time to research. Luckily, we’ve gathered the top companies in the nation and compared them to local Texas insurance companies to help you find the best coverage at the most affordable rates. Here are the top 10 auto insurance companies in Texas: According to J.D. Power, Texas Farm Bureau is the best auto insurance company in Texas based on customer satisfaction, but State Farm and GEICO rank higher in terms of rates and coverage options. Below you’ll find reviews of the top Texas companies for liability coverage, full coverage, drivers with poor credit, and young and high-risk drivers. GEICO offers the best rates for any level of coverage to the average driver with a good record. GEICO is available throughout the state of Texas and consistently offers competitive quotes in the biggest cities, including San Antonio, Houston, and Dallas. For more information check out the GEICO auto insurance review. Drivers between 16 and 19 years old pay the most for car insurance in every state. However, young Texans can save money with Texas Farm Bureau. This local insurer offers lower rates than any other Texas insurance company to teen drivers with accidents, poor credit, or DUIs. More information is available at Farm Bureau auto insurance review. Each insurance company considers credit scores differently, and Nationwide will not raise your rates nearly as high as other insurers in Texas. Nationwide may not offer the cheapest car insurance in Texas to the average driver, but rates for those with bad or no credit are very affordable. Find out more at Nationwide auto insurance review. State Farm accepts SR-22s and offers the cheapest auto insurance rates after an accident, speeding ticket, or DUI. High-risk drivers generally pay around $190 per month for coverage in Texas, but you could get much lower quotes with State Farm. Take a look at State Farm auto insurance review for more information. Enter your ZIP code below to view companies that have cheap auto insurance rates. The average car insurance cost in Texas is around $150 per month for full-coverage auto insurance and $45 for minimum liability auto insurance. Your rates may be higher or lower depending on which city you live in and how much coverage you carry. Bigger cities in Texas have more traffic and an increased risk of auto accidents and insurance claims. Insurance companies also charge more for driving in urban areas than on rural roads. That’s why even the best car insurance rates in Houston are still more expensive than rates in Lubbock or Plano. Houston, San Antonio, and Dallas are the largest cities in Texas, with populations over one million. Compared to other Texas drivers, drivers in Houston pay about 18% more for insurance, while Dallas and San Antonio drivers pay 5%-15% more. For even more specifics check out auto insurance rates by ZIP code. Texas law requires drivers to carry a minimum liability policy and personal injury protection (PIP) coverage. Use the table below to see how much coverage costs in Texas. Texas Average Annual Full Coverage Auto Insurance Rates
The Best Auto Insurance in Texas
Best Texas Liability Insurance and Full Coverage: GEICO
Best Texas Auto Insurance for Young Drivers: Texas Farm Bureau
Best Texas Auto Insurance for Drivers with Poor Credit: Nationwide
Best Texas Auto Insurance for High-Risk Drivers: State Farm
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Secured with SHA-256 EncryptionHow much is auto insurance in Texas?
Texas Auto Insurance Rates by City
Texas Auto Insurance Rates by Coverage
Insurance Company 45-Year-Old Male 45-Year-Old Female
Allstate Rates $2,413 $2,380
American Family Rates $2,106 $1,892
Farmers Rates $1,649 $1,656
GEICO Rates $1,264 $1,185
Liberty Mutual Rates $2,133 $2,101
Nationwide Rates $1,851 $1,817
Progressive Rates $1,448 $1,520
State Farm Rates $1,076 $1,076
Travelers Rates $1,209 $1,194
USAA Rates $749 $743
Full coverage costs more than liability-only, but it will save you from paying out of pocket for personal damages after an accident. Likewise, adding optional coverage like GAP insurance and roadside assistance will raise your rates.
Carrying only the state minimums for car insurance in Texas will give you the lowest rates, but you’re responsible for any personal costs after an accident.
Minimum Coverage Required in Texas
By law, drivers must carry minimum levels of bodily injury and personal property coverage to drive on Texas roads.
These are the minimum insurance coverages required in Texas:
- Liability car insurance coverage. Texas requires a minimum of $30,000 for bodily injury per person, $60,000 for injury per accident, and $25,000 for property damage.
- Personal injury protection (PIP) coverage. Drivers must carry at least $2,500 in PIP or turn down this coverage by submitting a request in writing.
If you choose not to buy auto insurance in Texas, you could lose your license and registration. You will be fined up to $350, which increases to $1,000 after subsequent offenses. In addition, the law can impound your vehicle, and you may have to carry SR-22 auto insurance to reinstate your coverage.
Optional Coverage Available in Texas
Texas state laws don’t require full coverage car insurance, but you may choose to add these optional coverages to better protect you and your passengers.
- Collision auto insurance. This coverage pays for your and your passengers’ injuries and property damage after an accident or collision.
- Comprehensive auto insurance. This coverage pays for damages caused by unforeseen circumstances, including theft, vandalism, fire, and natural disasters.
- Uninsured motorist coverage auto insurance. This coverage pays for property damage and medical costs if you’re in an accident with an uninsured, underinsured, or hit-and-run driver.
- GAP insurance. This add-on covers your auto loan should you total your vehicle in an accident before paying it off.
- Roadside assistance. This add-on covers the cost of a tow, locksmith, tire replacement, or battery jump-start if your car cannot be driven. Options vary by city and company. For more details take a look at roadside assistance explained and compared.
- Rental car reimbursement. This add-on pays for a rental car when your vehicle is in the shop for repairs after a claim. Limitations apply, and options vary by city and company.
Keep in mind that the terms of your auto loan or lease agreement will dictate how much coverage you need. For example, most auto loans require drivers to carry additional collision and comprehensive insurance, which will raise your Texas auto insurance rates.
Who has the cheapest auto insurance in Texas?
Finding cheap auto insurance in Texas comes down to how old you are, how much coverage you need, and what your driving history looks like. Young drivers and those with accidents or DUIs are considered high-risk and pay more for insurance. Compare that to drivers in their 30s and 40s with clean records who pay the lowest rates in Texas.
The cheapest auto insurance companies in Texas are State Farm, GEICO, and Texas Farm Bureau. USAA also offers affordable auto insurance in Texas, but coverage is only available to active and retired military members and their families.
Below we compare Texas auto insurance quotes by company to help drivers like you find the most affordable coverage. Scroll down to compare rates by coverage level for drivers with poor credit scores, young drivers, and high-risk drivers.
Cheapest Liability Auto Insurance in Texas
Liability-only car insurance in Texas costs around $45 per month. Use the table below to compare these average rates to quotes from the top insurers in Texas:
| Insurance Company | Average Minimum Coverage Rates | |
|---|---|---|
| Allstate | $61 | |
| American Family | $44 | |
| Farmers | $53 | |
| Geico | $31 | |
| Liberty Mutual | $68 | |
| Nationwide | $44 | |
| Progressive | $39 | |
| State Farm | $33 | |
| Travelers | $37 | |
| Average | $45 | |
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GEICO offers cheap liability insurance in Texas, followed by State Farm and Texas Farm Bureau. USAA’s rates are also competitive, but coverage isn’t available to every driver.
Cheapest Full Coverage Auto Insurance in Texas
The average cost of full coverage auto insurance in Texas is $150 per month.
This table shows how your rates can vary based on the company you shop with.
| Insurance Company | Average Full Coverage Rates | |
|---|---|---|
| Allstate | $160 | |
| American Family | $117 | |
| Farmers | $139 | |
| Geico | $80 | |
| Liberty Mutual | $173 | |
| Nationwide | $115 | |
| Progressive | $105 | |
| State Farm | $86 | |
| Travelers | $99 | |
| Average | $120 | |
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You can lower your rates by dropping unnecessary coverages or raising your deductibles, but you face higher personal costs after a claim.
Cheapest Auto Insurance in Texas for Bad Credit
Using credit scores for insurance rates is illegal in some states, but Texas law allows companies to check your score when you apply for a policy.
See how poor credit impacts your Texas car insurance with the major companies listed below:
Average Monthly Full Coverage Auto Insurance Rates by Credit Rating
Auto insurance rates are based on 45-year-old drivers with clean driving records.
| Insurance Company | Rates with Poor Credit | Rates with Fair Credit | Rates with Good Credit |
|---|---|---|---|
| Geico | $148 | $100 | $82 |
| State Farm | $200 | $118 | $91 |
| Travelers | $194 | $128 | $107 |
| Progressive | $206 | $138 | $109 |
| American Family | $203 | $136 | $116 |
| Nationwide | $166 | $133 | $120 |
| Farmers | $269 | $161 | $140 |
| Allstate | $296 | $197 | $166 |
| Liberty Mutual | $355 | $226 | $177 |
| Average | $226 | $148 | $123 |
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Fortunately, some insurance companies don’t check credit scores or use a different risk-assessment strategy to determine driver rates. See this list for the best auto insurance companies that don't check credit.
For example, insurers that use usage-based car insurance and telematics systems (UBI) rely on driving habits and mileage to determine rates. Signing up for UBI insurance in Texas with State Farm, Progressive, Farmers, or Allstate could lower your average monthly rates.
Cheapest Auto Insurance in Texas for Young Drivers
Young drivers under 25 pay the most for car insurance in Texas, but there are plenty of tips for finding car insurance for young drivers. Teens with good driving records can see their rates drop after they turn 21, but the cheapest auto insurance in Texas is for drivers between the ages of 30 and 50.
Texas Average Annual Teenage Driver Auto Insurance Rates
| Insurance Company | 16-Year-Old Male Rates | 16-Year-Old-Female Rates |
|---|---|---|
| Allstate | $8,514 | $7,749 |
| American Family | $7,045 | $5,935 |
| Farmers | $9,202 | $9,646 |
| GEICO | $2,859 | $3,011 |
| Liberty Mutual | $9,644 | $8,873 |
| Nationwide | $8,477 | $7,135 |
| Progressive | $12,191 | $11,914 |
| State Farm | $3,781 | $3,240 |
| Travelers | $11,131 | $8,798 |
| USAA | $2,350 | $2,374 |
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Texas Farm Bureau provides the cheapest auto insurance in Texas for young drivers.
Cheapest High-Risk Auto Insurance in Texas
Traffic violations, DUIs, accidents, and insurance claim all increase your risk as a driver. On average, high-risk drivers pay around $190 a month for coverage.
However, each insurance company ranks these violations differently. If your insurance company increased your rates after an accident or DUI, start shopping for new quotes as soon as possible. The table below compares high-risk auto insurance rates from the top Texas insurance companies:
| Insurance Company | Rates with a DUI | Rates with an Accident | Rates with a Ticket | Rates with a Clean Record |
|---|---|---|---|---|
| Allstate | $3,638 | $2,848 | $2,342 | $1,993 |
| American Family | $2,124 | $2,000 | $1,571 | $1,386 |
| Farmers | $2,296 | $2,383 | $2,108 | $1,674 |
| GEICO | $2,566 | $1,595 | $1,282 | $984 |
| Liberty Mutual | $3,900 | $2,840 | $2,600 | $2,120 |
| Nationwide | $3,028 | $1,983 | $1,737 | $1,445 |
| Progressive | $1,760 | $2,284 | $1,710 | $1,310 |
| State Farm | $1,490 | $1,285 | $1,227 | $1,091 |
| Travelers | $2,765 | $1,888 | $1,780 | $1,287 |
| USAA | $1,335 | $996 | $859 | $753 |
| Average | $2,619 | $2,123 | $1,818 | $1,477 |
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Comparing Texas auto insurance rates by violation is the easiest way to find more affordable high-risk insurance.
Cheapest Auto Insurance in Texas After a DUI
As most people know, a DUI is definitely going to increase the cost of your auto insurance. Regardless, of where you live, this will be the case. Here is a look at the average rates for a driver with a DUI on their driving record.
| Insurance Company | Rates with a DUI | Rates with a Clean Record | ||
|---|---|---|---|---|
| Allstate | $270 | $160 | ||
| American Family | $194 | $117 | ||
| Farmers | $192 | $139 | ||
| GEICO | $216 | $80 | ||
| Liberty Mutual | $313 | $173 | ||
| Nationwide | $234 | $115 | ||
| Progressive | $140 | $105 | ||
| State Farm | $112 | $86 | ||
| Travelers | $206 | $99 | ||
| Average | $209 | $120 | ||
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These rates are substantially higher than the rates for those without a DUI. With time and excellent driving, your rates will go down after a DUI. If you need more information, check out auto insurance for drivers with DUIs.
Cheapest Auto Insurance in Texas After an At-Fault Accident
Like a DUI, an at-fault accident will more than likely increase your car insurance rates. The impact on costs will vary based on how much your insurance company had to pay out. Here is an idea of what you may end up paying if you have at-fault accidents on your driving record in the state of Texas.
| Insurance Company | Rates with an Accident | Rates with a Clean Record | ||
|---|---|---|---|---|
| State Farm | $102 | $86 | ||
| Geico | $132 | $80 | ||
| Travelers | $139 | $99 | ||
| Nationwide | $161 | $115 | ||
| Average | $172 | $120 | ||
| American Family | $176 | $117 | ||
| Progressive | $186 | $105 | ||
| Farmers | $198 | $139 | ||
| Allstate | $225 | $160 | ||
| Liberty Mutual | $234 | $173 | ||
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With great driving and no accidents, you can take solace in the fact that these rates will go down eventually.
What is SR-22 insurance in Texas?
SR-22 auto insurance in Texas is not an actual insurance policy. Rather, it is a Financial Responsibility Insurance Certificate. It acts as proof of insurance — something you need to have your driving privileges reinstated.
You must file an SR-22 with your insurance company and the Texas Department of Public Safety (DPS) if you recently lost your license due to civil judgments or traffic violations, including DUI/DWI and driving without car insurance. If you fail to file an SR-22, your insurer will notify Texas DPS, and your vehicle registration could be suspended.
Once you file your SR-22 in Texas, you must maintain it for a minimum of two years. A judge may rule differently in your case, but failure to maintain a valid SR-22 could result in an extended loss of your license and additional reinstatement fees.
How much does SR-22 insurance cost in Texas?
It costs nothing to file for SR-22 insurance in person at the Texas DPS in Austin. However, insurance companies can file the SR-22 for you for a small fee.
SR-22 insurance costs vary by company. On average, drivers pay between $15 and $50 to file an SR-22 electronically.
Filing an SR-22 will also raise your annual Texas car insurance rates, especially after a reckless driving accident or DUI charges. Most insurance companies consider drivers with an SR-22 high-risk and will charge them more for coverage.
If you need to carry SR-22 insurance, start shopping for quotes from different local companies to get the best rates. We compare the cheapest companies for SR-22 insurance below.
Who has the cheapest car insurance for SR-22?
Buying cheap SR-22 auto insurance in Texas is easy when you shop around and compare quotes from multiple companies. We recommend getting at least three different quotes from local companies before you buy. This way, you will have an idea of how much SR-22 insurance costs for other drivers in your area.
State Farm files SR-22 insurance and consistently offers the best rates to high-risk drivers in Texas.
How to Get SR-22 Insurance in Texas
If you’re currently insured, getting SR-22 insurance in Texas is easy. It may take a few days, especially if you want to file your SR-22 in person, but most insurance companies will file it for you to get you covered quickly.
You may have a harder time finding coverage if you don’t have insurance and need to file your SR-22 before you can buy a new policy. Some standard insurance companies won’t take on the increased risk of SR-22 filings, and you may be limited to high-risk insurers.
Follow the steps below to find out if your insurance company files SR-22s and how you can reinstate your driving privileges:
Step One - Confirm SR-22 Coverage is Available
Some insurers don’t provide SR-22 insurance, and you may have to shop for coverage with another company.
Fortunately, many major insurance companies file SR-22s in Texas, including USAA, State Farm, GEICO, and Progressive. Contact your insurance agent to find out if SR-22 insurance is available.
Step Two - Pay SR-22 Filing Fees
It can cost drivers between $15 and $50 to file an SR-22 with the Texas DPS. If you need to reinstate your license, you will pay an additional $100.
Step Three - File Your SR-22 and Proof of Insurance
Your insurance company will file the SR-22 and necessary proof of insurance coverage on your behalf for a fee. You can avoid paying this fee by mailing the insurance form or delivering it in person to the Texas DPS in Austin.
Drivers can confirm the SR-22 was received by checking their status on the Texas DPS website.
How to Get SR-22 Insurance in Texas if You Don’t Own a Car
Do you need SR-22 insurance if you don’t own a car? Yes, drivers who don’t own a vehicle can buy nonowner auto insurance. This is often cheaper than an owner’s policy, but rates will still be higher than average. Also, coverage may not be available with every company, so shop around with multiple insurers to find the policy you need.
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Compare Auto Insurance Quotes in Texas
Is Texas expensive for car insurance? Yes, Texas drivers pay about 5% more than the average driver due to the increased traffic risks and fast interstate highway speeds. Fortunately, drivers throughout Texas can save money by comparing auto insurance quotes from multiple companies.
The top auto insurance companies in Texas are State Farm, GEICO, and Texas Farm Bureau. Military members will get the best rates with USAA, and drivers with poor credit will find affordable coverage with Nationwide.
However, the Texas city you live in will significantly impact how much you pay for coverage. Even the best insurance companies will still offer more affordable rates to drivers in smaller cities. For example, the average driver in the state capital of Austin pays less for auto insurance than someone in Dallas, San Antonio, or Houston.
If you’re looking for low-cost insurance in your city, enter your ZIP code below. We will compare auto insurance quotes from companies in your area to find you the most affordable coverage.
Frequently Asked Questions
Who has the cheapest auto insurance in Texas?
Texas Farm Bureau, State Farm, and GEICO sell the cheapest car insurance in Texas. You will find the most affordable rates by comparing quotes from these and other companies in your city.
What is the average cost of car insurance in Texas?
Auto insurance in Texas is about $45 per month for liability-only and about $150 for full coverage. If you have accidents or other insurance claims on your record, your rates will average $190 per month.
Why is car insurance so expensive in Texas?
Drivers in Texas pay about 5% more for car insurance than the national average. Traffic rates in the state’s largest cities and higher average speeds on state highways lead to more expensive insurance rates.
Texas state insurance laws also require drivers to carry at least $2,500 in PIP, which makes minimum auto insurance more expensive than in other states.
The good news is you can keep your insurance costs low by comparing quotes and coverage from multiple companies. Enter your ZIP code below to start comparing Texas auto insurance rates by city for free.
Free Auto Insurance Comparison
Enter your ZIP code below to view companies that have cheap auto insurance rates.
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
|
Written by
Rachel Bodine |
|
Reviewed by
Daniel Walker
|