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Auto Insurance in Texas: What You Need to Know
Drivers in Texas pay less than the national average for car insurance. But Texas is large and complicated — prices differ based on location, company, and driver.
In this guide, we’ll provide an overview of auto insurance requirements in Texas. Plus, we explain the different types of coverage available and offer tips for finding the best policy.
- Car insurance in Texas is cheaper than the national average, but many factors can influence car insurance rates.
- State Farm, Texas Farm Bureau, and Houston General tend to offer the lowest auto rates overall.
- Other insurance companies sometimes offer better rates than the top five insurers in Texas, depending on your driver profile and location.
In this Article:
The Average Cost for Texas Car Insurance
The average driver in Texas spends $196 per month on their auto insurance policy, according to Compare.com data. But many drivers pay much less, and plenty pay more. Your auto premium will depend on several factors, including your driving profile, where you live, and the type of vehicle you own.
Let’s examine your cheapest auto insurance options based on several factors.
Texas’ Cheapest Car Insurance Companies
Although the average cost of Texas car insurance is $196 per month, plenty of companies offer cheaper rates. Prices can vary quite a bit from driver to driver, due to the many factors that help insurers determine your premium.
We’ve broken down the average Texas auto insurance rates by each of the most common factors in the sections below.
How we chose the cheapest companies in Texas
After examining rates from over 50 of Texas’ leading car insurance companies, our team compiled a list of the five most affordable choices for drivers of different age groups and insurance and driving records.
The analysis is based on individuals who drive a 2016 Honda Accord and require either liability or full coverage, utilizing Texas’ minimum policy limits. Insurers are ranked by cheapest liability-only policies.
Cheapest overall auto insurance rates in Texas: State Farm
Looking for the cheapest car insurance Texas has to offer? We’ve broken down the five companies with the cheapest average rates in all of Texas in the table below:
|Houston General Insurance Exchange||$84||$237|
|Texas Farm Bureau||$87||$192|
State Farm offers the cheapest rates for both liability and full auto coverage in Texas. The company also has an extensive list of optional coverages to customize your policy, as well as several ways for teens to save on auto insurance.
Houston General Insurance Exchange and Texas Farm Bureau Insurance might also have affordable liability-only rates. For full coverage, consider Texas Farm Bureau Insurance or Germania, which offer rates of around $25 more per month than State Farm.
Cheapest Texas state-minimum rates: State Farm
Minimum coverage means a liability-only car insurance policy that protects only the other driver, their passengers, and their property if you cause an accident. It’s the minimum coverage you need to legally operate your vehicle on public roads. State-minimum coverage is typically appropriate for cars that are worth less than $5,000 and without a loan.
Cheapest car insurance rates for full coverage: State Farm
Full coverage means purchasing car insurance that includes liability, collision, and comprehensive coverages. This type of coverage is more expensive than liability-only policies, but it also offers far more protection and is potentially required if your vehicle has a lease or loan.
Cheapest Auto Insurance Rates by Age
Many factors can influence your auto insurance rate, but age is one of the biggest factors. As you’ll see below, auto rates are highest when you start driving. That’s because young drivers are inexperienced and the most likely age group to cause an accident, according to the Insurance Information Institute.
As you age, your auto rates will decrease if you maintain a clean record. Let’s look at how premiums change for drivers depending on their age, as well as the most affordable car insurance companies for each age bracket.
Cheapest car insurance for Texas teens: GEICO
Young drivers pay more for car insurance, and teen drivers pay the highest rates overall. Costs will go down year over year, so long as the teen practices responsible driving habits and obeys traffic laws.
Here are the average monthly auto premiums for 18-year-olds in Texas driving a 2016 Honda Accord:
|Texas Farm Bureau||$156||$318|
|Houston General Insurance Exchange||$168||$455|
GEICO offers the cheapest liability rates for Texas teens, with average rates coming in at just $145 per month for liability only and $197 for full coverage. Besides its cheap coverage options, GEICO also offers mechanical breakdown insurance , which can help pay for car repairs insurance typically won’t cover. It also has a long list of discounts to keep rates low.
Texas Farm Bureau and State Farm are the next cheapest options for both coverage types for teen drivers.
Cheapest car insurance for young drivers in Texas: State Farm
As drivers hit their mid-20s, auto rates should start to drop more dramatically.
These are the best average monthly auto premiums for 25-year-olds in Texas driving a 2016 Honda Accord.
State Farm is the most affordable liability and full-coverage option for young drivers. They’re eligible for State Farm’s incentives, such as Steer Clear, Drive Safe & Save, and teen driver discounts up to age 25, so it may be a good choice for those looking for a more affordable option.
Mercury Insurance and Esurance tie for the next cheapest liability-only option, costing $12 more per month. Nationwide and Esurance are $25 and $30 more monthly than State Farm for full coverage, respectively.
Cheapest car insurance for Texans in their 40s: Nationwide
As you age, your car insurance rates get more affordable as long as you maintain a clean driving history. Of course, older drivers also tend to drive more expensive vehicles. So the difference in rates between 25-year-olds and 40-year-olds may not seem drastic, but, generally, older drivers are getting more value for their money.
Here are the best average monthly auto premiums for a 40-year-old in Texas driving a 2016 Honda Accord.
|Houston General Insurance Exchange||$65||$185|
|Texas Farm Bureau||$71||$168|
State Farm offers the cheapest car insurance for Texas drivers in this age group. If you own a home, you can save up to $1,073 by bundling both policies and up to 20% if you insure more than one vehicle (according to State Farm’s website).
Houston General Insurance Exchange and Mercury Insurance are other cheap options for liability only, while Germania and Texas Farm Bureau have full-coverage rates slightly higher than State Farm.
Cheapest car insurance for Texas retirees: State Farm
Drivers older than 65 tend to drive slower and take fewer risks while driving. Perhaps this is why they tend to have the lowest rates compared to drivers in other age brackets.
Here are the lowest average monthly auto rates for 65-year-old drivers with a 2016 Honda Accord.
|Houston General Insurance Exchange||$59||$159|
|Texas Farm Bureau||$64||$140|
While State Farm is the most affordable liability-only option for retirees, Texas Farm Bureau Insurance has the cheapest full-coverage car insurance. With State Farm’s multi-line and multi-car discounts, you can keep costs low if you only need state-minimum coverage.
Texas Farm Bureau has several discounts and optional coverages like death indemnity. Other affordable liability and full-coverage choices include Houston General Insurance Exchange and Texas Farm Bureau, though Germania’s full-coverage rates average $10 less than Houston General.
Compare Texas Auto Insurance Rates by Driving Record
Your driving record is one of the most important factors determining your auto insurance rates. Your premium can rise substantially if you get a ticket, cause an accident, or get a DUI. To find out which Texas car insurance companies are cheapest, we compared average rates for drivers with different violations to those with a clean driving record.
Cheapest car insurance for good drivers in Texas: Texas Farm Bureau Insurance
Remaining accident-free is one of the best ways to protect yourself from rate hikes. Here are the most affordable insurance companies we found for Texas drivers with no accidents or tickets on their records.
|Texas Farm Bureau||$40||$104|
|Houston General Insurance Exchange||$56||$167|
Texas Farm Bureau Insurance is the most affordable car insurance company for both liability and full coverage for drivers with spotless records. It offers optional coverages, several discounts, and other member benefits Texas drivers may find valuable.
Houston General Insurance Exchange also has affordable liability-only rates, though it’s $16 per month more than Texas Farm Bureau.
Cheapest car insurance in Texas after a ticket: Texas Farm Bureau Insurance
Speeding tickets may not seem like a big deal. Still, depending on the circumstances, they can have a lasting effect on your car insurance rates, especially if you rack up more than one.
These are the cheapest average auto rates for Texas drivers with one or more speeding tickets on their records.
|Texas Farm Bureau||$40||$104|
|Houston General Insurance Exchange||$70||$227|
|Redpoint County Mutual||$81||$197|
Texas Farm Bureau Insurance is the cheapest option in Texas for both liability and full coverage after receiving a speeding ticket. Germania Insurance is $22 per month more for liability only and $39 more for full coverage. State Farm’s average rates are $2 per month higher than Germania Insurance for liability-only and $32 more for full coverage.
Cheapest car insurance in Texas after an at-fault accident: Texas Farm Bureau
Few things affect rates more than an at-fault accident. But that doesn’t mean there aren’t savings to be uncovered. Here are the best auto rates for Texas drivers with one or more accidents on their record.
|Texas Farm Bureau||$66||$162|
|Southern County Mutual Insurance||$99||$240|
Texas Farm Bureau may be the most affordable choice for liability and full coverage if you have an at-fault accident on your record. State Farm is the next-cheapest option, costing an average of $11 per month more for liability only and $10 more for full coverage.
Germania Insurance could be another affordable option, with average rates $5 higher per month than State Farm for liability and $9 more for full coverage.
Cheapest car insurance after a DWI: Houston General Insurance Exchange
Driving under the influence — called a DWI — in Texas raises auto rates significantly, and the rate hike typically remains for five years or longer. But every driver can find ways to lower their premiums, even if they’ve made mistakes.
Below are the cheapest average auto rates in Texas for drivers with a DWI on their record.
|Houston General Insurance Exchange||$79||$216|
Houston General has some of the best liability-only rates in Texas for drivers with a DUI, coming in at just $79 per month. However, several companies have cheaper full-coverage rates, including State Farm.
We should also mention that a DWI will stay on your record indefinitely in Texas. But you can expunge your conviction by working with a lawyer.
Compare Texas Auto Insurance Rates by Marital Status
Marital status is another factor insurance companies can use for rating purposes in Texas. We compared average rates in Texas for married and single drivers below to show which group usually gets more affordable premiums.
Cheapest car insurance for married Texans: State Farm
Being married typically comes with more affordable car insurance premiums. That’s because married people statistically get into fewer car accidents and make fewer claims than single people. They also usually have more than one vehicle on their policy, which many companies will reward with a discount. Here are the best auto rates for married drivers in Texas.
|Texas Farm Bureau||$65||$148|
|Houston General Insurance Exchange||$65||$192|
Married Texas drivers should consider State Farm, since its average liability and full-coverage rates are the cheapest of any company. Taking advantage of the many stackable discounts State Farm offers could make your rates even more affordable.
Texas Farm Bureau Insurance is second-cheapest, with average rates of $4 and $10 higher per month, respectively. Although Germania Insurance has midrange premiums for full coverage that are $10 per month higher than Texas Farm Bureau, its liability coverage is the most expensive for married drivers.
Cheapest car insurance for single Texans: State Farm
While single drivers typically pay more for auto insurance, there are still great deals. Look at the cheapest insurers we found in Texas for single drivers.
|Houston General Insurance Exchange||$98||$271|
|Texas Farm Bureau||$104||$225|
Although married drivers have cheaper rates than single drivers, State Farm is still the most affordable option for full coverage and liability. While Houston General’s liability premiums are only $10 higher per month, its full-coverage rates are $76 more. Germania and Texas Farm Bureau are two other great potential choices for affordable full coverage..
Compare Rates by Credit Score
Your credit score shows insurance companies your ability to pay bills on time and manage your debts. If you have difficulty paying your bills on time, it could cost more than interest and late fees.
Below, we analyzed average Texas auto insurance rates across different credit score ranges to see how your credit score could affect your car insurance premiums.
Cheapest car insurance for drivers with good credit: Texas Farm Bureau
Your credit score can have a serious effect on your car insurance premiums. Drivers with higher credit scores typically pay less than those with lower scores. Below are the average monthly auto rates for drivers with excellent and good credit scores.
|Company||Credit Score||Liability||Full Coverage|
|Texas Farm Bureau||Excellent||$38||$84|
|Houston General Insurance Exchange||Excellent||$59||$169|
|Texas Farm Bureau||Good||$69||$148|
|Houston General Insurance Exchange||Good||$76||$215|
Texas Farm Bureau, Germania, and GEICO offer the most affordable average auto insurance rates for drivers with excellent credit scores. Drivers with good credit scores should consider Dairyland, State Farm, and Texas Farm Bureau for liability-only coverage.
But for full coverage, the cheapest average car insurance in Texas is with State Farm, Texas Farm Bureau, or GEICO. These insurance companies have optional coverages, discounts, and other incentives to help keep your rates low.
Cheapest car insurance for bad credit: State Farm
Although drivers with lower credit scores typically pay more, some companies charge less than others. Below are the cheapest average rates for drivers with fair and poor credit scores.
|Company||Credit Score||Liability||Full Coverage|
|Houston General Insurance Exchange||Fair||$89||$252|
|Texas Farm Bureau||Fair||$93||$202|
|Houston General Insurance Exchange||Poor||$111||$311|
|Southern County Mutual Insurance||Poor||$126||$297|
State Farm, Houston General, and Texas Farm Bureau are the cheapest liability-only companies for drivers with fair credit. Consider State Farm, Germania, and Texas Farm Bureau for full coverage.
Mercury, Houston General, and Dairyland are the most affordable car insurance companies for Texas drivers with poor credit. But if you need full coverage, try quotes from State Farm, Southern County Mutual, or Houston General for affordable rates.
The Cheapest Cities for Car Insurance in Texas
Where you live has big implications for your auto insurance premium. That’s because factors specific to your ZIP code may make you more or less likely to file a claim.
For example, areas with higher vandalism rates will likely have more expensive comprehensive coverage premiums. And areas with little traffic on the road generally have lower premiums.
Below are the cheapest cities in Texas for car insurance.
|City||Monthly Liability Premium|
The 10 cheapest Texas cities have average rates within $5 of each other. Big Spring is the most affordable, costing an average of $41 per month. Plainview drivers pay an average of $3 more per month. San Angelo, Sulphur Springs, and Brownwood round out the top five cheapest cities in Texas.
The most expensive cities for car insurance in Texas
Texas is a big state, so it should come as no surprise that insurance costs vary greatly from location to location. And though Houston and Dallas may come to mind when you think of expensive Texas cities, neither made it into the top 10. Instead, the highest auto rates come from a diverse group of cities.
|City||Monthly Liability Premium|
The most expensive Texas cities are near Fort Worth, Austin, and Houston, while the cheapest cities are typically west of Dallas, except for Sulphur Springs. Fort Hood and Fresno tied for the most expensive city, costing an average of $82 per month for car insurance. Sachse, Humble, and Rosharon are slightly less expensive, but only by a few dollars per month.
Factors That Determine the Cost of Car Insurance in Texas
As you can see, the factors that influence car insurance rates are complex. Let’s take a look at each factor so you can better understand how they affect your rate.
Several factors determine premium rates in Texas. They include:
- Location: Your local claim rates, weather patterns, and crime rates all factor into how much you pay for insurance.
- Vehicle: The value of your vehicle, its safety features, and other vehicle-related factors can affect your premium.
- Vehicle ownership status: Whether you own your vehicle outright, finance it, or lease it can change your premium.
- Age: Younger drivers tend to pay the most, with drivers between 30 and 70 paying less. Premiums begin to go up again once drivers reach old age.
- Driving record: Marks on your driving record indicate a high risk for insurance claims and will elevate your premiums.
- Driving experience: How long you’ve been driving and the age when you got your license are factors insurers consider.
- Claims history: Whether or not you filed a car insurance claim within the last five years can affect your rates.
- Insurance history: Whether you’ve been continuously insured can have a huge effect on your rates — gaps in insurance coverage can lead to much more expensive premiums.
- Gender: Drivers identified as female on their driver’s licenses tend to pay less than male drivers.
- Marital status: Married or divorced drivers pay less than single drivers.
- Credit score: Drivers with higher credit scores have less expensive car insurance premiums.
- Annual mileage: The more you drive each year, the higher your car insurance costs.
- Coverage limits: The higher your coverage limits, the more expensive your premiums.
- Deductible limits: Your deductible is the amount of money you pay in the event of a claim. Higher deductibles tend to come with lower premiums.
- Discounts: You can also take advantage of the number of discounts your car insurance company offers.
- Car insurance company: Each company has its own rules and policies about pricing its policies. Those policies can lead to higher or lower premiums.
In the end, it all comes down to risk. Drivers deemed high risk by car insurance companies pay more expensive premiums. The best way to get a lower rate is to be as low risk as possible to your car insurance company.
Texas’ Auto Insurance Requirements
In Texas, drivers must have the following minimum auto insurance coverage:
- $30,000 bodily injury liability coverage per person
- $60,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
The required coverage is usually just called “30/60/25” coverage. These are also only the minimum requirements. You may want to consider purchasing additional auto coverage, especially if you have valuable assets to protect.
Penalties for driving without auto insurance in Texas
Driving without auto insurance in Texas can have legal and financial consequences. The penalties include:
- Traffic tickets: You may receive a ticket and have to pay a fine.
- Fines and fees: Drivers convicted of driving without insurance may have to pay an annual surcharge for three years. The surcharge ranges from $175 to $350 per year, depending on the number of convictions.
- License suspension: Authorities may suspend your driver’s license until you provide proof of insurance.
- Vehicle impoundment: Authorities can impound your vehicle if you’re pulled over and can’t provide proof of insurance.
- Legal liability: If you’re at fault in an accident and don’t have auto insurance, you’ll likely be held personally liable for any damages or injuries. Fines and court penalties may also increase if you cause an accident while uninsured.
The potential penalties for driving without insurance in Texas are far more costly than paying insurance premiums.
What makes Texas car insurance unique?
We asked Johnte Archer, founder of J Archer Insurance Group in Houston, his thoughts on what makes Texas car insurance unique. “Texas has higher minimum liability coverage requirements than many other states,” says Archer, “reflecting its commitment to protecting residents of a diverse landscape, bustling cities, and extensive road networks and their assets.
“Texas follows a ‘fault,’ or ‘tort,’ system, meaning that the at-fault driver is responsible for damages,” says Archer. “Assessing your needs can help ensure you have enough coverage to protect your finances if you cause an accident.”
Archer recommends comprehensive coverage for hail, flood, and other weather-related events to protect against Texas’ unpredictable weather patterns. He also advises considering optional coverages like roadside assistance, custom equipment coverage, gap insurance, and rental car reimbursement, depending on your unique coverage needs.
Get Affordable Coverage from the Top Companies in Texas
The Best Car Insurance Discounts in Texas
The discounts below typically earn policyholders the greatest savings. But remember that each company will have its own rules and discounts, making some better than others. So don’t forget to read the fine print.
Usage-based insurance: Savings of up to 30%
Telematics and usage-based insurance programs give drivers discounts for practicing safe driving. You must consent to your insurance company monitoring your driving with a device installed on your vehicle or a mobile app.
Good driver: Up to 30%
You can receive a good driver discount if you remain claim-free and maintain a clean driving record. The discount varies, but most companies offer around 20% off auto premiums. It’s a good idea to investigate the value of the discount and its rules before deciding on your next policy.
Billing and payments: Up to 25%
When and how you pay your premium can earn you a significant discount. Most insurance companies offer discounts for setting up automatic payments, paying in full, and using electronic statements. When combined, you can save as much as 25% off your annual premium with some insurance companies.
Multi-policy: Up to 25%
You can save up to 25% by signing up for at least two insurance policies with the same company. You can combine auto with home, renters, condo, or life insurance to get a multi-policy discount.
Some insurers call this a bundling discount, and the types of policies you can combine for savings vary by company.
Multi-car: Up to 30%
You could save up to 30% on your auto insurance with the multi-car discount if you have more than one car in your household. You have to insure at least two vehicles with the same insurance company to get the discount, and there could be a maximum number you can insure on the same policy.
Vehicle safety features: Up to 25%
Most insurance companies offer extensive discounts for car safety features, anti-theft devices, and other permanent features that reduce your chances of filing a claim — or the severity of a potential claim. Details about how much drivers can save with these discounts aren’t always available, but we estimate drivers can save 25% or more.
Companies offering the most discounts in Texas
Dozens of insurance companies offer policies in Texas — and most offer their own wide array of discounts. Some discounts are worth more than others, but most of the time, policyholders can combine their discounts to get the maximum savings on premiums.
Here are the companies that offer the most discounts to Texas drivers.
If you want access to the most discounts for maximum savings, Germania Insurance has 18 discounts to choose from. GEICO, MetLife, and State Auto Insurance follow it up, with 16 available discounts. The top three companies all offer discounts for things like vehicle safety equipment, good students, multiple vehicles or policies, and completed driver training courses.
Remember that just because a company offers the most discounts, it may not be the best fit for you or your budget. You may not qualify for all of those discounts, or another company may offer better deals on the discounts you qualify for. That’s why it’s so important to always compare quotes from multiple companies before you switch or renew your policy.
Find the Best Company for You in Minutes
Top 5 Tips for Getting Cheaper Texas Car Insurance
Getting cheaper car insurance rates in Texas is much easier than you may think. There are multiple strategies, but the five we’ve outlined below are some of the most effective.
Take advantage of discounts
There’s a vast range of discounts in the car insurance world, and each insurance company will have a unique set of its own. Generally speaking, bundling multiple insurance products is the best way to save up to 20%. You can bundle auto insurance with homeowners, life, renters, business, and more.
Try telematics and driver training programs
Many car insurance companies offer discounts for drivers willing to complete training classes or participate in driver monitoring programs. Driver training classes include defensive driver courses, with discounts typically between 10% and 15%.
Driver monitoring programs, often called telematics programs, reward drivers for practicing safe driving habits. You’ll typically download an app or plug a device into your car’s computer to participate. The app or device will record your driving habits and automatically relay the information to your insurance company. Telematics programs offer drivers savings of up to 30%, depending on the car insurance company.
Compare multiple quotes before you buy
The best way to know you’re getting the best deal on car insurance is to compare car insurance quotes from multiple companies in your area. We suggest getting at least three to five quotes, ideally from insurance companies of various sizes.
Don’t forget to consider your policy details. For example, one policy may cost a little more but have higher coverage limits, better perks, or other factors.
Find More Affordable Texas Coverage in Minutes
Adjust your policy limits and deductible
There are two main ways to adjust your policy that often result in lower premiums. First, you can raise your deductible, which you pay out of pocket in case of a claim. The higher your deductible, the lower your premium. Just make sure you have enough money saved to cover your deductible if you get in a collision.
Second, you can review your policy and remove any coverage you don’t need. For example, you may drop gap insurance if you pay off your vehicle. You can also lower your policy limits to save a little more (but keep in mind lower limits mean greater financial risk).
Maintain a clean record
The best way to get a low rate and keep it for years is to keep your driving record clean of any infractions. Even a single speeding ticket can significantly affect your premium over time. Drivers with a clean driving history pay less, on average, and get access to safe driving discounts, accident forgiveness, and other valuable programs.
How to Compare Texas Car Insurance Quotes Online
Comparing quotes online is the fastest and easiest way to shop for car insurance in Texas. Here’s a quick overview of how to compare quotes online.
- Determine your coverage needs based on your driving habits, your car’s value, your preferences, and your budget.
- Gather your driver’s license and vehicle information — you’ll typically need your VIN, at least.
- Obtain quotes from three or more insurance companies.
- Compare policies based on the policy’s specifics and the company’s reputation.
- Use a car insurance comparison site to get multiple quotes in a short amount of time. Sites like Compare.com partner with top companies to help drivers find better rates in minutes, not hours or days.
Find More Affordable Texas Car Insurance
Compare.com’s Five Best Texas Car Insurance Companies for 2023
The good news is you’ll have many options for excellent and affordable auto coverage in Texas. Still, some companies rise above the rest in terms of cost, customer service, reliability, and more.
We’ll briefly discuss the best of the best in the Lone Star State below. For more detailed information, check out our full article on the best auto insurance companies in Texas.
With GEICO, you’ll find low rates plus tons of discount opportunities. The company also provides an excellent website and mobile app for self-managing your policy. If you need to speak with an insurance agent, you can contact one over the phone, by email, or by chat.
2. Texas Farm Bureau
Texas Farm Bureau is well known for its competitive rates and excellent customer service. Customers can purchase several insurance products, including home, commercial, and farm and ranch policies. And, for a small regional insurer, Texas Farm Bureau has an excellent mobile app, where policyholders can make payments, see policy documents, and manage some parts of their policies.
3. Mercury Insurance
Mercury Insurance is a low-cost company that’s especially advantageous for low-mileage drivers. Customers can purchase standard coverage and ride-hauling insurance. And you can work with a local agent, which is probably why many customers give high marks for service.
4. State Farm
State Farm offers some of the best rates to drivers with all sorts of needs and backgrounds. The company performs well in customer service, discounts, and overall customer satisfaction. State Farm also has additional products for people with other insurance needs, including pet medical insurance.
Admittedly, Nationwide isn’t the best fit for drivers with a history of DWI. But the company is an excellent fit for many, especially those with complex car insurance needs.
Other Common Types of Texas Car Insurance
Texas drivers have plenty of options when it comes to car insurance. In addition to basic liability coverage, drivers may also purchase:
- Collision insurance: Covers damage to your vehicle when you’re at fault for an accident.
- Comprehensive insurance: Covers damage to your vehicle after a non-collision event.
- Medical payments coverage (MedPay): Covers medical costs and other related expenses after an accident for drivers and passengers, no matter who is at fault.
- Uninsured and underinsured motorist protection: Covers you and your vehicle if you’re hit by a driver who doesn’t have enough car insurance.
- Gap insurance: Covers the difference in value between your car and the balance remaining on your car loan. For example, if your principal balance is $30,000 but the market value of your vehicle is only $27,000, gap coverage pays that $3,000 difference to your lender if your car is totaled.
SR-22 Auto Insurance in Texas
SR-22 certificates are proof-of-financial-responsibility documents that some drivers are court-ordered to submit to the DMV. To comply, you must inform your insurance company of your need for SR-22 filings. The company will then file the document on your behalf.
If you must file an SR-22, you should expect to pay increased car insurance rates for up to three years.
Helpful Resources for Texas Drivers
Here are some state-provided resources to help you manage your driving needs:
- Texas Drivers Handbook
- Texas Insurance Requirements
- Submit a Claim – Texas Department of Insurance
- How to get help with an insurance issue or file a complaint
- FAQ: Auto insurance, claims, coverage issues, and more
- Driver’s License Assistance for People with Disabilities
- Parent Taught and Driver Education and Safety (TDLR)
- Renew a driver’s license in Texas
- Replace a driver’s license in Texas
- Texas License Plate and Registration
- TexasSure Vehicle Insurance Verification
Texas Auto Insurance FAQs
Want to know more about auto insurance in Texas? Here are answers to some of the most commonly asked insurance questions in the Lone Star State.
Who is the cheapest auto insurance company in Texas?
Based on our research, the cheapest car insurance companies in Texas are State Farm, Texas Farm Bureau, Germania, Nationwide, and Houston General Insurance Exchange.
But these aren’t the cheapest companies for every driver. Since rates vary depending on a wide array of factors, the only way to find the cheapest company for you is by comparing quotes.
How much is car insurance in Texas monthly?
The average cost for car insurance in Texas is $196 per month, but rates can vary significantly. Factors influencing your rate include your vehicle, driving history, and where you live.
Which city has the cheapest car insurance in Texas?
Big Springs, Plainview, and San Angelo drivers tend to pay the lowest rates in Texas. Big Springs drivers pay just $41 per month for basic liability coverage.
How much car insurance does Texas require?
In Texas, drivers must purchase at least $30,000 for bodily injury protection per person and up to $60,000 per accident. They must also carry at least $25,000 for property damage liability and $2,500 in personal injury protection.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.
Compare.com’s #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
- All of Compare.com’s content is written and reviewed for accuracy by a team of experienced writers and editors who are experts on the topics they cover.
- None of Compare.com’s content is ever influenced by the companies and brands we partner with.
- Compare.com’s editorial team operates independently of any of the company’s partnership or business development interests. We publish unbiased information strictly for the benefit of our readers.
- All of the content you see on Compare.com is based on comprehensive analysis and all data is gathered and vetted from trustworthy sources.
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