The Cheapest Car Insurance in Texas in 2023

Auto Insurance in Texas: What You Need to Know

Overall, drivers in Texas pay less than the national average for their car insurance. But Texas is large and complicated — prices differ from location to location, company to 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. 

Key Takeaways:

• 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 rates overall. 
• Other insurance companies sometimes offer better rates than the top five in Texas, depending on the driver’s profile and location.
• Texas drivers can lower their rates by using discounts, raising deductibles, and removing unnecessary coverage. 

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 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 for driving without insurance in Texas include

• Traffic ticket: You may receive a traffic ticket and be required 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 driving without insurance 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 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. 

Alternatives to Dropping Your Coverage

If you’re struggling to find affordable coverage even with the tips in this article, consider more drastic measures such as:

• Swapping for a less expensive vehicle worth less than $5,000, owning it outright, and then choosing liability-only coverage. But, be sure also to consider carrying uninsured motorist and underinsured motorist protection, PIP, and higher coverage limits than standard state minimums.
• Participate in a car-sharing program to reduce costs. 
• Use alternative transportation for most of your travel and switch to a pay-per-mile program. 
• Sell or garage your car and use public transportation temporarily. 

The Average Cost for Texas Car Insurance

The average driver in Texas spends $196 per month on their auto insurance policy. But many drivers pay much less, and many pay much more. Your 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 insurance options based on several factors. 

Texas’s Cheapest Car Insurance Companies

How We Chose the Cheapest Companies in Texas

After examining rates from over 50 of Texas’s 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’s minimum policy limits. They are ranked by the cheapest company for liability-only policies.

Cheapest Overall Auto Insurance Rates in Texas: State Farm

Cheapest Car Insurance Rates for Minimum Coverage: State Farm

Minimum coverage means a liability-only car insurance policy that doesn’t protect your vehicle in the event of an accident. This is the minimum coverage you need to operate your vehicle on public roads legally. And this is appropriate for cars worth less than $5,000 and owned outright (no loan).

Cheapest Car Insurance Rates for Full Coverage: State Farm

Full coverage means purchasing car insurance that includes liability, collision, and comprehensive coverage. This type of coverage is more expensive than liability-only policies. But it also offers far more protection and is required if your vehicle has a lease or loan. 

Cheapest Auto Insurance Rates by Age

Many factors can influence your rate. But age is one of the biggest factors. As you’ll see below, rates are highest when you start driving. That’s because young drivers are inexperienced and the most likely to cause an accident. 

As drivers age, rates will decrease if they maintain a clean record. Let’s look at how premiums change for drivers depending on their age and the most affordable car insurance companies on average for each age bracket. 

Cheapest Car Insurance Company for Texas Teens: Texas Farm Bureau

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 premiums for 18-year-olds in Texas driving a 2016 Honda Accord.

Cheapest Car Insurance Company for Young Drivers in Texas: State Farm

As drivers hit their mid-twenties, rates should start to drop more dramatically. 

These are the best average monthly premiums for 25-year-olds in Texas driving a 2016 honda accord.

Cheapest Car Insurance Company 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 premiums for a 40-year-old in Texas driving a 2016 honda accord.

Cheapest Car Insurance Company for Retirement-Age Drivers in Texas: State Farm

Drivers over 65 tend to drive slower, take great precautions, and take fewer risks driving on average. Perhaps this is why they tend to pay the lowest rates compared to drivers in other age brackets. 

Here are the lowest average monthly rates for 65-year-old drivers with a 2016 honda accord.

Cheapest Auto Insurance Rates by Driving Record

Cheapest Car Insurance Company 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 companies we found for Texas drivers with no accidents or tickets on their records. 

Cheapest Car Insurance Company for Texas Drivers 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 receive more than one. 

These are the best rates for drivers with one or more speeding tickets on their records.

Cheapest Car Insurance Company for Texas Drivers After an 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 rates for people with one or more accidents on their record.

Cheapest Car Insurance Company After a DUI in Texas: Houston General Insurance Exchange

Driving under the influence — called a DWI in Texas — raises rates significantly and the rate hike remains for five years or more. But every driver can find ways to lower their premiums, even if they’ve made mistakes. 

Below are the cheapest rates for drivers with one DUI on their record. 

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.

Cheapest Auto Insurance Rates by Marital Status

Cheapest Car Insurance Company for Married Texas Drivers: State Farm

Being married typically comes with reduced car insurance premiums. That’s because married people statistically get into fewer car accidents and make fewer claims than single people. Here are the best rates for married drivers in Texas.

Cheapest Car Insurance Company for Single Texas Drivers: State Farm

While single drivers typically pay more, there are still great deals. Look at the cheapest providers we found in Texas for single drivers.

Cheapest Auto Insurance Rates by Credit Score

Cheapest Car Insurance Company for Good Credit: Texas Farm Bureau

Your credit rating can influence your car insurance premiums. Drivers with higher credit scores pay lower rates than those with lower scores. Below are the average monthly rates for drivers with excellent and good credit scores. 

Cheapest Car Insurance Company for Bad Credit: State Farm 

Although drivers with lower credit scores typically pay higher rates, some companies charge less than others on average. Below are the cheapest rates for drivers with fair and poor credit scores. 

The Cheapest Cities for Car Insurance in Texas

Where you live has big implications for the cost of your auto 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 levels of vandalism will likely have more expensive premiums for comprehensive coverage. And areas with little traffic on the road generally have lower premiums.

Below are the cheapest cities in Texas for car insurance.

The Most Expensive Cities in Texas

Texas is a big state, so it should come as no surprise that costs vary greatly from location to location. And though Houston and Dallas may come to mind when you think of “expensive premiums in Texas,” neither made it into the top ten. Instead, the highest costs are borne by drivers from a diverse set of locations. 

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. 

Factors that Determine the Cost of Car Insurance in Texas

Several factors determine premium rates in Texas. These 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 impact 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 years of age paying less. Premiums go up once drivers reach older 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 3 to 5 years can impact your rates.
• Insurance history: Whether or not you’ve been continuously insured — gaps in insurance coverage can increase your rates.
• Gender: Drivers identified as female on their driver’s licenses tended to pay lower rates than male drivers.
• Marital status: Married or divorced drivers pay lower rates than single drivers.
• Credit score: Drivers with higher credit scores pay lower 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 your premiums. Occasionally higher limits cost the same, so always be sure to check. 
• Deductible limits: 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 premium reductions your car insurance company offers.
• Car insurance company: Each company has its own rules and policies about pricing their policies. Those policies can lead to higher or lower premiums than average. 

In the end, it all comes down to risk. Drivers deemed high risk by car insurance companies pay higher car insurance premiums. The best way to get a lower rate is to be as low-risk as possible to your car insurance company.

The Best Car Insurance Discounts Texas Drivers Can Use to Save Money

The discounts below typically earn policyholders the greatest rate savings. But remember that each company will have its own rules and set of discounts; some may be 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 habits. Drivers must consent to their insurance company monitoring their driving via a device installed on their 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 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 you pay and how you pay your premium can earn you a good discount. Most insurance companies offer discounts for setting up automatic payments, paying in full, and using electronic statements. When combined, drivers can save as much as 25% off their annual premiums with some insurance providers. 

Special Considerations for Your Vehicle

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 claim. The details about how much drivers can save with these discounts are not always available. We estimate that drivers can save 25% or more on premiums.

Companies Offering the Most Discounts to Texas Drivers

Dozens of insurance carriers offer policies in Texas and most offer 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 in Texas.

Remember that the company offering the most discounts may not be the best deal for you. You may be unable to access those discounts, or another company may offer better deals on the discounts you qualify for. 

Top 5 Tips for How to Get Cheap Car Insurance in Texas

Getting cheaper premiums in Texas is much easier than you may think. There are multiple strategies, but the five we’ve outlined below are the most effective. 

Use Discounts

There’s a vast range of discounts in the car insurance world, and each insurance company will have a unique set of discounts and rules attached. Generally speaking, bundling multiple insurance products is the best way to save often 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 provider. Telematics programs offer drivers savings of up to 30%, depending on the car insurance company.

Compare 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 providers in your area. We suggest looking for 3 to 5 quotes, ideally from large, medium, and small insurance companies. 

Don’t forget to take into consideration the particulars of your policy. For example, one policy may cost a little more but provide more value regarding coverage limits, policy perks, and other factors.

Adjust Your Policy 

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 part. 

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. 

Maintain a Clean Record

The best way to obtain 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 impact your premium over time. Drivers with a clean history pay lower rates on average and get access to safe driving discounts, accident forgiveness, and other valuable programs. 

How to Compare Cheap 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. 

1. Determine your coverage needs based on your driving habits, the value of your car, your preferences, and your budget. 
2. Gather your driver’s license and vehicle information — you’ll typically need at least your VIN. 
3. Obtain quotes from three or more insurance companies. 
4. Compare policies based on the policy’s specifics and the company’s reputation. 

An Easier Way to Obtain Quotes

You can get car insurance quotes online in two ways. First, you can generate a quote at each company’s website. Then record each quote in a notebook or spreadsheet. You should also note how much coverage the policy offers and any perks you get. Then you can compare your options.

But you can also source several quotes at once using a tool like Compare.com. Then you can decide whether to get more quotes or stick with the easier option. Either way, you’ll be sure to find a few companies that keep costs low.

Compare.com’s Top 5 Best Car Insurance Companies in Texas 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

Below, we briefly discuss the best of the best in the Lone Star State. For more detailed information, check out our full article on the best auto insurance providers in Texas. 

GEICO

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. 

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.

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 they can work with local agents, which is probably why many customers give high marks for service.

State Farm

State Farm offers competitive rates to many drivers with various needs and backgrounds. The company performs well regarding customer service, discounts, and overall customer satisfaction. State Farm also has additional products for people with other insurance needs, including pet medical insurance.

Nationwide

Admittedly, Nationwide is not 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 many options when it comes to car insurance. In addition to basic coverage, drivers may also purchase:

• Collision insurance: Covers damage to your vehicle when the driver is at fault for an accident.
• Comprehensive insurance: Covers damage to your vehicle after a non-collision event.
• Personal injury protection: Covers medical costs after a car accident for drivers and passengers, no matter who is at fault for the accident.
• Uninsured and underinsured motorist protection: Covers you and your vehicle after getting hit by a driver who doesn’t have enough car insurance.
• Gap insurance: Covers the difference in value between your car and the principal 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 $3000 difference to your lender if your car is totaled. 

SR-22 Auto Insurance in Texas

SR-22 certificates are proof of insurance documents that some drivers are court-ordered to submit to the DMV. To comply, drivers must inform their insurance provider of their need for SR 22 filings. The auto insurer will then file the document on behalf of the policyholder.

If you must file an SR-22, you should expect to pay increased car insurance rates for up to three years. 

How PIP Works in Texas

Personal Injury Protection, or PIP, covers drivers and their passengers for injuries sustained in a car accident, no matter who is at fault (or how much insurance they carry). It’s technically not mandatory in Texas, but car insurance companies are supposed to offer it as a default on car insurance policies issued in the state. Policyholders can opt out of coverage but typically must sign a rejection letter or make an official record of rejecting coverage.

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

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. 

How much is car insurance in Texas monthly?

The average cost for car insurance in Texas is $2,354 a year or $196 a month. But rates 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. But Big Springs drivers pay the lowest average monthly premiums, at just $41. 

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.

Methodology

All data referenced in this article comes from a combination of proprietary data — which is aggregated from millions of real customer quotes through Compare.com — and additional data gathered in collaboration with Quadrant Information Services. All of the data you see in this article is up to date as of March 2023.