The Cheapest Car Insurance in Texas in 2024

State Farm offers the cheapest average rates in Texas, but it won’t be right for every driver. We’ll show you how to save on auto insurance in the Lone Star State.

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The average Texas driver pays $196 per month for car insurance, which makes it the 17th most expensive state in the country. This is largely due to higher accident rates, greater traffic congestion, and the bigger populations of Texas’ many large metropolitan areas.

Fortunately, several companies have average prices well below the statewide average — you just have to know where to look.

At the end of the day, several factors — such as your age, driving record, credit history, and more — affect how much you pay each month for car insurance. The best way to save on your monthly bill is to compare quotes from multiple companies, but our latest guide will give you a leg up by breaking down the cheapest Texas insurers for all types of drivers.

Key Takeaways:

  • Car insurance in Texas is more expensive 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.

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.

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:

Company Liability Full Coverage
State Farm $76 $171
Houston General Insurance Exchange $84 $237
Texas Farm Bureau $87 $192
Germania $90 $195
Nationwide $103 $210

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.

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 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.

The Best Texas Car Insurance Companies of 2024

Woman using her phone to compare car insurance rates

No single car insurance company is the best for every driver. Many factors affect your monthly rate — from your age and gender to your recent driving record and credit history.

That’s why we’ve broken down the best Texas insurers for some of the state’s most common driver profiles. We chose the following companies based on factors such as average rates, customer reviews, coverage options, and more.

State Farm: Best for Budget-Conscious Texans

Average premium: $123 per month rating: 4.3 out of 5

Trustpilot reviews: 1.6 out of 5

Better Business Bureau (BBB) rating: A+

State Farm is a great choice for Texas drivers on a budget — the insurance giant has the cheapest rates overall for both liability and full-coverage policies, and it’s the most affordable option for a wide array of driver profiles.

Policyholders also seem to love State Farm — the company has the second-highest J.D. Power Customer Satisfaction Index Ranking in Texas, falling just a single point behind AAA and well above the state average.

But, as with any large insurer, there come some drawbacks. First, the company has relatively poor reviews on Trustpilot — scoring just 1.6 out of 5 stars on the popular review site. It also has relatively limited coverage options compared to some other companies on this list.

But if price is your No. 1 concern when choosing a new car insurance company, State Farm is a great place to start.

GEICO: Best for Texas Teens

Average teen premium: $171 per month rating: 4.65 out of 5

Trustpilot reviews: 1.3 out of 5

BBB rating: A+

Known for its friendly mascot, the GEICO Gecko, this insurance behemoth is a great choice for young drivers throughout the Lone Star State. To start, GEICO has the cheapest average rates for Texas teens by far — nearly 30% cheaper than the next-closest competitor, according to data. It also has quite a few teen-focused discounts, such as good student discounts, discounts for taking driver training programs, and more.

But if customer service is important, GEICO may not be the best choice. The insurer scores well below the statewide average on J.D. Power’s latest Auto Insurance Study, and reviews on Trustpilot — where GEICO scores just 1.3 out of 5 stars — echo that sentiment.

Texas Farm Bureau: Best for Texans With Spotty Records

Average premium: $140 per month rating: Not rated

Trustpilot reviews: N/A

BBB rating: A+

Texas Farm Bureau may have some of the most competitive rates across Texas, but it’s especially affordable for drivers with a recent ticket or accident on their records. For example, the average insurance company raises rates by 37% after a single speeding ticket, but Texas Farm Bureau doesn’t raise rates for this type of infraction, according to our research.

The company is also a great choice if you like the type of personalized service you can expect from a smaller regional insurer. And don’t worry about it not being able to pay out claims — Texas Farm Bureau earns an A (Excellent) financial strength rating from AM Best. It also has fewer National Association of Insurance Commissioner (NAIC) complaints than the average company.

Unfortunately, Texas Farm Bureau is only available to Texas residents, so if you plan on moving out of state anytime soon, you may want to look elsewhere.

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

Cheapest Auto Insurance Rates by Age

Welcome to Texas road sign

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:

Company Liability Full Coverage
GEICO $145 $197
Texas Farm Bureau $156 $318
State Farm $166 $354
Houston General Insurance Exchange $168 $455
Germania $185 $371

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.

Company Liability Full Coverage
State Farm $66 $155
Mercury Insurance $78 $219
Esurance $78 $185
Germania $86 $189
Nationwide $86 $180

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.

Company Liability Full Coverage
State Farm $60 $141
Houston General Insurance Exchange $65 $185
Mercury Insurance $69 $186
Germania $71 $158
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.

Company Liability Full Coverage
State Farm $57 $237
Houston General Insurance Exchange $59 $159
Texas Farm Bureau $64 $140
Germania $67 $149
Chubb $72 $198

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

pickup truck on a dusty Texas road

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.

Company Liability Full Coverage
Texas Farm Bureau $40 $104
Houston General Insurance Exchange $56 $167
Germania $62 $143
State Farm $64 $148
AAA $72 $184

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.

Company Liability Full Coverage
Texas Farm Bureau $40 $104
Germania $62 $143
State Farm $64 $175
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.

Company Liability Full Coverage
Texas Farm Bureau $66 $162
State Farm $77 $172
Germania $83 $181
Southern County Mutual Insurance $99 $240
Nationwide $108 $221

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.

Company Liability Full Coverage
Houston General Insurance Exchange $79 $216
Dairyland $91 $266
Esurance $95 $212
Mercury Insurance $98 $258
State Farm $99 $150

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.

Company Liability Full Coverage
State Farm $61 $138
Texas Farm Bureau $65 $148
Houston General Insurance Exchange $65 $192
Mercury Insurance $69 $183
Germania $70 $158

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.

Company Liability Full Coverage
State Farm $88 $195
Houston General Insurance Exchange $98 $271
Texas Farm Bureau $104 $225
Germania $106 $222
GEICO $117 $252

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
Germania Excellent $52 $113
GEICO Excellent $53 $101
Houston General Insurance Exchange Excellent $59 $169
AAA Excellent $72 $177
Dairyland Good $59 $279
State Farm Good $60 $135
Texas Farm Bureau Good $69 $148
GEICO Good $75 $161
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
State Farm Fair $89 $169
Houston General Insurance Exchange Fair $89 $252
Texas Farm Bureau Fair $93 $202
Dairyland Fair $106 $297
Germania Fair $92 $198
Mercury Insurance Poor $92 $313
Houston General Insurance Exchange Poor $111 $311
Dairyland Poor $116 $338
State Farm Poor $121 $269
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

Houston, TX skyline

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
Big Spring $41
Plainview $44
San Angelo $45
Sulphur Springs $45
Brownwood $46

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
Fort Hood $82
Fresno $82
Sachse $80
Humble $78
Rosharon $78

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.

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.

Company Total Discounts
Germania 18
MetLife 16
State Auto 16
Encompass 15

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 even if 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.

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How to Get Cheap Car Insurance in Texas

Texas man researching 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.

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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.

  1. Determine your coverage needs based on your driving habits, your car’s value, your preferences, and your budget.
  2. Gather your driver’s license and vehicle information — you’ll typically need your VIN, at least.
  3. Obtain quotes from three or more insurance companies.
  4. Compare policies based on the policy’s specifics and the company’s reputation.
  5. Use a car insurance comparison site to get multiple quotes in a short amount of time. Sites like partner with top companies to help drivers find better rates in minutes, not hours or days.

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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.

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.

What is the best car insurance in Texas?

No single insurance company is the best for everyone. But looking at average rates, customer satisfaction scores, and coverage options, State Farm, Texas Farm Bureau, and GEICO are three of the best car insurance companies in Texas. The only way to find the best company for your needs is to do your own research and compare quotes from as many companies as possible.

Helpful Resources for Texas Drivers

Here are some state-provided resources to help you manage your driving needs:


Data scientists at 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.’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 quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.


  1. Texas Department of Insurance, “Auto insurance guide,” Accessed November 29, 2023.
  2. J.D. Power “2023 U.S. Auto Insurance Study,” Accessed November 29, 2023.
  3. Insurance Information Institute, “Facts + Statistics: Auto insurance,” Accessed November 29, 2023.
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