The Best Car Insurance Companies in Texas

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Shopping for car insurance can feel overwhelming – with so many companies to choose from, how can you tell which is the best for you? Starting with the best car insurance companies in Texas can help narrow your search. We’ve highlighted the top companies based on factors like their coverage options, rates, discounts, and customer service reputation. Chances are that one of these companies is the perfect fit for your car insurance needs.


Key Takeaways

  • It costs an average of $1,842 per year to insure a car in Texas, which is $400 more than the national average. 
  • Texas requires drivers to carry a minimum of $30,000 in bodily injury coverage, $60,000 in bodily injury coverage per accident, and $25,000 in property damage coverage per accident. 
  • When choosing the best car insurance company in Texas, it’s essential to consider not only affordable coverage but other factors like the claims process, quality of customer service, coverage options, and discounts that can help you save money.

Best Car Insurance Companies in Texas

As you shop for car insurance, it’s worth including these top companies in your search. Starting with the best car insurance companies in Texas can save you time and help you find the right insurance for your needs. 

GEICO

JD Power Score: 847/1,000

AM Best Score: A++

Overview: GEICO was founded in 1936 and is now a major insurance company offering not only auto but also homeowner’s, renter’s, motorcycle, ATV, boat, and business insurance. It is known for offering highly competitive rates and having friendly customer service agents. GEICO’s mobile app offers helpful features, including the ability to file claims, call roadside assistance, and pay bills with ease. While the company offers a broad selection of car insurance coverage, it doesn’t provide gap insurance, so it may not be the right choice if you’re buying or leasing a vehicle and need that extra coverage. 

Pros: 

  • Competitively priced car insurance 
  • Many discounts are available to help you save even more money
  • Robust mobile app
  • Known for good customer service

Cons:

  • Gap insurance isn’t available
  • Steep rate increases if you have an accident on your record

Coverage Options: 

  • Liability coverage
  • Uninsured motorist coverage
  • Underinsured motorist coverage
  • Medical coverage
  • Personal injury protection coverage
  • Collision coverage
  • Comprehensive coverage
  • Emergency road service
  • Rental reimbursement
  • Mechanical breakdown insurance

Discounts: 

  • Airbag
  • Anti-lock brakes
  • Anti-theft system
  • Daytime running lights
  • New vehicle
  • Five-year accident-free good driver
  • Seat belt use
  • Defensive driving
  • Driver’s education
  • Good student
  • Emergency deployment
  • Federal employee
  • Membership and employee
  • Military
  • Multi-vehicle
  • Multi-policy

Texas Farm Bureau

JD Power Score: 850/1,000

AM Best Score: A-

Overview: Founded in 1952, Texas Farm Bureau is based in Waco. The company has 300 offices throughout Texas and currently serves more than 500,000 policyholders. Staffed by over 850 agents and 300 claims personnel, this independent organization’s goal is to strengthen the lives of rural Texans. It offers personalized service and a broad selection of insurance products, including auto, home, farm and ranch, commercial, and life insurance. The Texas Farm Bureau has built a reputation for providing affordable and competitively-priced insurance products and quality customer service. It is available not only in rural areas but across the entire state. 

Pros: 

  • Highly competitive, affordable car insurance rates
  • Excellent reputation for customer satisfaction
  • Offers many insurance types, including home, farm and ranch, commercial, and life insurance
  • Quality app allows you to make payments, access coverage information, and more

Cons: 

  • Must be a Farm Bureau member to get an insurance policy
  • Lacks some standard coverage options like gap insurance, accident forgiveness, and new car replacement
  • Limited information on discounts available online

Coverage Options: 

  • Liability coverage
  • Personal injury protection
  • Uninsured motorist coverage
  • Comprehensive coverage
  • Rideshare coverage
  • Medical payments coverage
  • Death indemnity coverage
  • Rental coverage
  • Roadside assistance coverage

Discounts: 

  • Multi-vehicle
  • Good student
  • Vehicle safety

Mercury Insurance

JD Power Score: 829/1,000

AM Best Score: A

Overview: Founded in 1962 to provide affordable insurance for everyone, Mercury Insurance is based in Los Angeles, California. The company has since expanded to offer auto insurance, home, umbrella, mechanical breakdown protection, and business insurance with the same dedication to maintaining policy affordability. Local agents offer a personalized service and claims handling experience. The company offers a selection of standard car insurance coverages, roadside assistance, and ride-hailing insurance. Mercury also offers many discounts, including a RealDrive program that tracks your miles driven for additional savings.

Pros: 

  • Offers both standard and optional coverages like ride-hailing insurance. 
  • RealDrive program can help low mileage drivers save money
  • Local agents provide personalized support
  • Offers many affordably priced policies

Cons: 

  • Below average JD Power score for customer satisfaction

Coverage Options: 

  • Liability protection
  • Collision protection
  • Comprehensive coverage
  • Medical payments coverage
  • Personal injury protection
  • Uninsured/underinsured motorist coverage
  • Rental car
  • Roadside assistance
  • Ride-hailing insurance

Discounts: 

  • Anti-theft feature
  • Autopay
  • E-signature
  • Good driver
  • Good student
  • Multi-car
  • Multi-policy
  • Pay in full
  • RealDrive mileage program

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State Farm

JD Power Score: 843/1,000

AM Best Score: A++

Overview: Founded in 1922, State Farm is known for its “Like a Good Neighbor, State Farm Is There” slogan. Since its founding, it has become the largest insurance company in the world. Today, State Farm features a network of more than 19,000 agents, which means drivers can get a personal experience despite the company’s large size. State Farm offers a wide selection of car insurance coverages and other products like home, business, life, liability, health, and pet medical insurance. The company also offers banking and investment services. State Farm’s mobile app is full of helpful features like requesting roadside assistance and filing claims. It has also built an excellent reputation for providing quality customer service. 

Pros: 

  • Many insurance products are available, including car, renter, homeowner’s, and pet medical insurance
  • Excellent reputation for customer service and overall customer satisfaction
  • Ability to work with an agent delivers a more personal experience than you would find with other large insurance companies
  • Many different discounts are available

Cons: 

Coverage Options: 

  • Collision coverage
  • Liability coverage
  • Uninsured motor vehicle coverage
  • Emergency road service coverage
  • Comprehensive coverage
  • Car rental and travel expenses coverage
  • Medical payments coverage

Discounts: 

  • Safe driver – Drive Safe & Save and Steer Clear programs
  • Accident-free and good driving savings
  • Defensive driving course discount
  • Good driver discount
  • Vehicle safety savings
  • Passive restraint discount
  • Anti-theft discount
  • Multiple vehicle savings
  • Bundled insurance products discounts

Nationwide

JD Power Score: 787/1,000

AM Best Score: A+

Overview: 

Nationwide started in 1926 with Farm Bureau Mutual, which offered affordable car insurance rates to farmers. Farm Bureau Mutual grew and acquired other businesses, becoming Nationwide, a Fortune 100 company. Today, the company offers a broad selection of insurance products, including car, homeowner’s, life, farm, pet, and commercial insurance, to farmers and the general public. Nationwide also offers many add-ons, including vanishing deductible coverage, identity theft protection, and roadside assistance. The company offers retirement plans, mutual funds, and specialty health services. 

Pros: 

  • Broad selection of car insurance products
  • Many specialty add-ons available, like identity theft and vanishing deductible coverage
  • Mobile app offers the ability to pay bills online and to access 24/7 support

Cons: 

  • Drivers with a DUI face higher-than-average premiums

Coverage Options: 

  • Bodily injury liability
  • Property damage liability
  • Personal injury protection
  • Uninsured motorist
  • Underinsured motorist
  • Medical payments
  • Collision
  • Comprehensive
  • Towing and labor
  • Rental car expense
  • Gap coverage
  • Accident forgiveness
  • Roadside assistance
  • Vanishing deductible
  • Total loss deductible waiver

Discounts: 

  • Multi-policy
  • SmartRide (Safe driver program)
  • SmartMiles (Mileage-based program)
  • Accident-free
  • Good student
  • Defensive driving
  • Anti-theft
  • Safe Driver 
  • Automatic payments

Average Car Insurance Cost for TX Drivers

According to the US News & World Report, insuring a car in Texas costs an average of $1,842 per year. That figure is $400 more than the national average car insurance rate of $1,442. Good drivers in Texas pay nearly $1,000 less yearly than the statewide average and state minimum coverage costs an average of $1,829 per year. 

Your age and gender greatly impact rates as seventeen-year-old female drivers in Texas pay an average of $5,503 per year for insurance, while 17-year-old males pay an average of $6,640 per year. Rates increase for speeding tickets and traffic violations, too. In Texas, drivers with a speeding ticket pay an average of $2,129, while drivers with an at-fault accident on their records pay an average of $2,701 per year.

Texas car insurance rates also vary depending on the city where you live. For example, El Paso residents pay an average of $1,774 per year, but Houston residents pay an average of $2,169. City populations, traffic on the roads, and crime rates all factor into the risks car insurance companies take when insuring a driver, and that’s reflected in the rates. 


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How to Find the Best Car Insurance Companies in Texas

As you shop for car insurance, looking for a company that fits your needs is essential. It can be helpful to list the qualities your ideal insurance provider will have.

If you have an existing car insurance policy, that can be a helpful way to start. Consider what elements of your policy you like, such as the roadside assistance coverage and features you want to improve. Maybe your vehicle has aged, and you no longer wish to purchase full coverage, or perhaps you want an insurance company offering more add-ons to better customize your coverage.

The following points can help you create a comprehensive list of insurance requirements to guide your search: 

  • The type(s) of coverage you need, including any coverage types that are less common, such as rideshare or rental car insurance
  • Your ideal policy limits, whether those are Texas minimum limits or higher
  • The drivers who will be on your policy in addition to yourself
  • The types of discounts that would help you save money on your policy
  • Any billing preferences, like the ability to choose your monthly billing date
  • Whether you want to interact with your car insurance company through an agent, by phone, or through an app
  • Any other types of insurance that you might want to purchase, like homeowner’s insurance or life insurance
  • How you prefer to make your payments, whether that’s online, by mail, through an app, or in person
  • Whether you would prefer it offers an app, and what capabilities that app should have

Shop Around for Car Insurance

Once you have a list of your new car insurance policy criteria, it’s time to shop around. Gathering and comparing quotes can help you determine which company offers the features you need at most affordable price. 

Compare.com makes it easy to gather and compare car insurance quotes. You’ll need to fill out a quote request form, which takes about five minutes. Then, Compare.com collects quotes from up to 65 car insurance companies and gives you the top options based on your coverage needs, location, and other factors. Compare.com users save an average of $720 per year on car insurance premiums. 


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What You Need to Know About Texas Auto Insurance Coverage 

Texas is an at-fault insurance state, meaning if you caused an accident, you may be liable for all the expenses resulting from that accident. Those expenses include medical bills, vehicle repair costs, and even pain and suffering. These costs could rise significantly if multiple people were involved in the accident. Having adequate car insurance coverage can help to protect you from being sued for damages you can’t pay and having property seized or your wages garnished to make those payments. 

According to Texas state law, drivers must carry car insurance and have proof of coverage while driving. The state requires drivers to carry a minimum of 30/60/25 liability coverage: 

  • $30,000 in bodily injury coverage per person, which is the total amount your insurance company will pay to cover medical bills for a single person injured in an accident
  • $60,000 in bodily injury coverage per accident, which is the maximum amount your insurance company will pay for all of the injuries sustained in an accident where multiple people are hurt
  • $25,000 in property damage per accident, which is the total amount your insurance will pay for any damage that you cause in a single accident, including damage to a vehicle or other property, like a home or fence

Drivers without proof of insurance in Texas  could face severe penalties under the “Texas Driver Responsibility Program.” Those who don’t have insurance will be fined between $175 to $350 on the first offense. Their vehicles could be impounded, and they might require their insurance company to file an SR-22 form. It’s also possible that the driver’s registration will be suspended. 

Car Insurance Discounts in Texas

Texas doesn’t offer any state car insurance discount programs, but you may still be eligible for discounts directly through your car insurance company. Many car insurance companies offer a wide selection of discounts, including pay-in-full, electronic statement, good driver, good student, multi-vehicle, and multi-policy discounts. Reviewing the available discounts at each car insurance provider when shopping around for insurance could help you save money on your policy during every billing cycle. 

If you want to save even more money, consider looking for a car insurance company that uses telematics to offer drivers additional discounts. Telematics may consist of using a device or smartphone app to track your driving. Insurance companies can use that data to evaluate factors like how far you drive or whether you demonstrate unsafe driving habits. Then they will adjust your policy costs based on that extra information. 

You may be able to save even more money if you sign up for a pay-per-mile policy. These policies are often best for retired drivers who work from home, have a second vehicle, or otherwise spend minimal time on the road each month. If you sign up for one of these policies, you will use your smartphone or a tracking device to monitor how far you drive each month. You’ll pay a flat monthly base rate, and then you’ll pay a per-mile charge, which can fluctuate based on how far you drive. 

FAQs About Texas Car Insurance

Is Texas car insurance higher than in other states? 

Insuring a car in Texas costs about $400 more than the average $1,442 annual cost of insuring a car in America. Many factors impact Texas car insurance rates, including state laws, population density, and the cost of living in Texas. Remember that other elements, like your age and driving record, may help you to qualify for lower insurance rates.

Which car insurance is better in Texas? 

There are many top car insurance options in Texas, including companies like GEICO, Mercury, and Texas Farm Bureau. The best car insurance company will be the one that offers the coverage you need at an affordable price point and delivers quality customer service and claims experience. 

What is the cheapest car insurance in the state of Texas? 

The US News & World Report notes that the Texas Farm Bureau offers the cheapest car insurance rates in Texas, with annual premiums of $881. Remember that the cheapest policy isn’t always the best for you, and it’s crucial to balance affordability with the coverage you need.

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