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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
The average auto insurance policy in Texas costs around $167 per month.
State Farm’s $58 average monthly rate is the best of any Texas insurer.
All Texas drivers need to have liability insurance with 30/60/25 minimum limits to legally drive.[1]
Let’s face it — for many Texans, $167 per month is a lot of money to budget for something like auto insurance that you hope to never use. Fortunately, many companies offer much cheaper policies, on average.
But with hundreds of car insurance companies out there, it can be hard to know which insurer will offer you the best rates. We’ve done the hard work for you and analyzed pricing from dozens of Texas’ top insurance companies.
Company  | Average Monthly Premium |
|---|---|
| State Farm | $58 |
| Mile Auto | $72 |
| Allstate | $82 |
| GEICO | $102 |
| USAA | $104 |
| Progressive | $107 |
| Mercury | $108 |
| Dairyland | $120 |
| Root | $120 |
| The General | $121 |
| Bristol West | $124 |
| AssuranceAmerica | $131 |
| Commonwealth Casualty | $131 |
| Nationwide | $131 |
| Clearcover | $135 |
| Safeco | $137 |
| GAINSCO | $138 |
| Direct Auto | $149 |
| National General | $152 |
| Elephant | $159 |
| Chubb | $177 |
| 21st Century | $205 |
| Liberty Mutual | $258 |
| Foremost | $271 |
State Farm offers the cheapest car insurance policies in Texas, according to Compare.com data. Its average rate is just $58 per month — well below the statewide average.
That said, while price is important, it’s not always the be-all and end-all of car insurance. You should also consider each company’s coverage options, available discounts, and current customer and claims satisfaction figures.
With that in mind, let’s check out some of Texas’ best insurance companies.
Compare personalized quotes from Texas’s top insurers.
No single car insurance company is 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.
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $58/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $96/mo |
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
State Farm is a great choice for Texas drivers on a budget — the insurance giant has some of the cheapest rates overall for both liability and full-coverage policies, and it’s among the most affordable options 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, it has some drawbacks. State Farm has relatively limited coverage options compared to some other companies on this list. It also scores low for claim satisfaction.
But if price is your No. 1 concern when choosing a new car insurance company, State Farm is a great place to start.
| User Reviews | 4.0 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.6 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $102/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $173/mo |
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
Drivers appreciate the easy communication and good customer service, but many are unhappy with the regular and significant price increases.
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 some of the cheapest average rates for Texas teens, according to Compare.com 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.
Lots of coverage options
Among the best rates around
Highly rated mobile app
Relatively limited discounts
Gap insurance not available
No local agents
| User Reviews | 4.4 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | NR |
Perhaps the least-known insurer on this list, Hugo offers truly unique auto insurance coverage at a great price. With Hugo, you can turn your coverage on and off as needed and pay for as little as three days’ worth of coverage at a time. This makes it a great option for Texans who work from home or people who don’t drive often.
While it’s hard to put a value on that type of flexibility, there are some drawbacks. To start, only drivers with liability-only coverage can take advantage of the ability to turn coverage on and off.
On-demand coverage
Flexible payment options
Same-day coverage available
Doesn't offer full coverage
Won't file SR-22s
Available in only 13 states
Getting cheaper car insurance rates in Texas is much easier than you may think. We’ve outlined five of the most effective strategies below.
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.
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.
You can adjust your policy in two ways to lower your 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 into 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).
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.
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.
As we mentioned above, the coverage levels you choose have a big effect on your car insurance premium. Liability policies with state-minimum limits are always going to be the cheapest option, but many drivers should consider purchasing additional coverage.
State-minimum insurance in Texas includes only liability coverage, which pays for injuries and property damage you cause in an accident. Check out the chart below to see which insurers currently offer the cheapest state-minimum policies in Texas.
If you finance or lease your vehicle or can’t afford to repair or replace it out of pocket after an accident, full-coverage car insurance is for you. Not only does this type of policy include liability coverage, but it also comes with comprehensive and collision insurance that pays to repair or replace your car if you get in an accident, or weather, animals, vandalism, or theft damage it.
Check out the chart below for the companies with the cheapest average full-coverage rates in the state.
Texas may have higher-than-average rates for car insurance, but that broad average isn’t necessarily representative of what you can expect to pay. At the end of the day, several factors influence your rates, with the amount of coverage you choose playing perhaps the largest role.
With that in mind, let’s take a look at how rates vary between two common policy types — liability-only and full coverage.
State | Average Monthly Premium: Liability | Average Monthly Premium: Full Coverage | Average Monthly Premium: All Policies |
|---|---|---|---|
| Texas | $123 | $211 | $167 |
| National average | $102 | $177 | $139 |
Our research found that the average Texas driver pays $123 per month for basic liability coverage and $211 for a more robust full-coverage plan that includes comprehensive and collision insurance alongside state-mandated liability coverage.
But if those numbers seem like more than you want to pay, don’t worry. Several companies offer policies with average rates well below these figures. We’ll cover them in greater detail in the next section.
Alongside coverage levels, your age plays a substantial role in how much you pay for car insurance. Young drivers typically pay more than other age groups because of their relative inexperience behind the wheel and increased propensity to cause car accidents.
But no matter how old you are, you can still find great deals on car insurance. With that in mind, we’ve highlighted the statewide average rates for different age groups, as well as which insurers offer the cheapest average rates for each.
Age Group | Statewide Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Teens | $329 | State Farm | $116 |
| 40s | $170 | State Farm | $56 |
| 60s | $141 | State Farm | $45 |
Average auto insurance rates start at $329 per month for young drivers in Texas and drop all the way to $141 per month for people in their 60s. But let’s take a closer look at the two age groups at each end of the spectrum — teens and seniors.
The average Texas teen pays $329 per month for car insurance, according to Compare.com data. That may be substantially higher than the statewide average, but most teens can still find a great deal from State Farm. After all, the insurer offers policies to teens for an average of just $116 per month.
All else being equal, senior drivers typically have some of the lowest rates of any age group due to their experience on the road and long record of driving behavior. In Texas, the average driver in their 60s pays $141 per month for car insurance, according to our research.
Still, seniors can generally find significant savings from State Farm, which offers average rates of just $45 for Texas drivers age 60 and older.
Perhaps the most influential factor affecting your auto insurance rates is your recent driving record. It’s probably no surprise that drivers with a clean record get some of the best rates available, but you may not realize exactly how much different infractions — speeding tickets, at-fault accidents, DUIs, and other moving violations — can increase your monthly premiums.
Changes can vary by state, so we’ve highlighted exactly how each infraction affects average premiums in Texas in the table below, as well as which insurers offer the most competitive rates for each.
Driving Record | Statewide Average Monthly Premium | Cheapest Insurer | Cheapest Insurer’s Average Monthly Premium |
|---|---|---|---|
| Clean record | $167 | State Farm | $58 |
| Speeding ticket | $201 | State Farm | $71 |
| At-fault accident | $214 | State Farm | $74 |
| DWI | $207 | State Farm | $78 |
A clean driving record — one free of recent tickets or accidents — means you can expect to pay around $167 per month for car insurance in Texas. But rates can increase quickly if you have even just one ticket or other moving violation on your record in the last few years.
Let’s take a closer look at exactly how each type of infraction affects the average rate in Texas, as well as which companies offer the cheapest rates for each.
Speeding tickets can cost you more than just the fine you have to pay if a cop pulls you over for driving too fast. A single ticket increases the average car insurance premium by 27% nationwide, according to Compare.com data.
But Texas drivers can still find a good deal, even with a recent ticket. State Farm offers the cheapest average premiums for Texans with a speeding ticket in the last three to five years, according to our analysis. Its average rate for these drivers is just $71 per month.
Causing a collision can wreak havoc on not just your car but your monthly auto insurance bill, too. In fact, just a single at-fault accident causes average premiums to increase by 34% nationwide, according to Compare.com data.
But if you’ve recently been in an accident, don’t worry. State Farm still offers great rates to many drivers like you. The company charges an average of just $74 per month for Texans who have a recent at-fault accident on their driving record, according to our data.
The costliest driving infraction you can get is a conviction for driving while intoxicated (DWI) or driving under the influence (DUI). Not only will you likely have to pay thousands of dollars in fines, attorney fees, and more, but your car insurance bill will also increase substantially. In fact, ourdata shows that the average DWI costs drivers an extra 50% on their car insurance premiums nationwide.
But that doesn’t mean you have to accept a massive rate hike — you just have to know where to look. In Texas, State Farm offers drivers with a DWI the cheapest average rates — just $78 per month, according to our research.
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In Texas, drivers must have the following minimum auto insurance coverage:
$30,000 in bodily injury liability coverage per person
$60,000 in bodily injury liability coverage per accident
$25,000 in property damage liability coverage per accident
These coverage requirements are usually just called “30/60/25” coverage. They’re also only the minimum requirements. You may want to consider purchasing additional auto coverage, especially if you have valuable assets to protect.
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. Depending on the number of convictions, this charge ranges from $175 to $350 per year.
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.
SR-22 certificates are proof-of-financial-responsibility documents that the courts may order certain high-risk drivers 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.
Compare personalized quotes from Texas’s cheapest companies.
If you want to know more about auto insurance in Texas, check out these answers to some of the most commonly asked insurance questions in the Lone Star State.
State Farm has the cheapest average rates of any Texas insurer, at just $58 per month, according to our data. But keep in mind that doesn’t mean it’s the cheapest company 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 from as many as possible.
The average cost for car insurance in Texas is $167 per month, according to our data. But rates can vary significantly based on factors such as vehicle type, driving history, where you live, and more.
Our data shows that 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.
Texas requires drivers to have at least $30,000 for bodily injury protection per person and up to $60,000 per accident. You must also have at least $25,000 for property damage liability and $2,500 in personal injury protection.
No single insurance company is the best for everyone. But looking at average rates, customer satisfaction scores, and coverage options, State Farm, Hugo, and GEICO are three of the best car insurance companies in Texas. Still, 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.
Texas experiences frequent storms, hail damage, and more cars on the road, which means more claims for insurers to pay. Modern cars also cost more to repair due to their technology, so companies may raise rates to cover these increased expenses.
Yes. Texas auto insurance premiums are going up, and the Texas Office of Public Insurance Counsel says they may keep climbing. The best way to lower your costs is to compare quotes from multiple companies and look for available discounts.
Texas Farm Bureau beats some competitors on price, but your price changes based on details like your age, driving habits, and ZIP code. For instance, cheap car insurance in rural East Texas might cost more than it would in downtown Houston.
Fort Worth, San Antonio, and Austin drivers tend to pay less for car insurance than folks in other major Texas cities, according to our research. Crime levels, accident rates, and even how easy it is to find safe parking all play into your rates.
Of all the companies we compared, State Farm has the most affordable full-coverage insurance in Texas. But remember that “cheapest” doesn’t always mean “best.” Double-check that a company’s coverage and service actually work for you.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 the rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.
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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.
Learn more about us, our team, and what makes us tick.
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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