The Best Cheap Auto Insurance in Dallas in 2023

Dallas drivers pay an average of $171 per month for car insurance — more than the $145 rate the average driver pays both across Texas and the U.S. as a whole.

Dallas is the third-largest city in Texas and the ninth-largest in the country. With 1.3 million people calling Dallas home, its high volume of vehicle and foot traffic is one likely reason its insurance costs are higher than other cities within the state.

Key Takeaways:

• Hugo offers the lowest average overall auto insurance rate in Dallas, at $150 per month.
• Approximately 20% of Texas drivers are uninsured, according to the Texas Department of Motor Vehicles.
• The average price of car insurance in Dallas is 18% higher than the national average.

Dallas’ Cheapest Car Insurance Companies

Dallas drivers pay an average of $171 per month for car insurance, which is $26 higher than the state average. But shopping around and taking advantage of available discounts can help you save.

Let’s take a look at which companies offer the cheapest average rates in Dallas.

Hugo offers the cheapest overall auto insurance rates, on average, in Dallas, at $150 per month. But it may not be the cheapest car insurance company for everyone. Many factors affect auto premiums, including the type of car you drive, your driving record, and your age. Rates can also vary significantly by insurer.

Keep reading to find out which car insurance companies are best for different types of Dallas drivers.

The Best Car Insurance Companies in Dallas in 2023

No single insurance company is best for everyone. The right company for you depends on your unique driving profile, coverage needs, and budget. The good news is you have many affordable options to choose from, no matter your needs.

Read on to see the best auto insurance companies in Dallas for three common driver profiles.

Mile Auto: Best Car Insurance Company for Drivers Who Work From Home

Founded in 2017, Mile Auto offers pay-per-mile auto insurance, which may help low-mileage drivers save. Customers pay a base rate plus a per-mile fee for the miles they drive each month. Plus, Mile Auto doesn’t track your mileage with devices or apps while driving.

Simply send the company a photo of your odometer at the end of each month to have your payment calculated.

Mile Auto customers pay an average of $58 per month for basic liability coverage and $128 per month for a full-coverage policy.

Pros:

• Cheaper-than-average rates
• Doesn’t monitor your driving
• Low-mileage drivers can save 30%–40%

Cons:

• Trustpilot rating of 3.7 out of 5 stars
• Limited customization options
• Must speak with a representative to make policy changes

Commonwealth Casualty: Best Car Insurance Company for Drivers with Spotty Records

Commonwealth Casualty offers a solid selection of standard auto insurance coverage options. Optional add-ons, including rental reimbursement and roadside assistance, help protect against the unexpected.

Local claims adjusters provide damage estimates within 24 hours if your vehicle needs repairs. And the company processes total loss claims within 48–72 hours, according to its website.

Commonwealth Casualty customers pay an average of $92 per month for liability-only coverage and $326 for full coverage.

Pros:

• Customizable policies with several optional coverages
• Network of local agents
• Online auto insurance quotes and payments

Cons:

• Higher-than-average number of complaints in 2022
• Only one available discount
• Must file claims by phone

Hugo: Best Car Insurance Company for Low-income Drivers

Hugo is a relatively new insurance company that allows drivers to purchase auto insurance coverage for a few days, weeks, or months at a time — whatever makes the most sense for your budget.

You can purchase additional coverage anytime or withdraw unspent money from your account to help pay for unexpected expenses. Policyholders can earn cash rewards to help offset the cost of coverage.

Hugo customers pay an average of $147 per month for liability-only coverage.

Pros:

• Purchase as few as three days of coverage at a time
• Micropayments make budgeting easier
• Customers can earn cash rewards

 Cons:

• Only available in 13 states
• Only provides liability insurance in Texas
• Doesn’t file SR-22 forms

Cheapest Car Insurance Rates for State Minimum Insurance: Liberty Mutual

The coverage level you choose affects the price of your insurance policy. Drivers who purchase the minimum coverage the state requires have lower rates than drivers with higher policy limits. But higher policy limits provide more protection if you’re at fault in an accident.

We’ve broken down the five cheapest companies for state minimum liability insurance in the table below.

Liberty Mutual offers the cheapest average liability rates in Dallas, at $81 per month — plus an extensive list of discounts to help you save. The General and Elephant are the next cheapest options, costing an average of $31 per month more than Liberty Mutual.

Cheapest Car Insurance Rates for Full-Coverage Insurance: Mercury

“Full-coverage” auto insurance includes liability, collision, and comprehensive coverages. Liability coverage protects other people by paying for their medical bills and property damage if you’re at fault in an accident.

Collision and comprehensive protect you by covering repairs to your vehicle so you don’t have to pay for them out of pocket. Lenders typically require drivers to maintain full coverage if they have an auto loan or lease.

Full coverage costs more than a liability-only policy because it provides more protection. Let’s take a look at which companies offer the cheapest average full-coverage policies in Dallas.

Mercury offers the lowest full-coverage rates to Dallas drivers, at an average of $217 per month. Optional coverages like uninsured/underinsured motorist, rental car, and roadside assistance provide even more protection.

Elephant and Liberty Mutual may also offer affordable coverage, at $241 and $247 per month, respectively. GAINSCO and The General round out the top five, with average monthly rates of $265 and $299.

Compare Dallas Auto Insurance Rates by Age

Your age is a key factor in determining car insurance rates. Young drivers typically pay more for coverage than older drivers because they lack experience on the road. But if you maintain a clean driving record, your rates will typically decrease as you get more experience behind the wheel.

The table below shows the cheapest car insurance rates by age in Dallas.

Cheapest Car Insurance for Dallas Teens: The General

Teen drivers have the highest car insurance rates of any age group because they’re the least experienced and the most statistically likely to get into an accident. Rates generally drop over time, with many drivers seeing a significant decrease in rates around age 25 — if they have a clean driving record.

Until then, here are the cheapest liability-only rates for 16–19-year-olds in Dallas.

The General offers the cheapest liability rates for teens in Dallas. Multiple discounts — including good student, defensive driving, pay-in-full, and vehicle safety — can help teen drivers save. The company’s app makes it easy for teenagers to make a payment, view ID cards, manage claims, and get support.

Cheapest Car Insurance for Dallas Seniors: Elephant Auto Insurance

As drivers approach retirement age, they may pay less for car insurance than ever. Your rates may drop even more after you retire if you put fewer miles on your car. Below are the lowest average monthly car insurance rates for drivers 65 and older.

Senior drivers may find the lowest average monthly rate with Elephant, at $135, but The General also offers affordable coverage for just $5 more per month.

Elephant offers various services that may benefit this age group, including real-time roadside assistance, diminishing deductible, upgraded accident forgiveness, and at-home mechanic services. Multi-car, pay-in-full, homeowners, defensive driving, and safe driver discounts can help seniors save at The General.

Compare Dallas Auto Insurance Rates by Driving Record

Your driving record is generally the most important factor auto insurers use when calculating rates. Risky behaviors, like speeding, DUIs, and other aggressive driving habits, increase the likelihood of an accident and potential insurance claims. Drivers with a track record of risky behaviors pay more for insurance.

Read on to see how different driving records affect insurance rates.

Cheapest Car Insurance for Good Drivers in Dallas: Hugo

Maintaining a clean driving record — one without at-fault accidents, tickets, or other driving infractions — is one of the best ways to keep your rates low. Here are the best average monthly rates we found for drivers with no accidents or tickets on their record.

Hugo has the lowest average rates for good drivers, at $148 per month. Liberty Mutual and The General also offer affordable coverage for good drivers with average monthly rates of $12 and $19 more, respectively.

Cheapest Car Insurance in Dallas After a Ticket: Mile Auto

Auto insurance premiums may increase by about 8% after getting a ticket, according to Compare.com data. The table below shows average monthly rates for drivers with one speeding ticket on their record.

Mile Auto has the cheapest coverage for drivers with a speeding ticket, at $84 per month. The company offers pay-per-mile coverage to help drivers keep costs down. If Mile Auto isn’t a good fit, Commonwealth Casualty is the next cheapest option, but it costs $34 more per month. First Chicago rounds out the top three, at $156 per month.

Cheapest Car Insurance in Dallas After an Accident: Commonwealth Casualty

Having an at-fault accident to your driving record can lead to steep insurance rate increases — typically around 28%, according to Compare.com data. These three companies offer the lowest premiums for Dallas drivers with one at-fault accident.

Drivers with an at-fault accident may find the lowest rates with Commonwealth Casualty, at $112 per month. The company offers services to help customers who have been in an accident get back on the road quickly. It processes total loss claims within 48–72 hours. You’ll receive a damage estimate within typically 24 hours if your vehicle needs repairs but isn’t a total loss.

First Chicago and Elephant — the next two cheapest options — are significantly more expensive. Rates at these insurers are $52 and $99 per month more.

The Average Cost for Dallas Car Insurance

Dallas drivers pay an average of $171 per month for auto insurance. But your rate may differ substantially from the average, depending on your unique driver profile.

Read on to see how your ZIP code can affect your auto insurance premium.

Is Car Insurance More Expensive in Dallas?

The table below shows how rates in Dallas stack up against average rates in other major Texas cities, as well as the rest of the state, and the country as a whole.

The average cost of car insurance in Dallas is $26 more per month than the rest of Texas (and the national average). Rates in Dallas are $10 higher per month than in Austin and $28 higher than in San Antonio. However, Dallas rates are still about $40 less than in Houston.

Rates can vary between cities within the same state for several reasons. Drivers in areas with more accidents, weather damage, and higher theft and vandalism rates typically pay more for coverage to offset the cost of claims.

“Right now, it’s not necessarily about the individuals as much as it used to be,” says Deon Williams, independent insurance agent at 4J Insurance. “There’s a lot that goes into city-by-city [rates], and the number-one cause of rate increases right now [is] weather patterns.”

5 Ways to Get Cheap Car Insurance in Dallas

Want to save on your next policy? Here are five tips to get the cheapest car insurance rates available.

1. Increase your deductible. A deductible is the amount you pay for repairs before your insurance kicks in. Increasing it typically lowers your rate (but increases your financial responsibility if you cause an accident).
2. Drop comprehensive and collision. Maintaining comprehensive and collision coverage on older vehicles may not make financial sense. “I would advise a client to just go liability-only on an older car or anything in excess of 150,000 [miles] on the odometer,” says Williams.
3. Ask about discounts. Different companies offer different discounts. Find out which ones can save you the most.
4. Remove high-risk drivers from your insurance policy. Drivers with at-fault accidents, tickets, and other infractions cost more to insure than drivers with clean driving records. Keeping them on your policy will raise your rates.
5. Shop regularly and compare car insurance quotes. Rates can vary significantly between insurers. Comparing quotes from multiple car insurance companies is one of the best ways to make sure you’re getting the lowest possible rate.

Texas Auto Insurance Requirements

Texas drivers must maintain the following auto insurance, according to the Texas Department of Insurance:

• Bodily injury liability of $30,000 per person and $60,000 per accident
• Property damage liability of $25,000 per accident

All auto insurance policies in Texas automatically include personal injury protection (PIP). You can waive this coverage if you don’t want it, but you must do so in writing.

The coverage listed above is the minimum you need to drive legally. But it may not be enough to protect you if you’re in a serious accident.

You can increase your liability policy limits and purchase optional coverage for added protection. But Texas law doesn’t require it.

Penalties for Driving Without Auto Insurance in Texas

You could face serious penalties for driving without auto insurance in Texas, including a ticket and fine of up to $350 for your first offense.

For subsequent offenses, you may face fines up to $1,000 and driver’s license and vehicle registration suspensions. Authorities may also impound your vehicle for up to 180 days at a fee of $15 per day.

Average Auto Insurance Rates for Other Cities in Texas

Average car insurance rates in Dallas ($171 per month) are higher than in many other cities in Texas. The table below shows the average rates in 10 nearby cities and how they compare to rates in Dallas.

Dallas Auto Insurance FAQs

Want to know more about purchasing auto insurance in Dallas? Here are some answers to commonly asked questions.

What’s the cheapest auto insurance company in Dallas?

Hugo has the lowest auto insurance rates in Dallas, at $150 per month.

How much is car insurance in Dallas?

The average cost of auto insurance in Dallas is $171 per month.

How can I find cheaper car insurance in Dallas?

Getting quotes from multiple auto insurance companies is one of the best ways to find the cheapest coverage. You may also be able to reduce your rate by increasing your deductible or dropping coverages you no longer need.

How much car insurance is required in Texas?

Drivers in Texas must have personal injury liability coverage of $30,000 per person and $60,000 per accident. You must also maintain $25,000 of property damage liability coverage per accident.

What happens if you get caught driving without insurance in Dallas?

If you get caught driving without insurance, you’ll likely receive a ticket and a fine of up to $350 for a first offense. And you may be fined up to $1,000, have your license and vehicle registration suspended, and have your vehicle impounded for subsequent offenses.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information. All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. United States Census Bureau. “Large Southern Cities Lead Nation in Population Growth,” Accessed July 6, 2023.
2. Texas Department of Motor Vehicles. “TexasSure – Insurance Verification,” Accessed July 6, 2023.
3. National Highway Traffic Safety Administration. “Contributing Factors to Aggressive Driving,” Accessed July 6, 2023.
4. Texas Department of Insurance. “Auto Insurance Guide,” Accessed July 6, 2023.
5. Texas Department of Insurance. “FAQ: Auto insurance, claims, coverage issues, and more,” Accessed July 6, 2023.