Cheapest Car Insurance in Texas (Best Rates in 2026)
State Farm has the cheapest car insurance in Texas at $140 per month for full coverage.
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Cheapest and best car insurance in Texas
State Farm and Geico are the cheapest companies for most people in Texas.
- Want full coverage? State Farm: $140/mo
- Only need minimum coverage? State Farm: $56/mo
- Want the best customer service? State Farm: $140/mo
- Need coverage for a young driver? Geico: $161/mo
- Have a speeding ticket? State Farm: $140/mo
- Caused an accident? State Farm: $163/mo
- Got a DUI? State Farm: $142/mo
- Have poor credit? AAA: $337/mo
Monthly rates are based on full coverage car insurance for a 30-year-old man. Some rates use different ages or coverage limits.
Best cheap auto insurance in Texas: State Farm
State Farm and USAA have the cheapest full coverage car insurance in Texas.
- State Farm is the best choice for most people because it has cheap quotes and reliable customer service. The company's full coverage rate of $140 per month is 43% cheaper than the Texas average.
- USAA has even cheaper rates, at $124 per month on average. But it's only available if you're in the military, a veteran, the spouse of a military member or a child of a USAA member.
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Best cheap full coverage car insurance in Texas
Company | Monthly rate |
|---|---|
| State Farm | $140 |
| Geico | $176 |
| AAA | $202 |
| Progressive | $283 |
| USAA* | $124 |
*USAA is only available to current and former military members and their families.
Data-powered research on Texas car insurance
Cheapest liability car insurance in Texas: State Farm
- State Farm has the cheapest liability-only insurance in Texas, at $56 per month. That's around one-third less than the average cost of minimum liability coverage in Texas, which is $87 per month.
- USAA also has very cheap rates for liability-only car insurance, at $46 per month. But USAA is only available to current and former military members and their families.
Cheapest quotes for liability car insurance in Texas
Company | Monthly rate |
|---|---|
| State Farm | $56 |
| Geico | $65 |
| AAA | $72 |
| Progressive | $102 |
| USAA* | $46 |
*USAA is only available to current and former military members and their families.
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Average Texas car insurance cost by city
Marfa, a small city in West Texas, has the cheapest car insurance in Texas.
Drivers in Marfa pay an average of $191 per month for full coverage insurance.
The neighborhood of North Houston has the most expensive rate in the state, at $296 per month.
Find the best cheap Texas car insurance near you
City | Avg. rate | Cheapest company | Cheapest rate |
|---|---|---|---|
| Houston | $270 | State Farm | $168 |
| San Antonio | $242 | State Farm | $150 |
| Dallas | $275 | State Farm | $171 |
| Austin | $228 | State Farm | $144 |
| Fort Worth | $232 | State Farm | $148 |
| El Paso | $230 | State Farm | $142 |
| Arlington | $239 | State Farm | $149 |
| Corpus Christi | $217 | State Farm | $128 |
| Plano | $237 | State Farm | $146 |
| Lubbock | $244 | State Farm | $134 |
| Laredo | $235 | State Farm | $149 |
| Irving | $250 | State Farm | $156 |
| Garland | $265 | State Farm | $167 |
| Frisco | $229 | State Farm | $141 |
| McKinney | $228 | State Farm | $142 |
| Amarillo | $254 | State Farm | $148 |
| Grand Prairie | $256 | State Farm | $157 |
| Brownsville | $222 | State Farm | $127 |
| Killeen | $205 | State Farm | $128 |
| Denton | $218 | State Farm | $138 |
| Mesquite | $268 | State Farm | $170 |
| Pasadena | $245 | State Farm | $152 |
| McAllen | $239 | State Farm | $131 |
| Waco | $212 | State Farm | $130 |
| Midland | $217 | State Farm | $129 |
| Lewisville | $232 | State Farm | $137 |
| Carrollton | $244 | State Farm | $154 |
| Round Rock | $222 | State Farm | $139 |
| Abilene | $215 | State Farm | $127 |
| Pearland | $233 | State Farm | $144 |
| College Station | $202 | State Farm | $128 |
| Richardson | $248 | State Farm | $158 |
| Odessa | $233 | State Farm | $138 |
| Beaumont | $246 | State Farm | $154 |
| Allen | $226 | State Farm | $142 |
| New Braunfels | $216 | State Farm | $135 |
| Tyler | $228 | State Farm | $144 |
| Sugar Land | $241 | State Farm | $145 |
| Conroe | $228 | State Farm | $141 |
| Edinburg | $244 | State Farm | $135 |
| Wichita Falls | $203 | State Farm | $128 |
| San Angelo | $206 | State Farm | $124 |
| Georgetown | $218 | State Farm | $138 |
| Temple | $202 | State Farm | $123 |
| Bryan | $205 | State Farm | $127 |
| Mission | $239 | State Farm | $135 |
| Baytown | $248 | State Farm | $154 |
| Longview | $229 | State Farm | $142 |
| Pharr | $239 | State Farm | $131 |
| Leander | $224 | State Farm | $139 |
| Mansfield | $233 | State Farm | $146 |
| Cedar Park | $221 | State Farm | $140 |
Best car insurance in Texas: State Farm
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Full coverage rate$140/moThis analysis used auto insurance quotes for a policy with collision and comprehensive coverage.
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Claims processGoodClaims rating is based on J.D. Power's claims satisfaction survey.
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AM Best ratingA++An A++ financial strength rating means that a company has a superior ability to pay customer claims, even in difficult financial situations. This is the highest rating available.
The author, Lindsay Bishop, chose the best car insurance companies in Texas based on:
- J.D. Power's 2025 U.S. Auto Insurance Study
- J.D. Power's 2025 U.S. Auto Claims Satisfaction Study
- National Association of Insurance Commissioners complaint data
- Each company's average car insurance rates in Texas
- Coverage availability and optional add-ons
- The author's 7+ years of insurance industry experience
ValuePenguin's reviews follow strict, independent editorial standards and are never influenced by commissions or partnerships.
Cheap TX car insurance after a ticket: State Farm
State Farm has the cheapest full coverage insurance in Texas for drivers with a speeding ticket. The company charges an average of $140 per month, which is less than half the state average of $297 per month. It's also nearly $100 per month less than the second-cheapest company, Geico.
Best TX car insurance quotes after a ticket
Company | Monthly rate |
|---|---|
| State Farm | $140 |
| Geico | $233 |
| AAA | $343 |
| Progressive | $366 |
| USAA* | $141 |
*USAA is only available to current and former military members and their families.
Auto insurance quotes in Texas go up by 20%, on average, after a single speeding ticket. But companies raise rates by different amounts. You may not see an increase with State Farm or Allstate.
Cheapest auto insurance in Texas after an accident: State Farm
State Farm has the cheapest auto insurance if you have an accident in Texas. A full coverage policy from State Farm costs $163 per month. That's around half as much as the second-cheapest company, Geico.
Low-cost auto insurance in Texas after an accident
Company | Monthly rate |
|---|---|
| State Farm | $163 |
| Geico | $307 |
| AAA | $343 |
| Progressive | $423 |
| USAA* | $188 |
*USAA is only available to current and former military members and their families.
Car insurance quotes in Texas go up by around 55% after an at-fault accident. That's a difference of around $136 per month for a full coverage policy.
Don't worry about switching car insurance companies right after your accident. Your current company won't raise your rates until your policy renews.
Instead, wait until you get your renewal offer in the mail or by email. Then, you should shop around for multiple quotes to make sure you're getting the best price.
Cheapest car insurance in Texas for teens: Geico
Geico offers the most affordable car insurance rates for young drivers in Texas. A minimum liability policy from Geico costs $161 per month for an 18-year-old, and full coverage costs $390 per month. That's around one-third less than the average for teens in Texas.
Most affordable car insurance in Texas for teens
Company | Liability only | Full coverage |
|---|---|---|
| Geico | $161 | $390 |
| State Farm | $187 | $397 |
| AAA | $189 | $420 |
| Progressive | $352 | $1247 |
| USAA* | $122 | $296 |
*USAA is only available to current and former military members and their families.
Young drivers should get full coverage insurance if they drive a newer car and can afford it.
Teens tend to be more likely to get into accidents than drivers with more experience. So a full coverage policy could be worth it because it pays for damage to your car, no matter who caused the crash.
The best way for young drivers to save money on their car insurance is by sharing a policy with their parents or an older relative.
Discounts can also help you save. For example, Geico and most other companies offer a good student discount if you earn a B average or better in school.
Cheapest for Texas teens with a ticket or accident: State Farm
State Farm has the cheapest liability insurance in Texas for young drivers with a speeding ticket or accident on their record.
- Speeding ticket: A minimum liability policy from State Farm costs around $187 per month for an 18-year-old with one speeding ticket. That's one-third cheaper than the state average.
- Accident: Teen drivers pay an average of $210 per month for minimum coverage from State Farm after an at-fault accident. That's $137 per month less than the state average.
Cheap liability car insurance in Texas for teens with a bad record
Company | Ticket | Accident |
|---|---|---|
| State Farm | $187 | $210 |
| Geico | $198 | $260 |
| AAA | $321 | $321 |
| Progressive | $361 | $368 |
| USAA* | $168 | $213 |
*USAA is only available to current and former military members and their families.
Young drivers in Texas can expect minimum liability rates to increase by 16% after a speeding ticket and 49% after an accident.
It can be hard for Texas teens to find affordable insurance after a ticket or accident.
When shopping for insurance, make sure you're taking advantage of every discount you can qualify for. For example, State Farm's Drive Safe & Save program offers a discount to young drivers who complete an online safety course and practice driving with an older mentor.
Best cheap insurance in Texas after a DUI: State Farm
State Farm has the most affordable auto insurance in Texas after a DUI. Full coverage from State Farm costs $142 per month after a DUI, which is two-thirds cheaper than the state average. It's also less than half the cost of the second-cheapest company, Geico.
Cheap Texas car insurance rates after a DUI
Company | Monthly rate |
|---|---|
| State Farm | $142 |
| Geico | $317 |
| Progressive | $324 |
| AAA | $519 |
| USAA* | $239 |
*USAA is only available to current and former military members and their families.
In Texas, full coverage car insurance rates go up by an average of 62% after a DUI.
Drivers with a DUI may need SR-22 insurance in Texas. It typically costs between $15 and $50 for an insurance company to file an SR-22 form on your behalf, on top of any increase in your insurance rates.
Cheapest insurance in Texas for drivers with poor credit: AAA
AAA Insurance is the cheapest company in Texas for drivers with poor credit. A full coverage policy from AAA costs an average of $337 per month for a driver with a bad credit score. That's around one-third less than the Texas average of $536 per month.
Low-cost auto insurance in Texas if you have poor credit
Company | Monthly rate |
|---|---|
| AAA | $337 |
| Progressive | $398 |
| Geico | $457 |
| Allstate | $793 |
| USAA* | $194 |
*USAA is only available to current and former military members and their families.
Texas drivers with low credit scores pay twice as much for car insurance as those with good credit.
Your credit score doesn't reflect your driving ability. But insurance companies believe that drivers with poor credit are more likely to file a claim. This means you usually pay more if you have poor credit.
Is your car insurance company raising rates in Texas in 2026?
Some major Texas auto insurance companies have raised rates in 2026, while others have actually lowered their rates across the state.
- ↑ Biggest increase: American Family at +4.3%
- ↓ Biggest decrease: State Farm at -3.1%
Company | 2026 rate change | 5 year rate change |
|---|---|---|
| State Farm | ↓ 3.1% | ↑ 60.8% |
| Progressive | ↓ 2.1% | ↑ 61.6% |
| Geico | 0.0% | ↑ 62.1% |
| Texas Farm Bureau | 0.0% | ↑ 88.7% |
| Incline P&C | 0.0% | ↑ 0.0% |
| Home State County Mutual | 0.0% | 0.0% |
| Liberty Mutual | 0.0% | ↑ 69.8% |
| AAA | 0.0% | ↑ 55.1% |
| Travelers | 0.0% | 0.0% |
| Allstate | ↑ 3.3% | ↑ 105.5% |
| American Family | ↑ 4.3% | ↑ 120.1% |
A downward arrow (↓) indicates a rate decrease, while an upward arrow (↑) indicates a rate increase.
What to do if your rates went up in Texas
If your insurance company is raising rates in Texas, there are a few things you can do to lower your insurance bill.
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Compare quotes from the cheapest car insurance companies in Texas, including State Farm, Geico and USAA.
There's a difference of $416 per month between the most and least expensive companies for full coverage insurance in TX. So shopping around for the best rate could save you nearly $5,000 per year.
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Look for a company that offers lots of discounts you can get. Most auto insurance companies offer discounts for bundling your home insurance or insuring multiple vehicles, which can earn you a big discount.
But some companies also offer more uncommon discounts. For instance, State Farm offers a discount for young drivers who complete its online safety course and practice with an older driver.
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Sign up for a safe driving program. These programs track your driving habits using a mobile app or device that you plug into your car. If you stay under the speed limit, avoid late-night driving and stay off your phone, you could earn a big discount.
State Farm's Drive Safe & Save program is the best choice for most Texas drivers because it offers a discount of up to 30% and won't raise your rates if you get a bad driving score, unlike Geico. State Farm also has some of the most affordable rates in TX, even before the discount.
Texas minimum car insurance requirements
Texas drivers must have a minimum amount of liability insurance to drive legally. This requirement is sometimes written as 30/60/25.
- Bodily injury (BI) liability insurance: $30,000 per person and $60,000 per accident
- Property damage (PD) liability insurance: $25,000 per accident
Texas drivers also have the option to add on personal injury protection (PIP). Although it's not required, you have to sign a waiver if you want to decline PIP coverage.
Personal injury protection (PIP) is an auto insurance coverage that pays for your own medical care, lost wages and other related expenses if you're hurt in a car accident. PIP pays for you and anyone riding in your car, and it covers you regardless of whether you were responsible for the crash.
Other than an auto liability insurance policy, there are four less common alternatives to prove your responsibility and ability to pay for accidents you cause. Each of these requires a Financial Responsibility Insurance Certificate from the Department of Public Safety (DPS) as proof.
Deposit of cash/security with the comptroller: For the most common alternative among the four, drivers have to set aside $55,000 in either cash or a personal certificate of deposit (CD) with the Texas comptroller. Contact the DPS and request an application, then send the cash or security, along with all of the paperwork, to the comptroller. Once the comptroller's office verifies the deposit, the DPS will issue a certificate to you as your proof. If you cause an accident, you and the other driver will have to settle the payment amount, and it will be deducted from the $55,000 that was set aside. Otherwise, you can take it to court yourself.
Surety bond: This method requires you to find two other people to insure you, through a surety bond, for at least the minimum amounts that Texas requires of a conventional auto insurance policy. The bond serves as a guarantee that these two other individuals will pay in your place if you can't reimburse someone else for their injuries or damage when you're at fault for a car accident. As security for the surety bond, the two individuals have to list their real estate properties in Texas, have the county tax assessor-collector certify that there are no tax liens and get it approved by a judge with the DPS. When the DPS receives all the necessary statements and documents for the surety bond, they will issue you the certificate.
Deposit of cash/cashier's check with your county judge: This is the least accessible option, because very few county judges accept this kind of deposit, according to a customer service analyst at the DPS. You must find the judge for the county where your car is registered and ask whether they are willing to take a $55,000 deposit in either cash or cashier's check. If they accept it, then they will notify the DPS, which will in turn issue you the certificate.
Certificate of self-insurance: The law allows individuals to self-insure, but in practice, this is only allowed for companies. When a company owns and has registered under its name 26 or more cars, it may apply to insure all of its vehicles, as opposed to purchasing a commercial auto policy. The most important requirement is to provide an audited financial statement that shows the company has more than $255,000 of monthly net assets. Other necessary documents include past claims history and claims procedures as a self-insurer (if available), as well as an agreement to pay up to $85,000 per accident. Certificates of self-insurance must be renewed every three years to remain valid.
The state of Texas requires that all drivers carry proof of liability insurance. Insurance companies in Texas submit policy information for all their customers to TexasSure, a state-funded electronic database created to reduce the number of uninsured vehicles. This enables the Texas Department of Public Safety to be notified when a policy lapses or is canceled. It also allows law enforcement officers to check an insurance policy's status when they pull over a car.
Potential fines and penalties for driving without insurance in TexasFirst offense:
- Fine: $175 to $350
- Driving privileges: Driver's license suspended, $100 reinstatement fee
Second offense:
- Penalty: $350 to $1,000
- Driving privileges: Driver's license suspended, $100 reinstatement fee
- Other penalties: Must have an SR-22 certificate for two years
What's the best car insurance coverage for Texas drivers?
Full coverage car insurance is the best choice for most drivers in Texas.
Full coverage car insurance is typically required by your lender if you have a car loan or lease.
It's also a good idea if your car is less than 8 years old or worth more than $5,000. This is because full coverage includes collision and comprehensive coverage, which pay for damage to your car, regardless of whose fault it is.
Full coverage also typically includes higher liability limits than the state requires. This is important because the Texas requirements may not be high enough to cover the cost of a serious accident.
For example, if you hit a brand-new pickup truck going at top speed on the freeway, $25,000 of property damage liability coverage probably won't be enough to fully replace or repair it.
Minimum liability policies are cheap, but they may not give you enough financial protection after an accident.
Minimum liability policies don't cover damage to your car because they don't include comprehensive and collision insurance.
However, minimum coverage may be right for you if you have an older car that you can easily afford to replace after a crash. Even if that's the case, it's a good idea to increase your liability coverage if you can afford it.
Cost of Texas auto insurance over time
The cost of car insurance in Texas went up 45% between 2019 and 2024.
Rate increases in Texas peaked in 2022 and 2023, when prices went up 25% and 19%, respectively. That came after three years when rates were mostly stable between 2019 and 2021.
The jumps in car insurance rates in 2022 and 2023 were primarily because of higher repair costs after the COVID-19 pandemic. Another major cause was the increase in accidents when people returned to driving after the pandemic.
In 2024, insurance rates only had a modest increase of about 2.3%, and seven of the top 10 insurance companies in the state didn't raise rates at all. Among major Texas insurance companies, Texas Farm Bureau and American Family had the biggest increases in 2024, at nearly 15% each.
Frequently asked questions
What is the cheapest car insurance in Texas?
State Farm is the cheapest car insurance company in TX, at an average cost of $56 per month for liability-only coverage and $140 per month for full coverage in 2026. That's more than one-third cheaper than the average rates in TX.
How much is car insurance in Texas?
The average price of car insurance in Texas is $87 per month for a minimum liability policy, which is $11 per month more than the U.S. average. Rates for full coverage average $247 per month, which is $39 per month more than average.
Why is auto insurance so expensive in Texas?
Car insurance in Texas is expensive because it has several major cities with lots of traffic, which leads to higher risks of car accidents and theft. Drivers living in these areas may have more expensive rates.
Minimum coverage in Texas is 16% more expensive than the national average. A full coverage policy in Texas is 19% more expensive than the national average.
How much car insurance do I need in Texas?
The minimum car insurance required in Texas is often referred to as 30/60/25. That means $30,000 of bodily injury liability per person and $60,000 per incident, plus $25,000 of property damage liability coverage.
What can you do if you have a problem with car insurance in Texas?
If you can't solve your problem by working with the insurance company, you can file an insurance complaint with the Texas Department of Insurance. This can help in situations where insurance is denying your claim, taking too long to pay or paying less than you think it should.
Does car insurance pay for flood damage in Texas?
If rising rivers or lakes, heavy rainfall or storm surge damages your car, your insurance company will pay to fix or replace it only if you have comprehensive coverage. Comprehensive coverage pays for damage outside of your control, also called "acts of God." This includes flooding — like the Texas Hill Country floods — fallen tree branches, theft or an accident with an animal.
Full coverage policies typically include comprehensive coverage, along with collision coverage. While it's not required by the state of Texas, you usually have to get comprehensive coverage if you have a car loan or lease.
Methodology
ValuePenguin collected thousands of quotes from ZIP codes across Texas for the largest insurance companies. Car insurance premiums in Texas are for a 30-year-old man with good credit who drives a 2018 Honda Civic EX.
Full coverage rates are for a policy that includes collision, comprehensive and liability coverage. Rates are for someone with a clean driving record, unless otherwise specified.
- Bodily injury liability: $50,000 per person and $100,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Comprehensive and collision: $500 deductible
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurance company filings and should be used for comparative purposes only. Your own quotes may be different.
Auto insurance rate change data was compiled using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
To calculate rate changes by company, ValuePenguin used publicly available rate filing data from the Texas Department of Insurance. Rate filing data was sourced using RateWatch from S&P Global, which uses information from the National Association of Insurance Commissioners (NAIC).
The table includes rate filings submitted by major insurance companies and their subsidiaries with effective dates between 2022 and 2026. Because insurance companies often break customers into different rating groups, a filing may apply only to certain drivers, vehicles, coverage levels, regions or policy types. Not every increase or decrease applies to every policyholder insured by that company in the state.
Data limitations
Insurance companies may submit multiple filings throughout the year. Some filings may be revised, withdrawn or superseded after publication.
Rate filing information was current as of July 28, 2026.
About the Author
Senior Writer
Lindsay Bishop is a Senior Writer at ValuePenguin, where she educates readers about home, auto, renters, flood and motorcycle insurance.
Lindsay began her career in the insurance and financial industry in 2010. She was a licensed auto, home, life and health insurance agent and held Series 6 and 63 financial licenses.
After a hiatus from the financial sector, Lindsay returned to the industry as a content writer for ValuePenguin in 2021. She enjoys having the opportunity to help readers make smart decisions about their insurance so they can be prepared for anything life throws their way.
When Lindsay isn't writing about insurance, you can find her spending time with family, enjoying the outdoors on Sunday long runs or riding her Peloton.
How insurance helped Lindsay
As a homeowner for 15 years located in South Carolina, Lindsay has plenty of experience navigating the coastal insurance market and managing the claims process. That includes successfully negotiating a full roof replacement claim.
Expertise
- Home insurance
- Car insurance
- Flood insurance
- Renters insurance
- Motorcycle insurance
Referenced by
- CNBC
- Yahoo Finance
- Miami Herald
Education
- BS/BA Economics, University of Nevada Las Vegas
Editorial note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
