Best Cheapest Car Insurance Rates In Austin

Best Cheapest Car Insurance Rates In Austin

Find Cheap Auto Insurance Quotes in Austin, TX

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The average price of minimum-liability insurance in Austin is $999, or around $83 per month, while the average cost of a full-coverage policy is $2,698 or $225 a month. Despite being the fourth most populated area of Texas, Austin's average insurance rates are only 5% more expensive than the state average.

To save as much money as possible on car insurance costs, you need to compare rates across multiple insurers.


Cheapest auto insurer

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Best for customer service

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Your insurer has a big impact on your rates. In fact, we found that comparing quotes from multiple companies can save you up to $1,138.

Cheapest auto insurance in Austin? Loya

Loya, State Farm and Chubb are the three Austin insurers with the cheapest minimum-liability car insurance policy.

Eligible service members and veterans should get a quote from USAA. It was the cheapest insurer overall, with an annual average price of $442.

This graph identifies and ranks the three companies in Austin, Texas with the best rates for insuring our sample drivers' cars
This graph identifies and ranks the three companies in Austin, Texas with the best rates for insuring our sample drivers' cars

Find Cheap Auto Insurance Quotes in Austin

Currently insured?
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The auto insurance policy with the cheapest price tag is minimum-policy insurance, which comes with the lowest amount of coverage required by Texas law.

While the minimum-liability policy is the cheapest option for Austin drivers, it may not be enough to meet your own needs. The coverage won't financially protect your car if it's damaged in an accident, theft or natural disaster. Following these events, you'll have to pay for damage out of pocket. This can be expensive, especially if your car is new.

RankCompanyAnnual annual premium
1Loya$636
2State Farm$700
3Chubb$839
4GEICO$1,025
5Dairyland$1,051
6Nationwide$1,068
7Allstate$1,458
8MetLife$1,774
N/A*USAA$442
*USAA is only available to current and former military members and their families.

Cheapest full-coverage policy for Austin drivers

The cheapest full policy option is Loya, with an average annual premium of $1,144, or around $95 monthly. If you don't mind paying a bit extra, State Farm, which has an average cost of $1,519, is a great alternative.

Former and current military members should contact USAA, which has the second-cheapest full-coverage insurance rates.

RankCompanyAnnual annual cost
1Loya$1,144
2State Farm$1,519
3GEICO$2,212
4Nationwide$2,276
5Chubb$2,358
6Dairyland$3,766
7Allstate$4,459
8Metlife$5,266
N/A*USAA$1,277
*USAA is only available to current and former military members and their families.

The most notable difference between a full-coverage policy and a minimum-coverage policy is that a full policy includes comprehensive and collision coverage.

  • Comprehensive insurance pays for damage caused by factors out of your control, also known as "acts of God." These may include natural disasters, theft, fires and more.
  • Collision insurance protects your car from damage caused by driving into another vehicle or object. These are the most common types of accidents.

Most affordable full coverage for young people

The most affordable option for young people in Austin is Loya, at an average price of $3,720. If you or a relative were involved in the military, we recommend researching USAA, which has an average rate lower than the city average.

RankCompanyAnnual annual premium
1Loya$3,720
2GEICO$4,728
3State Farm$4,733
4Chubb$6,199
5Allstate$8,493
6Dairyland$8,512
7Nationwide$8,786
8Metlife$17,237
N/A*USAA$2,322
*USAA is only available to current and former military members and their families.

Drivers age 16–19 are nearly three times as likely to be in an accident than drivers over the age of 20, according to the Insurance Institute for Highway Safety. As a result, insurers see young drivers as a high risk and will charge a higher premium rate than the average middle-aged driver.

In fact, the average cost of a full-coverage policy for the average 18-year-old driver is more than twice as expensive as the cost of insurance for the average 30-year-old driver.

Given the steep price of auto insurance for young people, it's important to take the following steps to save as much money as possible:

  • Sign onto your family's insurance policy. Ask your parents or older relatives about getting a combined or multicar policy. Adding a teen to a family auto insurance policy is 44% cheaper, on average, than having two separate policies.
  • Look for discounts. Large companies, in particular, offer a wide range of discounts to drivers. You can receive discounts for getting good grades, installing anti-theft devices and taking safe driving courses. Combined, they can add up to a significant amount of savings.
  • Compare rates across multiple insurers. The difference between the most expensive and least expensive widely available insurer is nearly $15,000. To ensure you're getting the most affordable insurance, research several small and large companies to see what they offer.

Cheapest full coverage for drivers with an accident history

Following an accident, Nationwide, State Farm and Loya increased rates the least. The average Nationwide driver saw no increase in their annual premium following our sample at-fault accident that caused $2,000 in property damage.

Drivers insured under USAA also had one of the lowest price bumps after an accident. However, USAA has strict eligibility requirements and is only available to current and former military personnel.

RankCompanyRate before accidentRate after accidentDifference
1Loya$1,144$1,438$294
2State Farm$1,519$1,783$264
3Nationwide$2,276$2,276$0
4GEICO$2,212$3,451$1,240
5Chubb$2,358$4,002$1,644
6Dairyland$3,766$4,924$1,158
7Allstate$4,459$7,142$2,683
8Metlife$5,266$9,944$4,678
N/A*USAA$1,277$1,913$636
*USAA is only available to current and former military members and their families.

Accidents can drive up the costs of car insurance, but some insurers raise rates more than others. If you have an accident on your record, look for discounts that can offset the cost of an insurance rate increase.

Best Austin insurer, by customer service

Insurers that offer low-cost policies are not necessarily the best. Austin drivers need to take both price and service quality into account when deciding on insurers.

Loya has the cheapest rates across the board for minimum- and full-coverage insurance, but in exchange for affordable prices, customer service is sacrificed. The most common complaints by customers are slow response times and prolonged claims resolution.

The insurers with the best customer service, measured by the frequency of customer complaints, are:

  • Farmers
  • Chubb
  • Travelers

When shopping around for an insurance policy, you will need to find a balance between quality customer service and the best prices.

RankCompanyMarket shareComplaint Index
1Farmers Insurance6.7%0.16
2Chubb0.4%0.27
3Travelers (Consumers County Mutual)1.9%0.34
4Nationwide1.5%0.39
5Progressive13.9%0.4
6Berkshire Hathaway Inc.11.5%0.41
7Texas Farm Bureau Insurance2.8%0.42
8Allstate Corp.10.3%0.6
9State Farm12.2%0.69
9USAA7.1%0.69
11MetLife0.5%0.91
12Liberty Mutual4.1%0.93
13Sentry Insurance (Dairyland)0.5%1.03
14Loya Insurance0.9%2.01
Insurers were selected based on market share and quote availability. Complaint Index information is drawn from the National Association of Insurance Commissioners. The national median for the Complaint Index is 1.0, meaning companies with a lower index provide better customer service compared to the median company.

Average cost of car insurance, by Austin area

Austin is one of the largest cities in Texas with many distinct neighborhoods. The crime statistics and accident rates vary in each area, so it's no surprise insurance costs vary depending on where you live. But even if you live in an expensive neighborhood, you can still find great rates.

Bear Creek, the cheapest area of Austin, is $168 less expensive than East Riverside - Oltorf, which is located just outside of the city's center and is the most expensive area.

ZIP codeNeighborhoodAverage cost
78617Garfield$1,053
78653Manor$1,033
78701Downtown Austin$985
78702East Austin$1,030
78703Old West Austin / Tarrytown$981
78704South River City$993
78705North University$1,024
78710Congress Ave District$1,026
78712University of Austin$1,016
78717Avery South$952
78719Del Valle$1,024
78721MLK-183$1,059
78722Cherrywood$1,016
78723Windsor Park$1,055
78724Daffan$1,066
78725Garden Valley / Hornsby Glen$1,058
78726Grandview Hills$1,032
78727McNeil$989
78728Wells Branch$967
78729Jollyville$982
78730Westminster Glen$963
78731Northwest Hills$991
78732Steiner Ranch$947
78733Seven Oaks$962
78734Lakeway / Hudson Bend$933
78735Baton Creek$990
78736West Oak Hill$1,019
78737Bear Creek$920
78738Bee Cave / Spanish Oaks$963
78739Circle C Ranch$961
78741East Riverside - Oltorf$1,088
78742Montopolis$1,056
78744Southeast Austin$1,064
78745Garrison Park$1,002
78746Riverhills$968
78747Southern Hills$1,021
78748Southpark Meadows$1,043
78749Oak Hill$987
78750Anderson Mill$975
78751Hyde Park$1,040
78752St. Johns$1,038
78753North Lamar$1,069
78754Sprinkle$1,044
78756Brentwood$1,006
78757Allendale$946
78758North Austin$1,035
78759Northwest Austin$986
78799Downtown$993

Auto theft statistics in Austin

Out of the seven largest cities in Texas, Austin had the third-lowest rate of automobile theft. The city had theft rates similar to that of Corpus Christi, an area of Texas with nearly a third of Austin's population.

RankCityPopulationCar theftsThefts per 100,000 residents
1Dallas1,362,4655,207382.2
2Houston2,344,9666,028257.1
3San Antonio1,539,3283,492226.9
4Arlington400,920606151.2
5Austin973,3441,196122.9
6Corpus Christi328,614400121.7
7El Paso688,44239657.5

Car insurance companies in Austin, Texas

About 55% of consumer car insurance policies come from the five biggest insurers. The largest insurance groups in Austin are Progressive, State Farm and GEICO.

Larger companies have a wide range of discounts and policy options, but smaller companies may provide a more personal customer experience. You might have one contact with the company, rather than going through several insurance professionals.

RankInsurersDirect premiums writtenPercentage of direct premiums
1Progressive3,880,17313.92%
2State Farm3,409,87612.23%
3GEICO3,206,93611.50%
4Allstate Corp.2,867,68210.29%
5Farmers Insurance1,862,4306.68%
6Liberty Mutual1,143,0844.10%
7Texas Farm Bureau Insurance789,5832.83%
8Travelers766,3862.75%
9Nationwide425,8601.53%
10Auto Club Exchange388,5201.39%
N/A*USAA1,974,5177.08%
*USAA is only available to current and former military members and their families.

Minimum insurance requirement in Texas

Auto insurance coverage requirements are regulated at the state level. Every driver in Austin must carry at least this much coverage:

Purchasing the minimum requirements will save you money in the short-term. But you're responsible for covering damage costs out of pocket, which can get costly if you have an expensive car or you're in a big car accident. That's why drivers should consider getting full coverage or extending their coverage limits.

Methodology

We analyzed insurance data from nine Austin insurance companies. Our sample driver received quotes for a minimum-coverage policy and met the following profile:

  • 30-year-old man
  • Poor or no credit history
  • Owns a 2015 Honda Civic EX

In instances when our sample driver received quotes for a full-coverage policy, the following limits were in place:

Coverage typeStudy limit
Bodily injury liability$50,000 per person/$100,000 per accident
Property damage liability$25,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$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 insurer filings and should be used for comparative purposes only — your own quotes may be different.

Mark is a Senior Research Analyst for ValuePenguin focusing on the insurance industry, primarily auto insurance. He previously worked in financial risk management at State Street Corporation.

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.