Find Cheap Auto Insurance Quotes in Austin, TX
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.
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.
Find Cheap Auto Insurance Quotes in Austin
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.
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.
|Rank||Company||Annual annual cost|
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.
|Rank||Company||Annual annual premium|
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.
|Rank||Company||Rate before accident||Rate after accident||Difference|
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:
When shopping around for an insurance policy, you will need to find a balance between quality customer service and the best prices.
|Rank||Company||Market share||Complaint Index|
|3||Travelers (Consumers County Mutual)||1.9%||0.34|
|6||Berkshire Hathaway Inc.||11.5%||0.41|
|7||Texas Farm Bureau Insurance||2.8%||0.42|
|13||Sentry Insurance (Dairyland)||0.5%||1.03|
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 code||Neighborhood||Average cost|
|78703||Old West Austin / Tarrytown||$981|
|78704||South River City||$993|
|78710||Congress Ave District||$1,026|
|78712||University of Austin||$1,016|
|78725||Garden Valley / Hornsby Glen||$1,058|
|78734||Lakeway / Hudson Bend||$933|
|78736||West Oak Hill||$1,019|
|78738||Bee Cave / Spanish Oaks||$963|
|78739||Circle C Ranch||$961|
|78741||East Riverside - Oltorf||$1,088|
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.
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.
|Rank||Insurers||Direct premiums written||Percentage of direct premiums|
|7||Texas Farm Bureau Insurance||789,583||2.83%|
|10||Auto Club Exchange||388,520||1.39%|
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.
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 type||Study 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.