Best Car Insurance Rates in Texas (2020)

Find Cheap Auto Insurance Quotes in Texas

Currently insured?
{"id":7,"isAgeFieldVisible":true,"isInsuranceTypeFieldVisible":true,"isInsuredStatusFieldVisible":true,"buttonText":"Texas Quotes","customEventLabel":"","defaultZip":"","defaultProduct":"auto","quoteWizardEndpoint":"https:\/\/quotes.valuepenguin.com","trackingKey":"_car-insurance-rates-texas-study","tier":"VPT1","title":"Find Cheap Auto Insurance Quotes in Texas","vendor":"vp","style":"dropshadow"}

ValuePenguin analyzed car insurance quotes across Texas from nine major companies to identify the cheapest insurers and rates in the state. Our analysis showed a wide range in costs from company to company.


Cheapest auto insurer

State Farm logo
Read More

Best for customer service

Farmers logo
Read More

For example, in Houston, the difference between the cheapest and the most expensive company was $1,879 a year. This is why consumers should shop around to get the right rates.

Enter your ZIP code above now to start shopping for great auto rates in your area among the top U.S. insurers, or read more by clicking on the sections below.

Cheapest auto insurance companies in Texas

If you're looking for the cheapest car insurance possible, you could buy one that only meets Texas minimum state requirements. For this type of policy, State Farm is the cheapest major, widely available insurer. Fred Loya Insurance, a smaller insurer headquartered in El Paso, is the cheapest overall company without eligibility requirements. State Farm policies cost an average of $617 per year, while Fred Loya policies cost an average of $545.

However, if you're a former or current military member in Texas, you're eligible for a policy with USAA. On average, it had cheaper rates than either State Farm or Fred Loya Insurance.

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

Find Cheap Auto Insurance Quotes in Texas

Currently insured?
{"id":8,"isAgeFieldVisible":true,"isInsuranceTypeFieldVisible":true,"isInsuredStatusFieldVisible":true,"buttonText":"Texas Quotes","customEventLabel":"","defaultZip":"","defaultProduct":"auto","quoteWizardEndpoint":"https:\/\/quotes.valuepenguin.com","trackingKey":"_car-insurance-rates-texas-study","tier":"VPT1","title":"Find Cheap Auto Insurance Quotes in Texas","vendor":"vp","style":"dropshadow"}

Below, we rank major insurers in the state from lowest to highest average prices. The companies ranked highest are a good place to start finding low-cost insurance. Read on to see how much a full-coverage policy may cost in different situations.

Cheapest Texas auto insurance companies for minimum coverage, ranked

RankCompanyAverage annual premium
1Fred Loya Insurance$545
2State Farm$617
3Chubb$753
4GEICO$940
5Dairyland$959
6Nationwide$1,112
7Allstate$1,395
8MetLife$1,831
N/A*USAA$403
*USAA is not ranked because only military members (current and former) and their families are eligible.

Minimum-liability policies are cheap, but they may not adequately protect you in the event of an accident.

For instance, bodily injury liability limits for Texas policies are only $60,000 per accident, which may not cover the costs of injuries in a major crash. And minimum-liability policies don't cover damage to your vehicle, which falls under the comprehensive and collision insurance included in a full-coverage policy.

Cheapest full-coverage auto insurance: State Farm and Fred Loya Insurance

There is no single definition of a full-coverage policy, but the term usually refers to auto insurance that includes comprehensive and collision insurance. In Texas, the cheapest insurance companies for full coverage are the same as those for minimum liability: USAA, Fred Loya Insurance and State Farm.

  • Fred Loya Insurance: At $979 per year, Fred Loya is easily the cheapest option in Texas for full coverage among our surveyed insurers.
  • USAA: Full-coverage policies with USAA costs an average of $1,292 per year for our sample driver, though you must qualify for membership.
  • State Farm: This is the cheapest insurer that has a major market share — so it's widely available — and no eligibility requirements. A full-coverage policy from State Farm costs an average of $1,458 per year.

Full-coverage policies can have huge variations in prices across insurers. For instance, MetLife policies cost our driver an average of $5,405 per year in Texas, more than five times as expensive as Fred Loya Insurance. The variation in prices means that when you look for quotes for a full coverage policy you should compare at least three companies.

Cheapest Texas auto insurance companies for full coverage, ranked

RankCompanyAverage annual premium
1Fred Loya Insurance$979
2State Farm$1,458
3GEICO$2,140
4Chubb$2,281
5Nationwide$2,481
6Dairyland$3,399
7Allstate$4,496
8MetLife$5,405
N/A*USAA$1,292
*USAA is not ranked because only military members (current and former) and their families are eligible.

Cheapest auto insurance after an at-fault accident: State Farm and Fred Loya Insurance

One of the most important factors affecting car insurance rates — in Texas and elsewhere — is your driving history. We found that if you're at fault for an accident causing $2,000 in property damage, these insurers will raise your rates by an average of 43%. After raising rates, the cheapest companies remained the same: Fred Loya Insurance, State Farm and USAA.

Cheapest Texas auto insurance companies for full coverage after an accident, ranked

RankCompanyRates after accidentRates before accidentDifference
1Fred Loya Insurance$1,215$979$236
2State Farm$1,695$1,458$238
3Nationwide$2,481$2,481$0
4GEICO$3,312$2,140$1,172
5Chubb$3,865$2,281$1,585
6Dairyland$4,431$3,399$1,032
7Allstate$7,110$4,496$2,614
8MetLife$10,190$5,405$4,785
N/A*USAA$1,924$1,292$632
*USAA is not ranked because only military members (current and former) and their families are eligible.

Drivers who were recently involved in an accident should check out State Farm and Fred Loya Insurance, as the change in rates were relatively minor (under $250).

Best car insurance companies in Texas

Price shouldn't be the only factor Texans use when choosing a car insurance company. You should also look for a great customer service reputation. The best insurers balance affordability and experience to give drivers great value.

Based on the low rates of customer complaints, the best major insurance companies in Texas are:

  • Farmers Insurance
  • Chubb
  • Travelers

If you're looking for great service we do not recommend Fred Loya Insurance. Our research found that it's the cheapest insurer in the state, but Loya has a very high rate of customer complaints. In fact, customers complain about Fred Loya more than any of our sample insurers and at twice the rate of the median insurer across the country. So while drivers may get savings, they risk having an unsatisfactory claims and service experience.

Chubb on the other hand, is relatively cheap and has one of the best service ratings in the state, making it a great starting point for car insurance shoppers.

Below, we rank Texas insurers by their National Association of Insurance Commissioners (NAIC) Complaint Index; in other words, the rate at which Texans file official complaints to their state regulator. A lower Complaint Index means customers complain about a company at a lower rate, adjusted for the company’s size.

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
14Fred Loya 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.

Cheap car insurance in Texas, by city

We analyzed auto liability insurance rates in each city to identify the top three insurers with the lowest rates. In the table below, we've prepared a list of 50 largest cities in Texas — where quotes were available — along with the city's three lowest-cost insurers and average premiums to give drivers a sense of costs.

And although rates can vary a lot by location, the cheapest insurance companies in each city are generally the same ones that are the cheapest on average in the whole state: USAA, State Farm and Fred Loya Insurance. If price is your main concern, these three companies are a great place to start when you compare quotes.

CityCompanyAnnual premium
AbileneUSAA$322
State Farm$530
Loya$611
AllenUSAA$446
Loya$709
State Farm$766
AmarilloUSAA$370
Loya$501
State Farm$631
ArlingtonUSAA$460
Loya$730
State Farm$740
AustinUSAA$442
Loya$636
State Farm$700
BaytownUSAA$458
State Farm$715
Loya$787
BeaumontUSAA$466
Loya$611
State Farm$781
BrownsvilleLoya$339
USAA$488
State Farm$708
BryanUSAA$366
Loya$560
State Farm$584
CarrolltonUSAA$483
Loya$660
State Farm$759
Cedar ParkUSAA$424
Loya$630
State Farm$661
College StationUSAA$361
Loya$587
State Farm$599
ConroeUSAA$453
State Farm$707
Loya$759
Corpus ChristiUSAA$437
Loya$502
State Farm$718
DallasUSAA$503
Loya$728
State Farm$793
DentonUSAA$431
Loya$652
State Farm$695
EdinburgLoya$396
USAA$512
State Farm$773
El PasoLoya$356
USAA$406
State Farm$626
Flower MoundUSAA$417
Loya$652
State Farm$675
Fort WorthUSAA$437
State Farm$695
Loya$711
FriscoUSAA$470
Loya$719
State Farm$719
GarlandUSAA$490
Loya$712
State Farm$850
Grand PrairieUSAA$473
Loya$725
State Farm$762
HoustonUSAA$526
Loya$777
State Farm$791
IrvingUSAA$486
Loya$702
State Farm$745
KilleenUSAA$344
State Farm$560
Loya$639
LaredoLoya$343
USAA$452
State Farm$640
League CityUSAA$442
Loya$611
State Farm$653
LewisvilleUSAA$462
Loya$652
State Farm$715
LongviewUSAA$438
Loya$611
State Farm$654
LubbockUSAA$395
Loya$505
State Farm$649
McAllenLoya$373
USAA$521
State Farm$770
McKinneyUSAA$444
Loya$709
State Farm$744
MesquiteUSAA$510
Loya$715
State Farm$846
MidlandUSAA$344
Loya$505
State Farm$580
New BraunfelsUSAA$401
Loya$538
State Farm$614
OdessaUSAA$368
Loya$500
State Farm$632
PasadenaUSAA$481
State Farm$753
Loya$783
PearlandUSAA$523
Loya$611
State Farm$711
PharrLoya$396
USAA$522
State Farm$780
PlanoUSAA$463
Loya$709
State Farm$751
RichardsonUSAA$477
Loya$684
State Farm$811
Round RockUSAA$410
Loya$641
State Farm$659
San AngeloUSAA$309
State Farm$492
Loya$498
San AntonioUSAA$485
Loya$719
State Farm$745
Sugar LandUSAA$528
Loya$734
State Farm$745
TempleUSAA$349
State Farm$545
Chubb$619
TylerUSAA$430
Loya$611
State Farm$660
WacoUSAA$373
Loya$525
State Farm$608
Wichita FallsUSAA$306
Loya$350
State Farm$523

If you're interested in more information on how car insurance rates in Texas change by location, we've dug into the five biggest cities in the state by population to show how insurers alter prices:

on_current="true" Houston San Antonio Dallas Austin Fort Worth

Areas with denser populations tend to have higher car insurance rates, and all five of these cities have rates higher than the state average.

Auto insurance in Houston, TX

  • Average annual cost = $1,284 (Most expensive out of 50 cities)
  • 35% more expensive than Texas average

Houston is the most populous and the most expensive city in Texas for car insurance. Companies tend to charge much higher rates here than anywhere else. Dairyland almost doubled its rates.

USAA is the cheapest company on average, costing our sample driver $526 per year.

Auto insurance in San Antonio, TX

  • Average annual cost = $1,072 (19th most expensive out of 50 cities)
  • 13% more expensive than Texas average

San Antonio is not nearly as expensive as Houston, but it still ranks as one of the pricier metro areas in the state.

In San Antonio, Chubb only increased its rates by 12% from its state average. It's not as cheap as USAA, Loya or State Farm, but it has the best customer service reputation of the bunch and is worth looking into if you live in the area.

Auto insurance in Dallas, TX

  • Average annual cost = $1,164 (7th most expensive out of 50 cities)
  • 22% more expensive than Texas average

Dallas is the second most expensive city of these five, though it's not nearly as pricey as Houston. Drivers here can expect to pay 22% more than the average Texan.

USAA, Loya and State Farm remain the cheapest options here. Insurers such as Allstate and Dairyland — expensive to begin with — are even less affordable in Dallas, raising rates by 30% compared to their average rates for Texas as a whole.

Auto insurance in Austin, TX

  • Average annual cost = $999 (30th most expensive out of 50 cities)
  • 5% more expensive than Texas average

Austin is notably cheap for its population. Although its rates are more expensive than the Texas state average, it's relatively affordable compared to other major cities.

In fact, Nationwide and MetLife have lower rates in Austin than they do for the state as a whole, though both companies are relatively expensive to begin with.

Auto insurance in Fort Worth, TX

  • Average annual cost = $1,020 (28th most expensive out of 50 cities)
  • 7% more expensive than Texas average

Fort Worth has similarly affordable car insurance rates to Austin. Despite its size, its average rates are only 7% more than the Texas average.

USAA — already the cheapest company on average — only raises rates by 8% in the Fort Worth area. And Chubb, the company with one of the best service reputations, only raises rates by 4%, meaning that in Fort Worth it's not much more expensive than Loya.

Average cost of car insurance in Texas, by city

How much do people pay on average for car insurance in the state of Texas? For a minimum-coverage policy, it's $951 per year, according to our data. And those looking for a full-coverage policy will pay as much as $2,659 per year.

But those numbers are an average for the state as a whole. Across the state, average rates can vary by more than $500 per year.

  • Of the 50 most populous cities, San Angelo is the cheapest in Texas for car insurance, with average rates of $729 per year for a minimum-coverage policy.
  • Houston is the most expensive major city; its average rates are $1,284 per year.
RankCityAverage annual car insurance premiums
1San Angelo$729
2Wichita Falls$783
3Midland$798
4Abilene$804
5Temple$812
6Waco$816
7Lubbock$836
8Killeen$842
9Amarillo$845
10Bryan$852
11Odessa$854
12El Paso$854
13College Station$861
14New Braunfels$917
15Denton$951
16Flower Mound$957
17Cedar Park$969
18Tyler$970
19Round Rock$971
20Longview$981
21Austin$999
22Conroe$1,009
23Fort Worth$1,020
24Laredo$1,035
25Pearland$1,055
26League City$1,059
27McKinney$1,061
28Corpus Christi$1,061
29Allen$1,066
30Frisco$1,069
31San Antonio$1,072
32Arlington$1,073
33Lewisville$1,078
34Brownsville$1,081
35Richardson$1,093
36Plano$1,099
37Carrollton$1,104
38Irving$1,106
39Sugar Land$1,115
40Grand Prairie$1,141
41Mesquite$1,147
42Beaumont$1,147
43Baytown$1,159
44Garland$1,162
45Dallas$1,164
46McAllen$1,188
47Pharr$1,189
48Edinburg$1,210
49Pasadena$1,217
50Houston$1,284

Texas auto insurance rate increases

Across the 10 largest car insurance companies in Texas, auto insurance rates actually decreased by 1.9% in 2019. This is good news for Texas drivers, considering average year-over-year rates increased by 5.7% across these companies from 2014 to 2018, and by 9.3% in 2017 alone.

Auto insurance companyMarket share2018 rate changes2019 rate changes
State Farm15.0%-8.0%-7.7%
Berkshire Hathaway (GEICO)13.1%7.4%-2.7%
Allstate11.7%0.1%1.0%
Progressive11.2%0.0%-1.7%
USAA8.4%2.0%0.0%
Farmers8.2%4.7%2.5%
Liberty Mutual5.2%7.3%-1.9%
Texas Farm Bureau3.3%3.3%3.5%
Consumers County Mutual2.6%4.0%-0.6%
Nationwide1.8%9.4%-7.9%
Top 10 groups80.3%1.4%-1.9%
2019 rate change figures represent the year-to-date change (reported by the NAIC) as of Dec. 30, 2019

Although rates in Texas went down last year, companies may raise rates for a number of reasons, one of which is to account for greater losses. Common reasons for increased car insurance losses are more frequent accidents, costlier car repairs or natural disasters.

Auto insurance in Texas: Minimum liability insurance requirements

Texas imposes car insurance coverage limits across the state. Drivers must buy a certain level of liability coverage, outlined below. Other types of coverage are optional, such as collision and comprehensive, medical payments coverage and uninsured motorist coverage.

  • Bodily injury (BI) liability insurance: $30,000 per person/$60,000 per accident
  • Property damage (PD) liability insurance: $25,000 per accident

Drivers should calculate their assets and purchase enough coverage bodily injury liability insurance per accident to protect at least this amount. If you're involved in a serious car accident, your insurer will only cover you up to the amounts on your policy. You'll be on the hook for any medical bills or car repair costs that exceed your car insurance limits.

Methodology

Rates were drawn for nine companies in thousands of Texas cities. Our sample driver was a 30-year-old male driving a 2015 Honda Civic EX. Unless noted otherwise, rates were for this driver, who had a below-average credit record and was quoted for a minimum-coverage policy. When we used a full-coverage policy, it had the following limits:

Coverage typeStudy limits
Bodily liability$50,000 per person/$100,000 per accident
Property damage$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.