Find Cheap Auto Insurance Quotes in Texas
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.
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.
Find Cheap Auto Insurance Quotes in Texas
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
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
|Rank||Company||Average annual premium|
|1||Fred Loya Insurance||$979|
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
|Rank||Company||Rates after accident||Rates before accident||Difference|
|1||Fred Loya Insurance||$1,215||$979||$236|
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
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.
|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|
|14||Fred Loya Insurance||0.9%||2.01|
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.
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:
- San Antonio
- 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.
|Rank||City||Average annual car insurance premiums|
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 company||Market share||2018 rate changes||2019 rate changes|
|Berkshire Hathaway (GEICO)||13.1%||7.4%||-2.7%|
|Texas Farm Bureau||3.3%||3.3%||3.5%|
|Consumers County Mutual||2.6%||4.0%||-0.6%|
|Top 10 groups||80.3%||1.4%||-1.9%|
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.
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 type||Study 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.