The Cheapest — and Best — Texas Car Insurance Companies (2023)

The Cheapest — and Best — Texas Car Insurance Companies (2023)

State Farm has the best cheap car insurance in Texas, at $29 per month for minimum liability coverage.

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Best cheap car insurance companies in Texas

To help you find the best cheap car insurance, our editorial team analyzed thousands of car insurance quotes from the top insurance companies in Texas. We ranked the cheapest companies for drivers based on factors like cost, customer support and coverage.

Minimum liability quotes meet the Texas state minimum requirements of $30,000 in bodily injury liability per person and $60,000 per accident plus $25,000 in property damage coverage. Full coverage quotes include higher liability limits plus comprehensive and collision coverage.

Cheapest liability auto insurance companies in Texas

State Farm offers the cheapest rate in Texas at $29 per month for minimum liability coverage. That's 39% cheaper than the average cost of minimum coverage in Texas. Other cheap companies include USAA, Farm Bureau and Geico, but USAA is only available to current and former military members and their families.

Cheapest car insurance companies in Texas

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The average cost of car insurance in Texas is $48 per month for a minimum liability policy.

Cheapest Texas auto insurance companies for minimum coverage

Company
Monthly rate
State Farm logo
State Farm$29
Farm Bureau logo
Farm Bureau$32
Geico logo
Geico$46
Allstate logo
Allstate$72
Progressive logo
Progressive$75
USAA logo
USAA$34

*USAA is only available to current and former military members and their families.

If you're looking for the cheapest car insurance possible, you could buy a policy that only meets Texas minimum state requirements for liability insurance.

Quotes for minimum coverage car insurance meet the legal requirements in Texas, which includes $30,000 in bodily injury liability per person and $60,000 per accident along with $25,000 in property damage coverage.

Minimum liability policies are cheap, but they may not protect you much after an accident.

At $60,000 per accident, the bodily injury liability limit for Texas policies may not cover the costs of injuries in a major crash. And minimum liability policies don't cover damage to your car, which is paid for by the comprehensive and collision insurance included in a full coverage policy.

Cheapest full coverage auto insurance: State Farm

State Farm, Farm Bureau and USAA are the cheapest insurance companies in Texas. All three offer full coverage policies that are less than $105 per month, which is much cheaper than average.

In Texas, the average cost of a full coverage policy is $136 per month.

Cheapest Texas auto insurance companies for full coverage

Company
Monthly rate
State Farm$72
Farm Bureau$85
Geico$110
Progressive$213
Allstate$232
USAA$104

*USAA is only available to current and former military members and their families.

Cheapest auto insurance after a speeding ticket: State Farm

State Farm and Farm Bureau have the cheapest full coverage rates for Texas drivers who received a speeding ticket — at least $65 per month cheaper than average.

A speeding ticket on your driving record will usually impact your car insurance rates, though typically not as much as an at-fault accident. Average auto insurance rates in Texas go up by 10% for a driver with a single speeding ticket on their record.

Cheapest Texas auto insurance companies after a ticket

Company
Monthly rate
State Farm$72
Farm Bureau$85
Geico$131
Allstate$232
Progressive$260
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Cheapest auto insurance after an at-fault accident: State Farm

State Farm, Farm Bureau and USAA raise your car insurance rates the least after an accident, offering rates less than $200 per month. One of the most important factors affecting car insurance rates is your driving history. If you cause an accident in Texas, insurance companies will raise your rates for full coverage by an average of 51%.

Cheapest Texas auto insurance companies after an accident

Company
Monthly rate
State Farm$86
Farm Bureau$134
Geico$174
Progressive$318
Allstate$363
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Cheapest auto insurance after a DUI: State Farm

State Farm, USAA and Farm Bureau are the most affordable companies for DUI or SR-22 drivers. Full coverage from State Farm costs $117 per month, which is 43% cheaper than the state average. Texans who receive a citation for driving under the influence (DUI) may find their insurance rates nearly double.

Cheapest Texas auto insurance companies after a DUI

Company
Monthly rate
State Farm$117
Farm Bureau$163
Geico$192
Progressive$241
Allstate$361
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Cheapest auto insurance for drivers with poor credit: Farm Bureau

Farm Bureau is the cheapest company for drivers with poor credit, with an average rate of $192 per month for full coverage.

Cheapest Texas auto insurance companies if you have poor credit

Company
Monthly rate
Farm Bureau$192
Geico$295
Allstate$328
Progressive$371
State Farm$376
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Texas drivers with low credit scores tend to pay more for insurance than those with good credit. Although your credit score doesn't reflect your driving ability, insurance companies have found that drivers with poor credit are more likely to file a claim, which makes them more expensive to insure.

Cheapest car insurance for teen drivers in Texas

Drivers in their teens are more likely to get into accidents than drivers with more experience, which is why insurance companies charge them higher insurance rates.

Average minimum coverage rates for an 18-year-old Texas driver are more than three times higher than quotes for a 30-year-old driver.

Cheapest Texas auto insurance companies for young drivers

Farm Bureau offers Texas teens the best car insurance rates for minimum coverage and full coverage. A minimum coverage policy from Farm Bureau costs $62 per month, and full coverage costs $140 per month.

Company
Liability only
Full coverage
Farm Bureau$62$140
State Farm$100$213
Geico$102$234
Progressive$339$1,063
Allstate$372$975
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Teen drivers should get full coverage insurance if they drive a newer car and can afford it. The difference in cost is significant; minimum coverage is $174 per month, compared to $468 per month for full coverage. However, having collision and comprehensive coverage is especially helpful for teens, who are more likely to get into an accident and need to pay for repairs to their car.

Cheapest car insurance for young drivers after a ticket or accident

Farm Bureau has the cheapest car insurance quotes for teen drivers in Texas after a speeding ticket or accident. A minimum coverage policy from Farm Bureau costs $62 per month after a single speeding ticket, which is $116 per month cheaper than average in Texas. Teen drivers that have caused an accident pay $89 per month for minimum coverage from Farm Bureau — $160 less per month than the state average.

Company
Speeding ticket
Accident
Farm Bureau$62$89
State Farm$100$116
Geico$112$146
Progressive$338$366
Allstate$372$672
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Young drivers in Texas can expect minimum coverage rates to increase by 2% after a speeding ticket and 43% after an accident.

Best car insurance companies in Texas

Farm Bureau is the best auto insurance company in Texas, thanks to cheap rates and some of the best customer service ratings in the state.

The best car insurance companies balance affordability and dependable service to give drivers great value. The best companies in Texas are Farm Bureau, USAA and State Farm.

Company
Editor's rating
J.D. Power
AM Best
Farm Bureau
NRA
USAA
881A++
State Farm
842A++
Geico
835A++
Allstate
824A+
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Average cost of car insurance in Texas by city

Marfa is the cheapest city in Texas for car insurance, with an average rate of $114 per month for a full coverage policy. North Houston is the most expensive city at $175 per month.

How much do people pay on average for car insurance in the state of Texas? Texas drivers looking for a full coverage policy will pay $136 per month, on average. But average rates can vary by $61 per month for full coverage, depending on where you live.

City
Average monthly cost
Percent from average
Abbott$117-14%
Abernathy$1371%
Abilene$129-5%
Abram$15715%
Ace$1403%
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Auto insurance in Texas: Minimum liability insurance requirements

Texas requires drivers to have a minimum amount of liability insurance, sometimes written as 30/60/25. Other types of coverage are optional, like collision, comprehensive, personal injury protection and uninsured motorist coverage.

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

It's a good idea to increase your coverage limits above the state-mandated minimums if you can afford it. If you're involved in a serious car accident, your insurance company will only cover you up to the amounts on your policy. You'll be responsible for paying any medical bills or car repair costs that are more expensive than your car insurance limits.

Frequently asked questions

Who has the cheapest car insurance in Texas?

State Farm has the best rate for minimum coverage, at an average price of $29 per month, and the lowest rate for full coverage, at $72 month. Your rate will be different based on where you live, your car and your driving history.

How much is car insurance in Texas?

The average price of car insurance in Texas is $48 per month for minimum coverage, and full coverage is $136 per month, on average.

Why is auto insurance so expensive in Texas?

Car insurance in Texas is not expensive compared to other states. For a full coverage policy, insurance in Texas is 9% less expensive than the national average. Minimum coverage in Texas is 17% cheaper than the national average. However, Texas also has several major cities with lots of traffic, which leads to higher risks of car accidents and theft, so drivers living in these areas may have more expensive rates.

How much car insurance do I need in Texas?

The minimum car insurance required in Texas is often referred to as 30/60/25, which means bodily injury liability with $30,000 per person and $60,000 per incident coverage, plus $25,000 of property damage liability coverage.

Methodology

We collected thousands of rates from ZIP codes across Texas for the largest insurance companies. Quotes are for a 30-year-old man with good credit who drives a 2015 Honda Civic EX.

Unless otherwise noted, rates are for a full coverage policy with collision, comprehensive and liability coverage:

Coverage type
Study limits
Bodily injury liability$50,000 per person/$100,000 per accident
Personal injury protection$10,000
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.

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.