The Cheapest — and Best — Texas Car Insurance Companies (2022)

The Cheapest — and Best — Texas Car Insurance Companies (2022)

State Farm has the best cheap car insurance in Texas, at $450 per year or $38 per month for minimum liability coverage.

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To help you compare the best cheap car insurance in Texas, our editorial team analyzed car insurance quotes from major insurance companies in every Texas city. We ranked the cheapest companies by policy coverage, driver age and driving record. We also rated the best Texas car insurance companies based on cost, customer support and other factors.

Cheapest liability auto insurance in Texas: State Farm

For minimum liability coverage, State Farm offers the cheapest quotes in Texas at $450 per year. That's 32% cheaper than the average cost of minimum coverage in Texas, which is $666 annually.

Other cheap companies include USAA and Geico, though USAA is only available to current and former military members and their families.

Cheapest car insurance companies in Texas

Find Cheap Auto Insurance Quotes in Texas

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The average monthly cost of car insurance in Texas is $56 per for a minimum liability policy.

Cheapest Texas auto insurance quotes for minimum coverage

Company
Annual rate
Monthly rate
State Farm$450$38
Geico$603$50
Dairyland$776$65
Chubb$819$68
Nationwide$873$73
USAA*$477$40

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

For instance, the bodily injury liability limit for Texas policies is 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 car, which falls under the comprehensive and collision insurance included in a full coverage policy.

Cheapest full coverage auto insurance quotes: State Farm

The cheapest insurance companies for full coverage in Texas are the same as those for minimum liability: State Farm, USAA and Geico..

  • State Farm: This is the cheapest insurer overall. A full coverage policy from State Farm costs an average of $1,094 per year.
  • USAA: Full coverage policies with USAA cost an average of $1,403 per year, though you must qualify for membership.
  • Geico: At $1,448 per year, Geico is still at least $789 per year cheaper than any other insurer but State Farm and USAA.

Cheapest Texas auto insurance companies for full coverage

Company
Annual rate
Monthly rate
State Farm$1,094$91
Geico$1,448$121
Chubb$2,237$186
Nationwide$2,400$200
Dairyland$2,649$221
USAA*$1,403$117

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

Full coverage refers to auto insurance that includes comprehensive and collision insurance. In Texas, the average annual cost of a full coverage policy is $1,872.

Full coverage policies can vary in price and coverage across insurers. For instance, Dairyland policies cost an average of $2,649 per year in Texas, nearly two and a half times as expensive as State Farm. That's why you should compare quotes from top insurance companies in Texas to find the best deal for you.

Cheapest Texas car insurance quotes after a speeding ticket: State Farm

A speeding ticket on your driving record may also impact your car insurance rates, though generally not as much as an at-fault accident. Our analysis found that average auto insurance rates in Texas go up by 93% for a driver with a single speeding ticket on their record.

State Farm and Chubb, however, may charge the same rates both before and after a speeding ticket. We recommend Texan drivers who received a speeding ticket consider a policy from either Geico or State Farm. These companies offer affordable full coverage policies, each at least $399 cheaper than average.

Cheapest Texas auto insurance companies after a speeding ticket

Company
Annual rate
Monthly rate
State Farm$1,094$91
Geico$1,717$143
Chubb$2,237$186
Nationwide$2,914$243
Dairyland$3,148$262
USAA*$1,585$132

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

Cheapest auto insurance after an at-fault accident: State Farm

One of the most important factors affecting car insurance rates is your driving history. If you're at fault for an accident in Texas, insurers will raise your rates for full coverage by an average of 149%. After raising rates, the cheapest companies remained the same: State Farm, Geico and USAA.

Cheapest Texas auto insurance companies after an accident

Company
Annual rate
Monthly rate
State Farm$1,294$108
Geico$2,214$185
Chubb$3,408$284
Dairyland$3,519$293
Nationwide$3,768$314
USAA*$2,115$176

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

Drivers who were recently involved in an accident should check out State Farm, as the change in rates is relatively minor ($200).

Cheapest auto insurance after a DUI: State Farm

Texans who receive a citation for driving under the influence (DUI) may find that their rates increase by 185%, from $1,872 before a citation to $3,114 after an accident. State Farm, Geico and USAA remain the most affordable insurers for drivers, offering rates that are 36%, 16% and 32% cheaper than the state average, respectively.

Cheapest Texas auto insurance companies after a DUI

Company
Annual rate
Monthly rate
State Farm$2,001$167
Geico$2,607$217
Dairyland$2,663$222
Chubb$4,459$372
Nationwide$4,839$403
USAA*$2,115$176

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

Dairyland stands out from other insurers for its minimal rate increase after a DUI. The annual premium from Dairyland is only $14 more expensive for drivers with a DUI. The cheapest insurers overall, however, are State Farm, Geico and USAA, in keeping with the state trend.

Cheapest auto insurance for drivers with poor credit: State Farm

Insurance companies set rates based on the perceived risk a driver poses, and many regard drivers with a low credit score as more likely to file a claim than drivers with fair, good or excellent credit. State Farm is the cheapest option for drivers with poor credit, with an average rate of $2,034 per year for full coverage.

Cheapest Texas auto insurance for drivers with poor credit

Company
Annual rate
Monthly rate
State Farm$2,034$169
Nationwide$2,996$250
Geico$3,022$252
Dairyland$3,301$275
Chubb$3,408$284
USAA*$2,122$177

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

State Farm's affordable rates make it the best option for drivers with a low credit score in Texas.

Cheapest car insurance quotes for young drivers in Texas

Drivers in their teens are more likely to get into accidents than adult drivers, making insurers see them as riskier to insure. Average minimum coverage premiums for an 18-year-old Texan driver are 221% higher than premiums for a 30-year-old driver.

ValuePenguin recommends that teen drivers get full coverage insurance if at all possible. The difference in cost is significant; the average annual premium for minimum coverage is just $2,136, compared to $5,099 for full coverage. However, having collision and comprehensive coverage is particularly helpful for teens, who are statistically more likely to get into an accident and need to pay for repairs to their car.

Cheapest Texas auto insurance companies for teen drivers

Geico offers Texan teens the best rates for minimum coverage. An annual policy costs $1,329, which is $807 cheaper than the state average. The best rates for full coverage also come from Geico, which charges teen drivers $3,082 annually.

Company
Liability only
Full coverage
Geico$1,329$3,082
State Farm$1,533$3,246
Chubb$2,580$5,771
Dairyland$2,638$6,722
Nationwide$3,762$9,248
USAA*$976$2,526

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

Best car insurance companies in Texas

State Farm has affordable rates and one of the best customer service ratings in Texas.

The best insurers balance affordability and experience to give drivers great value. Based on ValuePenguin's editor's ratings, which factor in coverage options, customer service and rates, State Farm is the best car insurance company in Texas.

Geico, USAA and Chubb are also good companies, though not everyone will qualify for USAA, and Chubb's quotes are often on the higher end.

Company
Editor's rating
J.D. Power
AM Best
State Farm
838A++
Geico
832A++
Chubb
NRA++
Nationwide
831A+
Dairyland
NRA+
USAA
879A++

Average cost of car insurance in Texas by city

Veribest is the cheapest city in Texas for car insurance, with an average quote of $1,500 per year for a full coverage policy. Aldine is the most expensive city at $2,458 per year.

How much do people pay on average for car insurance in the state of Texas? For a minimum coverage policy, it's $666 per year. And those looking for a full coverage policy will pay $1,872 per year on average. Across the state, average rates can vary by $958 per year for full coverage.

City
Average annual cost
Percent from average
Abbott$1,664-11%
Abernathy$1,730-8%
Abilene$1,722-8%
Abram$2,17316%
Ace$1,831-2%
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Auto insurance in Texas: Minimum liability insurance requirements

Texas sets minimum car insurance liability limits across the state. Other types of coverage are optional, such as collision and comprehensive, personal injury protection 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

We usually recommend increasing your coverage limits beyond the state-mandated minimums. 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.

Frequently asked questions

Which company has the cheapest car insurance in Texas?

State Farm has the best rate for minimum coverage, at an average price of $450 per year, and the lowest rate for full coverage, at $1,094 annually. But keep in mind that everyone's rate will be different based on where they live, what car they have and their driving history.

How much is car insurance in Texas?

We found that the average price of car insurance in Texas is $666 per year, or $56 per month, for minimum coverage. The average cost of full coverage including comprehensive and collision is $1,872 per year, or $156 per month. But keep in mind that you'll pay a different rate based on your driver profile.

Why is auto insurance so expensive in Texas?

For a full coverage policy, insurance in Texas is 4% less expensive than the national average, but it's one of the most expensive states for car insurance in the South. Our study found that Texas ranks as the 21st most expensive state for a minimum coverage policy, at $672 per year on average. Part of the reason it's more expensive is that Texas has higher minimum insurance requirements than many other states. Texas also has several major cities with lots of traffic, which leads to higher risks of car accidents and theft.

How much car insurance do I need in Texas?

The minimum amount of insurance required in Texas is $30,000 per person/$60,000 per crash of coverage for bodily injury liability and $25,000 per crash of property damage liability coverage. However, you should consider getting more coverage based on your net worth, the value of your car and how often you drive.

Can I get cheap car insurance with no deposit in Texas?

No insurer will allow you to get coverage without paying at least some money, but some insurers require smaller first payments than others.

Methodology

We collected thousands of rates from ZIP codes across Texas for the largest insurers. We used a sample driver with the following profile:

  • 30-year-old man
  • Drives a 2015 Honda Civic EX
  • Average credit

The base policy for the study was a full coverage policy:

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

For our minimum coverage policy, we collected quotes for a policy with the minimum required limits in Texas.

For other rates analyses (credit score, accident history), the base policy listed above was changed to reflect the new driver. Rates for young drivers are quoted as minimum coverage policies, unless otherwise stated.

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.