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The average cost of car insurance in Austin is $1,894 per year, or $158 per month for full coverage and $541 per year (or $45 per month) for minimum coverage. The good news is that if you’re a driver in Austin, average car insurance rates in the city are slightly below the average cost of insurance across Texas, which is $2,019 per year for full coverage and $565 for minimum coverage. According to Bankrate’s research, some of the best cheap car insurance companies in Austin, Texas include USAA, State Farm, and Geico.
Best cheap car insurance companies in Austin
Bankrate partnered with Quadrant Information Services to analyze the cheapest car insurance rates in Austin. Our insurance editorial team also examined things like coverage options, available discounts, financial strength ratings from AM Best and customer satisfaction ratings from the 2022 J.D. Power U.S. Auto Insurance Study. We assigned each carrier a Bankrate Score based on all available information. Each score is on a five-point scale (with 5.0 being the best) and provides a snapshot of how the best car insurance companies in Austin compare based on the attributes listed above. Based on our research, we found that State Farm, Geico, Nationwide, USAA and Allstate offered the best cheap car insurance in Austin.
|Insurance company||Bankrate Score||J.D. Power score (Texas)||Average annual premium for full coverage||Average annual premium for minimum coverage|
*Not officially ranked with J.D. Power due to eligibility restrictions.
State Farm made the top of our list for having the cheapest annual full coverage car insurance rates in Austin. The insurance company also performs extremely well in the 2022 J.D. Power Customer Satisfaction Study. Additionally, Austin drivers may be able to take advantage of multiple discounts and coverage options offered by State Farm. Policyholders may add options such as rental car reimbursement and rideshare coverage for greater flexibility or benefit from the service and expertise of local State Farm agents. However, drivers should keep in mind that State Farm does not offer 24/7 customer service.
Learn more: State Farm Insurance review
Geico offers some of the cheapest rates among the car insurance companies we studied in Austin; however, the company performs slightly below average in the J.D. Power study for customer satisfaction. Although Geico does not offer the cheapest full coverage rates in Austin, drivers may find additional ways to save on premiums with potential discounts. These discount opportunities range from paperless billing and new vehicle discounts to savings for having safety equipment, such as airbags and anti-lock brakes. Drivers looking for additional endorsements will find that options may be limited, however.
Learn more: Geico Insurance review
Nationwide is one of the cheapest car insurance companies in Austin for full and minimum coverage, according to our study. While the rates are competitive in the area overall, Nationwide also offers a wide range of discounts for drivers for potential additional savings. Drivers who participate in an approved driver safety program or enroll in paperless billing can typically qualify for a discounted premium. However, Nationwide did not earn a score in the 2022 J.D. Power Auto Customer Satisfaction Study (Texas region), so drivers interested in the company may want to do further research on its customer satisfaction in the Austin area.
Learn more: Nationwide Insurance review
USAA also offers some of the cheapest rates in Austin, but it stands out for its superior customer experience. However, coverage with the company is limited to current or former members of the U.S. military and their immediate families. Drivers who do qualify may benefit from its high customer service ratings and available digital tools. The company also offers potential discounts that are specifically tailored to members of the armed forces. USAA also achieves an A++ (Superior) AM Best rating for financial strength, the highest rating available.
Learn more: USAA Insurance review
Allstate ranks as one of the cheapest car insurance companies in Austin, but its average rates are the highest on our list of cheapest car insurance rates for full coverage. However, Allstate still offers additional advantages for drivers and has earned an A+ (Superior) AM Best rating for financial stability. Allstate also offers tools for added convenience, including obtaining a quote and purchasing a policy online or for managing insurance via its mobile app. Despite having a higher rate, discounts could help drivers save, including multiple policy savings, having safety equipment and new car discounts. While it earns a below-average J.D. Power score, Allstate’s mobile app is highly-rated and offers customers the ability to manage insurance needs from a smartphone, like filing claims and updating policy coverages.
Learn more: Allstate Insurance review
How to get and keep the cheapest car insurance in Austin
Finding the cheapest car insurance in Austin may take some research. Once you find the best car insurance for your specific needs, you’ll want to review your policy annually to ensure your rates remain low. Your car insurance company will likely evaluate your level of risk every time your policy renews. The good news is that there are several ways to get and keep the cheapest car insurance in Austin:
- Compare multiple insurance providers. Shopping around and gathering quotes from several insurance providers gives you a true picture of the cheapest car insurance companies for you. Rates differ from company to company and person to person, so whether you are obtaining a new policy or reviewing your existing policy, shopping around may help you find the best rates. Additionally, car insurance companies offer different discounts, so shopping around can help you identify which companies offer the most discounts applicable to your situation.
- Shop around after life events. When you move to a new home, relocate for a job, get married or add a teenage driver to your policy, it provides a prime opportunity to compare providers and find cheaper insurance companies for your changed circumstances. You may be able to modify your coverage or take advantage of new or additional discounts for greater savings based on your changed life circumstances.
Frequently asked questions
Finding the best car insurance company for your needs will largely depend on which insurer attributes are most important to you. While finding the cheapest rates is a significant priority for many drivers, looking at an insurance provider’s customer service ratings, coverage options, discounts and financial strength ratings will also offer insight into which insurer is the best for your situation.
The average cost of car insurance in Texas is $2,019 per year for full coverage or $168 monthly. Minimum coverage in Austin costs an average of $565 per year or $47 monthly. It’s important to note the cost of car insurance in Texas can be impacted by a variety of factors, including ZIP code, make and model, motor vehicle history and how many miles you drive per year. Comparing quotes from more than one insurer will give you the best idea of how much car insurance costs in Texas for your situation.
When it comes to car insurance, there isn’t one scenario that fits all. The cheapest car insurance in Texas will vary between drivers and depending on several factors. A few things to consider when looking for cheap car insurance is the type of coverage you’re looking for, what discounts you qualify for, whether you will be adding a student driver to your policy, vehicle make and model and location, amongst other things. The best way to find the cheapest car insurance is to research several companies in your area and obtain quotes to compare.
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.