Texas has the second highest number of licensed drivers, only behind California. As of 2019, there were over 17,822,760 licensed drivers in the state. That means Texas’s car insurance market is one of the largest in the country.
When it comes to car insurance, there are both pros and cons to living in a populous state. The average cost of car insurance in Texas is $524 for minimum insurance and $1,823 for full coverage. Drivers in the state have more options for car insurance, but it can be difficult to find an affordable policy. If you’re shopping for cheap car insurance in Texas, there are a few companies that stand out for affordable rates.
The cheapest car insurance in Texas
The popular phrase “everything is bigger in Texas” can also be said about car insurance rates in the state. We did some research with Quadrant Information Services 2021 rate data to determine which companies offer the best rates. The below chart shows the five cheapest auto insurance companies in Texas.
| Insurance company | Average annual minimum coverage | Average annual full coverage |
|---|---|---|
| Geico | $391 | $1,339 |
| USAA | $395 | $1,344 |
| White Mountains Insurance Group | $424 | $1,533 |
| Fred Loya | $449 | $2,889 |
| Nationwide | $499 | $1,362 |
Geico
Geico’s signature tagline, “15 minutes could save you 15 percent or more on car insurance,” is potentially an accurate statement. The company offers some of the cheapest car insurance rates of any provider in Texas at averages of $391 for minimum coverage and $$1,339 for full coverage. However, Geico’s biggest selling point is price.
Many Geico customers are able to save money with vehicle safety discounts, like having daytime running lights, air bags, anti-locks brakes or an anti-theft device. There are also potential discounts for good drivers, good students, military personnel, federal employees and bundling policies.
USAA
If you know anything about USAA, you know the company only offers insurance to active duty military members, veterans and their eligible family members. Not everyone qualifies for USAA insurance, but those that do can expect to pay lower than average rates.
USAA customers get access to customizable coverage, excellent customer service and a variety of discounts for extra savings. Drivers might also save money by being a safe driver, enrolling in a defensive driving course, insuring a new car, being a loyal customer, garaging their car on a military base and storing their car during deployment.
White Mountains Insurance Group
White Mountains Insurance Group offers car insurance through Esurance, an online company. This can be convenient for drivers, as you can contact Esurance 24/7 through email or by calling. Esurance also offers a Coverage Counselor tool that can take your information and recommend coverage options based on your needs. White Mountains Insurance Group offers the basic coverage components and a few unique options such as uninsured motorist protection and medical payment reimbursements.
White Mountains Insurance Group customers also get access to educational resources and online and through the blog. Drivers may be able to save money by bundling, owning a home, taking a driving course, and more.
Fred Loya
In addition to offering some of the cheapest car insurance premiums, drivers who have poor credit or traffic violations may want to consider looking into Fred Loya’s auto insurance policies. Fred Loya is known for providing minimum auto insurance coverage to high-risk drivers, especially those with poor credit or who have a history of DUI or traffic violations.
Fred Loya offers the common insurance coverage options, in addition to add-on options such as rental car, gap and physical damages coverages and convenient locations in local Walmart and grocery stores. Customers may be able to apply a wide variety of discounts to further lower premiums such as multiple cars, anti-theft, seat belt, driver’s education discounts and more.
Nationwide
Nationwide makes the cheapest car insurance in Texas list because of its innovative programs that save you money, such as the Nationwide SmartRide program. Signing up for SmartRide means you might earn discounts through the usage-based telematics program that tracks your driving..
Another unique way to save with Nationwide is Vanishing Deductible®, which lowers your full coverage deductible by $100 every year you don’t have an accident or file a claim (for up to $500) and meet all qualifying criteria. Nationwide’s additional discounts include accident forgiveness, multi-policy, gap insurance, good student, anti-theft equipment and easy pay.
Affordable coverage for Texas drivers
The state of Texas requires all drivers to carry a minimum amount of car insurance. It doesn’t matter how often you drive—you must have the state-mandated amount of insurance, and keep proof of insurance in your car at all times. The requirements include:
- $30,000 bodily injury liability coverage per person
- $60,000 bodily injury liability coverage per accident
- $25,000 property damage liability coverage per accident
Although Texas is not considered a no-fault state, every car insurance policy in Texas automatically includes personal injury protection (PIP) coverage. It’s not a legal requirement, so drivers who want to waive their PIP coverage can submit their request in writing to their provider.
Purchasing the minimum amount of required coverage in Texas is not the best way to save money because if you get in an accident, you may have to pay far more than additional coverage would have cost.
How to get cheap car insurance in Texas
Getting cheap car insurance in Texas is easier than you think. Here are some ways you can lower your rate:
- Shop around: Before you choose an insurance carrier, shop around and get multiple quotes to see which provider can offer the lowest rate and the most discounts
- Compare providers: Take the information you received from your quotes to compare what each insurer’s pricing is for the same kind of product. Don’t forget to look for customer reviews about the company and how they handle customer issues and complaints.
- Increase your deductible: Raising your deductible from $250 to $1,000 could save you money on your monthly premiums. Make sure you can afford the higher deductible in case of a claim before you raise it too high.
- Improve your credit score: Insurance companies use your credit score to calculate your premium. The higher your credit score is, the lower your premium will be.
- Pay your premium in advance: Most insurance companies offer a discount if you can pay your annual premium in full, rather than in monthly installments.
- Take a defensive driving course: See if your insurance company will offer a discount for completing an approved defensive driving course.
- Take advantage of other discounts: There are other discounts available besides defensive driving courses or paying your premiums in advance. You may qualify for a discount because of your age, job, student status or simply because you switch car insurance carriers.
- Upgrade your vehicle: Most insurance companies offer a discount if your car has certain safety features. Consider installing an anti-theft device or upgrading to anti-lock brakes to save money on your premium.
Frequently asked questions
What is the best car insurance in Texas?
There are dozens of insurance companies that serve Texas drivers, and there isn’t one company in particular that stands out as being the best. Ultimately, the best car insurance company in Texas is different for every driver. Drivers who want the lowest rate might be satisfied with Geico, whereas a driver who wants the best customer service might be happier with USAA or Progressive.
Is Texas a no-fault state?
No, Texas is considered a fault state. However, car insurance policies in Texas automatically include PIP coverage, which is typically only required for drivers in at-fault states. You can decline PIP coverage in Texas, but you’ll have to submit your intent in writing to your insurance company.
Is car insurance required in Texas?
Yes, car insurance is legally required in the state of Texas. Any driver who doesn’t carry the minimum amount of required insurance can receive a fine, lose their license, and even get their car impounded, especially for a second or third offense. Every driver must carry a minimum of $30,000 of bodily injury liability coverage per person, $60,000 of bodily injury liability coverage per accident and $25,000 of property damage liability coverage per accident.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.
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