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Cheapest car insurance in Texas in 2022

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The average cost of car insurance in the Lone Star State is $551 per year for minimum coverage, which is about on par with the national average, but it may be possible to find even cheaper rates. Texas drivers who want full coverage can also find affordable options too. To help you save time and narrow down your search, Bankrate has researched the cheapest car insurance companies in Texas to help you find the best options for your needs.

The cheapest car insurance companies in Texas

As a starting point in Bankrate’s search for the cheapest auto insurance in Texas, we reviewed average annual premium information from Quadrant Information Services and compared it with both the national and state averages. The national average cost of car insurance is $1,771 per year for full coverage and $545 per year for minimum coverage, which is only slightly lower than the state average. Drivers in Texas pay an average of $1,868 per year for full coverage and $551 per year for minimum coverage.

The cheapest companies for minimum coverage in Texas

Buying minimum coverage means that you are purchasing only Texas’s required coverage types and limits. Minimum coverage is often considered the cheapest option because the limits are relatively low. However, most insurance professionals recommend buying higher liability limits for greater financial protection.

If you are interested in purchasing minimum coverage, Geico and State Farm offer some of the cheapest car insurance companies in Texas, based on quoted annual premiums. A few of the other cheapest carriers are also included:

Car insurance company Average annual minimum coverage premium Average monthly minimum coverage premium
Geico $407 $34
State Farm $440 $37
USAA $469 $39
Mercury $475 $40
Allstate $548 $46

The cheapest companies for full coverage in Texas

Full coverage car insurance includes the addition of comprehensive and collision coverage, both of which cover damage to your vehicle. Although it costs more, full coverage gives you greater financial protection. If your vehicle sustains damage from a collision, a storm, hitting an animal, vandalism or theft, you have coverage for the repair costs, up to policy limits. Bear in mind, separate deductibles may apply to these coverage options, which affects what you pay per premium, as well as what financial risk you assume in the event of a loss.

State Farm and Geico offer some of the cheapest average rates for full coverage car insurance as well. While shopping around, be sure to consider some of the others on this list as well, as every company has its own method for calculating rates. The following cheap car insurance companies offer low average full coverage rates in Texas:

Car insurance company Average annual full coverage premium Average monthly full coverage premium
State Farm $1,314 $110
Geico $1,389 $116
Mercury $1,480 $123
USAA $1,531 $128
Nationwide $1,685 $140

Events that can impact your cheap rates in Texas

Car insurance rates don’t stay the same throughout your life. If you’ve recently experienced a life event, you might benefit from shopping your car insurance policy to find the cheapest rates. Life events that can impact your premium include:

  • Adding a teen driver: Teen drivers have very little experience behind the wheel. To compensate for the added risk of accidents, car insurance companies tend to charge higher rates for teens. If you have a teen driver, you might want to get quotes from several companies and take advantage of available discounts to lower your premium.
  • Receiving a speeding ticket: Speeding tickets can be an indication of risky driving behavior. If you get a speeding ticket conviction, your insurance premium could increase for three to five years. However, companies may increase rates to varied degrees with a speeding ticket factored in, which makes comparing quotes helpful for finding savings.
  • Being involved in an at-fault accident: Causing an accident poses a greater risk to insurers of potential repeat incidents (and claims). As a result, your premium will typically be surcharged for a number of years.
  • Being deemed a high-risk driver: A number of scenarios could lead to you being considered a high-risk driver. Several tickets, accidents, a DUI conviction, a lapse in coverage or a combination of these might cause insurance companies to view you as high-risk. If you are a high-risk driver, you might be more limited in your car insurance company options, but shopping your policy could still help you find a lower premium.

Cheapest cities in Texas for minimum coverage

Your exact location within a state plays a big role in how much you pay for coverage. Larger metropolitan areas, like Houston and San Antonio, generally pay higher costs for car insurance. For minimum coverage, the cost of healthcare and the likelihood of accidents could increase car insurance rates. But the opposite is also true; some areas of the state offer more affordable rates.

If you live in one of the following five cities, you might pay some of the cheapest rates for minimum coverage in Texas:

City Average annual minimum coverage premium Average monthly minimum coverage premium
Darrouzett $358 $30
Memphis $361 $30
Farnsworth $363 $30
Sanderson $363 $30

Cheapest cities in Texas for full coverage

Just like with minimum coverage, full coverage premiums vary based on your city and even your ZIP code within Texas. Larger cities like Dallas and Austin might have higher likelihoods of accidents due to heavier traffic. Additionally, larger cities may have a higher cost of living, which can increase auto repair and labor costs. This can subsequently increase premiums.

These four cities are among the cheapest for full coverage in Texas:

City Average annual full coverage premium Average monthly full coverage premium
Miles $1,558 $130
Knickerbocker $1,562 $130
College Station $1,563 $130
Burkburnett $1,567 $131

Minimum coverage requirements for Texas drivers

Although most insurance agents recommend buying higher liability limits, you may opt for minimum coverage to keep your rates down. In Texas, the minimum required car insurance limits are:

  • $30,000 bodily injury liability per person
  • $60,000 bodily injury liability per accident
  • $25,000 property damage liability per accident

Uninsured and underinsured motorist coverages, as well as personal injury protection (PIP) must be offered but can be rejected in writing.

Surety bonds, deposits and self-insurance can also satisfy the state’s “financial responsibility law,” although most drivers likely choose to purchase car insurance. Driving without insurance or failing to provide proof of a bond, deposit or self-insurance is illegal in Texas and drivers who do so could face stiff penalties.

Insurance agents typically recommend that you buy higher liability limits for the greater financial protection that they offer. Additionally, if you have a loan or lease on your vehicle, your financial institution will probably require you to purchase comprehensive and collision coverage. If you aren’t sure how much car insurance you need, working with a licensed agent could be helpful.

Here is how to find (and keep) cheap car insurance in Texas

Finding affordable rates for car insurance is a priority for many drivers. There are many things you can do to find and keep the most affordable rates for your circumstances. If you are looking for the cheapest car insurance in Texas, some tips include:

  • Maintain a clean driving record: Following the rules of the road and driving safely is one of the easiest ways to get the best car insurance rates. You’ll also be able to maximize discounts, like the good driver discount, based on how many years you’ve gone without an at-fault accident or moving violation. Some car insurance companies even offer telematics programs that reward you with even more savings based on your driving habits.
  • Review your policy: Once a year, you can review your car insurance policy to see if there have been any changes in your life that can affect the premium. You may have different driving habits, such as a new commute, a new driver with access to your cars or an opportunity to bundle your homeowners and car insurance policy together for a multi-policy discount. Your car is also continuing to depreciate as it ages, so adjusting its coverage may also decrease your premium.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all 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 2020 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.

Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by
Insurance Editor