Car insurance in Texas costs an average of $1,823 annually for full coverage, according to Bankrate’s 2021 study of quoted premiums. The Lone Star State lives up to its “everything is bigger” slogan when premiums are compared to the national average cost of full coverage insurance, which is $1,674 per year. Texas has nearly 18 million licensed drivers, and even though it is one of the biggest states in the country, there are still many drivers on the road. To compensate for the increased risk of accidents due to road congestion, insurance companies charge higher premiums.
If you are looking for cheap car insurance in Texas, you have plenty of choices due to the state’s large insurance market. Bankrate’s insurance editorial team obtained current quoted premium information from Quadrant Information Services in our search for the cheapest auto insurance in Texas. We analyzed the largest insurance companies by market share and reviewed average premiums, but we also took coverages, discounts and third-party rankings into consideration. This information might help you find a policy that fits your needs and budget.
The cheapest full coverage car insurance in Texas
Geico offers the cheapest full coverage premium in Texas, with coverage costing $1,339 per year on average, based on our research of average annual quoted premiums. This premium includes bodily injury and property damage liability coverage, uninsured motorist bodily injury coverage, comprehensive coverage and collision coverage.
Although Geico offers the cheapest full coverage premium based on our research, your premium will vary based on your individual rating factors. Getting quotes from several auto insurance companies might help you find the cheapest coverage for your needs, which is why we have featured five companies below.
| Car insurance company | Average annual full coverage premium | Average monthly full coverage premium |
|---|---|---|
| Geico | $1,339 | $111.58 |
| USAA | $1,344 | $112.00 |
| Nationwide | $1,362 | $113.50 |
| State Farm | $1,411 | $117.58 |
| Allstate | $1,705 | $142.08 |
Geico
Geico’s low average premiums might be attributed to its long list of discounts, including savings for having daytime running lights, air bags, anti-lock brakes or an anti-theft device. There are also potential discounts for good drivers, good students, military personnel and federal employees. The company took the top spot in the 2021 J.D. Power U.S. Insurance Digital Experience Study for service, so if you like to handle your policy needs online or with an app, Geico might be a good fit.
Learn more: Geico Insurance review
USAA
USAA only offers insurance to active duty military members, veterans and their eligible family members. If you qualify, getting a quote from USAA could be a good idea. The company consistently offers low average rates, and although it is not eligible for official ranking with J.D. Power due to its eligibility restrictions, it earned the highest number of points in Texas for overall customer satisfaction in the 2020 U.S. Auto Insurance Study.
Learn more: USAA Insurance review
Nationwide
Nationwide makes the cheapest car insurance in Texas list because of its innovative money-saving features, such as the Nationwide SmartRide program. The telematics program could teach you safer driving techniques while it saves you money. The company also offers a vanishing deductible program, which lowers your deductible by $100, up to $500 total, for each year you avoid accidents.
Learn more: Nationwide Insurance review
State Farm
If you are looking for a company that offers face-to-face interactions, State Farm may be a good choice. The company sells its insurance through local agents, who may be more familiar with the needs of Texas drivers than companies that operate online. The company may also appeal to families with teen drivers. The Steer Clear program, specifically designed for teens, could lower your premium while teaching your teen safer driving habits.
Learn more: State Farm Insurance review
Allstate
Although Allstate’s average full coverage premium is the highest on our list, it is still lower than the state’s average. The company’s telematics program, Drivewise, might help you save money, as could Allstate’s other discounts, including savings for safety features, new cars and smart students. And if you are looking for customizable coverage, Allstate offers several optional endorsements to round out your policy.
Learn more: Allstate Insurance review
The cheapest minimum coverage car insurance in Texas
Geico offers the cheapest minimum coverage premium in Texas with an average annual rate of $391. This is quite a bit less than the average minimum coverage premium in Texas as a whole, which is $524 per year. Like most states, Texas requires its drivers to carry at least a minimum amount of car insurance.
In Texas, the minimum coverage requirements are:
- $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 is not a legal requirement, so drivers who want to waive their PIP coverage can submit their request in writing to their provider. Similarly, all insurance companies in Texas must offer you uninsured and underinsured motorist coverage, although you can waive it in writing.
Purchasing the minimum amount of required coverage in Texas might mean you pay a lower premium but could leave you with stressful expenses if you cause an accident. If the injuries and damages that you cause exceed your insurance amount, you will be responsible for the overage out of pocket. Most insurance professionals recommend that you purchase higher liability limits if you can afford to do so. If you need or want coverage for damage to your vehicle, you will need to purchase full coverage.
If you are looking for cheap minimum coverage car insurance in Texas, you might want to get quotes from the following companies:
| Car insurance company | Average annual minimum coverage premium | Average monthly minimum coverage premium |
|---|---|---|
| Geico | $391 | $32.58 |
| USAA | $395 | $32.92 |
| Nationwide | $449 | $37.42 |
| State Farm | $518 | $43.17 |
| Allstate | $557 | $46.42 |
Cheapest car insurance with an incident in Texas
If you have a speeding ticket on your driving record, Geico offers the cheapest average full coverage premium on our list, at $1,505 per year. If you have an accident, Geico could also be your best bet with an average annual premium of $1,865.
The companies featured above may be the cheapest if you have a clean driving record, but having tickets or accidents can change how insurance companies rate your policy. If you have received a ticket or had an accident, you will likely see your insurance increase at your policy renewal. Because companies charge these incidents so differently, getting quotes from several companies can be especially important in these situations. Your rating factors will also come into play, and there may be car insurance companies in Texas that offer cheaper rates after a speeding ticket or accident than those on our list, but these should give you a good starting point.
| Car insurance company | One speeding ticket | One at-fault accident |
|---|---|---|
| Geico | $1,505 | $1,865 |
| USAA | $1,510 | $2,088 |
| Nationwide | $1,701 | $1,844 |
| Allstate | $2,087 | $2,805 |
Learn more about coverage for high-risk drivers in Texas.
Cheapest car insurance for young drivers in Texas
If you qualify for USAA coverage, the company offers the cheapest average full coverage rate for 18-year-old drivers, with a premium of $3,361. Because of their inexperience behind the wheel, young drivers often pay more for coverage. This is not surprising, considering that drivers between the ages of 16 and 19 have the highest risk for motor vehicle crashes, according to the Centers for Disease Control (CDC).
If you have a teen driver, getting quotes from different companies can be incredibly helpful. Different companies rate young drivers differently, and some companies may offer more discounts for young drivers.
| Car insurance company | Average annual full coverage premium for an 18-year-old | Average annual full coverage premium for a 40-year-old |
|---|---|---|
| USAA | $3,361 | $1,176 |
| Geico | $3,672 | $1,421 |
| State Farm | $4,137 | $1,453 |
| Nationwide | $4,449 | $1,423 |
| Allstate | $6,152 | $2,302 |
Learn more about how age affects car insurance premiums.
How to get cheap car insurance in Texas
Auto insurance rates are determined using several factors, including your age and driving record, the company you choose, the coverages you purchase and the discounts you qualify for. Even though the average full coverage premium in Texas is higher than the national average, there are ways to lower your premium. Here are some tips that might help:
- 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. You can also compare available coverages, policy features and third-party ratings for customer service and financial strength.
- Consider your coverages: Most insurance professionals recommend that you purchase liability limits in excess of the state minimum amount, and full coverage is recommended in many cases. However, there are numerous optional coverages, like roadside assistance, car rental coverage, gap insurance and custom parts coverage, that are rarely (if ever) mandated. These coverages can be helpful but will increase your premium, so be sure to purchase only the coverages that are useful to you.
- Take advantage of discounts: There could be numerous discounts you could take advantage of to lower your premium. You may qualify for a discount because of your age, job, student status or simply because you switch car insurance carriers.
- Increase your deductible: Raising your comprehensive or collision deductible could save you money on your premium. Because you will need to pay your deductible if you file a claim for damage to your vehicle, be sure to choose an amount that you can comfortably afford.
- Think about how you pay: Many companies offer discounts for paying your premium in full. You might also save if you sign up for paperless billing or if you utilize a company’s auto-pay option.
Every insurance company has a different set of discounts. You may be able to research these discounts online, or you could call your agent or company directly to see if you qualify for any additional savings opportunities.
Frequently asked questions
What is the best car insurance in Texas?
There are dozens of insurance companies that serve Texas drivers, and there is not one company in particular that stands out as being the best. Ultimately, the best car insurance company in Texas is different for every driver. When choosing a company, you may first want to decide what factors matter most to you, like a low premium, certain coverages or discounts, high customer service scores or digital tools.
Who has the cheapest car insurance in Texas?
The cheapest auto insurance in Texas will vary based on your individual rating factors, like your driving record, if you have a teen to insure and the type of car you drive. The companies featured in this article offer low average rates for a number of circumstances, but getting quotes from several providers is often the best way to find the cheapest coverage for your unique situation. Choosing a company that offers several discounts you can take advantage of can help you keep your premium down, as can maintaining a clean driving record.
Is buying cheap car insurance in Texas worth it?
Everyone has different insurance needs. Price is one consideration when looking for coverage, but it is not the only factor to think about. Choosing proper coverages to protect your finances against disaster is also imperative. You may also want to review a company’s customer service and claims service scores as well as its financial strength. Working with a licensed agent might be helpful; an agent can suggest coverages appropriate for you and help you find ways to keep your premium down.
Does Texas car insurance cover storm damage?
Texas is part of “tornado alley,” and severe storms are common. Damage caused by hail, high winds, lightning and flooding may be a concern for Texas drivers. If you carry state minimum or liability-only coverage, you do not have any coverage for damage to your vehicle. Comprehensive coverage is the option that would pay for storm damage. You can often purchase comprehensive coverage as an endorsement to a liability-only policy or as part of a full coverage policy.
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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