If you are looking for the cheapest car insurance in Texas, quotes from Geico were the lowest in our 2021 study of annual premiums from Quadrant Information Services. Based on Bankrate’s research, Geico offers the cheapest average minimum coverage premium in the Lone Star State, with a rate of $391 per year. Compared to the state’s average price of $524 annually for minimum coverage, Geico rates are cheaper by more than $100 per year.
If you are looking for more coverage, you still have options to help you find affordable rates. Geico’s full coverage premium is also the lowest on our list, at an average of $1,339 per year. The average annual full coverage premium in Texas is $1,823, but Geico isn’t the only cheap car insurance company in the state. Other companies we found offering cheap car insurance in Texas include USAA, Nationwide and White Mountains.
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. But because price isn’t the only consideration when shopping for car insurance coverage, we also considered each company’s J.D. Power score and AM Best financial strength rating. These metrics might help you find a company that offers cheap rates as well as strong customer service and financial stability.
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, these are some of the cheapest car insurance companies in Texas, based on quoted annual premiums:
| Car insurance company | Average annual minimum coverage premium | Average monthly minimum coverage premium |
|---|---|---|
| Geico | $391 | $33 |
| USAA | $395 | $33 |
| White Mountains | $424 | $35 |
| Fred Loya | $449 | $37 |
| Nationwide | $499 | $42 |
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.
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 |
|---|---|---|
| Geico | $1,339 | $112 |
| USAA | $1,344 | $112 |
| Nationwide | $1,362 | $114 |
| State Farm | $1,411 | $118 |
| White Mountains | $1,533 | $128 |
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, 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 one accident poses a greater risk to insurers of 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 |
|---|---|---|
| Memphis | $378 | $32 |
| Friona | $379 | $32 |
| Farwell | $380 | $32 |
| Denver City | $380 | $32 |
| Knox City | $381 | $32 |
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. 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 five cities are among the cheapest for full coverage in Texas:
| City | Average annual full coverage premium | Average monthly full coverage premium |
|---|---|---|
| Grape Creek | $1,577 | $131 |
| College Station | $1,584 | $132 |
| Miles | $1,587 | $132 |
| Burkburnett | $1,589 | $132 |
| Woodway | $1,589 | $132 |
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 with insurance or failing to provide proof of a bond, deposit or self-insurance is illegal in Texas and drivers 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. If you are looking for the cheapest car insurance in Texas, you might want to:
- Understand your needs: Knowing what specific coverage types, limits and policy features you are looking for could help you decide which companies might be right for you. Not all companies offer the same types of coverage or features.
- Shop around: Insurance providers offer different rates, so the price of your policy might vary between carriers. Getting quotes from a few different companies for the same coverage might help you find the cheapest option.
- Take advantage of discounts: Most companies offer discounts that could help you lower your premium. Choosing a company that has savings opportunities that you can take advantage of could help you find a cheap rate.
Once you have cheap car insurance, you can take a few steps to keep your rate down:
- Keep a clean driving record: Drivers with clean driving records tend to pay lower premiums. Accidents, tickets and DUI convictions can indicate risky driving behavior, so avoiding these incidents can help you avoid pricey surcharges.
- Maintain or improve your credit score: Your credit tier commonly plays a role in how much you pay for auto insurance (except in certain states). Drivers with low credit scores tend to pay more for coverage in Texas, as they are statistically more likely to file a claim. Maintaining your credit score — or better yet, improving it — might help you avoid premium increases.
- Occasionally shop your policy: Although you probably won’t benefit from changing car insurance carriers too often as you might miss out on loyalty discounts, shopping once in a while helps you determine if your current carrier still offers the cheapest rates for you.
Frequently asked questions
What is the best car cheap car insurance in Texas?
Dozens of insurance companies serve Texas drivers, and the best provider for each driver will be unique to the driver’s circumstances. While the best car insurance company in Texas is different for every driver, our review of companies include USAA and Geico as particular standouts, based on factors like a low premium, certain coverages or discounts, high customer service scores and 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. While our research found Geico had the lowest rates for full and minimum coverage, getting quotes from several providers is often the best way to find the cheapest coverage for your unique situation.
Is buying cheap car insurance in Texas worth it?
Everyone has different insurance needs, and getting the lowest rate is not always worth it to all drivers. Price is one consideration when looking for coverage, but 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 coverage that meets each state’s requirements. Our base profile drivers own a 2019 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.
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