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Cheapest car insurance in Texas in 2023
According to Bankrate’s analysis, the cheapest car insurance companies in Texas are Geico, Houston General Insurance Exchange and State Farm for minimum coverage, and State Farm, Geico, Esurance for full coverage.
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What To Know First
In 2023, the average annual cost of car insurance in Texas is $565 for minimum coverage, which is lower than the national average of $622 per year. And while full coverage in Texas is slightly higher than national average at $2,019 per year versus $2,014 per year, Bankrate found several providers offering rates below these averages. We analyzed the top insurance carriers in Texas and compared rates from Quadrant Information Services for a variety of driver types to determine the cheapest rates on average.
- Cheapest company for minimum coverage: Geico
- Cheapest company for full coverage: State Farm
- Cheapest company for adding a teen driver: Nationwide
- Cheapest company for getting a speeding ticket: Geico
- Cheapest company for being in an at-fault accident: Geico
- Cheapest company after a high-risk incident: Esurance
On This Page
- The cheapest car insurance companies in Texas
- The cheapest car insurance companies in Texas by coverage level
- Cheapest cities in Texas for car insurance
- Factors that impact cheap rates in Texas
- Minimum coverage requirements for Texas drivers
- How to get the cheapest car insurance in Texas
- Car insurance discounts in Texas
- Frequently asked questions
- Methodology
The cheapest car insurance companies in Texas
Minimum coverage Texas auto insurance rates are lower than the average rate for the U.S., whereas full coverage in the state is just slightly higher on average. If you're looking for cheap auto insurance in Texas, it may be helpful to understand how different factors such as coverage level and life events may be driving up your cost of insurance.
Compare auto insurance rates
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Cheapest company for minimum coverage
| Average monthly minimum coverage premium | Average annual minimum coverage premium | |
|---|---|---|
| Geico | $35 | $420 |
Cheapest company for full coverage
| Average monthly full coverage premium | Average annual full coverage premium | |
|---|---|---|
| State Farm | $114 | $1,373 |
Cheapest company for adding a teen driver
| Average monthly minimum coverage premium | Average annual minimum coverage premium | |
|---|---|---|
| Nationwide | $72 | $858 |
Cheapest company for getting a speeding ticket
| Average monthly minimum coverage premium | Average annual minimum coverage premium | |
|---|---|---|
| Geico | $38 | $461 |
Cheapest company for being in an at-fault accident
| Average monthly minimum coverage premium | Average annual minimum coverage premium | |
|---|---|---|
| Geico | $48 | $581 |
Cheapest company for drivers with a high-risk incident
| Average monthly minimum coverage premium | Average annual minimum coverage premium | |
|---|---|---|
| Esurance | $40 | $478 |
The cheapest car insurance companies in Texas by coverage level
Buying minimum coverage car insurance means you are purchasing only the state-required coverage types and limits. Minimum coverage is often the most affordable car insurance option, but the coverage types are limited and coverage limits may be low, potentially leaving your finances exposed in the event of an accident.
Full coverage car insurance includes the addition of comprehensive and collision coverage, which could provide added coverage for your own vehicle, even if you're at fault in an accident. Although it typically costs more, full coverage gives you greater financial protection. If your car sustains damage from a collision, storm, vandalism or theft, you have coverage for the repair costs up to your policy limits.
The tables below show options for cheap car insurance in Texas for both minimum and full coverage. We’ve attached our Bankrate Score to each listed company, highlighting how the carrier performed when assessed on metrics like coverage types, availability, discounts and customer satisfaction. Choosing a carrier with low average rates may help you save on car insurance, but be aware that your own rates will vary based on your personal rating factors.
| Insurance company | Average monthly minimum coverage premium | Average annual minimum coverage premium | Annual savings vs. State average* |
|---|---|---|---|
|
Geico
4.4
Bankrate Score
|
Average monthly minimum coverage premium
$35
|
Average annual minimum coverage premium
$420
|
Annual savings vs. State average*
- $145 |
|
Houston General Ins Exchange
|
Average monthly minimum coverage premium
$37
|
Average annual minimum coverage premium
$447
|
Annual savings vs. State average*
- $118 |
|
State Farm
4.2
Bankrate Score
|
Average monthly minimum coverage premium
$38
|
Average annual minimum coverage premium
$455
|
Annual savings vs. State average*
- $110 |
|
Esurance
3.3
Bankrate Score
|
Average monthly minimum coverage premium
$40
|
Average annual minimum coverage premium
$478
|
Annual savings vs. State average*
- $87 |
|
Mercury
3.2
Bankrate Score
|
Average monthly minimum coverage premium
$41
|
Average annual minimum coverage premium
$490
|
Annual savings vs. State average*
- $75 |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
*Based on policies with minimum coverage for 2023
| Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual savings vs. State average* |
|---|---|---|---|
|
State Farm
4.2
Bankrate Score
|
Average monthly full coverage premium
$114
|
Average annual full coverage premium
$1,373
|
Annual savings vs. State average*
- $646 |
|
Geico
4.4
Bankrate Score
|
Average monthly full coverage premium
$124
|
Average annual full coverage premium
$1,494
|
Annual savings vs. State average*
- $525 |
|
Esurance
3.3
Bankrate Score
|
Average monthly full coverage premium
$128
|
Average annual full coverage premium
$1,539
|
Annual savings vs. State average*
- $480 |
|
Houston General Ins Exchange
|
Average monthly full coverage premium
$130
|
Average annual full coverage premium
$1,555
|
Annual savings vs. State average*
- $464 |
|
Mercury
3.2
Bankrate Score
|
Average monthly full coverage premium
$130
|
Average annual full coverage premium
$1,555
|
Annual savings vs. State average*
- $464 |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
*Based on policies with full coverage for 2023
Cheapest cities in Texas for car insurance
Your exact location within a state may play a big role in how much you pay for coverage. Larger metropolitan areas, like Houston and San Antonio, generally have higher costs for car insurance in Texas. ZIP code-specific considerations like the cost of healthcare and the likelihood of accidents may also influence your premium.
Your individual rates may vary based on factors like your age, driving record, vehicle type, coverage selections and credit history, but residents in the following cities pay the lowest average premiums for minimum and full coverage Texas car insurance.
| City | City average annual minimum coverage premium | Cheapest car insurance company | Company average annual minimum coverage premium |
|---|---|---|---|
| Darrouzett | $356 | Geico | $252 |
| Memphis | $360 | Geico | $256 |
| Allison | $363 | Geico | $252 |
| Booker | $363 | Geico | $252 |
| Spearman | $364 | Geico | $252 |
| City | City average annual full coverage premium | Cheapest car insurance company | Company average annual full coverage premium |
|---|---|---|---|
| Campbellton | $1,798 | State Farm | $1,183 |
| Freeport | $1,846 | State Farm | $1,171 |
| Mineola | $1,851 | Geico | $1,281 |
| Frisco | $1,851 | State Farm | $1,338 |
| Benavides | $1,852 | State Farm | $1,212 |
Factors that impact cheap rates in Texas
Car insurance rates typically don’t stay the same throughout your life. If you’ve recently experienced a life event like adding a teen driver to your policy or getting into an accident, you might benefit from shopping around to see which carrier may offer you the lowest rates for your circumstances.
Insuring a teen driver
Adding a teen driver to your policy will typically increase your rates, because teen drivers have higher accident rates than other age groups. Insurance companies balance this increased risk by charging higher premiums for teen drivers. The following companies offer some of the lowest average rates when adding a teen driver to your policy, but you could also save by looking for teen-specific discounts like ones for good students. The following rates reflect adding a teen driver to their married parents' policy.
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|---|
| Nationwide | $858 | $2,251 |
| Houston General Ins Exchange | $994 | $3,144 |
| State Farm | $997 | $2,727 |
| Geico | $1,049 | $3,225 |
| Allstate | $1,237 | $5,603 |
Getting a speeding ticket
Insurance companies typically see speeding tickets as an indication of risky driving behavior. If you have a speeding ticket conviction, your insurance premium could increase for three to five years, depending on your carrier. The following companies offer some of the lowest average rates for drivers with a single speeding ticket conviction on their record.
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|---|
| Geico | $461 | $1,657 |
| Esurance | $478 | $1,539 |
| State Farm | $514 | $1,518 |
| Houston General Ins Exchange | $538 | $1,926 |
| Allstate | $562 | $2,918 |
Getting into an at-fault accident
If you cause an accident, one of your primary concerns may be how much your car insurance will increase. Like tickets, accidents typically increase your insurance premiums for three to five years, depending on the carrier. Some companies weigh accidents less heavily than others and may offer more affordable rates following an at-fault accident.
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|---|
| Geico | $581 | $2,081 |
| State Farm | $601 | $1,724 |
| Houston General Ins Exchange | $650 | $2,003 |
| Allstate | $714 | $3,546 |
| Southern County Mutual | $806 | $2,457 |
Being deemed a high-risk driver
A number of scenarios could lead to you being considered a high-risk driver. Several tickets, at-fault accidents, a DUI conviction, a lapse in coverage or a combination of these might cause insurance companies to view you as high-risk.
The rates below are for drivers with a single DUI conviction, one of the most severe driving infractions drivers can earn. If you are a high-risk driver, you might be more limited in your car insurance company options. Some carriers will not offer coverage to drivers with a DUI on their record. The following rates are for a driver with a single DUI conviction.
| Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
|---|---|---|
| Esurance | $478 | $1,539 |
| Houston General Ins Exchange | $554 | $1,920 |
| Geico | $633 | $2,113 |
| Mercury | $656 | $2,010 |
| USAA | $769 | $2,575 |
Minimum coverage requirements for Texas drivers
Although most insurance agents recommend buying higher liability limits, you can legally drive in Texas if you meet the minimum required car insurance limits. In Texas, these 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 coverage and personal injury protection (PIP) must be offered by insurers but can be rejected in writing.
Drivers who do not want to purchase a car insurance policy may be able to satisfy the state’s financial responsibility law with surety bonds, deposits or self-insurance. Driving without insurance in Texas, or failing to provide proof of a bond, deposit or self-insurance, is illegal, and drivers who do so could face stiff penalties.
Insurance agents typically recommend that you buy higher liability limits for the greater financial protection they offer. Minimum coverage isn’t always enough to match the cost of damage, especially if you’re at fault for a severe accident. Minimum coverage will also not provide coverage for your own vehicle. 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 help.
How to get the cheapest car insurance in Texas
If you’re wondering how to save on car insurance in Texas, there are strategies to keep in mind that may help you find cheap car insurance in Texas and save on your premium.
Maintain a clean driving record
Finding low-cost car insurance in Texas may be easier when you have a clean driving record. Insurers see incidents like speeding tickets and accidents as indications that you might be more likely to file a claim. This is why they typically increase premiums for three to five years following a ticket or accident. More severe infractions, like a DUI, may cause your rates to increase more substantially and could even result in a non-renewal. Maintaining a clean driving record could help you find and keep cheap insurance in Texas and potentially qualify for safe driving discounts.
Review your car insurance policy each year
Car insurance rates may fluctuate as you age, move or experience other life changes. Reviewing your car insurance coverage types and costs each year may help you determine if you have enough coverage for your needs and if you could potentially qualify for additional savings through discounts you have become eligible for. If you're not satisfied with your coverage or pricing, shopping around before your policy renews could allow you to make the switch to a more affordable carrier.
Shop around for the best rate
As evidenced by the varying premiums shown in our data, insurance carriers all charge a different rate for coverage. Although there are many factors that go into selecting the best insurance company, shopping around for the best rate is an easy way to find cheap Texas car insurance. When getting quotes from multiple carriers, it is important to make sure you are requesting the same coverage and providing the same driver and vehicle information to each company so that you can compare rates accurately.
Car insurance discounts in Texas
Auto insurance discounts may be one of the simplest ways to save on car insurance in Texas. Discounts are commonly available from many insurers, although not all drivers will be eligible. Here are some of the most common discounts you could ask your insurance agent about.
Frequently asked questions
Methodology
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.
Bankrate Scores
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.