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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 $524 per year for minimum coverage, which is about on par with the national average, but it may be possible to find even cheaper rates. Geico’s average rates are almost $100 cheaper than the average in Texas, according to Bankrate’s analysis of average premiums from Quadrant Information Services. With an average of $391 per year for minimum coverage, Geico offers some of the cheapest car insurance in Texas.

For drivers who want more coverage, Geico also offers affordable average full coverage car rates in Texas, with an average price tag of $1,339 per year. The average cost of full coverage car insurance in Texas is $1,823 per year, which means that Geico’s average rate is about $500 less than the statewide average. However, it’s important to keep in mind that every driver is different and not everyone will receive the same rate. For this reason, Bankrate has compiled a list of the cheapest car insurance companies in Texas to help you find the best option 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. But because price isn’t the only consideration when shopping for car insurance, 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
Fred Loya $449 $37
Nationwide $499 $42
State Farm $518 $43

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
Allstate $1,705 $142

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. 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:

  • Bundle policies together: Insurance companies value customers who purchase more than one insurance policy from them, which is why it can be beneficial to bundle your homeowners and car insurance policy together for a multiple-policy discount. If you have even more insurance needs, like a personal umbrella policy or motorcycle insurance, those may even benefit from the discount as well.
  • 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 or a new driver with access to your cars. Your car is also continuing to depreciate as it ages, so adjusting its coverage may also decrease your premium.

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?

Geico offers some of the cheapest average auto insurance rates in Texas, according to Bankrate’s research. This company’s average rates are more competitive than other carriers for both full and minimum coverage. However, this may not be the case for every person, as car insurance rates are based on numerous factors, including your individual rating factors. This includes your driving record, the type of car you drive and your annual mileage, among other factors. To find the cheapest car insurance for you, it can be smart to request personalized quotes from multiple companies to compare.

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 coverage types to protect your finances against disaster is also imperative. State minimum requirements for car insurance typically only include liability insurance, but many insurance agents will suggest that you consider protecting yourself further by purchasing uninsured motorist coverage or comprehensive and collision insurance if you can. If good customer service is a priority to you, you may also want to consider a company’s ranking by third-party agencies and other related factors.

Does Texas car insurance cover storm damage?

Texas is part of what has historically been known as “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, as liability covers the other party involved in an accident if you were at-fault. Comprehensive coverage is for covering your vehicle for theft, weather and falling objects, and 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.

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