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Cheapest car insurance in Texas for 2023
Bankrate’s analysis shows that Geico, State Farm and Nationwide offer affordable average car insurance rates for Texas drivers.
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The cheapest car insurance companies in Texas
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 auto insurance companies on average.
Key takeaways
- Cheapest company for minimum coverage: Geico
- Cheapest company for full coverage: State Farm
- Cheapest company for drivers with prior incidents: Geico
- Cheapest company for young drivers: Nationwide
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.
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 car insurance companies in Texas for minimum coverage
Buying minimum coverage car insurance means you are purchasing only the state-required coverage types and limits. Minimum coverage, or liability only insurance, 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. Our research singled out Geico as the cheapest minimum coverage insurer in the Lone Star State.
| Carrier | Monthly min coverage premium | Annual min coverage premium | Savings vs state avg. for min coverage |
|---|---|---|---|
|
$35
|
$420
|
- $145 |
|
|
$38
|
$455
|
- $110 |
|
|
$41
|
$490
|
- $75 |
|
|
$42
|
$499
|
- $66 |
|
|
$46
|
$555
|
- $10 |
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.
Minimum coverage requirements for Texas drivers
Although most insurance professionals 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 by policyholders.
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, including suspension of their license and registration.
Insurance professionals 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.
Cheapest car insurance in Texas for full coverage
Full coverage car insurance typically 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, fire, vandalism or theft, you have coverage for the repair costs up to your policy limits. State Farm stands out as the cheapest insurance provider for full coverage policies in Texas, offering average rates nearly $650 below the statewide average.
| Carrier | Monthly full coverage premium | Annual full coverage premium | Savings vs state avg. for full coverage |
|---|---|---|---|
|
$114
|
$1,373
|
- $646 |
|
|
$124
|
$1,494
|
- $525 |
|
|
$130
|
$1,555
|
- $464 |
|
|
Southern County Mutual
|
$141
|
$1,693
|
- $326 |
|
$144
|
$1,733
|
- $286 |
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 car insurance in Texas for drivers with prior incidents
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. One of these personal factors is your driving record. Your insurance rate is calculated, in part, on how likely you are to file a claim, and your driving record plays an important role in determining your likelihood of doing so. Drivers who engage in risky driving behavior, like speeding or reckless driving, are statistically more likely to file a claim that costs their insurer money. To make up for its losses, insurers tend to charge drivers with imperfect driving records more for their coverage.
That said, Texas drivers with prior driving incidents may still receive a cheap policy from these providers:
- Cheapest car insurance for drivers with a ticket: Geico
- Cheapest car insurance for drivers with an at-fault accident: Geico
- Cheapest car insurance for high-risk drivers: Geico
Cheapest car insurance companies in Texas for drivers with a speeding ticket: Geico
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, with Geico topping the list as the cheapest for a minimum coverage policy.
| Company | Avg annual min coverage premium | Avg annual full coverage premium |
|---|---|---|
| Geico | $461 | $1,657 |
| State Farm | $514 | $1,518 |
| Allstate | $562 | $2,918 |
| USAA | $562 | $1,977 |
| Mercury | $676 | $2,117 |
Cheapest car insurance companies for drivers with an at-fault accident: Geico
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. Once again, Geico offers affordable rates for drivers who fall into this category.
| Company | Avg annual min coverage premium | Avg annual full coverage premium |
|---|---|---|
| Geico | $581 | $2,081 |
| State Farm | $601 | $1,724 |
| Allstate | $714 | $3,546 |
| Nationwide | $808 | $2,038 |
| USAA | $831 | $2,785 |
Cheapest car insurance companies for high-risk drivers: Geico
A number of scenarios could lead to you being considered a high-risk driver. Several moving violations, 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. Drivers with a DUI may want to consider getting quotes from Geico and Mercury, as they offer low average rates on both minimum and full coverage policies.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| Geico | $633 | $2,113 |
| Mercury | $656 | $2,010 |
| USAA | $769 | $2,575 |
| National General | $798 | $2,429 |
| Allstate | $803 | $4,005 |
Bankrate’s take: If you are shopping for car insurance with a DUI on your record, you may have a more difficult time finding a cheap policy. Not only do insurers generally charge higher premiums to drivers with DUI convictions, but some companies may even refuse to write policies for them altogether.
Cheapest car insurance for young drivers in Texas
In Texas, insurers are permitted to factor age into your rate calculation. Car insurance varies by age, with younger drivers and drivers in their 70s facing elevated rates. In particular, drivers younger than 25 tend to pay a good deal more for their coverage. But, there are still a variety of providers that offer cheap car insurance for young adults:
- Cheapest car insurance for insuring a teen driver: Nationwide
- Cheapest car insurance for teens with a ticket: USAA
- Cheapest car insurance for teens with an at-fault accident: State Farm
- Cheapest car insurance for young drivers with a DUI: National General
Cheapest Texas car insurance for insuring a teen driver: Nationwide
Adding a teen driver to your policy will typically increase your rates, but a cheap car insurance policy can still be attainable. 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.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| Nationwide | $858 | $2,251 |
| State Farm | $997 | $2,727 |
| Geico | $1,049 | $3,225 |
| Allstate | $1,237 | $5,603 |
| USAA | $1,413 | $4,092 |
Bankrate’s take: To calculate the average cost of insuring a teen driver, Bankrate looked at the cost of adding a 16-year-old driver to their parents' policy. Teen drivers have higher accident rates than other age groups, and therefore pose a greater risk to their insurance providers. Insurance companies balance this increased risk by charging higher premiums for teen drivers — especially for teen drivers with incidents on their records. In addition, it is illegal for a minor to purchase their own insurance policy without written consent of a parent or guardian.
Cheapest car insurance for teens with a ticket: USAA
Teens not only have statistically higher accident rates, but they are more likely to speed than any other age group. If your teen has a speeding ticket conviction, you may want to get a quote from USAA (if you are eligible) or State Farm.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| USAA | $1,265 | $4,060 |
| State Farm | $1,363 | $3,780 |
| Encompass | $1,437 | $4,274 |
| Allstate | $1,493 | $7,418 |
| Geico | $1,559 | $5,067 |
Cheapest car insurance for teens with an at-fault accident: State Farm
Teen accidents can increase car insurance rates, and an at-fault accident will likely make you a high-risk driver. The good news is that State Farm may offer a lower rate.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| State Farm | $1,568 | $4,286 |
| USAA | $1,648 | $5,197 |
| Geico | $1,767 | $5,795 |
| Allstate | $1,897 | $9,366 |
| Encompass | $2,002 | $5,752 |
Bankrate’s take: Texas is a tort state, as opposed to a no-fault state. This means that whoever is found at fault for the accident has the financial responsibility to pay for the damages. Texas requires drivers to carry a certain amount of liability coverage to help ensure that at-fault drivers can pay out all claims.
Cheapest car insurance for young drivers with a DUI: National General
21-year-old drivers with DUI convictions will likely experience a premium surcharge for about two years. In Texas, drivers with DUI convictions are required to obtain an SR-22 certificate on top of their insurance. In addition, their insurer is required to file with the Texas Department of Motor Vehicles.
| Company | Avg. annual min coverage premium | Avg. annual full coverage premium |
|---|---|---|
| Esurance | $876 | $2,983 |
| National General | $980 | $3,452 |
| Geico | $1,030 | $3,570 |
| Allstate | $1,182 | $6,428 |
| USAA | $1,250 | $3,992 |
| State Farm | $1,398 | $3,895 |
Cheapest car insurance rates by city in Texas
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 health care, the likelihood of accidents, and vehicle theft and vandalism rates may also influence your premium.
| City | City average annual premium | City avg. annual savings vs state average |
|---|---|---|
| Darrouzett | $356 | +$209 |
| Memphis | $360 | +$205 |
| Allison | $363 | +$202 |
| Booker | $363 | +$202 |
| Spearman | $364 | -$201 |
*for minimum coverage policies
| City | City average annual premium | City avg. annual savings vs state average |
|---|---|---|
| Campbellton | $1,798 | +$221 |
| Freeport | $1,846 | +$173 |
| Mineola | $1,851 | +$168 |
| Frisco | $1,851 | +$168 |
| Benavides | $1,852 | +$167 |
*for full coverage policies
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.
- Young driver discounts: Some insurers offer discounts for young drivers. These may include potential savings for good students and college students who don't bring a car with them to school.
- Affiliation discounts: Some carriers extend a discount to policyholders who affiliate with certain companies, organizations or the military.
- Claims-free discounts: Many insurers will discount drivers who have gone a set period of time, usually three or more years, without filing a claim. This discount may sometimes be compoundable with other savings, like safe driver discounts.
- Telematics discounts: Telematics programs use an app or in-vehicle device to monitor your driving habits in real-time. Drivers who demonstrate safe driving habits or low mileage may earn a discount
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.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.
Teens: Rates were determined by adding a 16-year-old teen to a 40-year-old married parent’s policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy.
Age: Rates were calculated by evaluating our base profile with the ages 18 and 21 applied. Drivers are renters on their own policy. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.