Texas has the second highest number of licensed drivers, only behind California. As of 2010, there were over 15,157,000 licensed drivers in the state. That means Texas’s car insurance market is one of the largest in the country.
When it comes to car insurance, there are both pros and cons to living in a populous state. Drivers have more options for car insurance, but it can be difficult to find an affordable policy. If you’re shopping for cheap car insurance in Texas, there are a few companies that stand out for affordable rates.
The cheapest car insurance companies in Texas
The popular phrase “everything is bigger in Texas” can also be said about car insurance rates in the state. We did some research to determine which companies offer the best rates. These three companies made the cut.
Geico’s signature tagline, “15 minutes could save you 15 percent or more on car insurance,” is an accurate statement. The company offers some of the cheapest car insurance rates of any provider in Texas. However, Geico’s biggest selling point is price. It’s coverage options and customer service leave something to be desired.
Many Geico customers are able to save money with vehicle safety discounts, like having daytime running lights, air bags, anti-locks brakes, and an anti-theft device. There are also discounts for good drivers, good students, military personnel, federal employees and bundling policies.
State Farm is another option for cheap car insurance in Texas. It’s the biggest car insurance provider nationwide, and millions of drivers trust State Farm to insure their vehicle. In addition to low rates, State Farm customers also get access to endorsement policies, mobile tools, and a variety of online resources.
In terms of discounts, State Farm has a lot to offer. The company gives discounts for being claims-free, being a smart student, having certain vehicle safety equipment, bundling policies and insuring multiple vehicles. State Farm also offers two safe driver programs—Drive Safe & Save™ and Steer Clear®—which use an app to track behind-the-wheel behavior, and rewards good drivers with a lower rate.
If you know anything about USAA, you know the company only offers insurance to active duty military members, veterans and their immediate family members. Not everyone qualifies for USAA insurance, but those that do can expect to pay the lowest rate.
USAA customers get access to customizable coverage, excellent customer service, and a variety of discounts for extra savings. Drivers can save money by being a safe driver, enrolling in a defensive driving course, insuring a new car, being a loyal customer, garaging their car on a military base, and storing their car during deployment.
Affordable coverage for Texas drivers
The state of Texas requires all drivers to carry a minimum amount of car insurance. It doesn’t matter how often you drive—you must have the state-mandated amount of insurance, and keep proof of insurance in your car at all times. The requirements include:
- $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’s not a legal requirement, so drivers who want to waive their PIP coverage can submit their request in writing to their provider.
Purchasing the minimum amount of required coverage in Texas is not the best way to save money because if you get in an accident, you may have to pay far more than additional coverage would have cost.
How to get cheap car insurance in Texas
Getting cheap car insurance in Texas is easier than you think. Here are some ways you can lower your rate:
- Improve your credit score: Insurance companies use your credit score to calculate your premium. The higher your credit score is, the lower your premium will be.
- Pay your premium in advance: Most insurance companies offer a discount if you can pay your annual premium in full, rather than in monthly installments.
- Take a defensive driving course: See if your insurance company will offer a discount for completing an approved defensive driving course.
- Upgrade your vehicle: Most insurance companies offer a discount if your car has certain safety features. Consider installing an anti-theft device or upgrading to anti-lock brakes to save money on your premium.
- Get multiple quotes: Before you choose an insurance company, shop around and get multiple quotes to see which provider can offer the lowest rate and the most discounts.
Frequently asked questions
What is the best car insurance in Texas?
There are dozens of insurance companies that serve Texas drivers, and there isn’t one company in particular that stands out as being the best. Ultimately, the best car insurance company in Texas is different for every driver. Drivers who want the lowest rate might be satisfied with Geico, whereas a driver who wants the best customer service might be happier with USAA or Progressive.
Is Texas a no-fault state?
No, Texas is considered a fault state. However, car insurance policies in Texas automatically include PIP coverage, which is typically only required for drivers in at-fault states. You can decline PIP coverage in Texas, but you’ll have to submit your intent in writing to your insurance company.
Is car insurance required in Texas?
Yes, car insurance is legally required in the state of Texas. Any driver who doesn’t carry the minimum amount of required insurance can receive a fine, lose their license, and even get their car impounded, especially for a second or third offense. Every driver must carry a minimum of $30,000 of bodily injury liability coverage per person, $60,000 of bodily injury liability coverage per accident and $25,000 of property damage liability coverage per accident.