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The average cost of car insurance in Dallas, Texas is above the national average, so many drivers may be interested in finding cheap car insurance. The average annual auto insurance premium in Dallas is $2,163 or $180 monthly. This is more than 7 percent over than the national average of $2,014. For minimum coverage, the average annual premium in Dallas is $616 compared to $622 nationally.
According to Bankrate’s 2023 study of quoted annual premiums, the cheapest car insurance companies in Dallas include State Farm, Geico and Esurance. All three of these carriers offer average rates in Dallas below the city average.
Best cheap car insurance companies in Dallas
Drivers in the Lone Star State have many insurance companies to choose from, but we found that some of the cheapest car insurance in Dallas is offered by State Farm, Geico, Esurance, USAA and Mercury, according to rates provided by Quadrant Information Services.
In addition to cheap rates, these providers also generally performed well in third-party industry assessments like the 2022 J.D. Power Auto Insurance Study. These carriers have strong AM Best ratings for financial strength as well as robust coverage options, varied discounts and user-friendly digital tools. All these metrics were considered when assigning each carrier a Bankrate Score. With a maximum Score of 5.0, the Bankrate Score may help shoppers better identify which insurance companies could meet their needs. If you’re looking for the best cheap car insurance in Dallas, you might start with a quote from these companies:
|J.D. Power score (Texas region)
|Average annual premium for full coverage
|Average annual premium for minimum coverage
*USAA is not officially ranked by J.D. Power due to eligibility restrictions.
On top of having some of the least expensive rates for full coverage insurance on our list, State Farm policyholders may also save on their auto insurance with the company’s extensive list of discounts. State Farm extends potential discounts for good students, being accident-free, insuring multiple vehicles, having a vehicle with safety features and more. Additionally, State Farm has two safe driver rewards programs, Steer Clear for drivers under 25 and Drive Safe & Save for drivers over 25. Although State Farm scores well on many metrics, the company may not have as many optional policy add-ons as other carriers on this list, including no gap insurance.
Learn more: State Farm Insurance review
Geico is well-known for offering cheap car insurance and several unique discounts. The carrier is one of the least expensive on our list for minimum coverage, and policyholders may extend their savings opportunities with discounts for military personnel, federal employees, good students, emergency deployment and being accident-free. Although the company has only three advertised add-on coverage options, Geico does have a highly-rated mobile app where policyholders can request roadside assistance, view ID cards and get repair estimates.
Learn more: Geico Insurance review
Esurance is a fully digital insurance company backed by Allstate. It offers a full host of online and mobile resources to manage your policy and file claims virtually. While these digital resources may be convenient for some, those who prefer working with agents in person may not enjoy the experience as much. Although Esurance is not rated by J.D. Power, it does hold an A+ (Superior) rating from AM Best for financial strength. Esurance may not be the best option for drivers looking for discounts, but it does offer its DriveSense telematics program and a potential discount for bundling auto and renters policies.
Learn more: Esurance Insurance review
USAA is consistently rated highly by third-party organizations like J.D. Power, but you must be affiliated with the military to qualify, which may limit eligibility for many drivers. In addition to offering some of the cheapest rates in Dallas, USAA extends a number of potential discounts to policyholders including savings for garaging a vehicle on base, maintaining a clean driving record and bundling with a home or renters insurance policy. USAA may not offer as many options for policy customization as some other carriers, but it does offer roadside assistance, rental reimbursement and car replacement assistance.
Learn more: USAA Insurance review
Mercury offers a strong local agent presence in the 11 states where the company operates. Mercury offers all the standard auto insurance coverage types as well as rental car reimbursement, ridesharing coverage and underinsured and uninsured motorist coverage. While its average rates may be higher than others on our list, its premiums are still well below Dallas and national averages. Mercury has online and mobile resources for applications and policy management but not for claims filing. Mercury policyholders may save on their premium with an extensive list of potential discounts including anti-theft features, good student, multi-car and its RealDrive telematics program.
Learn more: Mercury Insurance review
How to get and keep the cheapest car insurance in Dallas
Finding cheap car insurance rates may be great news for your wallet, but maintaining low rates typically takes ongoing work and smart driving. The following tips could help you find cheap rates and maintain them over time.
- To find cheap rates, shop around: To get cheap rates, most insurance professionals recommend shopping around and comparing quotes from multiple carriers. Car insurance rates may vary based on your personal factors, so comparing quotes may be the best way to find cheap rates for your circumstances.
- To keep cheap rates, take advantage of discounts: Most insurance providers offer discounts for a variety of reasons. The most common discounts include “good driver” discounts that reward drivers for going extended periods of time without an accident or traffic violation. Many insurers will also offer a discount for enrolling in autopay that will automatically deduct payments from your bank account or for choosing to make payments on a bi-annual or annual basis. In some cases, you can find discounts for affiliations like military or alumni discounts, bundling auto insurance with other protection like homeowners insurance, or for enrolling in driving courses to show dedication to improving your driving skills.
Frequently asked questions
Prices for Dallas drivers may vary significantly based on a driver’s individual rating factors. On average, full coverage auto insurance in Dallas costs $2,163 annually, and minimum coverage costs $616. This is high compared to the national average cost of car insurance which is $2,014 and $622 for full and minimum coverage, respectively.
The best car insurance company may vary for each driver. The best car insurance company for you may be the one that meets your specific needs and fits your budget. Before choosing a car insurance provider, it might be helpful to shop around and compare quotes from multiple providers. Speaking with a licensed insurance agent may also help you narrow down your choices.
Obtaining quotes from car insurance companies with the lowest average premiums may be a good start, but drivers may also be able to lower their rates by reviewing their carrier choice and coverage options each year. As your personal rating factors, like driving record, age and insurance-based credit score change, the cheapest car insurance company for you may also fluctuate.
There are a number of reasons why car insurance can cost more in Texas. This includes the high population and density of cars on the roads, particularly in some of the larger cities within the state. There are also conditions including higher speed limits and higher-than-average car theft rates that can all lead to more expensive insurance costs.
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.
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.