Texas has the second-highest number of licensed drivers in the country with more than 17 million drivers, according to the Federal Highway Administration (FHWA). One reportable crash happened every 58 seconds in Texas in 2018. The economic losses due to a car accident in Texas have almost doubled in the last 15 years to $38 billion.
If you don’t have good car insurance coverage in Texas, you’re taking a big financial risk if you’re in an accident. Texas is an “at fault state” for liabilities from an car accident, which means if you’re found at fault of an accident, this means you’re responsible for the damage and injury expenses you cause. Here’s what to look for to get the best and cheapest Texas car insurance.
Texas car insurance coverage options
The cheapest car insurance may be the right choice if you don’t have assets like a home, or if you own an old car. But cheaper isn’t always better. If you’re wondering how much car insurance you should buy, think about what you’re willing to risk if you need to personally cover the cost of a car accident. Here are some things to consider:
- Collision coverage is required for financed cars.
- Comprehensive and collision coverage protects you if you have investments, own a home or have other assets.
- Uninsured or underinsured driver insurance covers your expenses if you’re in an accident with someone who has minimal or no car insurance.
Best car insurance in Texas
These companies stand out because of their popularity, average rates and overall customer satisfaction, according to J.D. Power’s 2019 U.S. Auto Insurance Study in Texas:
- Texas Farm Bureau – Texas Farm Bureau is the overall award winner by J.D. Power’s ratings in Texas, earning 5 of 5 ratings in overall satisfaction, policy offerings, price, interaction and claims. It’s been recognized as best in customer satisfaction by J.D. Power eight consecutive years in Texas.
- Allstate – Allstate has the second largest market share. J.D. Power also gives Allstate 3 out of 5 stars in customer satisfaction, although they edge out State Farm in interaction.
- Farmers – Farmers insurance is rated at a 3 out of 5 in customer satisfaction. Customers find this insurer has higher premiums, but the company receives a 4 out of 5 in customer-agent interaction.
- Geico – Geico is rated 3 out of 5 with high marks for their variety of policy offerings.
- State Farm – State Farm is the largest Texas car insurance provider in the state. J.D. Power gives the insurer a solid 3 out of 5 overall satisfaction rate by customers.
- USAA – Texas has the second-highest number of active-duty military civilians in the country. USAA insures retired and active military service personnel and their families and received a perfect score of 5 out of 5.
|Texas Farm Bureau||Allstate||Farmers||Geico||State Farm||USAA|
|J.D. Power (overall satisfaction)||5/5||3/5||3/5||3/5||3/5||5/5|
|J.D. Power (price)||5/5||3/5||2/5||3/5||3/5||5/5|
|AM Best (Financial Strength Rating)||A||A+||A||A++||A++||A++|
Finding the right car insurance in Texas for you
Not all car insurance policies are equal. And no two drivers have the same policy needs. Insurers have policy offerings tailored to your needs and budget. That’s why it’s important to shop around and compare car insurance quotes to find the right combination of coverage and rates for you.
Cheapest car insurance for good drivers: State Farm and USAA
Drivers with a good record enjoy lower car insurance costs. When shopping for insurance, be sure to let the agent know if you’re a safe driver with no accidents or tickets on your record. Look for an insurer that offers a safe-driver discount program, such as Allstate, Texas Farm Bureau or State Farm. It could save you an additional 5% to 10% on your policy.
Cheapest car insurance for people with poor credit: State Farm and USAA
Drivers with poor credit typically pay more for car insurance. It can have a bigger impact than an accident, a DUI conviction or other liability on a driving record. State Farm, Geico and USAA offer the cheapest car insurance coverage for people with low credit scores.
Cheapest car insurance for people with accidents: State Farm and USAA
Drivers with recent accidents or tickets are seen as a risk to a car insurance company. In this category, the average premiums with State Farm and USAA are far lower than the rest of the industry.
Cheapest car insurance for families with a teen driver: USAA and Nationwide
Families with multiple cars and a new, teenage driver will pay higher premiums. There’s no way around it with a young driver. Customers should investigate companies with good student discounts and programs which reward safe driving and clean driving records over time.
Average car insurance cost in Texas
The average annual rate for car insurance in Texas is $1,810, or 26.8% higher than the national average, according to The Zebra. Here’s an average breakdown of car insurance costs by different demographics in Texas.
- Texas car insurance rates for 16-year-olds average $7,284. The rate goes to $5,370 for age 18, $2,151 for drivers in their 20s, $1,746 for drivers in their 30s, to an average low of $1,500 for drivers in their 50s, and to $1,936 for drivers in their 70s.
- Average insurance rate by gender in Texas is $1,751 for females and $1,774 for males.
- Married drivers pay less on average. The average annual premium for married drivers is $1,587 while it’s $1,774 for single or divorced drivers.
- Credit score is one of the most important factors for car insurance premiums. Drivers with exceptional credit, a score of 800 or more, have an average annual rate of $1,471. The average goes to $2,183 for a good credit score, from 670-739, and to $3,112 for a very poor score, 579 or less.
Car insurance discounts in Texas
You could save on your Texas car insurance through insurance discount programs. A multi-policy discount offers savings across all your insurance policies with the same provider. Some insurers offer a discount for prepaying your premium annually. Here are some more car insurance discounts that could be available from a few top companies in Texas:
|Texas Farm Bureau||Allstate||Farmers||Geico||State Farm|
State minimum insurance requirements in Texas
Texas requires a minimum of liability insurance. Liability insurance pays for injuries and lost wages to another driver and their passengers plus the damage to the other driver’s vehicle if you’re “at fault” in an accident.
The minimum liability insurance amount required in Texas is known as 30/60/25:
- Bodily Injury – $30,000 per person and $60,000 per accident
- Property Damage – $25,000 per accident
Frequently asked questions
Does Texas require car insurance?
Yes. All Texas drivers are required to have car insurance. The minimum amount is 30/60/25 liability insurance, which requires bodily injury coverage of $30,000 per person and $60,000 per accident, plus property damage coverage of $25,000 per accident.
What if I get caught driving without car insurance in Texas?
If you get caught driving without car insurance in Texas, you could be fined up to $350. You may also be asked to file an SR-22 (Certificate of Financial Responsibility) to reinstate or maintain your driving privileges. Once cited for having no insurance, there is a $250 fine for each of the next three years.
Uninsured drivers who are unable to demonstrate proof of financial responsibility can face fines from $925 -$1,750. Uninsured drivers who are found responsible for a collision could be fined up to $4,000 and go to jail for up to a year depending on the severity, or if there are serious injuries or fatalities from the accident.
Is Texas a no-fault car insurance state?
Texas is not a no-fault state. If you are in an accident that is your fault, the financial responsibility falls on you and your car insurance company, making it essential to carry Texas car insurance.