Best Car Insurance in Texas 2020

Fact-checked with HomeInsurance.com

7 min read
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Texas has the second-highest number of licensed drivers in the country with more than 17.4 million drivers according to the Federal Highway Administration (FHWA). Of those drivers, 249,241 people were injured in a car accident in 2018, with 14,908 of the injuries being highly serious.

Some more 2018 Texas driving statistics to consider:

  • 1 person was injured in a car accident every 2 minutes and 7 seconds
  • 1 crash was reported every 58 seconds
  • 1 person died in a car accident every 2 hours and 25 minutes

Of course, it’s easy to become a statistic in any state, but the above data points are hard to ignore.

If you don’t have good car insurance coverage in Texas, you’re taking a big financial risk. Texas is an at fault state, which means if it’s determined that you are the cause of an accident then you’re financially responsible for any damages and injuries you cause.

Here’s what you need to know to get the best auto insurance in Texas.

The top car insurance companies 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 out of 5 ratings in every category. Additionally, it’s been recognized as best in customer satisfaction in Texas by J.D. Power for eight years in a row.

Accolades aside, Texas Farm Bureau offers cheap rates whether you have an accident on your record or not. Many people who have been in an accident and gotten quoted high rates elsewhere have found Texas Farm Bureau to be an affordable option.

In terms of unique coverage options, Texas Farm Bureau doesn’t offer much – but when it comes to car insurance that’s not necessarily a downside as most people don’t need anything unique.

One area where Texas Farm Bureau truly shines is its discount options. For example, it offers the following types of discounts:

  • Academic achievement discount
  • Anti-theft discount
  • Claims-free discount
  • Driver training discount
  • Multi-car discount
  • Multi-policy discount
  • Passive restraint discount

Allstate

Allstate has the second largest market share in Texas, and for good reason. It offers a variety of unique coverage options and add-on features not found elsewhere, some of which include:

  • Accident forgiveness
  • Deductible rewards
  • New car replacement
  • Rideshare insurance
  • Roadside assistance
  • Safe driving bonus

It also offers a variety of easy to achieve discounts, including a new car discount, multiple policy discount and a good student discount.

Allstate has a great online presence, too. If you have a question about your policy, you should easily be able to find the answer on the website. Additionally, Allstate also has a top-notch mobile app, which allows you to view and change your policy and account, make a payment, file a claim and even request roadside assistance.

Lastly, if you drive for a rideshare company, you can get insurance through Allstate — meaning if you drive for Uber or Lyft Allstate will still insure you.

Farmers Insurance

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.

When it comes to coverage options, though, Farmers Insurance has the standard array of choices for drivers to pick from, as well as a few optional coverage options. Some of these include:

  • Accident forgiveness
  • Customized equipment coverage
  • Loss of use
  • New car replacement
  • Original equipment manufacturer coverage

As with Allstate, you can also purchase rideshare insurance if you drive for companies such as Lyft and Uber.

The last thing worth noting is the large array of discount opportunities that Farmers insurance offers its members – 12 and counting.

Geico

Geico is an exceptionally good insurance company with a J.D. Power rating of 3 out of 5 with high marks for their variety of policy offerings.

With Geico you can easily file a claim online, over the phone or via its online mobile app (which has 4.8 out of 5 stars for both Android and iPhone). It’s truly a 21st-century insurance company, allowing most people to do everything they need to do online without ever having to pick up the phone to speak with a representative.

Finally, if you’re looking to save on your premium, there are many paths you can take to get various discounts. Plus, if you want to bundle your auto insurance with home insurance or another product, you’ll save even more.

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.

As with every insurance provider on this list, State Farm offers a variety of discounts for its members, including a safe driver discount and discounts for avoiding accidents and moving violations (for a full list of discounts, click here).

Additionally, State Farm has some pretty unique coverage options, such as:

  • Rental Car and Travel Expenses Coverage: If your car breaks down, State Farm will pay for a rental, as well as your meals and lodging if you break down more than 50 miles away from your home
  • Rideshare Insurance: Work for Uber or Lyft and State Farm will still insure your vehicle

Lastly, State Farm has a great mobile app. You can do everything you need from it, including calling for roadside assistance.

USAA

USAA would be higher on this list were it not for the fact that it only serves active and retired military members (and their spouses). It’s on this list because Texas has the second-highest number of active-duty military civilians in the country.

Eligibility requirements aside, you should know USAA scored a perfect score of 5 out of 5 with J.D. Power for a variety of reasons:

  • It’s member-owned meaning its members receive yearly dividends every time the company exceeds certain profit margins
  • USAA has a good history of paying claims. Members don’t have to hound representatives like they do with some other insurance providers
  • They offer multiple discount options
  • You can bundle with home insurance to save more
  • USAA offers accident forgiveness for your first at-fault accident

If you are eligible to join, strongly consider looking into USAA.

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++
BBB Rating A+ A+ A+ A+ A B-

Finding the right car insurance in Texas for you

Not all car insurance policies are equal, nor does every driver have the same policy needs. This is why it’s important to shop around and compare car insurance quotes to find the right combination of coverage and rates for you.

Remember: every company has its own pricing algorithm, so don’t accept the first rate you see. You may very well find a much cheaper option elsewhere. The best car insurance in Texas for you might be completely different than what’s right for your neighbor or friend.

Average car insurance cost in Texas

Texas car insurance rates vary with each company.

To purchase minimum liability car insurance in Texas costs, on average, about $465 a year, or $39 a month. The average total expenditure for full coverage auto insurance in Texas, however, is $1,823, which means most people choose to purchase more than just basic liability.

State minimum insurance requirements in Texas

Texas currently requires a minimum liability of 30/60/25, or:

  • $30,000 for injuries per person
  • $60,000 per accident
  • $25,000 for property damage

This means that Texas mandates that each person have, at minimum, enough insurance to cover a person’s injuries up to $30,000, or a total of $60,000 per accident no matter how many people are involved. Additionally, should your car damage another person’s car or a piece of personal property (such as a home, fence or lamp post), you should have enough insurance to pay for up to $25,000 in repairs.

Remember, these are just minimum coverage requirements, and it’s highly recommended that you purchase more if you can afford the premium. If you only pay for the minimum requirements of your state, and you get into an accident that exceeds your policy limits (30/60/25), you would have to pay out of pocket for anything over your coverage.

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 of the top companies in Texas:

Texas Farm Bureau Allstate Farmers Insurance Geico State Farm USAA
Multi-Policy x x x x x x
Good Student x x x x x x
Eco-Friendly or
Hybrid Vehicle
x
Automatic Payments x x x
Vehicle Safety
Equipment
x x x x x x
Anti-Theft
Equipment
x x x x x
Good Driving
History
x x x x x x
Low Mileage x x x x
New Vehicle x x x x x x

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.

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.