Best car insurance in Texas 2020

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Texas has the second-highest number of licensed drivers in the country, nearly 15.9 million, according to the Federal Highway Administration. 2018 Texas traffic statistics provided by the Texas Department of Transportation estimates:

  • 12,186 people sustained serious injuries
  • 3,652 people died in traffic accidents
  • Motorists racked up more than 282 billion miles
  • Drivers reported crashes every 58 seconds
  • A driver or passenger died every two hours and 24 minutes
  • Traffic injuries occurred at a rate of every two hours and seven seconds
  • 626 pedestrians lost their lives
  • More than 55% of fatalities occurred on rural roadways
  • 403 fatalities were attributed to distracted driving

If you don’t have good car insurance coverage in Texas, you’re taking a big financial risk. Texas requires minimum levels of liability coverages. If you’re at fault for an accident, you’re legally responsible for injuries and property damages.

The top car insurance companies in Texas

These auto insurance providers stand out in Texas because of their customer service, average rates and overall customer satisfaction, according to J.D. Power’s 2020 U.S. Auto Insurance Satisfaction Study:

Texas Farm Bureau

Texas Farm Bureau ranks #1 in J.D. Power’s survey. The provider boasts more than one million auto insurance policyholders.

Texas Farm Bureau offers few bells and whistles, instead focusing on just the basic collision, comprehensive, liability and personal injury protection coverages most Texans need. The carrier also offers optional uninsured/underinsured motorist coverages to protect your finances when a hit-and-run driver collides with your vehicle or a poorly insured motorist causes an accident. Texas Farm Bureau also offers optional death indemnity coverage, a form of life insurance that pays up to $10,000 if the insured dies in an auto accident.

To help you save money on your auto insurance premium, Texas Farm Bureau offers a handful of discounts, including:

  • Academic achievement discounts
  • Alarm system discounts
  • Airbag discounts
  • Multi-driver discounts
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Progressive

Ranked second in the Power study, Progressive offers an impressive selection of optional coverages, including:

  • Custom parts and equipment: Many Texas drivers like to spiff up their rides with custom stereo systems, paint jobs and wheels. If your custom enhancements are damaged in a covered loss, Progressive will pay up to $5,000 to replace them.
  • Loan/lease payoff: If you total a newly financed vehicle, the settlement you receive likely won’t be enough to pay off your car loan. But Progressive’s loan/lease payoff coverage helps fill the gap, increasing the payout by up to 25% of your automobile’s actual cash value.
  • Rideshare: An increasing number of motorists have turned to ridesharing jobs to boost their incomes. Although ridesharing companies provide coverage for drivers when they’re on the clock and transporting a passenger, their vehicles aren’t covered when they’re waiting around for the next passenger. But this addon covers your rideshare car, even when you’re enjoying a well-deserved coffee break.
  • Roadside assistance: This must-have coverage saves the day when you need a tow, have a flat tire, run out of gas or lock your keys in your car.

Geico

Geico comes in third in the 2020 J.D. Power Auto Insurance Satisfaction Study. With Geico you can easily file a claim online or using its mobile app, which has 4.8 out of 5 star ratings for both Android and Apple versions. 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 call a representative.

Geico provides several ways for its policyholders to save loads of money on their car insurance, including:

  • Up to a 40% discount for cars equipped with full-front seat airbags
  • Up to a 25% discount for automobiles equipped with an anti-theft system
  • Up to a 26% discount for drivers who remain accident-free for five or more years
  • Up to a 15% discount for military members and up to 25% when they’re on deployment
  • Up to a 25% discount for purchasing multiple Geico policies

State Farm

Coming in fourth in the 2020 J.D. Power survey, State Farm offers Texans a wide range of standard and optional coverages. With emergency road service coverage, you’ll never have to worry when you breakdown on the highway. The coverage pays for up to one hour of labor charges incurred at the breakdown site and free towing to the nearest auto mechanic.

State Farm’s car rental and travel expense coverage helps pay for a rental car when yours is out of commission following a covered collision. And if your vehicle is rendered undrivable following a collision while you’re on vacation, the coverage will pay up to $500 for accommodation and meals.

State Farm’s mobile app has earned high marks from Android and Apple users. The app comes packed with features, like a digital insurance ID card. You can use the app to contact your State Farm agent, file a claim and request roadside assistance. And, if you open a State Farm bank account, you can use the app to make a deposit, pay bills or transfer funds using your smartphone.

USAA

USAA earned the highest ratings in the J.D. Power study, but it doesn’t qualify for ranking because it only serves active and retired military members and their families. Nonetheless, USAA auto insurance is an exceptional option for those who qualify for coverage.

USAA sells all the coverages you need, whether you’re insuring an older car that only requires state mandated coverages or need full coverage for a newly financed vehicle. The provider’s personal injury protection coverage includes a wealth of benefits, including a $1,000 funeral expense allowance. If you’re injured in a covered accident USAA’s PIP coverage will also pay up to $1,250 per month in lost wages, as well as $25 per day for childcare expenses and $30 per day for services, like lawn care.

Beside auto insurance, USAA offers one-stop-shopping for financial products and services. Members can purchase home and life insurance, open a checking or savings account, apply for a home loan, get a credit card and invest for retirement.

Texas Farm Bureau Progressive Geico State Farm USAA
J.D. Power (Overall Satisfaction) 866/1,000 848/1,000 846/1,000 844/1,000 878/1,000
AM Best (Financial Strength Rating) A A+ A++ A++ A++
BBB Rating 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, explore discounts and find a policy that provides the best combination of price and coverage.

Before you buy a policy, decide what coverages you need. If you finance a vehicle, you’ll need all the state required coverages, including liability and PIP, plus collision and comprehensive coverages. But if you’ve paid off your vehicle and its resale value is below your policy’s deductible, it makes sense to only purchase compulsory coverages.

Also consider purchasing optional coverages. Roadside assistance is a lifesaver when you break down on the road and rental car reimbursement coverage can save you a bundle of money if your vehicle needs repairs following a covered collision.

Among our top picks, here are our suggested carriers for certain types of drivers:

  • Texas Farm Bureau: For Texans who only need basic automobile insurance coverages
  • Progressive: For new car owners who need gap insurance
  • Geico: For folks on a budget
  • State Farm: For people who want a local agent
  • USAA: For military members and their families

Average car insurance cost in Texas

According to the Insurance Information Institute, in 2017, Texans paid an average cost of around $1,097 for auto insurance. For individual coverages, here’s how costs broke down during the same year.

  • Liability – $631
  • Collision – $430
  • Comprehensive – $234

State minimum insurance requirements in Texas

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

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

Texas mandates that each person have, at minimum, enough insurance to cover the injuries of one person up to $30,000, or a total of $60,000 per accident, no matter how many people are involved. Additionally, if you’re at fault for damaging another person’s car, or other type of personal property, like a home, fence or lamp post, you should have enough personal property liability insurance to pay for up to $25,000 in repair costs. Texas drivers must also carry personal injury protection coverage.

Remember, these are the minimum coverage requirements but it’s highly recommended that you purchase more if you can afford the premium. If you only buy what’s required, and you get into an accident that exceeds your policy limits (30/60/25), you will 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 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 Texas’s top auto insurance carriers:

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

Frequently asked questions

Does Texas require car insurance?

Yes. All Texas drivers are required to carry bodily injury coverage of $30,000 per person and $60,000 per accident, plus property damage coverage of $25,000 per accident. Texans must also purchase personal injury protection coverage.

What happens 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 for the first offense. If you’re caught a second time, you could face a fine of up to $1,000 and lose your driver’s license for two years.

Is Texas a no-fault car insurance state?

Yes. Texas drivers must purchase PIP coverage. PIP coverage pays for the injuries of you and your passengers, regardless of who causes an accident