What is the cheapest car insurance company in Texas?

Although there are a handful of companies writing cheap car insurance in Texas, no single company always has the cheapest option all the time for every driver. Every insurer has their own method for determining rates, with each one weighing the various factors differently. Finding the best option for you is easiest if you consider your priorities. For example, if you have prior incidents on your record, you may need to look at high risk carriers to find the best rate. If you have a teen driver in your family, on the other hand, a company with multiple discounts for young drivers may be a better option. If you are retired or work from home, you may benefit most from a company with mileage-based coverage. The best auto insurance in Texas for your needs will be easier to locate once you've identified what's most important for your coverage.

What happens if I get caught driving without car insurance in Texas?

Driving without insurance in Texas is punishable by fines or possibly a license suspension. If it’s your first offense, the fines could total $350, while fines for subsequent offenses could reach $1,000 and a license suspension. To avoid this situation, Texas drivers are required to carry the minimum amount of car insurance coverage set by the state.

Why did my car insurance go up in 2024?

Like almost everything else, the average national cost of car insurance went up for a full coverage policy. Bankrate identified a few main reasons as to why: inflation, premium give-backs, an uptick in claims and labor shortages have all contributed to more expensive car insurance premiums. When you factor in that car insurance rates are highly individualized, how much your rates went up may vary (and, for a small number of people, rates could have even gone down; if, for instance, a hefty moving violation just dropped off their record).

Is Texas a no-fault car insurance state?

Texas is considered an at-fault state. This means that the driver who is found to be at fault for an accident is responsible for covering the costs of the other party’s damages, whether property, medical or both. Uniquely for an-fault state, though, personal injury protection coverage (PIP), must also be offered in Texas but can be declined by car owners. PIP is typically offered in no-fault states, as it is a coverage that pays for injuries and lost wages for each driver and their passengers, regardless of who caused the accident. As in most states, Texas law requires drivers to carry at least a minimum amount of liability insurance that covers both injuries and property if you cause an accident. Uninsured and underinsured motorist coverage must be offered but can be declined, as well. Regardless of whether you elect to purchase the additional coverage on offer in Texas, you may want to consider opting for higher liability limits than required by law. That way, you’ll have better financial protection in the event you’re responsible for pricey vehicle damage or expensive medical bills in the wake of an accident you cause.

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Best car insurance in Texas for 2024

Written by

Natalie Todoroff

Edited by

Lisa McArdle

Edited by

Lisa McArdle

Updated Nov 13, 2024

Geico, State Farm and Allstate offer some of the best car insurance policies in the Lone Star State, according to Bankrate’s research.

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To help you find the best car insurance in Texas for your situation, Bankrate’s insurance editorial team analyzed some of the largest insurers in the state by market share. We selected companies that provide lower-than-average rates, offer significant discount opportunities, hold high customer satisfaction ratings from J.D. Power and boast robust financial strength ratings from AM Best. While the ideal car insurance provider will differ for each person, our in-depth analysis may help you find exactly what you’re looking for.

Best car insurance companies in Texas

The average annual cost of car insurance in Texas is $2,492 for full coverage and $724 for state-mandated minimum insurance. Your own rates are likely to vary from these averages based on a number of factors unique to you, including your vehicle type, claim history and age. The best car insurance companies in Texas have affordable rates, but also stand out in other areas, such as their customer satisfaction scores, as determined by J.D. Power's 2024 U.S. Auto Insurance Study.

Bankrate developed the Bankrate Scoring system to help you make the best choice for your insurance. These scores, out of 5 points, are based on average cost data from Quadrant Information Services, customer satisfaction scores, financial strength ratings, digital tools and other factors. The companies that earned the highest Bankrate Scores in Texas are Geico, USAA, State Farm, Nationwide and Allstate.


Geico	4.4 Rating: 4.4 stars out of 5	$1,790	$483
USAA	4.2 Rating: 4.2 stars out of 5	$1,874	$564
State Farm	4.3 Rating: 4.3 stars out of 5	$1,875	$502
Nationwide	4.0 Rating: 4 stars out of 5	N/A	N/A
Allstate	3.9 Rating: 3.9 stars out of 5	$2,757	$768

Geico

4.4

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

Read Geico review Get a quote

Avg. full coverage premium

$149/mo

Avg. full coverage premium

$1,790/yr

Customer satisfaction

653/1,000

Why Geico made our list: Geico’s high Bankrate Score reflects the company’s top-notch customer service (based on its customer satisfaction scores), pricing, coverage options and lengthy list of potential discounts. With Geico, you can easily file a claim online or use its highly-rated mobile app, available for Android and Apple devices. Geico provides several ways for Texas policyholders to potentially save money on their car insurance, including discount opportunities for airbags, anti-theft devices, accident-free drivers, military members and multiple policies. Geico was awarded three top credentials in the 2024 Bankrate Awards: it was named Best Auto Insurance Company Overall (tie), Best Budget Auto Insurance Company (tie) and Best for Young Drivers.

Who Geico may be good for: Geico might be a good choice for people who prefer to do business online or through a mobile device. The carrier’s mobile app enables you to access your insurance ID card, pay your premium, request roadside assistance and submit and manage claims. In-person agents are also available in Texas, but offices tend to be concentrated in larger cities like San Antonio, Dallas and Austin. Drivers in smaller, more remote towns may not have as easy access to live Geico agents.
Pros
Geico’s iOS and Android apps received high ratings from users

Extensive list of potential discounts may help reduce premiums
Cons
Few in-person locations

Limited optional coverage types

USAA

4.2

Read USAA review Get a quote

Avg. full coverage premium

$156/mo

Avg. full coverage premium

$1,874/yr

Customer satisfaction

710/1,000

Why USAA made our list: USAA consistently earns high scores J.D. Power Auto Insurance Study, making it an exceptional option for those who are eligible for coverage. However, it is only available to active-duty military, veterans and qualifying family members. It also has the second-highest Bankrate Score on our list for its strong customer service ratings, wide range of coverage options, financial strength standing and low average rates. Policyholders can pair standard coverage with optional endorsements like accident forgiveness or car replacement assistance to create a policy that suits their needs.
Pros
Highly-rated customer service according to J.D. Power

Long list of optional coverage types tailored to military needs
Cons
Must meet certain eligibility requirements to purchase coverage

Limited in-person locations

State Farm

4.3

Read State Farm review Get a quote

Avg. full coverage premium

$156/mo

Avg. full coverage premium

$1,875/yr

Customer satisfaction

654/1,000

Why State Farm made our list: State Farm ranked third in the 2024 J.D. Power Auto Insurance Study in the Texas region. It offers Texans a range of standard and optional car insurance coverage types such as emergency road service, car rental and travel expense coverage. Drivers who appreciate digitally filing and tracking claims may value State Farm’s simple mobile app. Additionally, if you open a State Farm bank account, you can use the company’s multifunctional app to make a deposit, pay bills and transfer funds. Compared to some of the other insurance providers on this list, State Farm’s potential discounts are fairly typical, limiting the number of savings opportunities drivers may have.
Pros
Offers many types of insurance and financial products beyond car insurance

Highly rated by J.D. Power for digital service for policies
Cons
Shorter list of available discounts compared to other carriers

Gap insurance is not an offered optional coverage
If you want to save on auto insurance in Texas by bundling auto and home insurance policies, State Farm may be a provider to consider. The carrier’s generous multi-policy discount enables you to bundle car insurance with condominium, home, life and renters policies. State Farm also has a broad network of in-person agents, with 19,000 agents nationwide, in addition to its above-average digital policy management (according to J.D. Power).

Nationwide

Read Nationwide review Get a quote

Avg. full coverage premium

Not available

Avg. full coverage premium

Not available

Customer satisfaction

639/1,000

Why Nationwide made our list: Nationwide is known for its innovative programs and wide coverage options that may suit diverse budgets and goals. You might also be able to take advantage of multiple potential discounts and leverage the company’s robust digital resources to help you manage your policy. Customers might also benefit from features such as “On Your Side” service, Nationwide’s free annual insurance consultation that pairs policyholders with a licensed agent to be proactive about adapting your insurance to your needs.
Pros
Vanishing deductible available as an optional coverage selection

Low customer complaints as tracked by NAIC Complaint Index
Cons
Slightly below average score in J.D. Power 2023 Auto Claims Satisfaction Study

Below average score for Texas region in 2024 J.D. Power Auto Insurance Study
In addition to offering a broad selection of coverage that makes customizing your policy easy, Nationwide might be a good choice for automobile owners who expect exemplary customer service. Although it scored slightly below average in the 2023 J.D. Power Auto Claims Satisfaction Study, according to the National Association of Insurance Commissioners (NAIC), Nationwide had a complaint index of 0.46 for its private passenger auto product in 2023, which is well below the national baseline of 1.00.

Allstate

3.9

Read Allstate review Get a quote

Avg. full coverage premium

$230/mo

Avg. full coverage premium

$2,757/yr

Customer satisfaction

646/1,000

Why Allstate made our list: Allstate’s wide market share allows the company to employ over 12,000 agents throughout the country. Allstate’s network of agents in Texas may provide excellent customer service by identifying your local needs and giving you a car insurance quote that best fits your budget and goals. Allstate’s average premiums may be more expensive than the state average, but you could save on your premiums if you qualify for some of the car insurance discounts the company offers, including multiple policy, new car and automated payments.
Pros
Extensive network of local agents

Many opportunities to save with discounts, including Drivewise
Cons
Average rates tend to be higher than other companies

Fewer optional coverage opportunities than some other insurers

How Bankrate chose the best car insurance companies in Texas

To find the best auto insurance companies in Texas, Bankrate analyzed rate data from Quadrant Information Services to see what drivers in Texas are paying for car insurance coverage on average. While we know that price plays an important role in determining which car insurance company is best for you, we also know it is not the only valuable metric. Our editorial team includes licensed insurance agents with real-world insurance industry experience, so when it comes to choosing car insurance in TX, we know first-hand that it’s also helpful to consider discount availability, financial strength ratings and other qualities when reviewing a company.

To help drivers quickly compare providers based on key metrics, Bankrate employs a five-point scale to evaluate each insurer’s coverage options, overall affordability, discounts and third-party ratings for customer satisfaction and financial strength. Since we live in a fast-paced world, we also looked for companies that offer mobile and online tools that can help policyholders easily manage their policies and submit and track claims.

Why you can trust Bankrate

Read our full methodology

To help Texas drivers find the best car insurance, Bankrate’s insurance editorial team reviewed some of the largest insurers by market share. We based our picks on a well-rounded analysis of several metrics related to each company.

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

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How to find the best car insurance in Texas

Texas state law requires all drivers to carry a certain amount of car insurance. Driving without insurance in Texas is punishable by fines and other serious penalties. However, there is more to carrying car insurance than just complying with the law. The right car insurance policy can offer you a broad scope of financial protection and grant you peace of mind when you’re behind the wheel. To help you zero in on the right fit, Bankrate put together some things to consider before you purchase your policy:

The Texas Department of Insurance mandates all drivers to carry specific amounts of liability coverage. Texas auto insurers must also offer uninsured motorist coverage, underinsured motorist coverage and personal injury protection (PIP), although these options can be declined in writing. Bear in mind that the state-required minimum coverages might not provide adequate financial protection if you cause a car accident. To better protect your assets, you may want to buy higher levels of liability coverage or full coverage car insurance.
Texas law may not be the only thing that influences how much insurance you need to carry. On top of state requirements, drivers who have leased or financed their vehicles may be required by their financial lenders to carry more insurance. Typically, this entails adding comprehensive and collision coverage to your policy. Because a lender has a vested financial interest in your vehicle, it is common for them to want to ensure that you are protecting their investment. With comprehensive and collision coverage, you are financially protecting your vehicle from additional types of losses.
While looking at financial strength ratings, customer satisfaction scores, average rates and discount offerings are all excellent moves to make throughout your insurance shopping journey, it’s helpful to start by evaluating your own needs. After all, the best car insurance company will depend on what you need from an insurer. If you have a DUI on your record, you may need to look for an insurer that will file an SR-22 on your behalf. Or, if you have multiple speeding tickets on your record, looking into a high-risk insurer may be a smarter move. If you have a newer car, you may want to search for a company that offers features like new car replacement and gap coverage, if you have a loan or lease.

How much is car insurance in Texas?

Drivers pay an average of $724 per year for minimum coverage and $2,492 for full coverage car insurance in Texas. To compare, the national average premiums for car insurance are $678 per year for minimum coverage and $2,458 per year for full coverage, putting Texas about on par with what drivers pay on average across the country for car insurance. Texans actually pay less on average for full coverage auto insurance rates than drivers in nearby Louisiana and Colorado, where drivers pay $3,744 and $2,972 per year, respectively, for full coverage and minimum coverage.

Best car insurance in Texas for 2024

Best car insurance companies in Texas

Geico

Overview

Pros and cons

Geico standout features

USAA

Overview

Pros and cons

Who USAA may be good for

State Farm

Overview

Pros and cons

Who State Farm may be good for

Nationwide

Overview

Pros and cons

Who Nationwide may be good for

Allstate

Overview

Pros and cons

Who Allstate may be good for

How Bankrate chose the best car insurance companies in Texas

Compare auto insurance rates

How to find the best car insurance in Texas

Consider minimum insurance requirements in Texas

Consider lender requirements

Consider your individual needs

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