Best car insurance in Texas for 2022

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If you are searching for the best car insurance in Texas, USAA and Geico top Bankrate’s charts for high customer satisfaction, financial strength, low prices and competitive discounts. Purchasing car insurance in Texas will cost you an average of $1,823 per year for full coverage and $524 per year for minimum liability insurance, according to Bankrate’s 2021 study of quoted annual premiums. To find the best provider for you, you may want to look at factors beyond premiums.

If you do not have sufficient car insurance in Texas, you are taking a big financial risk. Texas requires minimum levels of liability coverage. If you are at fault for an accident, you are legally responsible for injuries and property damages.

Bankrate Insight

The Lone Star State has the second-highest number of licensed drivers in the country, nearly 17.9 million, according to the Federal Highway Administration. The 2019 Texas traffic statistics provided by the Texas Department of Transportation estimate:

  • 15,843 people sustained serious injuries
  • 3,610 people died in traffic accidents
  • Motorists racked up just over 286 billion miles
  • Drivers reported crashes every 56 seconds

The best car insurance companies in Texas

These auto insurance providers stand out in Texas because of their customer service, average rates — gathered by Quadrant Information Services — and overall customer satisfaction, according to the 2021 J.D. Power’s U.S. Auto Insurance Satisfaction Study. Bankrate’s insurance editorial team also calculated a Bankrate Score for each provider across these same categories. Each score is out of 5.0 possible points, where a higher score indicates stronger ratings in area.

Car insurance company Bankrate Score Average annual full coverage premium J.D. Power customer satisfaction score (Texas)
USAA* 5.0 $1,344 879/1,000
Geico 4.7 $1,339 832/1,000
State Farm 4.7 $1,411 838/1,000
Nationwide 4.4 $1,362 Not rated
Allstate 4.0 $1,705 836/1,000

*Not officially ranked with J.D. Power due to eligibility restrictions

USAA

USAA earns the highest score in the 2021 J.D. Power study, although it does not qualify for ranking because it only serves active and retired military members and their eligible families. Nonetheless, USAA auto insurance is an exceptional option for those who qualify for coverage. USAA did earn the highest Bankrate Score on our list for its strong customer service, wide range of coverage options, financial strength and attractive pricing. Standard coverage might be able to be paired with optional endorsements like accident forgiveness or car replacement assistance to create a policy that suits your unique needs.

Learn more: USAA Insurance review

Geico

Geico’s second-place Bankrate Score reflects the company’s top-notch customer service, pricing, coverage options and discounts. With Geico, you can easily file a claim online or use its mobile app, which has a 4.8 out of 5 star rating for the Apple version and 4.7 out of 5 star rating for the Android version. Geico provides several ways for its Texas policyholders to save money on their car insurance, including discounts for airbags, anti-theft devices, accident-free drivers, military members and multiple policies. However, out of all the insurance carriers on this list, Geico scored the lowest in J.D. Power’s customer satisfaction score, indicating customers were less satisfied with the service they received.

Learn more: Geico Insurance review

State Farm

State Farm claims fourth place in the 2021 J.D. Power survey, offering 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 appreciate 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 discounts are fairly typical, limiting the number of savings opportunities drivers have to save.

Learn more: State Farm Insurance review

Nationwide

Nationwide is known for its innovative programs and wide coverage options for diverse needs, budgets and goals. You could also make use of multiple discounts and digital resources to help you manage your policy. According to the National Association of Insurance Commissioners (NAIC), Nationwide had a complaint index of 1.08, which is just above the national baseline of 1.0, but still on par with the average insurer in the market. As a Texan, you could take advantage of features such as “On Your Side”’ service, Nationwide’s free annual insurance consultation with a licensed agent to be proactive about adapting your insurance to your life. Texas car insurance discounts can help you save by lowering your monthly premiums. Nationwide offers multi-policy, good student, defensive driving, safe driver, anti-theft discounts and more.

Learn more: Nationwide Insurance review

Allstate

Allstate’s wide market share allows the company to employ over 12,000 agents throughout the country. Allstate’s strong network of agents in Texas provides excellent customer service by identifying your local needs and giving you a car insurance quote that best fits your budget and goals. Allstate’s premiums are one of the highest on this list, but you could also save on your premiums by qualifying for some of the car insurance discounts Allstate offers in Texas, including multiple policy, new car discount and automated payments.

Learn more: Allstate Insurance review

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Average car insurance cost in Texas

Drivers in Texas pay an average of $524 per year for minimum coverage and $1,823 per year for full coverage. The national average premiums for car insurance are $565 per year for minimum coverage and $1,674 per year for full coverage. Texans pay slightly lower than the national annual average for minimum coverage but a bit more annually for full coverage.

Average annual premium for minimum coverage in Texas Average annual premium for full coverage in Texas
$524 $1,823

Drivers looking for cheap car insurance in Texas may want to consider obtaining quotes from several providers to compare premiums, coverage options, discounts and other factors such as financial strength and customer service scores.

State minimum insurance requirements in Texas

Like most states, Texas does have laws regarding the minimum limits of certain car insurance coverage offerings that drivers must have. Texas currently requires a minimum liability coverage of 30/60/25, or:

  • $30,000 for bodily injury liability per person
  • $60,000 for bodily injury liability per accident
  • $25,000 for property damage liability per accident

Texas drivers must also be offered personal injury protection and uninsured/underinsured motorist coverage when they request a car insurance quote. If you decide not to purchase these coverage types, you must decline them in writing.

Remember, these are the minimum coverage requirements but most insurance experts recommend that you purchase higher liability limits or even full coverage, like comprehensive and collision coverage, if you are able to. If you choose to carry only state minimum limits and you get into an accident that exceeds those limits, you will likely have to pay out-of-pocket for anything over your coverage.

How to get the best car insurance

With the variety of insurance companies, coverage options and discounts, shopping for car insurance might feel overwhelming. There are steps you can take to make the process easier, including:

  • Evaluate your needs: Every driver is different, which means everyone’s insurance needs are unique. The first step to finding the best car insurance in Texas is to decide what factors matter most to you. For example, 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. If you like to handle your insurance yourself, a company that has a strong online presence or highly-rated mobile app may be a good fit.
  • Consider state factors: Just like every driver is different, so is every state. Texas is no exception. In 2019, around 8% of drivers in Texas were estimated to be uninsured, so getting quotes that include uninsured motorists coverage may be a good idea. Additionally, hail storms are common across a wide area of the Lone Star state, so drivers may want to consider adding optional coverage types, like comprehensive coverage, to their auto insurance policies. According to the Insurance Information Institute (Triple-I), Texas had the most hail catastrophes in the U.S. in 2020, with 601 events.

Licensed agents and customer service representatives are great resources if you find yourself unsure about the insurance buying process. Calling your agent or a representative at your company may help you to decide how much coverage you need or discover discounts you were missing.

Car insurance discounts in Texas

Although full coverage car insurance in Texas is more expensive than the national average, there are ways you can save money on car insurance. Most insurance companies offer discounts that can lower your premium. Although car insurance discounts vary by carriers, some common options in Texas are:

  • Multi-policy discounts: These are some of the biggest savings opportunities that companies offer. If you bundle your auto insurance with your home, condo or renters insurance, you could see a significant drop in the price of both policies. Some companies also offer this discount for other product lines, like boat or RV insurance.
  • Telematics discounts: Some companies offer programs that track your driving habits with a mobile app or plug-in device. Based on the data received, you may earn a personalized discount. These programs can save you money and help you identify how to drive more safely.
  • Student discounts: Young drivers face some of the highest car insurance rates because they have less years of driving experience compared to adults with longer driving histories. If you have a teen or college-age driver on your policy, you may be able to take advantage of a good student discount, driver training discount or distant student discount to lower your premium.
  • Other discounts: Paying your premium in full could save you money, as could signing up for automatic payments. Some companies also offer a discount for signing up for paperless billing statements. Additionally, if your car comes equipped with safety features such as anti-theft devices and anti-lock brakes, you may qualify for a safe car discount that lowers your premium.

Although many companies feature their discounts online, savings opportunities can vary by your location. Because Texas is such a big state, it may be better to talk to a company representative about ways you can save.

Frequently asked questions

Which provider offers the cheapest auto insurance in Texas?

Car insurance providers generate individualized quotes for you based on qualities like your vehicle type, accident history and age. The cheapest car insurance company in Texas will vary from driver to driver. From Bankrate’s studies, based on information from Quadrant Information Services, the cheapest car insurance companies in Texas include Geico, USAA, Fred Loya, Nationwide and State Farm, although individual rates will vary based on driving history, location, vehicle type and many other factors. To get the lowest rate, you may also want to research which discounts apply to you. Many Texas car insurance providers offer special discounts for good students, safe vehicles, teachers, active military, policy bundling and more.

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 are caught a second time, you could face a fine of up to $1,000 and lose your driver license for two years.

Who is the best auto insurance company in Texas?

The best car insurance company in Texas will depend on your specific rating factors, as well as what you want and need from a company. Drivers looking for digital assets may choose a different company than drivers looking for the lowest price. Your first step when shopping for insurance coverage could be to determine what you are looking for in a company. You can then get quotes from several companies that could fit your needs to determine which option is right for you.

Is Texas a no-fault car insurance state?

Texas is not considered a no-fault insurance state. If you are involved in an accident caused by someone else, that person is usually responsible for your injuries and damages from the accident.

Methodology

Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.

To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.

While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.

Bankrate Scores

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.

Written by
Lizzie Nealon
Insurance Writer
Lizzie Nealon is an insurance writer for Bankrate. Her favorite part of the job is making home, auto and life insurance digestible for readers so they can prepare for the future.
Edited by
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