Best car insurance in Texas 2021

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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. The 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 Best 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.

Average annual full coverage premium J.D. Power score
GEICO $1,274 832/1000
USAA $1,372 848/1000
State Farm $1,376 846/1000
Nationwide $1,680 844/1000
Allstate $1,805 878/1000

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 discounts for front-seat airbags, anti-theft devices, accident-free drivers, military members and multiple policies.

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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. 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. 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.

Nationwide

Nationwide offers various coverage options in Texas so that you can select the coverage that fits your needs, budget and goals. Customers can take advantage of Nationwide’s features such as on your side claims service, on your side review, multiple discounts and digital resources to help you find everything you need. Nationwide provides agents in Texas who can give you a free consultation to help you get the coverage that’s right for you.

Texas car insurance discounts can help you save by lowering your monthly premiums. Nationwide offers multi-policy, smartride program, good student, defensive driving, safe driver, anti-theft discounts and more.

Allstate

Allstate agents are located all across Texas, in almost every zip code. The network of agents provide excellent customer service who can identify your local needs and give you a car insurance quote that best fits your budget and goals. You can also save on your premiums by applying any of the car insurance discounts Allstate offers in Texas. A few of the featured discounts that Allstate offers in Texas include multiple policy, new car and teen driver.

Average car insurance cost in Texas

Individuals pay an average annual cost of $496 for minimum coverage and $1,800 for full coverage. This is about $62 less than the national average of $1,738. The cheapest car insurance companies in Texas are Geico, USAA, and State Farm.

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 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:

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

Methodology

Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a cleaning driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.