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Best car insurance in Texas for 2022

Updated Sep 16, 2022
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Drivers in Texas have a vast amount of choices for car insurance, but with so many options available, finding the best car insurance for your unique needs could be a challenge. Choosing the right car insurance company for your circumstances depends on many factors, from ensuring the right coverage is in place to finding the best discounts and most competitive rates. Bankrate is here to help drivers cut through the confusion and help you find the carrier that most aligns with your driving needs.

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How Bankrate chose the best car insurance companies in Texas

Rates were provided by Quadrant Information Services and analyzed to see what drivers in Texas are paying for car insurance coverage on average. While rates are important, other factors should be considered too, so a driver can select the right company all around, and not simply for the cheapest rates. Bankrate further reviewed coverage options, discounts and third-party ratings and assigned a Bankrate Score to each carrier (based on a five-point scale) so drivers can quickly assess what each carrier is offering.

Best car insurance companies in Texas

USAA, Geico and State Farm 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 $1,531 879/1,000
Geico 4.7 $1,389 832/1,000
State Farm 4.7 $1,314 838/1,000
Nationwide 4.4 $1,685 Not rated
Allstate 4.0 $2,578 836/1,000

*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 average rates. 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 4.6 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 below the regional average, indicating customers were less satisfied with the service they received.

Learn more: Geico Insurance review

State Farm

State Farm claims third 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 0.39 for its private passenger auto product, which is below the national baseline of 1.0. 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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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
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Average car insurance cost in Texas

Drivers pay an average of $551 per year for minimum coverage and $1,868 for full coverage car insurance in Texas. The national average premiums for car insurance are $545 per year for minimum coverage and $1,771 per year for full coverage. This means that Texans pay slightly lower than the national annual average for minimum coverage but a bit more annually for full coverage. The higher-than-average costs could be attributed to numerous factors, including higher traffic in cities such as Dallas and Houston and an increase in population.

Average annual premium for minimum coverage in Texas Average annual premium for full coverage in Texas
$551 $1,868

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 find the best car insurance in Texas

With such a wide variety of insurance companies, coverage options and discounts, shopping for car insurance can feel overwhelming. Luckily, there are some steps you can start with to make the process easier, including:

Consider lender requirements

Although drivers in Texas are required to carry at least a minimum amount of liability insurance, you may have additional requirements if your car has a loan or lease. In this situation, your financial institution may also require you to purchase collision and comprehensive coverage. This ensures that your vehicle is insured in the event of a covered accident.

Consider your individual needs

Every driver is different, which means that 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.

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 rates. 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 carefully in order to maintain a clean driving record.
  • 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 on your insurance policies.

Frequently asked questions

Written by
Lizzie Nealon
Insurance Contributor

Lizzie Nealon is an insurance contributor for Bankrate and enjoys making home, auto and life insurance digestible for readers so they can prepare for the future.

Edited by Insurance Editor