Best car insurance in Texas for 2022
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)|
*Not officially ranked with J.D. Power due to eligibility restrictions
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’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 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 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’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
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
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|
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. 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.
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 auto insurance in Texas depends on your specific needs and what you value most in a car insurance company. For example, if having the cheapest auto insurance is a priority for you, requesting quotes from multiple car insurance companies — especially those that offer a long list of discounts — could be a strategy to explore. By gathering multiple quotes, you will learn what options are available to you and have the ability to compare the costs and coverage options.
Is Texas a no-fault car insurance state?
Texas is considered an at-fault state. This means that the driver who is deemed to be at-fault in the accident is responsible for covering the costs of the other party’s damages, whether property, medical, or both. For this reason, Texas law requires drivers to carry at least a minimum amount of liability insurance. However, some drivers will opt to purchase higher liability limits and additional coverage for more protection — and most insurance agents will recommend that you do so to help protect your finances if you’re involved in an accident.
Bankrate utilizes Quadrant Information Services to analyze 2022 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 clean 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 coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Individual city rates represent 2021 data and a 2019 Toyota Camry.
These are sample rates and should only be used for comparative purposes.
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.