Best cheap car insurance in Waco for 2021

1
Walter Bibikow/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

The Central Texas city of Waco is located in McLennan County, which had over 6,000 crashes in 2019. For a small county and city, the number of crashes is significant and for protection against traffic incidents, a minimum amount of car insurance is required for every driver. According to Bankrate’s study of annual quoted premiums, the average cost of car insurance in Waco is $467 per year for minimum coverage and $1,645 per year for full coverage car insurance, a rate that closely resembles the national average. However, both Geico and USAA offer some of the best cheap car insurance.

If you are looking for cheap car insurance companies in Waco, follow our guide to learn more about the providers that offer the best in terms of affordability, customer service, financial strength, coverage options and discounts and third-party ratings.

Best cheap car insurance companies in Waco

Most major insurance providers are available in Waco, but not all of them are cheap. Bankrate’s analysis of the best car insurance companies in Waco led us to the top five providers that stand out not only for the high customer satisfaction ratings, but also their financial strength, discounts, coverage options, third-party ratings and digital innovations — all while providing premiums for almost any budget. After collecting 2021 quotes for each company from Quadrant Information Services, the following companies made our list for offering low-cost policies:

Insurance company J.D. Power Score
(Texas region)
Average annual premium for minimum coverage Average annual premium for full coverage
Geico 832/1,000 $337 $1,225
USAA *879/1,000 $364 $1,255
Nationwide Not rated $416 $1,117
Allstate 836/1,000 $501 $1,508
Mercury Not rated $507 $1,589

*USAA is not eligible for official ranking with J.D. Power due to eligibility restrictions.

Geico

Geico offers the least expensive premiums among the carriers reviewed and aside from the low prices, the company also has various add-ons to include in your policy. Specialty coverages such as car rental reimbursement, roadside assistance and mechanical breakdown coverage are some of the useful endorsements that could strengthen your policy while still keeping the cost within your budget. Geico also has innovative digital tools to make car insurance convenient and hassle-free.

Learn more: Geico Insurance review

USAA

USAA offers auto insurance for members of the military and their immediate family. Prices are usually on the lower side with several discounts for members, such as annual membership, family signup and low mileage. Many of its coverage options are tailored to fit the specific needs of life for service members. For instance, if you are deployed, your premiums may be reduced due to your vehicle not being in use. USAA also scores extremely high for customer service, especially in J.D. Power studies.

Learn more: USAA Insurance review

Nationwide

Nationwide offers low premiums and several policy customization options, making it a contender for the best cheap car insurance in Waco. If you enroll in the SmartRide safe driving program, you can save up to 40% on your premiums, along with numerous other discounts. The carrier offers a wide variety of policy options, including gap insurance, roadside assistance and accident forgiveness. The company has a pay-per-mile program for more savings and the extraordinary life circumstances discount could have your annual premiums reduced if you can prove that your income has been adversely affected by major life events such as job loss, illness or death.

Learn more: Nationwide Insurance review

Allstate

Allstate has both competitive rates for premiums in Waco and offers innovative digital tools for policyholders. The highly-rated mobile app gives you instant access to your auto insurance policy, including payments, filing claims and instant access to your agent. Plus, if you need roadside assistance, you can manage the call through the app. Telematics programs such as Drivewise could save you money on premiums while helping you build good driving habits at the same time. Allstate’s large number of local agents in multiple Waco ZIP codes offer assistance whenever you need.

Learn more: Allstate Insurance review

Mercury

If you have trouble getting coverage with other providers because of a spotty driving record, Mercury has your back with affordable rates, decent coverage options and various discounts. Besides the basic options, endorsements include rideshare coverage and roadside assistance, with discounts for a good driver, good student or bundling policies. You could also include mechanical protection insurance for vehicle repairs after the manufacturer warranty has expired.

Learn more: Mercury Insurance review

Cheapest car insurance in Waco

The average cost of auto insurance in the U.S. is $565 annually for minimum coverage and $1,674 annually for full coverage. Texas comes in with average rates of $524 annually for minimum coverage and $1,823 annually for full. In addition to the cheap insurance providers in Texas, it can also be less expensive to insure your car in Waco, since average rates for the city are less than both the national and state averages. The providers below, chosen by largest market share, offer the cheapest car insurance in Waco.

Insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Geico $337 $1,225
USAA $364 $1,255
Nationwide $416 $1,117
State Farm $498 $1,321

No matter the average rates, every carrier has its advantages and drawbacks. For instance, while USAA offers incredible rates and coverage options, it is limited to members of the military or their family members. Geico has the least expensive rates, but does not offer the number of specialty coverage options as Nationwide.

All four carriers offer digital assets, such as online policy management and user-friendly apps. USAA scores the highest on the 2021 J.D. Power Auto Insurance Study, but Geico and Nationwide fall below the industry average for customer satisfaction in Texas. Nationwide is not rated in the region.

Waco insurance requirements

Drivers in Texas are required to carry 30/60/25 minimum liability insurance. This means you must have at least the following coverage:

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

Additionally, all auto insurance policies in Texas automatically include personal injury protection (PIP) in the policy. If you do not want this optional coverage, you have to tell the carrier. This coverage pays for your passengers’ medical bills and lost wages if you are involved in an accident. Similarly, insurance companies must offer uninsured/underinsured motorist coverage, but you can deny this coverage in writing.

However, carrying the bare minimum may not leave you with adequate coverage or even be an option for you. For instance, if you lease or finance your car, most lienholders require you to carry the additional collision and comprehensive coverage until you pay the car off.

Car insurance discounts in Waco

Even though car insurance in Waco is less expensive than the national average, there are still opportunities to save on premiums. Discounts are typically offered by every carrier, but not all carriers offer the same discounts.

  • Pay in full: Most carriers offer discounts if you pay your annual premium upfront instead of breaking it into smaller, monthly payments. By paying your rate upfront, you could be rewarded with premium savings.
  • Defensive driving: If you take a defensive driving course approved by your carrier, you could earn a defensive driving discount.
  • Good student: If you maintain a higher GPA or consistently bring home good grades, good student discounts may be able to apply to your policy.
  • Claims-free: If you drive a specified number of years without an accident or claim, many carriers reward this by giving you a discount on your premiums or lowering your deductible.

Paying your auto insurance premium upfront can save you a lot of money on the backend, but it may not be possible for every driver’s financial circumstance. Going several years being claims-free or taking an approved defensive driving course, among other discount options, are also ways to make a meaningful difference on reducing your rates.

Frequently asked questions

What is the best car insurance company?

Finding the best car insurance in Waco, or any other town, is based on what is most important to you. Whether you value strong customer service, a user-friendly app and website or a carrier that has strong financial ratings, considering these features could help determine if a company is the best one for you.

Bankrate has reviewed several of these factors and found a list of providers that offer great customer service and numerous discounts over other competitors.

How much does car insurance in Waco cost?

The average car insurance in Waco is $467 annually for minimum coverage and $1,645 annually for full coverage, but your rates could be completely different since rates are based on several personal factors. Your age, credit score, driving record, ZIP code, vehicle and gender all influence how much your final rate will be.

Is driving without insurance illegal in Waco?

Yes, driving uninsured is illegal anywhere in Texas. Failure to provide proof of coverage can draw penalties such monetary fines, license suspension and vehicle impoundment.

How can I save on car insurance?

It is possible to save money on car insurance by choosing providers that offer rates within your budget, having a clean driving record and applying discounts. Insurance costs vary for every individual and location, so it is a smart idea to shop around periodically for the best rates because prices between carriers often differ.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should only be used for comparative purposes.

Written by
Sara Coleman
Insurance Contributor
Sara Coleman has three years of experience in writing for insurance domains such as Bankrate, The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.
Edited by
Insurance Editor