The Cheapest Car Insurance in Texas in 2024

Everything may be bigger in Texas, but that doesn’t mean your car insurance bill needs to be. The average Texan pays around $122 per month for basic liability coverage and $245 for a more robust full-coverage policy.

Still, several companies have average prices well below the statewide average — you just have to know where to look. State Farm offers the lowest average rates for many drivers — its average policies come in at just $52 per month — but that doesn’t mean it’s the best choice for every Texan.

At the end of the day, several factors — including your age, driving record, credit history, and more — affect how much you pay for car insurance. The best way to save on your monthly bill is to compare quotes from multiple companies, but our latest guide will give you a leg up by breaking down the cheapest Texas insurers for all types of drivers.

Key Takeaways:

• The average auto insurance policy in Texas costs around $184 per month.
• State Farm’s $52 average monthly rates are the best of any Texas insurer.
• All Texas drivers need to have liability insurance with 30/60/25 minimum limits to legally drive.

How Much Is Car Insurance in Texas?

As we already mentioned, the average Texan pays $184 per month for car insurance, but that broad average isn’t necessarily representative of what you can expect to pay. At the end of the day, several factors influence your rates, with the amount of coverage you choose playing perhaps the largest role.

With that in mind, let’s take a look at how rates vary between two common policy types — liability-only and full coverage.

Our research found that the average Texas driver pays $122 per month for basic liability coverage and $245 for a more robust full-coverage plan that includes comprehensive and collision insurance alongside state-mandated liability coverage.

But if those numbers seem like more than you want to pay, don’t worry. Several companies offer policies with average rates well below these figures. We’ll cover them in greater detail in the next section.

Texas’ Cheapest Car Insurance Companies

Let’s face it — for many Texans, $184 per month is a lot of money to budget for something like auto insurance that you hope to never use. Fortunately, many companies offer much cheaper policies, on average.

But with hundreds of car insurance companies out there, it can be hard to know which insurer will offer you the best rates. We’ve done the hard work for you and analyzed pricing from dozens of Texas’ top insurance companies. You can find the five cheapest options and their average rates in the table below.

State Farm offers the cheapest car insurance policies in Texas, according to Compare.com data. Its average rate is just $52 per month — well below the statewide average.

That said, while price is important, it’s not always the be-all and end-all of car insurance. You should also consider each company’s coverage options, available discounts, and current customer and claims satisfaction figures.

With that in mind, let’s check out some of Texas’ best insurance companies of 2024.

The Best Texas Car Insurance Companies of 2024

No single car insurance company is best for every driver. Many factors affect your monthly rate, from your age and gender to your recent driving record and credit history.

That’s why we’ve broken down the best Texas insurers for some of the state’s most common driver profiles. We chose the following companies based on factors such as average rates, customer reviews, coverage options, and more.

Best for Texans on a budget: State Farm

Average premium: $52 per month

Compare.com Rating: 4.90 out of 5

Trustpilot reviews: 1.7 out of 5

Better Business Bureau (BBB) rating: A+

State Farm is a great choice for Texas drivers on a budget — the insurance giant has some of the cheapest rates overall for both liability and full-coverage policies, and it’s among the most affordable options for a wide array of driver profiles.

Policyholders also seem to love State Farm — the company has the second-highest J.D. Power Customer Satisfaction Index Ranking in Texas, falling just a single point behind AAA and well above the state average.

But, as with any large insurer, it has some drawbacks. First, the company has relatively poor reviews on Trustpilot — scoring just 1.7 out of 5 stars on the popular review site. It also has relatively limited coverage options compared to some other companies on this list.

But if price is your No. 1 concern when choosing a new car insurance company, State Farm is a great place to start.

Best for Texas teens: GEICO

Average teen premium: $57 per month

Compare.com Rating: 4.65 out of 5

Trustpilot reviews: 1.3 out of 5

BBB rating: A+

Known for its friendly mascot, the GEICO Gecko, this insurance behemoth is a great choice for young drivers throughout the Lone Star State. To start, GEICO has some of the cheapest average rates for Texas teens, according to Compare.com data. It also has quite a few teen-focused discounts, such as good student discounts, discounts for taking driver training programs, and more.

But if customer service is important, GEICO may not be the best choice. The insurer scores well below the statewide average on J.D. Power’s latest Auto Insurance Study, and reviews on Trustpilot — where GEICO scores just 1.3 out of 5 stars — echo that sentiment.

Best for Texas’ remote workers: Hugo

Average monthly premium: $

Compare.com Rating: 3.22 out of 5

Trustpilot reviews: 4.8 out of 5

BBB rating: F

Perhaps the least-known insurer on this list, Hugo offers truly unique auto insurance coverage at a great price. With Hugo, you can turn your coverage on and off as needed and pay for as little as three days’ worth of coverage at a time. This makes it a great option for Texans who work from home or people who don’t drive often. After all, who wants to pay for car insurance they don’t use?

While it’s hard to put a value on that type of flexibility, there are some drawbacks. To start, only drivers with liability-only coverage can take advantage of the ability to turn coverage on and off. Additionally, this relative industry newcomer scores an “F” from the BBB, with several unanswered complaints over the past few years.

Still, many customers seem to love Hugo — it boasts an extremely impressive 4.8 out of 5 stars on Trustpilot.

Compare Texas Car Insurance Rates by Coverage Level

As we mentioned above, the coverage levels you choose have a big effect on your car insurance premium. Liability policies with state-minimum limits are always going to be the cheapest option, but many drivers should consider purchasing additional coverage.

To illustrate the difference your coverage level makes on your monthly premiums, we’ve highlighted average rates and the cheapest insurers for both liability and full-coverage policies across Texas in the table below.

State-minimum policies with 30/60/25 limits cost an average of $122 per month in Texas. On the other hand, a full-coverage policy that includes added protection for your vehicle comes in at $245 per month.

Let’s take a closer look at these two types of policy and which insurers offer the cheapest average rates for each.

Cheapest state-minimum car insurance in Texas: State Farm

State-minimum insurance in Texas includes only liability coverage, which pays for injuries and property damage you cause in an accident. Texans looking for these basic policies can usually find the best prices from State Farm, which offers average rates of just $40 per month.

Cheapest full-coverage insurance in Texas:

If you finance or lease your vehicle or can’t afford to repair or replace it out of pocket after an accident, full-coverage car insurance is for you. Not only does this type of policy include liability coverage, but it also comes with comprehensive and collision insurance that pays to repair or replace your car if you get in an accident or weather, animals, vandalism, or theft damage it.

The cheapest full-coverage policy in Texas can generally be found from State Farm, which offers average rates of $64 per month, according to our data.

Compare Texas Car Insurance Rates by Age

Alongside coverage levels, your age plays a substantial role in how much you pay for car insurance. Young drivers typically pay more than other age groups because of their relative inexperience behind the wheel and increased propensity to cause car accidents.

But no matter how old you are, you can still find great deals on car insurance. With that in mind, we’ve highlighted the statewide average rates for different age groups, as well as which insurers offer the cheapest average rates for each.

Average auto insurance rates start at $314 per month for young drivers in Texas and drop all the way to $130 per month for people in their 60s. But let’s take a closer look at the two age groups at each end of the spectrum — teens and seniors.

Cheapest car insurance for Texas teens:

The average Texas teen pays $314 per month for car insurance, according to Compare.com data. That may be substantially higher than the statewide average, but most teens can still find a great deal from State Farm. After all, the insurer offers policies to teens for an average of just $87 per month.

Cheapest car insurance for Texas seniors:

All else being equal, senior drivers typically have some of the lowest rates of any age group due to their experience on the road and long record of driving behavior. In Texas, the average driver in their 60s pays $130 per month for car insurance, and someone in their 70s can expect to pay $140, according to our research.

Still, seniors can generally find significant savings from State Farm, which offers average rates of just $37 for Texas drivers age 60 and older.

Compare Texas Car Insurance Rates by Driving Record

Perhaps the most influential factor affecting your auto insurance rates is your recent driving record. It’s probably no surprise that drivers with a clean record get some of the best rates available, but you may not realize exactly how much different infractions — speeding tickets, at-fault accidents, DUIs, and other moving violations — can increase your monthly premiums.

These changes can vary by state, so we’ve highlighted exactly how each infraction affects average premiums in Texas in the table below, as well as which insurers offer the most competitive rates for each.

A clean driving record — one free of recent tickets or accidents — means you can expect to pay around $173 per month for car insurance in Texas. But rates can increase quickly if you have even just one ticket or other moving violation on your record in the last few years.

Let’s take a closer look at exactly how each type of infraction affects the average rate in Texas, as well as which companies offer the cheapest rates for each.

Cheapest car insurance in Texas after a ticket: State Farm

Speeding tickets can cost you more than just the fine you have to pay if a cop pulls you over for driving too fast. A single ticket increases the average car insurance premium by 27% nationwide, according to Compare.com data.

But Texas drivers can still find a good deal, even with a recent ticket. State Farm offers the cheapest average premiums for Texans with a speeding ticket in the last three to five years, according to our analysis. Its average rate for these drivers is just $65 per month.

Cheapest car insurance in Texas after an accident: State Farm

Causing a collision can wreak havoc on not just your car but your monthly auto insurance bill too. In fact, just a single at-fault accident causes average premiums to increase by 34% nationwide, according to Compare.com data.

But if you’ve recently been in an accident, don’t worry. State Farm still offers great rates to many drivers like you. The company charges an average of just $70 per month for Texans who have a recent at-fault accident on their driving record.

Cheapest car insurance in Texas after a DUI: State Farm

The costliest driving infraction you can get is a conviction for driving while intoxicated (DWI) or driving under the influence (DUI). Not only will you likely have to pay thousands of dollars in fines, attorney fees, and more, but your car insurance bill will also increase substantially. In fact, Compare.com data shows that the average DUI costs drivers an extra 50% on their car insurance premiums nationwide.

But that doesn’t mean you have to accept a massive rate hike — you just have to know where to look. In Texas, State Farm offers drivers with a DUI the cheapest rates — just $84 per month, on average.

Texas Auto Insurance Requirements

In Texas, drivers must have the following minimum auto insurance 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

These coverage requirements are usually just called “30/60/25” coverage. They’re also only the minimum requirements. You may want to consider purchasing additional auto coverage, especially if you have valuable assets to protect.

Penalties for driving without auto insurance in Texas

Driving without auto insurance in Texas can have legal and financial consequences. The penalties include:

• Traffic tickets: You may receive a ticket and have to pay a fine.
• Fines and fees: Drivers convicted of driving without insurance may have to pay an annual surcharge for three years. This charge ranges from $175 to $350 per year, depending on the number of convictions.
• License suspension: Authorities may suspend your driver’s license until you provide proof of insurance.
• Vehicle impoundment: Authorities can impound your vehicle if you’re pulled over and can’t provide proof of insurance.
• Legal liability: If you’re at fault in an accident and don’t have auto insurance, you’ll likely be held personally liable for any damages or injuries. Fines and court penalties may also increase if you cause an accident while uninsured.

The potential penalties for driving without insurance in Texas are far more costly than paying insurance premiums.

SR-22 auto insurance in Texas

SR-22 certificates are proof-of-financial-responsibility documents that the courts may order certain high-risk drivers to submit to the DMV. To comply, you must inform your insurance company of your need for SR-22 filings. The company will then file the document on your behalf.

If you must file an SR-22, you should expect to pay increased car insurance rates for up to three years.

What makes Texas car insurance unique?

We asked Johnte’ Archer, founder of J. Archer Insurance Group in Houston, her thoughts on what makes Texas car insurance unique. “Texas has higher minimum liability coverage requirements than many other states,” says Archer, “reflecting its commitment to protecting residents of a diverse landscape, bustling cities, and extensive road networks and their assets.

“Texas follows a ‘fault,’ or ‘tort,’ system, meaning that the at-fault driver is responsible for damages,” says Archer. “Assessing your needs can help ensure you have enough coverage to protect your finances if you cause an accident.”

Archer recommends comprehensive coverage for hail, flood, and other weather-related events to protect against Texas’ unpredictable weather patterns. She also advises considering optional coverages like roadside assistance, custom equipment coverage, gap insurance, and rental car reimbursement, depending on your unique coverage needs.

How to Get Cheap Car Insurance in Texas

Getting cheaper car insurance rates in Texas is much easier than you may think. There are multiple strategies, but the five we’ve outlined below are some of the most effective.

Take advantage of discounts

There’s a vast range of discounts in the car insurance world, and each insurance company will have a unique set of its own. Generally speaking, bundling multiple insurance products is the best way to save up to 20%. You can bundle auto insurance with homeowners, life, renters, business, and more.

Try telematics and driver training programs

Many car insurance companies offer discounts for drivers willing to complete training classes or participate in driver monitoring programs. Driver training classes include defensive driver courses, with discounts typically between 10% and 15%.

Driver monitoring programs, often called telematics programs, reward drivers for practicing safe driving habits. You’ll typically download an app or plug a device into your car’s computer to participate. The app or device will record your driving habits and automatically relay the information to your insurance company. Telematics programs offer drivers savings of up to 30%, depending on the car insurance company.

Adjust your policy limits and deductible

There are two main ways to adjust your policy that often result in lower premiums. First, you can raise your deductible, which you pay out of pocket in case of a claim. The higher your deductible, the lower your premium. Just make sure you have enough money saved to cover your deductible if you get into a collision.

Second, you can review your policy and remove any coverage you don’t need. For example, you may drop gap insurance if you pay off your vehicle. You can also lower your policy limits to save a little more (but keep in mind lower limits mean greater financial risk).

Maintain a clean record

The best way to get a low rate and keep it for years is to keep your driving record clean of any infractions. Even a single speeding ticket can significantly affect your premium over time. Drivers with a clean driving history pay less, on average, and get access to safe driving discounts, accident forgiveness, and other valuable programs.

Compare multiple quotes before you buy

The best way to know you’re getting the best deal on car insurance is to compare car insurance quotes from multiple companies in your area. We suggest getting at least three to five quotes, ideally from insurance companies of various sizes.

Don’t forget to consider your policy details. For example, one policy may cost a little more but have higher coverage limits, better perks, or other factors.

Texas Auto Insurance FAQs

If you want to know more about auto insurance in Texas, check out these answers to some of the most commonly asked insurance questions in the Lone Star State.

Which company has the cheapest car insurance in Texas?

State Farm has the cheapest average rates of any Texas insurer, at just $54 per month. But keep in mind that doesn’t mean it’s the cheapest company for every driver. Since rates vary depending on a wide array of factors, the only way to find the cheapest company for you is by comparing quotes from as many as possible.

How much is car insurance per month in Texas?

The average cost for car insurance in Texas is $184 per month, but rates can vary significantly. Factors influencing your rate include your vehicle, driving history, where you live, and more.

Which city has the cheapest car insurance in Texas?

Big Springs, Plainview, and San Angelo drivers tend to pay the lowest rates in Texas. Big Springs drivers pay just $41 per month for basic liability coverage.

How much car insurance does Texas require?

In Texas, drivers must purchase at least $30,000 for bodily injury protection per person and up to $60,000 per accident. They must also carry at least $25,000 for property damage liability and $2,500 in personal injury protection.

What is the best car insurance company in Texas?

No single insurance company is the best for everyone. But looking at average rates, customer satisfaction scores, and coverage options, State Farm, Hugo, and GEICO are three of the best car insurance companies in Texas. But the only way to find the best company for your needs is to do your own research and compare quotes from as many companies as possible.

Helpful Resources for Texas Drivers

• Texas Drivers Handbook
• Texas Insurance Requirements
• Submit a Claim – Texas Department of Insurance
• How to get help with an insurance issue or file a complaint
• FAQ: Auto insurance, claims, coverage issues, and more
• Driver’s License Assistance for People with Disabilities
• Parent Taught and Driver Education and Safety (TDLR)
• Renew a driver’s license in Texas
• Replace a driver’s license in Texas
• Texas License Plate and Registration
• TexasSure Vehicle Insurance Verification

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Texas Department of Insurance, “Auto insurance guide,” accessed June 7, 2024.
2. J.D. Power “2023 U.S. Auto Insurance Study,” accessed June 7, 2024.
3. Insurance Information Institute, “Facts + Statistics: Auto insurance,” accessed June 7, 2024.