Find Cheap Car Insurance in Texas

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Shopping for the best car insurance is a bit like buying a car. You’ve got to set your budget, research all options, balance your wants and needs, and make a choice that protects you and your family. That’s a lot to think about, but it doesn’t have to be an unpleasant process. Read on to learn more about Texas’ car insurance laws and how to find the lowest auto insurance rates in Texas.

Cheapest Car Insurance Companies in Texas

The rates shown here are based on a study performed by Quadrant Information services on behalf of U.S. News. The study examined rates from 10 largest car insurance companies in the United States, using certain driver profiles. Your rates will differ.

How We Found the Cheapest Car Insurance Companies

At U.S. News, we’re all about helping people make life’s important decisions. Our college rankings, launched in 1983, set the standard in educational rankings. Our rankings in other fields, like healthcare, government, and the automotive sphere, help people and thought leaders make choices that make lives better. Now we’re continuing to empower you with the information you need to make the right choices for your life with our Cheapest Car Insurance Rankings. 

Our Study Rates

For this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the nine largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 15,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here.

How Much Does Car Insurance Cost in Texas?

See the Cheapest Car Insurance Companies

In Texas, driver profiles pay an average premium of about $1,655 annually to insure their cars, according to our study. However, rates can vary based on demographic factors such as age, marital status, driving record, credit score, and which city you live in. State Farm is generally the most affordable insurance across all demographics, on average costing 30% lower than the Texas state average. 

Texas Car Insurance Rates by Age 

Company

Single 25-year-old male

Single 25-year-old female

Married 35-year-old male

Married 35-year-old female

Married 60-year-old male

Married 60-year-old female

Allstate

$2,620.18

$2,503.05

$2,059.64

$2,045.84

$2,014.55

$2,014.55

American Family

$3,473.09

$3,048.86

$2,354.50

$2,122.10

$2,264.77

$1,974.25

Geico

$1,484.50

$1,494.74

$1,443.98

$1,347.31

$1,405.86

$1,248.37

Nationwide

$2,021.15

$1,836.21

$1,463.21

$1,435.00

$1,338.27

$1,253.91

State Farm

$1,389.68

$1,196.91

$1,163.95

$1,163.95

$1,036.36

$1,036.36

USAA

$1,337.19

$1,251.806

$981.10

$975.18

$910.36

$914.83

Our study found that as drivers age, insurance rates generally go down. Single 25-year-olds, whether male or female, pay about $2,000 on average, but representative rates drop to about $1,400 for married 60-year-olds.

According to our study, driver profiles insured by State Farm pay study rates about 25%-32% lower than the state average, depending on the driver’s age. On the flip side, American Family can cost average driver profiles nearly 70% above the state average for young driver profiles, and 40% above average for married people age 60. 

To determine the average rates based on gender and age, we created driver profiles for men and women in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Texas Car Insurance Rates by Annual Mileage

Company

6,000 miles annually

12,000 miles annually

Allstate

$2,014.61

$2,209.63

American Family

$2,541.26

$2,541.26

Geico

$1,356.27

$1,404.13

Nationwide

$1,557.96

$1,557.96

State Farm

$1,164.53

$1,164.53

USAA

$1,007.78

$1,061.74

Driver profiles who travel fewer miles over a year pay lower rates in general compared to the driver profiles who drove twice as much, according to our study. However, across all insurers, there is only an average 3% difference in rates between the two types of commuters, amounting to an average $50 difference. 

We created two driver profiles to compare how annual mileage can change car insurance rates: one with low mileage (6,000 miles per year) and one with high mileage (12,000 miles per year). The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Texas Car Insurance Rates by Coverage Type

Company

Low

Medium

High

Allstate

$2,162.28

$2,209.63

$2,341.98

American Family

$2,449.98

$2,541.26

$2,927.95

Geico

$1,345.09

$1,404.13

$1,516.66

Nationwide

$1,600.52

$1,557.96

$1,588.03

State Farm

$1,099.96

$1,164.53

$1,249.10

USAA

$1,022.23

$1,061.74

$1,133.36

The state’s minimum required insurance policy is usually the least expensive coverage option available from any insurance company. In Texas, low coverage policies to high coverage policies range on average between $1,615 to $1,795, which is a $180 difference. This added cost is generally considered more than worth it considering the potential five-figure medical and repair costs following an accident.

We created identical profiles in our study to represent drivers, then found out how rates changed with the three levels of coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both males and females aged 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis.

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Texas Car Insurance Rates by Credit Score

Company

Good

Fair

Poor

Allstate

$2,209.63

$2,646.41

$3,313.38

American Family

$2,541.26

$2,901.36

$4,412.58

Geico

$1,404.13

$2,119.96

$3,642.31

Nationwide

$1,557.96

$1,903.88

$2,289.52

State Farm

$1,164.53

$1,486.25

$2,449.95

USAA

$1,061.74

$1,265.97

$1,779.21

Our study found that in Texas, a driver’s credit score can have an even larger impact on insurance rates than their driving record. According to the study, representative premiums increase an average 80% when driver profiles have poor credit scores, compared to drivers who have good credit. Driver profiles with good credit can consider State Farm, Geico, or Nationwide for the lowest study rates. 

State Farm and Nationwide have the most affordable representative rates for driver profiles with poor credit, charging 18% and 23% below the Texas state average respectively, about a $500-$700 difference. 

Based on profiles of male and female drivers aged 25,35, and 60, our study verified that credit scores affect car insurance rates. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis.

Texas Car Insurance Rates by Driving Record

Company

Clean record

With 1 speeding violation

With 1 accident

With 1 DUI

Allstate

$2,209.63

$2,209.63

$3,429.09

$3,568.41

American Family

$2,541.26

$2,541.26

$3,200.80

$2,817.94

Geico

$1,404.13

$1,638.17

$1,832.66

$2,247.33

Nationwide

$1,557.96

$1,919.04

$1,557.96

$3,015.83

State Farm

$1,164.53

$1,164.53

$1,388.23

$1,876.09

USAA

$1,061.74

$1,196.03

$1,621.86

$1,588.71

While representative premiums generally increase with more serious charges of speeding tickets, accidents, and DUIs, some companies weigh each violation differently. Allstate, American Family, and State Farm do not increase representative rates when a driver profile has one speeding violation over a driver profile with a clean record, our study shows. However, Allstate has the priciest representative rates for drivers with one DUI, costing average driver profiles 42% more than the state average.

In our study, the highest representative premiums occur when driver profiles have at least one accident or one DUI. Along with Allstate, Nationwide is one of the most expensive insurance companies for driver profiles with a DUI on record. State Farm is the cheapest across the board, charging average premiums about 25%-30% below the state average.

To find out just how much of an effect a person's driving record has on insurance rates, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females with 12,000 miles of mileage per year, a medium level of insurance coverage, and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Texas Car Insurance Rates by City

City

Average Rate

Houston

$2,035.21

San Antonio

$1,751.77

Dallas

$2,014.20

Austin

$1,644.98

Fort Worth

$1,658.16

El Paso

$1,605.66

Arlington

$1,783.36

Corpus Christi

$1,736.46

Plano

$1,675.26

Laredo

$1,850.09

In Texas, the highest car insurance rates are found in densely-populated, large urban areas, which is common in many states. Houston and Dallas are the priciest cities to insure vehicles in Texas, according to our study, costing more than $2,000 a year. Smaller cities such as El Paso and Austin have the lowest study rates, costing a little over $1,600 on average.

Within each state, insurance rates can vary dramatically from city to city. To get a sense of how these differences affect car insurance premiums, we looked at average representative rates across 10 of Iowa’s top cities. In our study, we used male and female driver profiles aged 25, 35, and 60 who put 12,000 miles on the odometer each year. Our profiles have medium insurance coverage, a clean driving record, and good credit. We included three vehicles in our study:  the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

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Texas Auto Insurance Minimum Coverage Requirements

Drivers in Texas are required to be financially responsible for the car accidents they cause. Most drivers fulfill this obligation by purchasing auto liability insurance. Liability Insurance compensates the other parties affected by an accident for their bodily injury and property damage if you – or someone driving your car with your permission – are at fault. A minimum coverage limit of $30,000 is required by Texas law for the injury of one person, a limit of $60,000 is required for the injury of two or more people, and a limit of $25,000 is required for car and property damage. This is commonly referred to as the 30/60/25 ratio.

It’s a good idea to purchase more liability coverage than these minimum requirements. The high costs of car repair and medical care can quickly deplete the minimum coverage. If those affected by the accident still have outstanding costs, they can take you to court to pay these remaining bills. That would be in addition to your own medical bills and repair costs, which liability insurance doesn’t cover.

We also recommend considering some of the optional insurance coverages that are available. Medical Payments coverage pays for your and your passengers’ medical bills, regardless of who is at fault in an accident. Personal Injury Protection (PIP) covers your and your passengers’ medical bills and lost wages, regardless of fault. Uninsured Motorist insurance pays for your and your passengers’ medical bills, lost wages, and property damage if the driver at fault in an accident does not have insurance. This coverage also applies if they don’t have sufficient liability insurance or in the event of a hit-and-run accident. In Texas, auto insurers must offer you Personal Injury Protection and Uninsured Motorist coverage to comply with state law, but you can refuse these coverages in writing if you do not want to buy them.

Collision and comprehensive coverage are worth considering as well; they’re typically required under contract when leasing or financing a vehicle. Collision insurance pays for the damage done to your vehicle in an accident. Comprehensive insurance pays for damage to your vehicle as the result of things such as vandalism, theft, fire, hail, or flood.

Cheapest Car Insurance in Texas

Note: Due to USAA's limited membership, we excluded them from this segment evaluation.

Category

Cheapest Company

Drivers with a Military Affiliation

USAA

Single Young Adult Drivers

State Farm

Married Adult Drivers

State Farm

Senior Drivers

State Farm

Drivers with Good Credit

State Farm

Drivers with Poor Credit

State Farm

Drivers with a Clean Record

State Farm

Drivers with One Speeding Violation

State Farm

Drivers with One Accident

State Farm

Drivers with One DUI

Geico

Low-mileage Drivers

State Farm

High-mileage Drivers

State Farm

Drivers with Low Coverage

State Farm

Drivers with High Coverage

State Farm

Drivers with Used Cars

State Farm

Drivers with New Cars

State Farm

USAA offers the lowest car insurance rates in Texas, according to our research. The annual representative rates of the surveyed USAA policies beat the state average by about $700. The only downside of USAA’s low study rates is that you need to be a member of the military, be a military veteran, or have a family member who is a veteran or in the military to get insurance through USAA. State Farm and Geico offer the next best representative rates, according to our analysis, and they are open to all Texas residents. The annual study costs of these plans beats the state average by a couple hundred dollars annually. Driver profiles insured with American Family had the highest study rates, around $700 higher than the state average.

To find which car insurance company offers the lowest rates, our study used representative driver profiles with good credit, medium insurance coverage, a clean driving record, and 12,000 miles of annual mileage. Our profiles included males and females aged 25, 35, and 60. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Why Car Insurance Rates Vary in Texas

Your neighborhood has a big impact on how much you pay for car insurance. Insurance companies look at an area’s population and traffic before offering rates. The cost of auto repair and medical services are also considered, as well as the crime rate and the number of insurance claims in that area. That’s why drivers in large cities with heavy traffic typically pay more for car insurance than drivers in smaller cities and rural areas with less congestion.

How to Get the Cheapest Car Insurance in Texas

The best way to get the cheapest car insurance rates is to maintain a spotless driving record and a good credit score. While you might not have too much control over your gender, marital status, or what city you live in, there are other ways to lower your rates, such as looking into available discounts.

Many insurance companies provide discounts for having safety features such as air bags, anti-theft devices, and daytime running lights, or for teens with good grades who have taken driver education courses, or for bundling insurance policies in your household. Today, you can also find vehicle insurance companies that will base rates on how many miles you are driving, such as Allstate’s Drivewise and Progressive’s Snapshot programs.

If you own an older vehicle worth less than $3,000, you can lower insurance rates by adjusting or eliminating coverage – but be careful to keep the state’s minimum requirements, at least. 

Important Laws Around Auto Insurance in Texas

Any car insurance bought in Texas should cover you no matter where you drive in the United States and Canada, but it won’t cover you in Mexico. That’s because Mexico has different liability insurance laws and only accepts policies written by insurance companies based in Mexico. Some U.S. insurers offer waivers for your policy that cover vehicle theft or damage in Mexico, but these do not include liability coverage. If you plan to drive in Mexico, you should purchase Mexican liability insurance from a licensed agent. Policies vary in length from a year to just a few days, and additional coverages can include legal and medical costs.

If you’ve been denied car insurance by at least two companies, the Texas Automobile Insurance Plan Association (TAIPA) is a government tool that can help you find coverage. TAIPA assigns applicants to an insurance company and provides these drivers with the minimum limits of personal injury protection, uninsured motorist, and liability coverage. The program is designed to help those with a poor driving record or multiple insurance claims. These assigned policies tend to be pricier than those offered in the voluntary insurance market, though.

Texas Driving Laws and Punishments

It is illegal to operate a vehicle on Texas public roads if you do not have basic liability insurance coverage or another accepted form of financial responsibility. The fines for driving without insurance range from $350 to $1,000. You also risk having your car impounded and your license and registration suspended.

Seat belt usage is mandatory for all drivers and passengers in Texas. The fines for violating this Click It or Ticket law vary between $200 and $250. You can also be fined between $99 and $200 for driving while texting or emailing with a cell phone. Some cities have stricter distracted driving laws that prohibit all handheld cellphone usage while driving, but holding your mobile phone in your hand while talking on it is still legal at a state level.

There are several laws in Texas that address driving under the influence of drugs and alcohol. The Zero Tolerance law states that no one under the age of 21 can operate a vehicle with any detectable amount of alcohol in their body. Drivers who violate this law can have their licenses suspended for between 60 and 180 days. They can also face fines ranging from $500 to $2,000, depending on the number of offenses.

Operating a vehicle with a blood alcohol content of .08 percent or higher is in violation of the Driving While Intoxicated law (DWI). Depending on the number of offenses, drivers convicted of DWI can face fines of $2,000 to $10,000, a license suspension of up to two years, and jail time. The penalties are more severe if there are children in the vehicle or if someone is injured or killed in an accident caused by DWI.

Texas Car Insurance FAQs

Is Car Insurance Required in Texas?

Yes, car insurance is required in Texas, and you must show proof of insurance to register a car in Texas. Texas law states that drivers must be financially responsible for the injuries and damages they cause to others if they are at fault in a car accident. Car insurance is the recommended and most common way drivers meet this requirement. Less common alternatives include cash deposits and surety bonds.

Which Cars Are Required To Be Insured in Texas?

Drivers must insure all vehicles – cars, trucks, SUVs, and motorcycles – that are driven on Texas public roads, or demonstrate another accepted form of financial responsibility. Vehicles that are inoperable or in storage do not need to be insured, but they must be reinsured before returning to use.

Driving and Talking
Jacobs Stock Photography Ltd / Getty Images

If you’re a nonresident of Texas, such as a college student or an active member of the military, with a vehicle registered in another state, you must follow the car insurance and registration laws of that state. If you become a resident, you must insure and register the vehicle in Texas within 30 days.

When Should I Get Car Insurance in Texas?

You’ll need proof of insurance before you can register any vehicle in Texas. If you’re buying a new or used car, you can purchase insurance beforehand by shopping online, over the phone, or in person with an agent or broker. You can also get insurance right at a car dealership.

If you have existing insurance on other vehicles, the insurer must automatically cover any additional cars purchased with the maximum amount of coverage provided under your policies. If you’re trading in a car, the replacement vehicle will receive the same amount of coverage as that car. You must notify your insurer within 20 days of any vehicle purchase. Otherwise, you risk losing coverage.

What Happens if My Car Is Not Properly Insured in Texas?

You can be fined between $350 and $1,000 for driving in Texas without insurance or another accepted form of financial responsibility. You can also have your driver’s license suspended for two years and have your vehicle towed. Police officers can monitor insurance coverage for vehicles registered in Texas using TexasSure, an online database.

Is Texas a No-Fault State?

Texas is not a no-fault state. That means that the state will assign fault for any accident. The driver who is found to be at fault for an accident will have claims made on their insurance to cover damage and injuries to other parties and property involved in the accident. Texas is referred to as an “add-on” state for car insurance. Personal Injury Protection (often called no-fault insurance) can be added to your policy to pay for your and your passengers’ lost wages and medical costs, but it is not legally required. This coverage pays no matter who is at fault.

Do I Need Uninsured Motorist Coverage in Texas?

Insurers are required by Texas state law to offer you uninsured motorist insurance, but you are allowed to decline this coverage. Uninsured motorist insurance covers your or your passengers’ medical bills, lost wages, and property damage if the driver at fault in an accident does not have insurance. It also applies if the driver has insufficient liability insurance or in the event of a hit-and-run accident.

Is Liability Insurance Required in Texas?

No, liability insurance is not required in Texas, but it is highly recommended. In Texas, drivers are financially responsible for the injury and property damage they have caused to others if they are at fault in an accident. Purchasing liability insurance is the most common way for drivers to fulfill this obligation. Less common alternatives include a surety bond with the same required coverage amounts as liability insurance, depositing $55,000 with a county judge or the state comptroller, or self-insurance (permitted only if you own more than 25 registered vehicles).

Does Texas Accept Digital Insurance Cards?

Yes, but check with your insurer to see if they provide this form of insurance card. Digital insurance cards can be displayed on portable electronic devices like a smartphone.

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