Cheap Car Insurance in Texas (2023)
Texas Farm Bureau has the cheapest car insurance in Texas for most drivers, at an average of $1,036 a year for full coverage. It also offers the state’s best liability car insurance rates, which average $401 a year.
Cheapest insurance companies in Texas
You do need to pay membership dues to buy insurance from Texas Farm Bureau. Still, it should have the lowest rates in most cases.
State Farm has the cheapest insurance rates in Texas if you have an accident or DUI (driving under the influence) on your record.
Cheapest full-coverage car insurance in Texas: Texas Farm Bureau
Texas Farm Bureau and State Farm have the cheapest full-coverage car insurance for Texas drivers. Texas Farm Bureau’s rates are the lowest, averaging $86 a month. State Farm’s average rate for full coverage is $107 a month.
*Only available to current/former military and their families.
[table “8118” not found /]
Geico and USAA also offer full-coverage rates that are cheaper than the state average ($1,833). Only drivers with military ties can buy car insurance from USAA, though.
Full-coverage car insurance includes collision and comprehensive coverages on top of liability. It helps protect you against damage you cause to other vehicles, property or people, as well as damage to your own car.
Cheapest liability coverage in Texas: Texas Farm Bureau
Texas Farm Bureau and State Farm offer the cheapest liability car insurance rates in Texas. Texas Farm Bureau charges $33 a month, on average, while State Farm’s average rate is $40 a month.
[table “8119” not found /]
Liability car insurance covers injuries you cause to others in a car accident. It also covers damage you cause to someone else’s vehicle or property. However, it doesn’t cover damage to your car or your own injuries.
Cheapest Texas car insurance for young drivers: Texas Farm Bureau
The cheapest car insurance for young drivers in Texas also comes from Texas Farm Bureau. It charges $64 a month, on average, for minimum or liability-only coverage.
Most other companies in Texas charge much higher rates to teen drivers. The average rates from State Farm and Geico are more than double those of Texas Farm Bureau.
Cheapest car insurance for young drivers
[table “8120” not found /]
Teen drivers pay more for car insurance than older drivers because they have a higher risk of accidents. This is why the cost of car insurance usually drops as you age, especially if you keep your driving record clean.
If car insurance is too expensive for you as a young driver, see if you qualify for any discounts that might help. Many insurance companies offer discounts to student drivers who:
- Get good grades
- Enroll in a safe driver program
- Take a driver education course
Cheapest rates after a speeding ticket in Texas: Texas Farm Bureau
Texas drivers with a speeding ticket on their record should get a car insurance quote from Texas Farm Bureau. Its average rate of $86 a month for full coverage is 19% cheaper than second-place State Farm.
Cheapest car insurance with a speeding ticket
| Company | Annual rate |
|---|---|
| Texas Farm Bureau | $1,036 |
| State Farm | $1,281 |
| Geico | $2,198 |
| Allstate | $2,804 |
| Progressive | $3,498 |
| USAA* | $1,547 |
Car insurance rates go up by an average of 12% after you get a speeding ticket in Texas.
Best Texas rates after an accident: State Farm
State Farm has the cheapest car insurance after an accident for Texas drivers, charging an average of $124 a month for full coverage.
Car insurance rates increase 53% after an accident in Texas, on average. However, State Farm only raises rates an average of 16%, based on our data.
Cheapest car insurance after an accident
| Company | Annual rate |
|---|---|
| State Farm | $1,489 |
| Texas Farm Bureau | $1,639 |
| Geico | $2,959 |
| Progressive | $4,135 |
| Allstate | $4,486 |
| USAA* | $2,065 |
Cheapest car insurance rates after a DUI in Texas: State Farm
State Farm has the best auto insurance rates after a DUI (driving under the influence) conviction. Its average rate in this case is $110 a month for full coverage — this is 34% lower than what the next-cheapest insurer (Texas Farm Bureau) charges.
Cheapest car insurance with a DUI
| Company | Annual rate |
|---|---|
| State Farm | $1,324 |
| Texas Farm Bureau | $1,994 |
| Progressive | $3,102 |
| Geico | $3,303 |
| Allstate | $4,417 |
| USAA* | $2,061 |
In Texas, a DUI can cause your car insurance rates to go up by an average of 47%. You may have to pay this higher rate for three to five years after the DUI, too.
Best Texas rates for bad credit: Texas Farm Bureau
Texas drivers who have poor credit and want cheap car insurance should start their search with Texas Farm Bureau. It charges $195 a month for full coverage, on average, in this situation.
Cheapest car insurance with bad credit
| Company | Annual rate |
|---|---|
| Texas Farm Bureau | $2,341 |
| Allstate | $3,954 |
| Progressive | $4,488 |
| Geico | $4,908 |
| State Farm | $7,256 |
| USAA* | $2,357 |
USAA’s average rate for drivers with bad credit is nearly as low, at $196. If you or your spouse or parent is or was in the military, consider USAA as well while you shop for a policy.
The other insurance companies we surveyed in the state charge much higher rates than Texas Farm Bureau and USAA.
Best car insurance companies in Texas
Texas Farm Bureau, State Farm and USAA are some of the best car insurance companies in Texas based on customer service, rates, coverages and more.
USAA, Texas Farm Bureau and State Farm have the best customer service scores for car insurance in Texas. USAA, however, is only available to active military, veterans and their families. All three insurance companies also offer the cheapest average rates for drivers in Texas.
[table “9119” not found /]
Texas Farm Bureau
- Low full-coverage average rate of $1,036 a year
- 43% lower than state average
- Low NAIC complaint rating of 0.04
Pros
Cheapest rates in Texas
Great customer service
Offers farm and ranch insurance
Cons
No online quotes
Short list of discounts and optional coverages
Texas Farm Bureau offers cheap rates for Texas drivers. It also offers great customer service, according to J.D. Power.
Texas Farm Bureau’s rates average $86 a month for a full-coverage policy and $33 a month for liability car insurance, which are the cheapest average rates in our study.
Texas Farm Bureau also has a low complaint rating of 0.04 from the National Association of Insurance Commissioners (NAIC), which measures complaints customers file against a company. Lower scores are better when comparing scores.
On the other end, Texas Farm Bureau offers basic coverages and limited discounts. Potential customers are also unable to get sample quotes through its website.
State Farm
- Low full-coverage average rate of $1,281 a year
- 30% lower than state average
- AM Best’s financial strength rating: A++
Pros
Affordable rates
Great customer service
Large network of agents
Cons
Fewer discounts than some of its competitors
State Farm offers affordable rates along with reliable customer service. It can also offer personalized attention with its large network of agents.
State Farm is the second-cheapest option in our study. State Farm rates average $107 a month for a full-coverage policy and $40 a month for liability car insurance.
Along with affordable rates, State Farm offers a great multi-policy discount. You can save up to $1,273 on car and home insurance if you buy both policies from State Farm.
USAA
- Low full-coverage average rate of $1,370 a year
- 25% lower than state average
- AM Best’s financial strength rating: A++
Pros
Affordable rates
Excellent customer service
Offers a discount of up to 60% off if you store your vehicle
Cons
Only available to military members, veterans and their families
Limited personalized coverage
USAA is one of the most affordable car insurance companies in Texas and has top-grade customer service. USAA’s rates average $114 a month for a full-coverage policy and $40 a month for liability car insurance.
On the other end, USAA offers limited optional coverages compared to competitors. Roadside assistance and rental reimbursement are its only additional coverages. USAA is also not available to everyone.
Texas insurance rates by city
Killeen has the cheapest car insurance rates among Texas’ largest cities. Its average rate is $1,618 a year, or $135 a month, for full coverage.
The Texas city with the most expensive car insurance is Dallas. The average rate there is $2,143 a year, or $179 a month.
| City | Annual rate |
|---|---|
| Amarillo | $1,994 |
| Arlington | $1,897 |
| Austin | $1,818 |
| Brownsville | $1,852 |
| Corpus Christi | $1,767 |
| Dallas | $2,143 |
| Denton | $1,709 |
| El Paso | $1,763 |
| Fort Worth | $1,838 |
| Garland | $2,057 |
| Grand Prairie | $2,059 |
| Houston | $2,136 |
| Irving | $1,983 |
| Killeen | $1,618 |
| Laredo | $1,897 |
| Lubbock | $1,931 |
| McAllen | $2,107 |
| McKinney | $1,846 |
| Mesquite | $2,083 |
| Midland | $1,701 |
| Pasadena | $1,963 |
| Plano | $1,880 |
| San Antonio | $1,938 |
| Waco | $1,636 |
How much is car insurance in Texas?
The average cost of car insurance in Texas is $1,833 a year for full coverage. Per month, the cost is $153.
For liability car insurance, the average cost in Texas is $696 a year, or $58 a month.
Full-coverage car insurance in Texas is 7% cheaper than the U.S. average. Meanwhile, liability car insurance is 10% cheaper in Texas.
Car insurance laws in Texas
Texas law doesn’t require drivers to have car insurance. It does require drivers to show proof they can pay for any damage they cause in an accident, though. Most people accomplish this by buying car insurance.
Minimum coverage for car insurance in Texas
If you buy car insurance in Texas, you need to get at least 30/60/25 liability coverage. This means you must buy these amounts of liability car insurance, at a minimum:
| Coverage type | Minimum required amount |
|---|---|
| Bodily injury liability | $30,000 per person, $60,000 per accident |
| Property damage liability | $25,000 per accident |
Source: Texas Department of Insurance
Bodily injury liability coverage protects you if you injure someone else in a car accident. Property damage liability protects you if you damage someone else’s car or property.
All car insurance policies offered to Texas drivers include personal injury protection. This type of coverage pays the medical bills of you and your passengers if you’re injured in an accident. It also covers some lost wages and other nonmedical expenses. If you don’t want it, you can reject it in writing.
Texas car insurance companies must also offer you uninsured and underinsured motorist coverage. These coverage types help you if someone who doesn’t have insurance, or enough insurance, hits and injures you or damages your car. You can reject this, too.
Methodology
The rates in this article are based on an analysis of auto insurance quotes obtained from Quadrant Information Services for sample drivers from across Texas (or the U.S., in the case of national averages).
Unless otherwise noted, our sample driver is a single 30-year-old male who owns a 2015 Honda Civic. Our young base driver is an 18-year-old male with a good driving record.
Minimum-coverage rates reflect the cost of policies meeting the minimum liability limits required by each state.
Full-coverage policies include these coverages, limits and deductibles:
- Bodily injury liability: $50,000 limit per person, $100,000 limit per accident
- Property damage liability: $25,000 limit
- Uninsured motorist: $50,000 per person, $100,000 per accident, where required by law
- Personal injury protection: Minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive: $500 deductible
LendingTree rated insurance companies based on an assessment of each of their average rates, NAIC Complaint Index scores, discounts, coverages, financial strength ratings, along with their app and website experience. These categories were then weighted based on importance:
- Cost: 40%
- NAIC Complaint Index score: 30%
- Discounts: 10%
- Coverages: 10%
- A.M. Best financial strength rating: 5% ?
- Web and app usability: 5%
*USAA is only available to current and former military members and immediate family.
Frequently asked questions
Texas Farm Bureau has the cheapest car insurance in Texas for most drivers. This includes drivers with a speeding ticket on their records and those who have poor credit. Plus, teen drivers in Texas get the lowest rates from Texas Farm Bureau, too.
The average cost of car insurance per month in Texas is $153 if you buy full coverage. If you just buy liability coverage, however, the average cost is $58 a month.
You should buy enough car insurance to protect yourself if you’re in an accident, or if something else damages or destroys your car. Liability coverage only pays for injuries or damage you cause to others or their property.
Even then, the minimum amount of liability coverage the state requires may not be enough if you’re in a serious crash. Buying 100/300/100 liability coverage offers a lot more protection.
If you have a new or expensive vehicle, you should buy collision and comprehensive coverage. These coverage types pay to repair damage to your car, and they also pay to replace your car if it’s totaled.