The Lone Star State has an average cost for auto insurance that is higher than the average cost in the United States as a whole. High insurance rates in Texas may be largely influenced by weather conditions and the density of drivers. This means that finding the best car insurance in Texas may require some research to determine which coverage, pricing, and discounts fit your needs.
We looked at factors like overall customer satisfaction, including optional coverage, available discounts and third-party ratings to pick the best car insurance companies in Texas. Three of our choices were also included in our list of the best car insurance companies in the nation.
The 4 Best Auto Insurance Companies in Texas
- USAA: Best for Military-Focused Coverage
- Allstate: Best for Robust Coverage
- GEICO: Best for Affordable Policies
- State Farm: Best for Customer Service
Compare the Best Car Insurance Companies in Texas
| Average Price for Minimum Coverage* | Average Price for Full Coverage* | AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | J.D. POWER OVERALL CUSTOMER SATISFACTION** J.D. Power scores are based on surveys for customer satisfaction and product quality. | ||
|---|---|---|---|---|---|
| Pin USAA*** | $395 | $1,344 | A++ | 879 | |
| Pin Allstate | $557 | $1,705 | A+ | 836 | |
| Pin Geico | $391 | $1,339 | A++ | 832 | |
| Pin State Farm | $518 | $1,411 | A++ | 838 |
Information accurate as of December 2021
*Data provided by Bankrate.com
**J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Texas region. Based on a 1,000-point scale.
***Not officially ranked by J.D. Power due to eligibility restrictions
USAA
Best for Military-Focused Coverage
Why we chose it
Pros
- Low average premiums
- Many discounts
- Military-focused customer service
Cons
- Must be an active or former military service member, or the spouse or child of a service member, to get coverage
- Very few branch locations
Types of Coverage Offered
- Personal injury protection
- Extended benefits coverage
- Roadside assistance
- Rental car reimbursement
- Accident forgiveness
Discounts Available
- Annual mileage
- Anti-theft device
- Defensive driving course
- Driver training course
- Family discount
- Good student
- Length of membership
- Military installation
- Multi-vehicle
- New vehicle
- Policy bundling
- Safe driver
- USAA SafePilot program
- Vehicle storage
Further Reading on USAA:
Allstate
Best for Robust Coverage
Why we chose it
Pros
- 24/7 claims center
- Drivewise program
- Streamlined claims process with a satisfaction guarantee
- Strong online policy management and learning materials
Cons
- Fewer discounts than some other carriers
- Rates are more expensive compared to other top providers
Types of Coverage Offered
- Collision coverage
- Comprehensive coverage
- Liability coverage
- Medical payments coverage
- Personal injury protection
- Personal umbrella policy
- Rental reimbursement coverage
- Roadside coverage
- Custom equipment coverage
- Uninsured and underinsured motorist coverage
Discounts Available
- Anti-lock brake
- Anti-theft device
- Automatic withdrawal
- Early signing
- Full-pay
- Multi-policy
- New car
- Paperless
- Responsible payer
- Safe driving club
- Smart student
Further Reading on Allstate:
- Allstate auto insurance review
- Allstate homeowners insurance review
- Allstate motorcycle insurance review
Geico
Best for Affordable Policies
Why we chose it
Pros
- Affordable full coverage policies for most drivers
- Strong financial ratings
- Variety of discounts
Cons
- Does not offer gap insurance
- No discounts for hybrid/electric cars
Types of Coverage Offered
- Personal injury protection
- Roadside assistance
- Rental car reimbursement
- Mechanical breakdown coverage
- Medical coverage
- Uninsured motorist coverage
- Collision coverage
- Comprehensive coverage
Discounts Available
- Defensive driving course
- Driver education course
- Emergency deployment
- Employee membership
- Federal employee
- Good driver
- Good student
- Military
- Multi-policy
- Multi-vehicle
- New vehicle
- Seat belt use
- Vehicle safety features
Further Reading on Geico:
State Farm
Best for Customer Service
Why we chose it
Pros
- Great discounts
- High claims satisfaction ratings
- Impressive financial strength
Cons
- Fewer add-on coverages than competitors
- No accident forgiveness
Types of Coverage Offered
- Rental car and travel expenses coverage
- Roadside assistance coverage
- Rideshare driver coverage
Discounts Available
- Accident-free
- Anti-theft device
- Defensive driving course
- Drive Safe & Save program
- Driving training
- Good driver
- Good student
- Multi-vehicle
- Passive restraint
- Policy bundling
- Renewal discount
- Steer Clear program
- Student away at school
- Vehicle safety
Further Reading on State Farm:
The Average Cost of Car Insurance in Texas
Auto insurance costs more in Texas, on average, than it does in the nation as a whole, based on our research of 2021 quoted annual premiums from Bankrate.com. The average annual rate for full coverage is around $1,823 for Texas. Compared to the national average of $1,674, the Lone Star state is 9% more expensive. For minimum coverage that only meets the state liability requirements, then the average annual rate is $524. Texas’s high population density means that there is a higher risk of accidents with more people driving in crowded cities and towns in urban areas. The state is also prone to extreme weather, which insurance companies see as a greater risk and a higher number of claims. This, in the end, means higher prices for you, depending on your specific proximity to these risk factors.
Remember that every driver will get different rates based on age, gender and claims history, among other factors.
Top 3 Cheapest Car Insurance Companies in Texas
| Company | Average Annual Minimum Coverage Premium* |
| Geico | $391 |
| USAA | $395 |
| White Mountains | $424 |
* Data provided by Bankrate.com, price based on the minimum coverage policy.
Top 3 Most Expensive Car Insurance Companies in Texas
| Company | Average Annual Minimum Coverage Premium* |
| Sentry | $721 |
| California Casualty | $678 |
| Kemper | $669 |
* Data provided by Bankrate.com, price based on the minimum coverage policy.
Top 3 Cheapest Cities for Car Insurance in Texas
| City | Average Annual Minimum Coverage Premium* |
| Memphis | $378 |
| Friona | $379 |
| Denver City | $380 |
* Data provided by Bankrate.com, price based on the minimum coverage policy.
Top 3 Most Expensive Cities for Car Insurance in Texas
| City | Average Annual Minimum Coverage Premium* |
| Mission Bend | $718 |
| Aldine | $707 |
| Houston | $691 |
* Data provided by Bankrate.com, price based on the minimum coverage policy.
Guide to Texas Car Insurance
Given the size of the state and risk variables present, drivers in Texas are up against a variety of financial hazards. If you are looking for the best auto insurance in Texas, many experts recommend shopping around and comparing rates, coverage types, discounts, policy features, and third-party reviews to find the provider that is right for you.
The Texas Department of Insurance created an automobile insurance guide to help you understand the kind of coverage you need and what to look for when renewing your policy. If you are getting to know the roads of this state, we recommend checking out some surprising Texas traffic laws. Here are other important things for policyholders in this state.
Key things to know about car insurance in Texas
- Texas is an at-fault state, meaning those responsible for the damage must pay for injuries and property damage they cause.
- An estimated 6.8 million drivers are licensed to operate vehicles in the state of Texas.
- In this state, proof and verification of auto insurance are required at all times. This can be a paper ID card or a digital version on your phone.
- You can get a $350 fine or even suspension of driving privileges if you fail to produce a valid and current insurance card to authorities.
- According to the Insurance Information Institute, Texas is the number one state for hail damage losses. Hail damage is paid under comprehensive coverage, so consider this optional coverage if you want your car protected from weather events like hail.
Car Insurance Add-Ons That May Further Protect You
Your car insurance policy must meet Texas’s liability requirements, as having the minimum coverage keeps you from being fined. Many insurance agents recommend buying higher limits, though, for more financial protection. In addition, if you lease or finance your vehicle, your lender could require you to purchase more coverage than what’s required by the state.
Adding some extras can help limit your out-of-pocket expenses in excess of your policy’s limits. Here are the add-ons that we recommend in the Lone Star State:
- Collision coverage: This is designed to pay to repair or replace your car if you impact another vehicle or object, up to policy limits.
- Comprehensive coverage: Often called “other than collision”, this coverage pays for theft of the car, vandalism, broken windows and windshields, and if you hit an animal — effectively, any damage to your vehicle not sustained in a collision incident.
- Rental reimbursement coverage: If your car is stolen or needs to be repaired, having this reimbursement allows you to pay for renting a car. With some providers, this may cover taxi charges as well.
- Personal injury protection: In Texas, personal injury protection (PIP) is required to be offered, but you can choose to decline the coverage. This policy will pay for your injuries and your passenger’s injuries after an accident, regardless of which driver was at-fault. It may also cover lost wages, rehabilitation costs, and funeral expenses.
- Uninsured/underinsured motorist coverage: This coverage could protect you in case you are hit by someone that does not have insurance or the expenses from a crash exceed the limits of the other driver’s insurance.
- Towing and labor coverage: Adding this to your policy may help cover expenses if your car needs to be towed. If you need to pay for labor, such as having a flat tire, this coverage should help cover the cost.
Texas Minimum Insurance Requirements
In Texas, all drivers must carry at least a minimum amount of liability coverage. The Texas minimum auto insurance requirements include the following:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 for property damage liability per accident
Car insurance companies must also offer you uninsured and underinsured motorist coverage, although you can decline these options in writing. In addition, every driver in Texas must carry at least $2,500 in PIP coverage, unless they decline the coverage in writing.
Texas Car Insurance FAQ
Methodology
Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance in Texas, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company. These reviews were created with our readers in mind and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you.
As for average pricing, we used Bankrate.com’s data of car insurance in Texas, based on the profiles of a 40-year male and female. For full coverage, the details used were the following:
- $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 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.
About the Authors
Elizabeth Rivelli is an insurance writer for Reviews.com. Over the last year, she has covered insurance providers, best policies, industry trends and more. Elizabeth has been featured in The Simple Dollar, Bankrate and Coverage.com, among others. She holds a bachelor's degree in Communication Studies from Northeastern University in Boston, MA. The Best Term Life Insurance Companies is Elizabeth’s favorite review on Reviews.com.
