The cost of full coverage car insurance in Texas averaged $2,492 in 2024, according to Bankrate’s analysis of Quadrant Information Services data, while a liability-only policy averaged $724 a year.
Individual premiums vary greatly, of course, depending on what part of the state you live in, your age, your driving record and many other factors.
We’ve chosen the best cheap car insurance companies in Texas in a variety of categories. (See our methodology for more information on how we made this list.)
Shop for car insurance
Best car insurance in Texas
Best for affordability: Allstate
Allstate Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Allstate offers full coverage auto insurance in all 50 states, with add-ons like accident forgiveness, rideshare insurance and protection for custom parts and equipment. Allstate’s MileWise pay-per-mile plan can save infrequent drivers up to 40% over a traditional policy.
Pros
- Highly rated for claims processing by J.D. Power.
- Up to 25% off with Allstate’s Drivewise telematics app
- Pay-per-mile insurance in 18 states.
- Rideshare insurance available
Cons
- Rates are higher than competitors, especially for high-risk drivers
- Rated below average for overall customer satisfaction in most regions
Who’s this for? Allstate has some of the lowest premiums we found in Texas and offers additional chances to save with discounts for bundling your coverage, owning a new car, installing an anti-theft device, getting good grades and more.
Standout benefits: Allstate’s Milewise pay-per-mile car insurance can save infrequent drivers as much as 40% over traditional insurance.
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Best for customer service: State Farm
State Farm Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
The largest auto insurer in the U.S., State Farm has an excellent reputation for customer satisfaction and offers over a dozen discounts, including for safe driving, bundling and good students.
Pros
- High customer satisfaction ratings
- Available in most states
- Affordable rates for teen drivers
Cons
- Doesn’t offer gap insurance
- Accident forgiveness requires nine years without an at-fault accident.
Who’s this for? State Farm is one of the top-ranked insurers for customer satisfaction in Texas, according to J.D. Power’s 2024 U.S. Auto Insurance Study, and it scored above average for the claims process. Customers can get rate quotes, buy insurance, file claims and make adjustments to their policies online or via the easy-to-use mobile app.
Standout benefits: State Farm offers rideshare insurance, including for drivers for delivery apps like Uber Eats and DoorDash. It also offers a business-use option, which can be cheaper than a full rideshare policy.
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Best for older drivers: Farmers Insurance
Farmers Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
Farmers sells car insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia and offers a whopping 23 discounts.
Pros
- Offers 23 types of discounts
- Below-average NAIC complaints
- Ability to bundle coverage with other products
Cons
- Not all discounts are available in every state
- Average premium higher than the national average
Who’s this for? If you’re 55 or older, you can qualify for Farmers mature drivers discount by completing an approved driver safety course.
Standout benefits: Farmers offers Vehicle Replacement Plus as an add-on, which can replace a new car that’s a total loss with another vehicle of the current model year and the same make and model.
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Best from young drivers: Progressive
Progressive Auto Insurance
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Cost
The best way to estimate your costs is to request a quote.
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Accident forgiveness
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Policy highlights
Progressive offers an array of riders, including rideshare insurance and a Deductible Savings Bank that deducts $50 from your deductible each policy period you go without a claim.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Non-owner car insurance and SR-22 certificates available
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
Who’s this for? Teens are the most expensive demographic to insure but Progressive offers several discounts for families with young drivers — including for earning a B average and for leaving their car at home when they go to college. You’ll also get a rate reduction just for having a driver under 18 on your policy for 12 consecutive months.
Standout benefits: With Progressive’s Deductible Savings Bank, $50 is subtracted from your deductible for each policy period you go without an accident or violation.
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Best for hard-to-insure drivers: Mercury Insurance
Mercury Auto Insurance
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Cost
The best way to estimate your cost is to get a personalized quote
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App available
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Policy highlights
Mercury offers affordable auto insurance and convenient online quotes and claim filing. Discounts are available for anti-theft features, bundling and for paying premiums in full.
Pros
- Affordable rates in California
- Rideshare insurance available under $1 per day
- Repairs made by an authorized garage are guaranteed
Cons
- Auto insurance only available in 11 states
- Rated below average for customer satisfaction by J.D. Power
- No gap insurance coverage
Who’s this for? Mercury specializes in high-risk motorists, including drivers with poor credit, speeding tickets, accidents and DUIs.
Standout benefits: MercuryGo, Mercury’s usage-based driving app, tracks your behavior behind the wheel and rewards safe driving habits with a discount of up to 40% at renewal.
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Best for military members and veterans: USAA
USAA Auto Insurance
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Cost
The best way to estimate your costs is to request a quote
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App available
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Policy highlights
USAA auto insurance is available to service members, veterans and their families in all 50 states and Washington D.C.. In addition to low rates, USAA offers discounts if you are deployed or store your vehicle on base.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction scores
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar offices
- Customer service is not available 24/7
- Safe-driver discount not available in every state
Who’s this for? USAA offers affordable rates for current and former service members and their families, paired with a strong record for customer satisfaction.
Standout benefits: USAA offers car replacement assistance as an optional add-on, which can pay out 120% of a car’s cash value if it’s totaled or stolen. That’s considerably more than standard gap insurance, which only covers the difference between what’s owed on a totaled vehicle and its depreciated value.
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More on our top Texas car insurance companies
Allstate
Sample rate in Texas: $559 a year
Availability: Allstate car insurance is available in all 50 U.S. states and Washington, D.C.
J.D. Power customer satisfaction ranking: Below average
NAIC complaint index: Fewer complaints than expected
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State Farm
Sample rate in Texas: $813 a year
Availability: State Farm car insurance is available in all U.S. states except Massachusetts and Rhode Island
J.D. Power customer satisfaction ranking: Above average
NAIC complaint index: More complaints than expected
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Farmers
Sample rate in Texas: $714 a year
Availability: Farmers car insurance is available in 42 states
J.D. Power customer satisfaction ranking: Above average
NAIC complaint index: Fewer complaints than expected
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Progressive
Sample rate in Texas: $696 a year
Availability: Progressive car insurance is available in all 50 U.S. states and Washington, D.C.
J.D. Power customer satisfaction ranking: Below average
NAIC complaint index: Fewer complaints than expected
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Mercury Insurance
Sample rate in Texas: $1,127 a year
Availability: Mercury car insurance is available in Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas and Virginia
J.D. Power customer satisfaction ranking: Below average
NAIC complaint index: Fewer complaints than expected
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USAA
The United Services Automobile Association, also known as USAA, offers car insurance to members who are active service members, veterans, the National Guard, Reserves and their spouses and children. It also offers homeowners insurance, renters insurance and other financial products.
Annual Texas sample premium: $597
Availability: USAA car insurance is available in all 50 U.S. states and the District of Columbia
J.D. Power customer satisfaction ranking: Above average
NAIC complaint index: More complaints than expected
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How to shop for car insurance in Texas
Follow these steps if you’re shopping for car insurance:
1. Get the necessary information
To get a quote and buy a policy, you’ll have to have some things on hand:
- Your driver’s license
- Your car’s make, model, year and VIN
- A rough estimate of the number of miles you drive in a year
- The expiration date of your current auto insurance policy
2. Decide how much coverage you need
Texas requires drivers to have the following minimum coverage to drive legally:
- $30,000 of bodily injury liability coverage per person
- $60,000 of bodily injury liability coverage per accident
- $25,000 of property damage liability coverage per accident
This is only the minimum, however. Getting liability coverage that’s at least equal to your net worth can protect your assets if you’re held responsible for an accident. (If you have a high net worth, an umbrella policy can go beyond your auto policy’s limits.)
You should also consider getting full coverage, which includes comprehensive and collision protection that can pay to repair or replace your car. If you have an auto loan or at least your car, you are probably required to have full coverage.
Comprehensive and collision: A rule of thumb
If your car is worth less than 10 times the cost of full coverage premiums, it might be worth skipping comprehensive and collision coverage and just getting a liability-only policy. A site like Kelley Blue Book can give you an idea of your car’s value.
3. Gather price quotes
Get quotes from at least three providers, making sure you request the same coverage limits and deductibles.
Don’t forget to find out if you qualify for any discounts or if there are additional fees for paying monthly or by credit card.
4. Buy your new car insurance policy
Once you’ve decided on the policy you want, you’ll need to provide payment information and get your proof of insurance. Most car insurance companies issue coverage in six-month or one-year increments and it’s often cheaper to pay in full upfront rather than monthly.
If you’re changing carriers, you can avoid a lapse in coverage by waiting to cancel your old policy until after your new one is scheduled to take effect. You should be able to get a pro-rated refund for the remainder of the policy term, though there may be a cancellation fee.
How to save on car insurance in Texas
There are several ways to cut down on the cost of car insurance.
Bundle your insurance policies
Most providers that offer more than one kind of insurance give customers a discount for taking out multiple policies, most commonly by bundling auto and homeowners insurance. But some companies offer deals for combining different plans — including renters insurance, life insurance and even pet insurance.
Raise your deductible
Your deductible is the amount you’re responsible for out-of-pocket before your insurance company pays for anything. Increasing your deductible from $200 to $500 can reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.
You need to make sure you have enough money on hand to pay the additional cost if you’re involved in an accident.
Pay for your whole term upfront
Many insurers will lower your premiums if you pay for your entire six-month or one-year term in advance, in some cases by more than 10% off. If you need to cancel before the term is up, you should be able to get a partial refund.
Improve your credit
In Texas, insurance companies are allowed to consider your credit score when calculating your auto insurance premiums. Paying bills on time, avoiding applying for more credit cards and checking your credit report for errors can all help raise your credit score.
FAQs
How much is car insurance in Texas?
Full coverage car insurance in Texas averages $207 per month. Liability-only coverage, the minimum insurance allowed in the state, averages about $60 per month.
What is the cheapest car insurance in Texas?
According to the data we gathered, Allstate offers the most affordable car insurance rates in Texas.
What is the minimum car insurance required in Texas?
Drivers in Texas are required to have at least $30,000 in bodily injury liability coverage per person, $60,000 in bodily injury liability coverage per accident and $25,000 in property damage liability coverage per accident.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto insurance products. To research the best auto insurance companies, we compiled data points on more than a dozen auto insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best Texas car insurance companies.
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Our methodology
To find the best car insurance companies in Texas, CNBC Select analyzed 15 insurance companies offering policies in the state.
We focused on cost, coverage, ease of use, customer satisfaction ratings from J.D. Power, financial strength ratings from A.M. Best and complaint indexes from the National Association of Insurance Commissioners.
Sample premium data was gathered from the Texas Department of Insurance’s Helpinsure.com tool, and was based on liability coverage with limits of $50,000 per person in injury coverage, $100,000 limit for all injuries, and $50,000 for property damage. We focused on premiums for a single male driver who:
- Is 30 years old
- Drives 18,000 miles per year, mostly for work
- Has no violations or accidents on their record
- Drives a car (rather than a truck)
We considered sample premium data from several Texas cities and gathered sample premium data for the same driver with the qualifications above in Katy (Fort Bend County), El Paso (El Paso County), Frisco (Collin County), Grand Prairie (Dallas County) and Mckinney (Collin County). These were averaged to create the state average annual sample premium.
We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
Premiums and policy structures cited for car insurance companies may change in accordance with the company policy.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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