State Farm offers the cheapest liability-only car insurance in Texas at $41 monthly or $497 annually, providing solid value in the nation's second-largest insurance market. Texas's competitive landscape and diverse risk factors create opportunities for significant savings among major insurers.
GEICO ($54 monthly) and Mercury Insurance ($54 monthly) offer competitive alternatives, while AAA ($63 monthly) and Germania Insurance ($72 monthly) round out the top five. Texas drivers benefit from strong competition and multiple affordable options as of October 2025.