Best Car Insurance in Texas for 2026

State Farm earns the top car insurance rating in Texas at 4.7/5, with a 5/5 affordability score and $41/month rates. GEICO wins for bad-credit drivers. See top picks by driver profile and city.

Written by Mark Fitzpatrick

Updated: April 23, 2026

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Key Takeaways

State Farm earns Texas' top MoneyGeek score at 4.7/5, a 5/5 affordability score, and wins eight profile categories on best and cheapest: adults ($41 per month), DUI ($67 per month), speeding ($41 per month), accident ($49 per month), old cars ($38 per month), seniors ($47 per month), newer cars ($57 per month) and young drivers on best score ($92 per month).

GEICO wins best and cheapest for low-income drivers ($52 per month) and cheapest for bad-credit drivers ($78 per month) in Texas.

State Farm leads all 10 Texas cities at 4.7/5. Houston and Laredo average $85 per month; Austin averages $69 per month, a $16 gap driven by differences in metro traffic and claim frequency.

HOW MONEYGEEK CHOSE THE BEST CAR INSURANCE IN TEXAS

Texas is an at-fault state where Houston and Dallas metro traffic density, above-average hail exposure across the I-35 corridor and a high percentage of uninsured drivers push rates above the national average. Credit scoring is also permitted here.

Licensed insurance producers at MoneyGeek paid attention to Texas's at-fault liability system, the rate variation between the state's major metros and rural Texas and the practical of rideshare coverage given the gig economy activity in Houston, Dallas and Austin.

Affordability (60%): Rate is the primary driver for most Texas drivers, particularly in the major metros where rates are well above the statewide average.
Customer experience (30%): Based on J.D. Power scores, NAIC complaint ratios, AM Best ratings and independent agent Google Business ratings.
Coverage options (10%): Measures the range of optional coverages offered in Texas.

Best Car Insurance in Texas by Driver Profile

State Farm is the right pick for most Texas drivers. GEICO is the better option for bad-credit and low-income drivers, where its rates run $13 to $26 per month lower than State Farm's.

State Farm earns Texas's top MoneyGeek score at 4.7/5, including a 5/5 affordability score. At $41 per month for a clean-record adult and $67 per month after a DUI, it wins best and cheapest across most standard and violation profiles, the strongest all-around pick in the state.

GEICO wins best and cheapest car insurance in Texas for low income at $52 per month and cheapest for bad credit at $78 per month. It also offers rideshare coverage in Texas, State Farm doesn't, which matters for Houston, Dallas and Austin drivers working for gig platforms.


Adult drivers (26–64), clean record	State Farm	$41	$95
Young drivers (16–25)	State Farm	$92	$210
Senior drivers (65+)	State Farm	$47	$106
After an at-fault accident	State Farm	$49	$107
After a speeding ticket	State Farm	$41	$93
After a DUI	State Farm	$67	$141
Drivers with newer cars	State Farm	$57	$129
Drivers with older cars	State Farm	$38	$85
Bad credit	GEICO	$78	$186
Low income	GEICO	$52	$124

Best Overall and Best for Young Drivers or Those With a Violation

State Farm

State Farm earns the top composite score in MoneyGeek's Texas analysis, 4.7 out of 5, on a 5/5 affordability score and the lowest rates in the state across most profiles.

On customer experience, State Farm ranks third with a 4.7/5 score, behind two insurers. Its local agent network averages 4.6 stars nationally, and its J.D. Power claims-satisfaction standing is above the industry average. State Farm offers three optional coverages: roadside assistance, rental reimbursement and rideshare coverage. The coverage menu is narrower than Progressive's, which is the main trade-off against State Farm's rate leadership for drivers who need gap insurance or accident forgiveness.

Affordability (60%): 5/5
Customer Experience (30%): 4.7/5
Coverage Options (10%): 3.3/5

Don't pick State Farm if you need gap insurance or accident forgiveness; it doesn't offer either. For a Texas driver financing a newer vehicle or managing a first at-fault accident, Progressive's $87 per month minimum is $46 more than Progressive's $41 minimum, but it includes both, plus a diminishing deductible. For bad-credit or low-income drivers, GEICO offers lower rates.

Best Cheap for Drivers With Bad Credit or Low Income

GEICO

GEICO wins cheapest bad-credit ($78 per month minimum) and best and cheapest low-income ($52 per month minimum) in MoneyGeek's Texas analysis, the lowest rates in the state for either profile. GEICO's bad-credit minimum runs $65 per month below Progressive's $143 for the same driver. That's about $780 in annual savings for a Texas driver with bad credit. GEICO also wins cheapest for young drivers at $96 per month.

GEICO ranks sixth in customer experience among the Texas insurers MoneyGeek analyzed, with a score of 4.6/5. Its phone-and-online service model means most claims happen without a local agent, a different experience from State Farm's agent-led setup. GEICO offers three optional coverages: roadside assistance, a vehicle service contract and rental reimbursement. It doesn't offer gap insurance, accident forgiveness or rideshare coverage. That rideshare gap matters for drivers in Houston, Dallas and Austin working for gig platforms.

Affordability (60%): 4.6/5
Customer Experience (30%): 4.6/5
Coverage Options (10%): 3.3/5

Don't pick GEICO if you drive for Uber or Lyft in Texas or need gap insurance on a financed vehicle; it doesn't offer either. State Farm's $41-per-month minimum is $13 cheaper for clean-record drivers and includes rideshare coverage.

MONEYGEEK VERDICT

State Farm is the right pick for most Texas drivers. Its 5/5 affordability score and wins across eight driver profiles mean the best and cheapest pick is the same insurer for most drivers. GEICO is the better pick for bad-credit and low-income profiles, where its $78 and $52 per month rates run well below State Farm's for those same profiles. Neither insurer offers gap insurance or accident forgiveness; Progressive does, at a higher rate. Texas metro rates vary by city and ZIP: pulling quotes for your Houston or Dallas ZIP code will produce more accurate pricing than statewide averages.

Best Car Insurance in Texas by City

State Farm leads all 10 Texas cities at 4.7/5, matching its state-level result. Rates vary across Texas's major cities: Houston and Laredo average $85 per month, Austin averages $69 per month and El Paso averages $75 per month. Houston's hurricane and hail exposure and freeway congestion push rates $16 per month above Austin's. Drivers in any major metro should pull quotes for their ZIP code to get an accurate starting rate.


Houston	State Farm	4.74	$84
San Antonio	State Farm	4.74	$77
Dallas	State Farm	4.74	$84
Austin	State Farm	4.74	$69
Fort Worth	State Farm	4.74	$73
El Paso	State Farm	4.74	$75
Arlington	State Farm	4.74	$79
Corpus Christi	State Farm	4.74	$73
Plano	State Farm	4.74	$76
Laredo	State Farm	4.74	$85

Rates vary by ZIP code within each city. Houston ZIP codes in high-traffic or flood-prone areas can run well above the $84 city average shown here.

Summary: Best Car Insurance Providers in Texas on Average

State Farm leads Texas at 4.7/5, with a 5/5 affordability score and the lowest baseline rates across most profiles, followed by GEICO at 4.5/5. Both State Farm and GEICO earn the same coverage score (3.3/5), so coverage depth is roughly equivalent between the two: the distinction is affordability (State Farm leads for most profiles) and customer experience (State Farm ranks third, GEICO sixth). MoneyGeek's methodology weights affordability at 60%, customer experience at 30% and coverage at 10%.


State Farm	4.74	$67	3	6
GEICO	4.48	$83	6	6
Mercury Insurance	4.41	$93	5	4
AAA	4.34	$95	4	6
Progressive	4.21	$118	2	2

How to Find the Best Car Insurance in Texas

The gap between State Farm at $41 per month and Progressive at $87 per month for minimum coverage is $552 per year for a clean-record adult. Houston and Dallas ZIP codes often run above those figures.

1
Check Texas minimums
Texas requires 30/60/25 liability minimums. It's an at-fault state with no personal injury protection requirement.
2
Factor in metro vs. rural rates
Houston and Dallas ZIP codes carry higher rates than the statewide averages shown in this analysis. Check your ZIP code for an accurate starting rate.
3
Consider hail and flood risk
Texas ranks among the states with the highest hail claim rates. Comprehensive coverage is worth adding for most Texas drivers. State Farm and GEICO both offer it; neither includes gap insurance.
4
Account for DUI history
State Farm wins best and cheapest DUI at $67 per month; an SR-22 is required.
5
Review bundling options
Bundling home and auto in Texas reduces premiums.

Frequently Asked Questions About Car Insurance in Texas

Who has the cheapest car insurance in Texas?

State Farm is the cheapest option for most Texas drivers at $41 per month for a clean-record adult, and the best-scoring pick. For DUI profiles, State Farm wins at $67 per month. For bad-credit drivers, GEICO wins at $78 per month. For low-income drivers, GEICO wins at $52 per month.

What is the average cost of car insurance in Texas?

Texas rates are above the national average, pushed up by Houston and Dallas metro density and hail exposure.

What car insurance is required in Texas?

Texas requires minimum liability coverage of 30/60/25: $30,000 per person, $60,000 per accident and $25,000 for property damage. It's an at-fault state and doesn't require personal injury protection.

Is Texas a no-fault state?

No. Texas is an at-fault state. The driver responsible for an accident is liable for damages, and the at-fault driver's liability insurance covers the other party's costs.

Does Texas allow credit scoring for car insurance?

Yes. Texas permits insurers to use credit history as a rating factor. GEICO wins the cheapest bad-credit rate in Texas at $78 per month, a direct result of how credit scoring affects premiums across insurers.

Which Texas car insurance company has the best customer service?

Progressive ranks second among Texas insurers in MoneyGeek's customer experience scoring. State Farm ranks third at 4.7/5. Both score above the Texas insurer average in J.D. Power claims satisfaction and NAIC complaint ratios.

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.

He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.

His insights — on products ranging from car, home and renters insurance to health and life insurance — have been featured in The Washington Post, The New York Times and NPR among others.

Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to analysis of the personal insurance market. He's also a five-time Jeopardy champion!

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