The Best Car Insurance in Texas
MoneyGeek’s analysis can also help you secure the cheapest car insurance in Texas for your driving profile, regardless of the quality of service.
Best Full Coverage Car Insurance Companies in Texas: Overall
State Farm is the best car insurance company in Texas overall.
MoneyGeek considered average cost, user satisfaction and claims rating when determining the top auto insurer in the state. Overall, the highest-rated car insurance providers in Texas as per MoneyGeek’s scores are:
- State Farm: MoneyGeek score of 86 out of 100 ($924 per year)
- GEICO: MoneyGeek score of 86 out of 100 ($952 per year)
If you’re keen on saving, we also ranked the cheapest full coverage auto insurance in Texas.
THE TOP CAR INSURANCE COMPANIES IN TEXAS
State Farm tied for first in satisfaction, stability and claims scores. The company also ranked second in the affordability rating. Policyholders can purchase rideshare insurance as additional coverage.
Average Annual Cost: $924
The only unique coverage available with State Farm is rideshare insurance. This optional coverage makes sure that the medical, emergency roadside assistance and rental car reimbursement in your personal car insurance policy remain in effect while working for a ridesharing company like Uber. It also puts your personal policy deductible into effect.
Furthermore, State Farm’s rideshare insurance extends coverages from your car insurance policy when your rideshare app is on and you’re waiting for a rideshare request. After you match with a rider or while you are transporting a rider, all of your coverages will remain in effect except for liability insurance. It’s worth noting, however, that purchasing this add-on coverage can increase your premium by 15-25%. Read MoneyGeek's State Farm auto insurance review.
GEICO tied for first on stability, satisfaction and claims scores, and ranks third for affordability. Policyholders can get mechanical breakdown insurance as an added coverage.
Average Annual Cost: $952
GEICO’s mechanical breakdown insurance is a rare optional coverage that can be purchased by policyholders with vehicles that are less than 15 months old and have less than 15,000 miles. Compared to a typical dealer warranty, mechanical breakdown insurance from GEICO provides increased coverage at a lower price. It covers all parts and systems, including those excluded from most dealer warranties.
Accident forgiveness is another coverage you can add to your GEICO auto policy. This ensures that your car insurance cost does not increase after your first at-fault accident. You can purchase accident forgiveness, but you can also earn it if you are over 21 years old and haven’t been in an accident for five years or more. Read MoneyGeek's GEICO auto insurance review.
Farmers costs an average of $821 per year and has the highest affordability, claims and satisfaction scores. However, the company is in sixth place for stability. Farmers provides custom parts coverage and glass deductible modification coverage.
The Farmers glass deduction modification coverage allows you to reduce your full coverage policy deductible to $100 if the loss is glass-related. The company’s custom parts coverage pays the cost of replacing or repairing aftermarket parts like infotainment systems and custom wheels.
Nationwide ranks third for stability and is tied for first place in both satisfaction and claims. The company charges an average of $1,284 per year for car insurance, which is the least affordable rate of any company we surveyed. Policyholders can purchase identity theft coverage.
Nationwide offers identity theft coverage to a maximum of $25,000 for you or anyone in your household. Nationwide also provides a total loss deductible waiver for its customers. This coverage waives the cost of your deductible if your car is totaled due to an accident.
AAA auto insurance in Texas costs an average of $1,118 per year. This company ranks third for stability, first for satisfaction and fifth for claims. Policyholders can get identity theft insurance as one of the optional coverages.
AAA’s membership includes identity theft monitoring to identify any instances of identity fraud. Policyholders also get roadside assistance that covers the cost of fuel delivery, battery jump-starting and replacement, flat tire replacement and vehicle lockout services, among others.
MoneyGeek ranked the best auto insurance companies in Texas by collecting full coverage car insurance quotes across various providers. We also used claims ratings and customer satisfaction scores from J.D. Power and the NAIC.
Your rates may differ from MoneyGeek’s average costs based on your unique circumstances. For more information, please read our methodology.
MoneyGeek's Texas Car Insurance Resources:
Best Car Insurance in Texas for Customer Service
MoneyGeek discovered that the top car insurer in Texas for customer service is GEICO.
- GEICO: MoneyGeek score of 82 out of 100
- State Farm: MoneyGeek score of 82 out of 100
Without cost being a factor, GEICO and State Farm are tied. When cost is considered, State Farm ranks first and GEICO second.
THE TOP TWO CAR INSURANCE COMPANIES IN TEXAS FOR SERVICE QUALITY
GEICO has customer satisfaction and claims ratings of 4 out of 5, which are the highest among the insurers analyzed. Since the company offers one of the lowest rates in the state, customers can get affordable coverage without compromising on the quality of service.
Because filing claims can be stressful, a company like GEICO, with a reputation for its quality service, can give you peace of mind.
GEICO also provides rental car coverage to its policyholders. It covers the cost of renting a vehicle up to a preset amount if your car remains unusable for more than 24 hours after a covered accident. Since it’s an optional coverage, adding it to your auto insurance policy will cost around $88 per year.
Additionally, GEICO offers roadside assistance, which provides coverage for various roadside emergencies. These include changing flat tires, towing, jump-starting batteries, winching vehicles and delivering fuel. This add-on coverage also pays for lockout services if you lock your keys in the vehicle.
State Farm ranks as the second-best car insurance company in Texas for customer satisfaction and claims scores only. The company has the same user satisfaction and claims ratings as GEICO, at 4 out of 5. State Farm is also an affordable option, meaning you don’t have to trade quality service for cost savings.
With State Farm, you can add optional coverages to your auto insurance policy, like roadside assistance and rental car/travel reimbursement. Roadside assistance pays the cost of towing the car to the nearest place where it can be repaired or if it’s stuck on or next to a public road. It also covers the delivery gas, oil, battery or change of tire, but not the cost of such items. Additionally, it pays the costs of mechanical labor or locksmith labor for a maximum of one hour at the location of your car.
Meanwhile, rental car/travel reimbursement pays for car rental expenses up to chosen limits and travel expenses (such as meals, lodging and transportation) up to $500. It also covers up to $500 repayment of deductible if you are at fault for an accident in your rental car.
Best Car Insurance in Texas for Minimum Coverage
MoneyGeek’s pick for Texas drivers looking for affordable auto insurance is Farmers.
We analyzed companies offering policies that meet the minimum car insurance requirements in Texas to help drivers on a budget find one that combines quality service and affordability.
Our research shows that the best car insurance companies in Texas for drivers on a budget are:
- Farmers: MoneyGeek score of 86 out of 100 ($420 per year)
- State Farm: MoneyGeek score of 85 out of 100 ($495 per year)
We also analyzed the cheapest minimum coverage car insurance in Texas for those who want to prioritize savings.
MoneyGeek’s Pick: Farmers
Affordable state minimum coverage policy costing $420 per year on average
Offers bundling, multiple car and safe driving discounts
MoneyGeek claims rating of 4 out of 5
MoneyGeek satisfaction score of 4 out of 5
Does not offer discounts for defensive driving
Farmers policyholders in Texas can qualify for various discounts. These discount opportunities include bundling (combining your car insurance with other insurance products like home, life, umbrella, small business or specialty insurance policy) and multiple cars (insuring more than one vehicle with Farmers).
Additionally, Texans with a Farmers policy can pay less for their auto insurance coverage by going paperless, paying in full at the start of the term or having no late fees assessed within 12 months.
Farmers also rewards policyholders that have safety and security equipment installed in their cars. This insurer offers rare discounts for vehicles with airbags, passive restraints like automatic seatbelts, alarms and other protective systems, daytime running lights and devices that can track and locate stolen vehicles.
Best Car Insurance in Texas for Young Drivers and Students
State Farm is MoneyGeek’s pick for the best car insurance provider for young drivers and students in Texas.
Younger drivers typically pay very high rates due to their lack of driving experience. Nonetheless, these companies offer the best policies:
- State Farm: MoneyGeek score of 88 out of 100
- GEICO: MoneyGeek score of 83 out of 100
For this category, MoneyGeek analyzed insurance rates for those in their late teens, early 20s or in high school or college.
We also ranked the cheapest car insurance in Texas for young drivers and students who are on a budget.
MoneyGeek’s Pick: State Farm
Affordable full coverage for adding students and young drivers to a policy, averaging $2,512 per year
Provides good student, distant student and driver’s education discounts
Claims score of 4 out of 5
Customer satisfaction score of 4 out of 5
While it may be costly to add a young driver to your car insurance coverage, State Farm makes it relatively affordable and combines its low rates with quality service. Keep in mind that good customer service ensures that your claims get processed quickly and fairly without any hassle.
It’s worth noting that State Farm provides numerous discount opportunities for students and teen drivers to lower their auto insurance premium. They are eligible for discounts if they earn a B average (3.0 GPA) or are included in the top 20% of their class ranking. In addition, there are discounts available with State Farm for students under 25 who moved away from home and those under 21 who completed an approved driver’s education course.
Best Car Insurance in Texas for Seniors
MoneyGeek evaluated different providers based on the average cost of car insurance for seniors and customer satisfaction. Our research found that the two best auto insurance companies in Texas for seniors are:
- State Farm: MoneyGeek score of 87 out of 100 ($891 per year)
- Farmers: MoneyGeek score of 86 out of 100 ($834 per year)
We considered affordability and customer service ratings to generate these scores. We also analyzed the cheapest Texas car insurance for seniors looking to save money.
MoneyGeek’s Pick: State Farm
One of the most affordable companies for seniors at $891 per year
Offers roadside assistance and rental car/travel reimbursement
Provides defensive driving discount
MoneyGeek claims ratings and user satisfaction ratings of 4 out of 5
No discount for senior drivers
Lacks paperless and pay-in-full discounts
Car insurance rates for seniors are typically more expensive than for middle-aged drivers. However, you can save on your premium with State Farm, which combines affordable rates with good customer service.
State Farm offers additional coverages like roadside assistance and rental car and/or travel reimbursement. The former pays for one hour’s worth of mechanical or locksmith labor at the place where your car breaks down. It also covers towing and delivery of gas, oil, a battery or tire change. Travel reimbursement covers car rental and travel expenses if your vehicle isn’t driveable due to a covered accident.
In addition, State Farm has various discount opportunities to lower your premium. Among them is the defensive driving discount, which you can earn after completing a defensive driving course.
Best Car Insurance in Texas for Bad Driving Records
Based on MoneyGeek’s research, drivers with a poor record can look to State Farm for the average best car insurance policy rate.
Our team scored the top auto insurers in Texas for drivers with a traffic violation, such as an at-fault accident, and the following earned the highest scores:
- State Farm: MoneyGeek score of 88 out of 100 ($1,113 per year)
- Farmers: MoneyGeek score of 85 out of 100 ($1,165 per year)
The leading companies balance customer service and affordable costs for drivers who have an at-fault accident on their record.
If you value savings, we also analyzed the cheapest car insurance in Texas for those with a DUI or bad record.
MoneyGeek’s Pick: State Farm
Affordable car insurance for drivers with an at-fault accident at $1,113 per year on average
Claims score of 4 out of 5
Satisfaction score of 4 out of 5
Offers roadside assistance and rental car reimbursement coverage
Does not provide better car replacement, new car replacement or accident forgiveness
State Farm offers the best car insurance in Texas for drivers with a bad record. The average cost of a State Farm policy is $1,113 per year, the most affordable rate for full coverage in the state.
Aside from standard auto insurance, State Farm provides the following additional coverage options in case you get involved in an accident or have car issues.
- Roadside Assistance: If you get stranded due to an accident or have problems with your vehicle, State Farm pay for the costs of your roadside services to get you back behind the wheel.
- Rental Reimbursement: This add-on coverage pays for travel expenses (meals, lodging and transportation) up to $500 if away from home and car rental costs up to a certain limit if you cannot use your car after it gets damaged.
Best Car Insurance in Texas for a Military Background
MoneyGeek found that the best car insurance company in Texas for military members and their families is USAA, which received a MoneyGeek score of 99 out of 100. The company scored 5 out of 5 for stability, satisfaction and claims. Its affordability score is 4.84 out of 5.
A full coverage policy costs an average of $885 per year. USAA charges roughly $424 annually for state minimum coverage and around $1,387 a year for drivers with an at-fault accident.
MoneyGeek’s Pick: USAA
Affordable full coverage car insurance policy at an average of $885 per year
Claims rating score of 5 out of 5
User satisfaction score of 5 out of 5
Accident forgiveness coverage
Safe driving discount
USAA policies are only offered to military members and their families
USAA provides some of the most affordable car insurance coverage in Texas. It also has an outstanding reputation across the country.
Some of the add-on coverages and discounts available with this company are:
- Mileage Discount: You may get a discount on your premium based on the distance you drive every year.
- Multiple Car Discount: You qualify for a discount with USAA if you insure more than one car.
- Rideshare Gap Insurance: This coverage protects you while you’re waiting for a rideshare request.
- Accident Forgiveness Coverage If you remain accident-free for at least five years, you will not pay more for car insurance if you get involved in an at-fault accident and it is your first accident.
Best Car Insurance in Texas for Those With New Cars
MoneyGeek’s research included the best auto insurance in Texas for drivers with new cars. Farmers was the highest-rated company in this category at 86 out of 100. Its policy costs an average of $821 per year.
A policy with new car replacement coverage covers the cost of replacing your new car with a similar make and model if your vehicle is totaled in the first years of ownership.
Some insurers also provide better car replacement coverage, which replaces your damaged new car with a newer model. Most carriers offer this coverage within the first couple of years, but the period may vary. New car replacement and better car replacement coverages do not come with a standard policy — they are an additional cost.
MoneyGeek’s Pick: Farmers
Affordable car insurance coverage at an average annual rate of $821
New car replacement coverage
Claims rating of 4 out of 5
User satisfaction score of 4 out of 5
Does not offer better car replacement coverage to policyholders
Farmers is an excellent option for individuals with new cars because it provides new car replacement coverage as an add-on to a full coverage auto policy. Keep in mind that the value of your car depreciates with time, and this add-on coverage can help you replace your new car in case you get involved in an accident.
If you add new car replacement coverage to your auto insurance policy, Farmers will cover the cost of replacing your vehicle with a new one of the same model and make. However, this coverage only applies if your car is totaled within the first two model years and has less than 24,000 miles.
Best Car Insurance in Texas for Low-Mileage Drivers
Some insurers in Texas are expanding the use of a pay-per-mile program, which allows drivers to pay for car insurance based on the miles driven. The best pay-per-mile program in Texas is Nationwide SmartMiles. For more of the most affordable low-mileage insurance options, browse through our guide.
MoneyGeek’s Pick: Nationwide
Nationwide SmartMiles provides cheap coverage for low mileage drivers in Texas
Claims rating of 4 out of 5
User satisfaction score of 4 out of 5
For regular drivers, the program might cost more than standard car insurance coverage
Those who drive less than the average driver can save on their premiums through pay-per-mile insurance. In Texas, the best option is Nationwide SmartMiles. It has a base rate and a variable rate (cost per mile), which are used to set your premium based on how many miles you drive. Another feature of this program is that it only counts the first 250 miles per day if you’re on a road trip. It also provides up to a 10% discount for safe drivers.
Nationwide SmartMiles is ideal for Texans who don’t get behind the wheel every day. That is likely because they work from home and don’t commute or have an extra car they don’t drive often.
How to Find the Best Car Insurance in Texas For You
While looking for the best auto insurance in Texas, you will need to make various considerations including the cost, financial stability and service quality.
MoneyGeek ranked the best insurance companies across these factors. You may also want to compare providers yourself.
Research customer service reputations in Texas
MoneyGeek determined car insurance rates in Texas using quotes sourced from different providers for a sample driver, as well as customer satisfaction scores from J.D. Power and complaint ratios from the NAIC. You may use the scores from the NAIC and J.D. Power to determine the insurer with the best coverage for your needs. You can also obtain information on different companies from the state’s Department of Insurance website.
Compare quotes for yourself
MoneyGeek collected car insurance quotes from several locations in Texas using a sample driver with a full coverage policy. However, we did not cover all the locations in the state and you may need to compare quotes from a minimum of three insurance companies to find the best coverage.
Make sure the company has coverages you want in Texas
Before paying for a car insurance policy in Texas, make sure you understand the types of discounts or coverage options the insurer offers. Some insurance companies advertise discounts and coverages without specifying which states they’re offered in.
Double-check financial stability ratings
One of the factors to consider before purchasing car insurance from any company is its financial strength. Large insurers often have higher financial stability, which translates to a higher possibility of settling your claims. Regional insurance carriers within Texas are often less financially stable, and may not process your claims as efficiently.
FAQs About the Best Car Insurance in Texas
The cost of car insurance in Texas is impacted by several factors, including the type and amount of coverage that you purchase. Understanding the answers to some frequently asked questions about auto insurance can help you find the right policy for your needs.
About Mark Fitzpatrick