The Best Car Insurance in Texas for 2022

The best car insurance provider in Texas is State Farm. The best insurers in the state balance customer service, affordability and financial stability. State Farm tied for first for stability and claims and offers the second-most affordable average annual premium for auto insurance in the state. Policyholders pay an average of $924 per year.

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Last Updated: 5/13/2022
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MoneyGeek’s ratings for car insurers in Texas were obtained based on customer service, cost and other factors. From this study, State Farm offers the best coverage in the state. However, your preferences may vary based on your specific needs, as well as your personal profile.

MoneyGeek’s analysis can also help you secure the cheapest car insurance in Texas for your driving profile, regardless of the quality of service.

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The Best Car Insurance in Texas

Best Car Insurance Companies in Texas: Overall

MoneyGeek considered factors such as average cost, user satisfaction and claims rating when determining the top car insurance companies in Texas.

Overall, the best car insurance carriers in the state as per MoneyGeek’s scores are:

  • State Farm: MoneyGeek score of 4.3 out of 5
  • GEICO: MoneyGeek score of 4.3 out of 5

USAA had a score of 5 out of 5, which is higher than both State Farm and GEICO. It was, however, excluded from this study because its policies are limited to military members and their families.

The Top 5 Car Insurance Companies in Texas

1
State Farm
Score:4.3

4.7/5

Affordability

4/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

State Farm tied for first in satisfaction, stability and claims scores. The company also ranked second in the affordability rating. Policies from State Farm cost an average of $924 per year and customers can receive rideshare insurance.

More About State Farm

State Farm’s rideshare insurance covers the cost of insurance if you work for a rideshare company, but does not include liability coverage. You can purchase rental car or travel reimbursement coverage to cover the cost of renting a car as well as meals and lodging fees up to $500. You can also receive a $500 repayment of your deductible if you get involved in an at-fault accident.

Read MoneyGeek's State Farm auto Insurance Review
2
GEICO
Score:4.3

4.7/5

Affordability

4/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

Costing about $952 per year, 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.

More About GEICO

GEICO’s mechanical breakdown insurance provides increased coverage at a lower price than a typical dealer warranty. GEICO also offers accident forgiveness, which ensures that your car insurance cost does not increase if you get involved in your first at-fault accident after five years with the company.

Read MoneyGeek's GEICO auto Insurance Review
3
Farmers
Score:4.3

5/5

Affordability

4/5

User Satisfaction

4/5

Financial Stability

Geek Quick Take
Geek Quick Take

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.

More About Farmers

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.

Read MoneyGeek's Farmers auto Insurance Review
4
Nationwide
Score:4

3.8/5

Affordability

4/5

User Satisfaction

4.5/5

Financial Stability

Geek Quick Take
Geek Quick Take

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.

More About Nationwide

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.

Read MoneyGeek's Nationwide auto Insurance Review
5
AAA
Score:4

4.2/5

Affordability

4/5

User Satisfaction

4.5/5

Financial Stability

Geek Quick Take
Geek Quick Take

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.

More About AAA

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.

Read MoneyGeek's AAA auto Insurance Review
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HOW WE DETERMINED THE BEST INSURANCE IN TEXAS

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:

Compare the Best Insurance Options in Texas

Several factors influence the cost of car insurance in Texas. These include service quality, financial stability, claims fulfillment and affordability.

Depending on your needs, you may wish to consider other factors like the type of coverage as well as the insurer’s profile. By using MoneyGeek’s scores, you can identify the best auto insurance companies in Texas and find the right provider for your specific circumstances.

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Best Car Insurance in Texas for Customer Service

MoneyGeek also ranked the best car insurance companies in Texas across user satisfaction and claims ratings, without considering pricing. By combining these two factors, the two top companies in the state are:

  • GEICO: MoneyGeek score of 4.1 out of 5
  • State Farm: MoneyGeek score of 4.1 out of 5

GEICO and State Farm rank the highest when the cost is not one of the factors. When cost is considered, State Farm ranks first, with GEICO coming in second.

The Top 2 Car Insurance Companies in Texas for Service Quality

1
GEICO
Score:4.1

4/5

Claims

4/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

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.

More About GEICO

GEICO provides rental car or travel reimbursement coverage to its policyholders. This coverage covers the cost of renting a vehicle if your car remains unusable 24 hours after an accident. The company also provides roadside assistance for flat tires, towing services, jump starts and lockout services.

Read MoneyGeek's GEICO auto Insurance Review
2
State Farm
Score:4.1

4/5

Claims

4/5

User Satisfaction

5/5

Financial Stability

Geek Quick Take
Geek Quick Take

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 increased costs.

More About State Farm

State Farm provides roadside assistance coverage that pays the costs of mechanical labor for a maximum of one hour at the location where the car broke down. This coverage also includes the cost of towing the car to the nearest place where it can be repaired.

Read MoneyGeek's State Farm auto Insurance Review

Best Car Insurance in Texas for Drivers on a Budget

If you wish to purchase a car insurance policy in Texas that only meets the state minimum requirements, MoneyGeek’s analysis can help you find the best coverage that combines quality service and affordability.

From MoneyGeek’s research, the best car insurance companies in Texas for drivers on a budget include:

  • Farmers: MoneyGeek score of 4.3 out of 5
  • State Farm: MoneyGeek score of 4.3 out of 5

MoneyGeek’s Pick: Farmers

Farmers

pros

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Affordable state minimum coverage policy costing $420 per year on average

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Offers bundling, multiple car and safe driving discounts

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MoneyGeek claims rating of 4 out of 5

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MoneyGeek satisfaction score of 4 out of 5

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Does not offer discounts for defensive driving

COMPANY HIGHLIGHTS

Drivers with a Farmers policy can pay subsidized costs on their car insurance coverage with the numerous discounts available, including bundling, multiple car and anti-theft discounts.

Other discounts to take advantage of include safe driving, paid-in-full premiums, paperless billing and having an airbag in your car.

Best Car Insurance in Texas for Poor Driving Records

MoneyGeek also scored the top auto insurance companies in Texas for drivers with traffic violations such as at-fault accidents. The top scorers balance customer service and affordable costs for drivers who have at-fault accidents on their driving record and include:

  • State Farm: MoneyGeek score of 4.4 out of 5
  • Farmers: MoneyGeek score of 4.3 out of 5

MoneyGeek’s Pick: State Farm

State Farm

pros

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Affordable car insurance for drivers with an at-fault accident at $1,113 per year on average

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Claims score of 4 out of 5

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Satisfaction score of 4 out of 5

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Offers roadside assistance and rental car reimbursement coverage

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Does not provide better car replacement, new car replacement or accident forgiveness

COMPANY HIGHLIGHTS

State Farm offers the best car insurance in Texas for drivers with a bad record. The annual average cost of a State Farm policy is $1,113, the most affordable rate for this type of coverage in Texas.

Aside from standard insurance, State Farm also provides the following additional coverage options in case you get involved in an accident:

  • Roadside assistance: If you get stranded due to an accident or problems with your vehicle, State Farm will cover the costs of your roadside services to get you back behind the wheel.
  • Rental reimbursement: This coverage pays for transportation costs and car rental costs if you cannot use your car 24 hours 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 scored 5 out of 5 on the stability, satisfaction and claims scales. The company also has an affordability score of 4.8 out of 5 and its policy costs an average of $885 per year for full coverage. The company charges roughly $424 for the state minimum coverage and $1,387 for drivers with at-fault accidents.

MoneyGeek’s Pick: USAA

USAA

pros

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Affordable full coverage car insurance policy at an average of $885 per year

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Claims rating score of 5 out of 5

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User satisfaction score of 5 out of 5

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Accident forgiveness coverage

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Safe driving discount

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USAA policies are only offered to military members and their families

COMPANY HIGHLIGHTS

USAA provides one of the cheapest car insurance coverages in Texas and has an outstanding reputation across the country.

Some of the add-on coverages and discounts available with USAA 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 is available for drivers whose car insurance policy does not include rideshare insurance. It 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 your first at-fault accident.

Best Car Insurance in Texas for Young Drivers and Students

MoneyGeek also ranked the best auto insurance providers in Texas for young drivers and students based on affordability and quality of service. These drivers typically pay very high rates based on their lack of driving experience.

From the ranking, the best insurers for young drivers and students in the state are:

  • State Farm: MoneyGeek score of 4.4 out of 5
  • GEICO: MoneyGeek score of 4.2 out of 5

MoneyGeek’s Pick: State Farm

State Farm

pros

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Affordable full coverage for adding students and young drivers to a policy, averaging $2,512 per year

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Provides good student, distant student and driver’s education discounts

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Claims score of 4 out of 5

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Customer satisfaction score of 4 out of 5

COMPANY HIGHLIGHTS

While it may be costly to add a young driver to your car insurance coverage, State Farm makes it relatively affordable and also combines the low rates with quality service. Good customer service ensures that your claims get processed quickly and without hassle once you file them.

State Farm provides good student, distant student and driver’s education discounts to support students and young drivers and ensure that they get good car insurance rates.

Best Car Insurance in Texas for Those With New Cars

MoneyGeek’s research also included the best auto insurance in Texas for drivers with new cars. A policy with new car replacement coverage covers the cost of replacing your new car with a similar make and model if your car gets totaled in the first few years.

Some insurers also provide better car replacement coverage, which replaces your damaged new car with a better model. While most carriers offer this coverage within the first five years, the required period may vary. New car replacement and better car replacement insurance do not come with your standard policy, so you will need to pay extra for them.

According to MoneyGeek’s research, Farmers has the highest score in this category at 4.3 out of 5.

MoneyGeek’s Pick: Farmers

Farmers

pros

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Affordable car insurance coverage at an average annual rate of $821

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New car replacement coverage

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Claims rating of 4 out of 5

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User satisfaction score of 4 out of 5

cons

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Does not offer better car replacement coverage to policyholders

COMPANY HIGHLIGHTS

Farmers is excellent for individuals with new cars because it provides new car replacement coverage. The value of your car depreciates with time, and this coverage can help you replace your new car in case you get involved in an accident.

Farmers’ new car replacement coverage meets the cost of replacing your car with a new one of the same model and brand if your car is totaled within the first two years and has not covered more than 24,000 miles.

Best Car Insurance in Texas for Low-Mileage Drivers

Some insurers in Texas are expanding the use of the pay-per-mile program which allows you to pay for car insurance based on the miles driven. The best pay-per-mile program in Texas is available through Nationwide SmartMiles. For more options on the cheapest low-mileage insurance, check our guide.

With this pay-per-mile program, you will pay for coverage depending on the miles you cover.

MoneyGeek’s Pick: Nationwide

Nationwide

pros

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Nationwide SmartMiles provides cheap coverage for low mileage drivers in Texas

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Claims rating of 4 out of 5

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User satisfaction score of 4 out of 5

cons

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For regular drivers, the program might cost more than standard car insurance coverage

COMPANY HIGHLIGHTS

Nationwide SmartMiles has a base rate and a variable rate, which it uses to set your premiums based on how often you drive. The program 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.

How to Find the Best Car Insurance in Texas in 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.

1

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.

2

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.

3

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.

4

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.

Methodology

MoneyGeek ranked car insurance providers in Texas using quotes sourced in partnership with Quadrant Information Services. For this study, the sample driver is a 40-year-old male that has comprehensive and collision coverage with a limit of 100/300/100 and a $1,000 deductible. The driver owns a 2010 Toyota Camry LE.

MoneyGeek obtained stability, customer satisfaction and claims ratings from J.D. Power, AM Best and the National Association of Insurance Commissioners (NAIC). Information on the coverage types and discounts came from each insurance company’s website.

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.