State Farm offers the cheapest minimum liability and full coverage in Texas, with average monthly rates of $41 and $93, respectively. Overall, this saves you an average of 41% ($47 monthly). However, we recommend getting quotes from other affordable providers, including GEICO, Mercury, AAA and Germania.
Cheapest Car Insurance in Texas
Updated: July 2, 2025
Advertising & Editorial Disclosure
Key Takeaways
State Farm, GEICO and Mercury are the cheapest car insurance companies for most Texas drivers, with average savings of up to 41%.
The cheapest car insurance rates start at $32 monthly for minimum coverage policies and $74 for full coverage on average.
To get the cheapest car insurance in Texas, research average costs and top companies, take advantage of discounts and compare multiple provider quotes.
Who Has the Cheapest Car Insurance in Texas?
| State Farm | $41 | $93 | -41% |
| GEICO | $54 | $112 | -27% |
| Mercury | $54 | $133 | -18% |
| AAA | $63 | $126 | -17% |
| Germania | $72 | $143 | -6% |
*These rates are for a 40-year-old with good credit, a clean driving record and a 2012 Toyota Camry across all ZIP codes in the state.
LEARN MORE ABOUT THE BEST CHEAP CAR INSURANCE IN TEXAS
We've created additional guides below to help you in your search for the best and cheapest car insurance in Texas:
Best Car Insurance Rates by Category in Texas
Although State Farm has the cheapest rate for most drivers, it wins only six out of 10 of the driver categories we studied, while GEICO wins the other four, providing particularly affordable rates for higher-risk drivers. Below, you can review rates for your driver profile.
| Young Drivers | GEICO | $96 |
| Adult Drivers | State Farm | $41 |
| Senior Drivers | State Farm | $47 |
| Drivers With An Accident | State Farm | $49 |
| Drivers With A DUI | State Farm | $67 |
| Drivers With A Speeding Ticket | State Farm | $41 |
| Drivers With Bad Credit | GEICO | $78 |
| Drivers With Low Income | GEICO | $52 |
| Drivers With Newer Cars | GEICO | $59 |
| Drivers With Old Cars | State Farm | $38 |
*Rates for the categories above are based on a profile of a 40-year-old with good credit, a clean driving record and a 2012 Toyota Camry across all ZIP codes in the state. Young drivers refer to 16 to 25-year-olds, adults 26 to 64-year-olds and seniors 65+ years of age.
Compare the Cheapest Car Insurance in Texas for You
While the tables above highlight overall winners in categories, the cheapest car insurance provider in Texas for you may be more nuanced than that. For instance, adult drivers with below-fair credit and an accident record looking for a 100/300/100 full coverage plan with a $1,000 deductible can get the lowest rates from Germania. Below is a filterable table you can change for your specific profile and get recommendations that fit as closely as possible.
Data filtered by:Results filtered by:
Select
Age Group:Adult Drivers
Select
Gender:Female
Select
Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
Select
Credit Alignment:Below Fair
Select
Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| Germania | $180 | $2,164 | -51% |
| GEICO | $234 | $2,808 | -36% |
| Farmers | $296 | $3,557 | -19% |
| Chubb | $310 | $3,723 | -16% |
| Allstate | $333 | $3,996 | -9% |
*Young drivers refer to 16 to 25-year-olds, adults 26 to 64-year-olds and seniors 65+ years of age.
Cheapest Car Insurance in Texas by City
In Texas, the lowest rates for you and the cheapest provider can vary widely depending on your city due to location-specific crime, accident and population density. For example, the lowest monthly cost for auto insurance is $32 in Wink, while Mesquite has the highest low-cost offering at $64, both offered by State Farm. Below are the most affordable providers for every Texas city.
Data filtered by:Results filtered by:
Select
City:Wink
| Wink | State Farm | $32 | -42% |
*The lowest rate referenced is for a minimum coverage policy for a 40-year-old with good credit and no driving violations.
How to Get the Cheapest Car Insurance in Texas
Knowing what the cheapest companies are isn't all you need to know to save the most money on car insurance in Texas. Below are some proven strategies to save the most on auto insurance.
- 1
Compare multiple providers through various means
Compare quotes from multiple providers on our list, since our estimates may vary from provider-provided pricing. Your quotes will also vary depending on your method of getting them, such as captive agents, independent agents, comparison sites and provider websites.
- 2
Decide on your coverage needs before buying
Knowing what coverage you need helps you avoid paying for unnecessary add-ons while ensuring adequate financial protection.
- 3
Choose to get a lower coverage amount if appropriate
Depending on how much car insurance you need and what you can afford, lowering your coverage level and deductibles if you want full coverage can save you money. However, evaluate your risk based on your finances, driving habits, where you live and even your vehicle before doing this.
- 4
Research costs and take advantage of discounts
Researching average auto insurance costs for your specific profile gives you a measuring stick for how much you'll be saving. Look also into discounts you qualify for and compare home and auto insurance bundle prices and other policy type combinations to get the best deal.
- 5
Consider auto insurance alternatives
Traditional auto insurance isn't your only option; alternative policies exist. For example, pay-per-mile car insurance charges are based on how much you drive, and telematics insurance tracks driving behaviors to determine your pricing or provide a discount if it's just a separate program. Also, look into your automaker's insurance program if it has one to see if you can get lower rates than with a regular provider.
- 6
Improve your risk profile
Improving your credit and practicing safe driving habits can lead to lower rates overall, making car insurance and other insurance much more affordable.
- 7
Get a cheaper car to insure
If you're in the market, getting an older and cheaper car to insure will save you money on your coverage. Reliable cars also cost less to repair, which lowers your insurance rates.
Risks of Getting the Cheapest Car Insurance in Texas
Texas' minimum required car insurance coverage is a 30/60/25 liability car insurance split. This means at minimum, you must have $30,000 liability per person, $60,000 per accident and $25,000 of property damage per accident protection. However, getting the cheapest coverage possible isn't often the best move, and minimum liability policies come with risks:
Vehicle damage if you're at fault won't be covered
If you choose minimum liability car insurance, you could face high property damage costs if you're at fault in an accident. Property damage costs in Texas averaged $5,992 in 2022, and this can be crippling if you don't have the capital to pay. Get collision coverage to protect against this risk if you can.
Weather risks make damage to your car more likely and aren't covered
In coastal areas or areas closer to tornado alleys, the risk of high-value property damage is much higher than in the rest of the country. Average property damage due to environmental sources was $2,738 in 2022, which can set you back substantially. Get comprehensive coverage if you're in an area susceptible to severe weather.
Bodily injury damage is more likely to be higher than the minimum limits
On average, bodily injury claims in Texas were around $24,211 in 2022, which comes extremely close to the per-person limit of state law required coverage of $30,000. Considering rising inflation across the country, this average is likely even closer to this limit, increasing the chances of out-of-pocket payment. In cities with higher accident rates, like Houston, get at least 50/100/50 liability coverage to maintain lower risk.
Not having uninsured motorist coverage opens you up to unexpected costs
Texas has an uninsured motorist rate of around 14%, close to the national average. If you get into an accident with an uninsured or underinsured driver who is responsible, you'll have to pay for whatever they can't. Even if you'd like to litigate, that involves increased short-term costs and a lot of lost time. We recommend getting some level of uninsured motorist coverage to ensure you're covered beyond minimum liability policies.
Vehicle theft damage is more likely and uncovered
Texas ranks 10th in the nation for auto theft rates in 2023, making it one of the most likely states in the country to have vehicles stolen. If you have only minimum coverage, any damage from theft won't be covered. To protect yourself financially, get comprehensive coverage for this risk.
Cheap Car Insurance in Texas: Bottom Line
State Farm has the cheapest car insurance in Texas for minimum and full coverage policies and various driver profiles. Although choosing the lowest-cost option is tempting, cheapest isn't always best for car insurance. Get as much coverage as you can afford to protect your finances if an accident happens.
Cheap Car Insurance in Texas: FAQ
MoneyGeek answers common questions about the cheapest car insurance in Texas to ensure you get the right coverage for your situation.
What are the cheapest car insurance companies in Texas?
State Farm offers the most affordable car insurance in Texas, with an average annual cost of $492 for minimum coverage and $1,116 for full coverage for most drivers. However, GEICO, Mercury, AAA and Germania may have more budget-friendly options for your profile.
Who has the cheapest car insurance rates for young drivers in Texas?
GEICO offers the most budget-friendly rates for young drivers, with average monthly premiums starting at $96.
Who offers the cheapest car insurance rates for seniors in Texas?
Senior drivers in Texas frequently get the best rates from State Farm, with policies for those aged 65 and up with monthly rates as low as $47.
Who has the cheapest car insurance in Texas for bad credit?
GEICO offers the cheapest car insurance rates for bad-credit drivers in Texas at an average monthly rate of $78 for minimum coverage and $186 for full coverage.
Who has the cheapest car insurance in Texas with an accident?
The lowest car insurance rates for those with accident records start at $49 per month with State Farm.
Who has the cheapest car insurance in Texas with a DUI?
State Farm offers the cheapest car insurance in Texas if you have a DUI. Its average rates are $67 per month ($804 annually) for minimum coverage and $142 per month ($1,698 annually) for full coverage.
Who has the cheapest car insurance in Texas for those with a speeding ticket?
For those with a speeding ticket on their record, State Farm offers the most affordable rates: $41 per month for minimum coverage and $93 for full coverage.
Should you buy the cheapest car insurance in Texas?
While opting for the least expensive insurance can be appealing, ensure it offers adequate protection for huge losses. State Farm provides a good mix of affordability and quality service, making it the cheapest and best car insurance in Texas.
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How We Found the Most Affordable Car Insurance in Texas
MoneyGeek collected auto insurance data from the Texas Department of Insurance and Quadrant Information Services. We analyzed quotes from 12 major insurers and reviewed more than 200 million rate comparisons across every residential ZIP code in Texas.
Texas Driver Profile
Our analysis started with a standard driver profile to find the cheapest rates:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
- Good credit
- Valid license
- Currently insured
- No claims history
We adjusted this sample profile, as specified, to find the cheapest option for various driver backgrounds.
Standard Coverage Levels in Texas
We compared car insurance companies in Texas that offer minimum and full coverage policies. We set the limits of the minimum coverage car insurance policy to the minimum amount required by law in Texas.
The minimum coverage liability limits in Texas are:
- $30,000 per person for bodily injury
- $60,000 per accident for bodily injury
- $25,000 per accident for property damage
For full coverage policy rates, we used the following liability limits:
- $100,000 for bodily injury liability per person
- $300,000 for bodily injury liability per accident
- $100,000 for property damage liability
- Comprehensive and collision coverage with a $1,000 deductible
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Best Lawyers. "Average Car Accident Settlement in Texas." Accessed July 2, 2025.
- Crown Arnold & Majors LLP. "What Is the Average Car Accident Settlement in Texas?." Accessed July 2, 2025.
- Finance Buzz. "Uninsured Motorist Rates by State [2025]." Accessed July 2, 2025.
- Governing. "Dallas Auto Thefts Coming Down After Record-Breaking 2023." Accessed July 2, 2025.
- Sandovall and James. "Average Settlement for Car Accident Injuries in Texas." Accessed July 2, 2025.
- Versus Texas. "Typical Car Accident Settlements in Texas." Accessed July 2, 2025.