State Farm offers the cheapest minimum liability and full coverage in Texas, with average monthly rates of $41 and $93, respectively. This saves you an average of 41% ($47 monthly). We recommend getting quotes from other affordable providers, including GEICO, Mercury, AAA and Germania.
Cheapest Car Insurance in Texas
Updated: August 21, 2025
Advertising & Editorial Disclosure
Key Takeaways
State Farm, GEICO and Mercury are the cheapest car insurance companies for Texas drivers, with average savings of up to 41% compared to other insurers.
The cheapest car insurance rates start at $32 monthly for minimum coverage policies and $74 for full coverage on average.
The cheapest car insurance in Texas will vary based on your driver profile. Research average costs, top auto insurance 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.
Best Car Insurance Rates by Category in Texas
State Farm is the cheapest auto insurance for most driver categories in Texas, offering the lowest rates for adult drivers ($41 monthly), senior drivers ($47), drivers with accidents ($49), drivers with DUIs ($67), drivers with speeding tickets ($41) and drivers with older cars ($38). This makes State Farm the go-to choice for standard-risk drivers and those with driving violations in Texas.
GEICO is the cheapest option for higher-risk profiles. They have the the most affordable coverage for young drivers at $96 monthly. GEICO also provides the cheapest options for drivers with bad credit ($78), low-income drivers ($52) and those with newer vehicles ($59). Below, you can review rates for your specific 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 |
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:
*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 but the cheapest monthly rates in Dallas and Houston are $51 per month from State Farm.
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 insurance providers
Get quotes from several insurance companies through different channels like independent agents, comparison sites and directly from providers. Your rates will vary based on how you obtain quotes, so try multiple methods to find the best deal.
- 2
Determine your coverage needs
Know what coverage you need before shopping to avoid paying for unnecessary add-ons while ensuring you have enough protection. Focus on getting adequate financial protection that matches your specific situation.
- 3
Consider lower coverage amounts
Reducing your coverage level and raising deductibles can lower your rates if budget is tight. Just evaluate your financial situation, driving habits and where you live before making this choice.
- 4
Research costs and look for discounts
Check average auto insurance costs in your area as a baseline for comparison. Look into discounts you qualify for and compare home and auto insurance bundle prices to maximize savings.
- 5
Explore alternative insurance options
Look into pay-per-mile car insurance if you don't drive much, or try telematics programs that track driving habits for better rates. Check if your car manufacturer offers special insurance programs with competitive pricing.
- 6
Work on your risk profile
Improve your credit score and maintain a clean driving record to qualify for lower rates. Better risk factors lead to more affordable premiums across all types of insurance.
- 7
Choose a cost-effective vehicle
If you're car shopping, pick a cheaper car to insure to reduce your coverage costs. Older, reliable vehicles cost less to repair and insure than newer or luxury models.
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 29, 2025.
- Crown Arnold & Majors LLP. "What Is the Average Car Accident Settlement in Texas?." Accessed July 29, 2025.
- Finance Buzz. "Uninsured Motorist Rates by State [2025]." Accessed July 29, 2025.
- Governing. "Dallas Auto Thefts Coming Down After Record-Breaking 2023." Accessed July 29, 2025.
- Sandovall and James. "Average Settlement for Car Accident Injuries in Texas." Accessed July 29, 2025.
- Versus Texas. "Typical Car Accident Settlements in Texas." Accessed July 29, 2025.