Cheapest Car Insurance Companies in Austin, TX (2023 Rates)

Your unique profile can impact which company offers the most affordable car insurance rates.

State Farm is the cheapest option for full coverage, minimum coverage, accidents, tickets, female teens, military families, young drivers, senior drivers and sports cars. Mercury is the cheapest for drivers with a DWI and those with poor credit records. Nationwide is the cheapest for male teens.

If you need a balance of affordability and service, MoneyGeek found the best car insurance companies.

The most affordable car insurance companies for a minimum coverage policy in Austin, Texas, are:

• State Farm: $338 per year
• Texas Farm Bureau: $368 per year

Dairyland is the most expensive provider, costing $1,143 annually.

Texas Farm Bureau is the cheapest car insurance company in Texas, with an annual average premium of $339 for minimum coverage, while the average cost of the policy statewide is $665. Texas Farm Bureau's state average is slightly cheaper than the rate in Austin, demonstrating how location can factor into prices.

In Texas, car insurance policies must meet the state's minimum liability limits for bodily injury liability and property damage liability.

The limits are as follows:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Insurance coverage is critical to ensuring your financial protection. If you cause bodily injury to others, with a cost of $50,000 per individual and $100,000 per accident, and you only have minimum coverage, you’ll pay at least $40,000 out of pocket.

The cheapest car insurance companies for a full coverage policy in Austin are:

• State Farm: $690 per year
• Texas Farm Bureau: $788 per year

The most expensive option is Dairyland at $2,075 annually.

Texas Farm Bureau is the cheapest auto insurance provider for a full coverage policy in the Lone Star State, with an average annual premium of $760, slightly less than the cost in Austin. On average, the cost of full coverage car insurance in Texas is $1,316 annually.

When looking for car insurance, it's critical to note that your location can have a significant impact on your rates. Factors such as accident frequency, traffic congestion and crime rates can all influence the risk associated with your area.

To maximize protection for your vehicle and minimize potential losses, MoneyGeek recommends selecting full coverage that includes comprehensive and collision coverage in addition to liability coverage.

• Comprehensive coverage: Protects against damages from natural disasters, theft, vandalism and fire.
• Collision coverage: Safeguards against damages from accidents with other cars or objects.

You should also consider having uninsured/underinsured motorist (UM/UIM) coverage. It is optional in Texas, but insurers must offer it, and the policyholder can decline it. UM/UIM gives you added protection if the driver that hits you does not have insurance or does not have enough to cover your damages. It may also cover hit-and-runs. You don't need a full coverage policy to have UM/UIM.

When choosing the right coverage, consider the value of your vehicle and your budget. For older vehicles with low value, a full coverage policy may not be worth the extra cost.

The cheapest car insurance company after driving violations in Austin are:

• Speeding ticket: State Farm ($690 per year)
• At-fault accident: State Farm ($858 per year)
• DUI: Mercury ($1,185 per year)

These insurers provide the most expensive premiums for the following incidents:

• Speeding ticket: Dairyland ($2,549 per year)
• At-fault accident: Foremost ($3,481 per year)
• DUI: Chubb ($2,837 per year)

DUI (driving under the influence) is the most common term used when discussing an impaired driving violation. But in Texas, like in a handful of other states, driving while intoxicated (DWI) is used, not DUI.

A bad driving record can make insurance pricier or even difficult to find. Even the cheapest car insurance companies may charge higher rates for drivers with bad records than for safe drivers.

If you're caught speeding, driving while intoxicated or cause an accident, your car insurance rates are likely to increase, with more severe violations resulting in even steeper hikes.

In Austin, drivers with DWIs could see their rates increase by $527, while those with speeding tickets may only see rate increases of $251.

While insurance rates can vary depending on factors like location and driving history, drivers with less-than-ideal records must look for reasonably priced coverage that provides adequate protection.

The most affordable car insurance providers for teens on a family policy in Austin are:

• Nationwide: $1,894 per year for female teens; $2,169 per year for male teens
• State Farm: $1,902 per year for female teens; $2,289 per year for male teens

Allstate is the priciest insurance provider in the city for teens. Its annual premiums cost $6,488 for female teens and $7,641 for male teens.

Car insurance companies typically consider young male drivers to be riskier to insure, resulting in more expensive premiums. State Farm’s $387 price difference demonstrates this. Insurers adjust their rates to reflect the reduced risk in early adulthood.

Adding a teenage driver to your current family car insurance policy is often much cheaper than getting a separate policy for them, and it is usually illegal for a teen under 18 to buy an auto policy without a parent or guardian. By getting a family policy in Austin, you could save up to $3,267 per year. When searching for affordable car insurance for your teen, it's important to consider all available options and factors that affect insurance premiums.

The cheapest car insurance for current or former military members and their families in Austin are:

• State Farm: $690 per year
• Texas Farm Bureau: $788 per year

USAA is a top-performing insurance provider that offers a variety of insurance services for military members throughout the United States, consistently receiving high ratings for its affordability, stability and customer satisfaction. At an average rate of $880 per year, USAA offers competitive pricing.

State Farm and Texas Farm Bureau rank as the most affordable insurance providers for minimum coverage, with annual premiums costing $338 and $368, respectively.

In Austin, Texas, comparing car insurance quotes online can be a time-consuming process requiring you to share personal information.

However, with MoneyGeek's car insurance calculator, you can quickly get a ballpark estimate based on basic information such as your age, vehicle type, coverage level and driving record. Our convenient tool helps you save time and gain insight into your expected car insurance premiums, all while ensuring accuracy and reliability.

The cheapest car insurance with a full coverage policy for young drivers in Austin are:

• State Farm: $890 per year
• Texas Farm Bureau: $966 per year

The priciest auto insurance with a full coverage policy is Dairyland, which costs an annual premium of $2,549.

Car insurance for young adults is costlier than for those aged 40 due to their inexperience and high accident frequency, making them more high-risk to insure. In Austin, it’s $343 cheaper for drivers aged 40 to purchase car insurance with full coverage than younger drivers.

Insurance premiums typically decrease as drivers mature and acquire experience more experience behind the wheel.

In Austin, the cheapest car insurance companies for seniors with a full coverage policy are:

• State Farm: $628 per year
• Texas Farm Bureau: $654 per year

The most expensive option is Dairyland, at around $1,875 annually.

Seniors may encounter higher car insurance rates compared to 40-year-olds, as premiums often increase after 65. This is because age-related declines in physical and cognitive abilities can lead to a higher risk of accidents, which in turn leads to higher insurance costs.

However, in Austin, seniors pay less than 40-year-olds for car insurance.

The cheapest car insurance companies for drivers with poor credit and a full coverage policy in Austin are:

• Mercury: $1,265 per year
• Allstate: $1,302 per year

In Austin, the priciest auto insurance for drivers with poor credit is State Farm. Its annual premium costs $3,752. The average cost of full coverage car insurance in the city is $1,159 for those with good credit scores. Drivers with poor credit pay an average yearly premium of $2,092 in the city. This is an 81% increase from the city average, equating to a $934 difference.

Insurance industry actuarial data shows that drivers with a poor credit history tend to file more insurance claims, which results in higher premiums. If you have poor credit, you can reduce your insurance costs by looking for popular discounts, bundling policies and comparing quotes from several insurers. Working on boosting your credit score over time can help lower those costs as well.

The most affordable car insurance companies for drivers with sports car and a full coverage policy in Austin are:

• State Farm: $850 per year
• Allstate: $1,077 per year

On the other hand, Dairyland is the priciest insurance provider in the city for sports cars. Its annual premium costs $2,137.

In this city, the average full coverage policy for a Toyota Camry is $1,159, while it’s $1,442 for a Ford Mustang. This is a $283 difference, so it is 24% more expensive to protect a Mustang than a Camry. Keep in mind that costs differ in different cities due to some factors.

We used a Ford Mustang to compare insurance prices, but insurance prices may vary by model. Luxury, electric and sports cars generally cost more to insure than other vehicles.

In Austin, the average cost of car insurance for full coverage is $1,159 per year. This includes $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident and $100,000 in property damage liability per accident.

The average car insurance cost in the city is $42 lower than the average full coverage cost in Texas. It is also $106 less than the national average car insurance premium of $1,265 per year. Car insurance companies take several factors into consideration when calculating insurance premiums, including the drivers' location.

In the chart below, you can see how Austin's auto insurance costs compare to other cities in Texas.