Cheapest Car Insurance in Texas for September 2024

Texas Farm Bureau offers the cheapest for minimum coverage car insurance in Texas for $28/month and is cheapest for full coverage at $63/month. State Farm has the cheapest car insurance rates in Texas for teen drivers and those with a ticket or accident.

MoneyGeek also analyzed the best auto insurance provider in Texas for those looking for a provider that balances affordability and quality service.

MoneyGeek's research found that the cheapest car insurance companies in Texas for a policy with minimum coverage are:

• Texas Farm Bureau: $339 per year or $28 per month
• State Farm: $421 per year or $35 per month

Minimum liability car insurance in Texas only covers bodily injuries and property damage, but it is the cheapest policy option in Texas. A minimum coverage policy provides financial protection in case you cause damage or injury to someone else or their property, but it does not cover damage to your own car. If you are looking for more protection, see the section on full coverage below.

The cheapest full coverage car insurance providers in Texas are:

• Texas Farm Bureau: $760 per year or $63 per month
• State Farm: $990 per year or $82 per month

Although full coverage insurance can be costly, it can protect you and your vehicle from road incidents (like car accidents or hitting a light pole) and off-road incidents (storm damage, theft, etc.). MoneyGeek recommends full coverage for most drivers in Texas except for when the vehicle value is very low.

How much car insurance you need will significantly influence your costs. MoneyGeek's sample full coverage insurance policy includes liability coverage with the following limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

Those looking to save more money can opt for lower liability limits, drop comprehensive and collision insurance or raise their deductible. However, doing so increases the risk of having insufficient coverage in the event of an accident.

Many insurance companies offer online quotes, but this process can take up to 15 minutes each, and finding the cheapest car insurance quotes in Texas across multiple websites can be difficult.

MoneyGeek’s car insurance calculator solves this problem and helps you find the cheapest car insurance rates in Texas quickly. It provides a cost estimate without having to provide specific personal information. This can be a great starting point when shopping for the cheapest car insurance policy, as it can give you an idea of the rates you can expect.

Age is one of the most significant factors affecting car insurance rates in Texas. MoneyGeek found that State Farm offers the cheapest policy for teens, while Texas Farm Bureau is the most affordable option for young adults and seniors.

MoneyGeek's research indicates that the most affordable car insurance providers for teenage drivers in Texas are:

• State Farm: $2,273 per year for male teens and $1,881 for female teens
• Nationwide: $2,281 per year for male teens and $1,993 for female teens

Teenagers pay lower car insurance premiums each passing year, meaning a 19-year-old driver pays significantly lower rates than a 16-year-old driver. In Texas, State Farm offers the cheapest rates for 19-year-old male drivers ($1,825 per year).

Adding a teen to a parent’s policy is typically much cheaper than buying an individual policy. In most cases, it is illegal for a teen under 18 to purchase car insurance without a parent or guardian as a co-signer. In Texas, adding a 16-year-old to the family policy is approximately $3,267 cheaper per year than getting them a separate policy.

Families with teen drivers can get cheaper rates by taking advantage of discounts for young drivers. State Farm, one of the most inexpensive insurers in Texas, provides discounts for good students, distant students and driver's education courses.

Young adults in Texas can get the cheapest car insurance from these providers:

• Texas Farm Bureau: $932 per year
• State Farm: $1,280 per year

The cheapest car insurance companies in Texas for seniors are:

• Texas Farm Bureau: $629 per year
• State Farm: $893 per year

Seniors seeking the cheapest car insurance in Texas should take advantage of senior discounts, lower mileage on the policy, and consider bundling policies to find the cheapest rates. Completing a defensive driving course and reducing coverage on older vehicles can also result in cheaper rates.

In Texas, some of the most cost-effective insurers offer discounts that can help senior drivers cut down on auto insurance expenses. For instance, Texas Farm Bureau and State Farm all offer senior discounts. On average, senior drivers in Texas pay $70 less for a full coverage insurance policy compared to middle-aged drivers.

In Texas, Texas Farm Bureau provides the cheapest car insurance in Texas for drivers with tickets on their record. It is also the cheapest option for those with poor credit. Those with at-fault accidents and sports cars may find the cheapest rates from State Farm. Progressive is the less expensive for those with DWIs on their records.

For drivers who have received a speeding ticket in Texas, these auto insurance providers offer the most affordable full coverage policies:

• Texas Farm Bureau: $760 per year
• State Farm: $990 per year

Dairyland is the most expensive insurer in Texas for those with a speeding ticket, with a yearly premium averaging $4,313.

In Texas, a speeding ticket surcharge will be applied to your insurance premium bill for at least three years.

The cheapest insurers for Texas drivers after an at-fault accident:

• State Farm: $1,217 per year
• Texas Farm Bureau: $1,246 per year

Foremost offers the most expensive coverage for drivers with accidents at an average of $5,257.

The cheapest auto insurance providers for drivers with driving while intoxicated (DWI) infractions in Texas are:

• Progressive: $1,482 per year
• Texas Farm Bureau: $1,488 per year

Nationwide offers the most expensive premium for those with a DWI in Texas, averaging $3,775 per year. Just like drivers in states that give DUIs, Texans pay more after a DWI infraction.

The cheapest auto insurance providers for Texans with bad credit are:

• Texas Farm Bureau: $1,693 per year
• AAA Texas: $2,144 per year

At approximately $5,380, State Farm is the priciest insurer for those with poor credit in Texas. Foremost offers the most expensive coverage for drivers with accidents at an average of $5,257. Middle-aged drivers in Texas with poor credit pay, on average, $1,346 more for a full coverage insurance policy than those with good credit.

Insurers have found that drivers with lower credit-based insurance scores are more likely to submit claims, which may lead to higher insurance premiums for individuals with poor credit.

To save money on car insurance, you can compare rates from multiple insurers or take advantage of common discounts, such as those for bundling various policy types or insuring multiple cars. Improving your credit score over time will also help with car insurance rates.

The following insurers offer the cheapest rates for Texas drivers with sports cars:

• State Farm: $1,230 per year
• GEICO: $1,642 per year

In Texas, auto insurance for a sports car is typically more costly than a policy for a standard vehicle, such as a Toyota Camry LE. Generally, sports car drivers pay around $442 more in annual premiums due to sports cars’ higher repair and replacement costs.

MoneyGeek used a Ford Mustang as its sample sports car in this study, but costs may differ depending on your particular car model. Sports, electric and luxury cars are generally more expensive to insure; otherwise, the model may not be a significant factor.

In Texas, Texas Farm Bureau provides the most cost-effective car insurance for military members and veterans, with an average annual rate of $760.

USAA also offers competitive rates for military personnel and discounts for both active-duty and retired members, with a yearly premium of $1,041. Its services are specifically tailored to meet the needs of military members and their families.

Another insurer to consider is GEICO. It has multiple discounts available to military-affiliated drivers.

The cost of car insurance can vary drastically depending on your location within Texas and even your specific ZIP code in larger cities. For instance, Wichita Falls is the cheapest Texas city for car insurance, with a Texas Farm Bureau policy averaging $677 per year. Conversely, McAllen is the most expensive city for car insurance, with the cheapest full coverage policy from State Farm costing an average of $1,296 annually.

Find the cheapest car insurance in various Texas cities by clicking on the links in the table below.

In Texas, the required car insurance policies include bodily injury liability and property damage liability. All car insurance policies in the state also include personal injury protection, but you can waive this coverage.

In Texas, car insurance policies must adhere to the minimum coverage limits set by the state, which typically include bodily injury liability and property damage liability. Although a minimum insurance policy is the least expensive option, it offers the least amount of protection.

Drivers who have serious traffic violations on their records, such as speeding or drunk driving, may be required to obtain SR-22 insurance, which is more expensive than regular insurance. Your insurance provider will submit the SR-22 form to the state, and it will be valid for two years from the date of your most recent offense.

MoneyGeek recommends that drivers get full coverage car insurance with the following limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage per accident

If you finance or lease your car, you will likely have to buy comprehensive and collision insurance.

Comprehensive coverage pays for off-road damage to your car if it’s stolen, vandalized or damaged by something other than a collision, such as severe weather or a fire. Collision coverage pays for damage to your car in an on-road collision.

If you own a valuable car, MoneyGeek suggests purchasing comprehensive and collision insurance, even though you are not legally obligated to do so.

The most common car insurance alternative in Texas is depositing $55,000 in cash or a personal certificate of deposit (CD) with the Texas Comptroller. You will then receive a certificate that you can use as proof of financial responsibility.

If you’re a business owner with a fleet of at least 26 vehicles, you can also look into a Certificate of Self-Insurance. Finally, surety bonds are an option, but you would need to find two individuals willing to list their Texas properties as collateral against your vehicle, which is quite rare.

MoneyGeek answers commonly asked questions about the cheapest car insurance in Texas to ensure you get the right coverage for your situation.