The Cheapest Car Insurance in Texas (September 2023)

Texas Farm Bureau offers the best rates for minimum coverage car insurance in Texas. MoneyGeek also found that Dairyland and Allstate have the cheapest rates in the state for certain types of drivers.

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
• State Farm: $388 per year

Foremost offers the most expensive minimum coverage car insurance in Texas at $1,009 per year.

Minimum liability car insurance in Texas only covers bodily injuries and property damage. Personal injury protection is also automatically included in all policies, but you can opt out if you’d like to.

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.

To protect yourself from costs associated with repairing or replacing your car, you will need to purchase a policy with comprehensive and collision coverage, also known as a full coverage policy.

The cheapest full coverage car insurance providers in Texas are:

• Texas Farm Bureau: $760 per year
• Allstate: $938 per year

Foremost is the most costly full coverage insurance option in Texas, based on the companies MoneyGeek assessed, at an average annual rate of $2,216. Texas Farm Bureau's full coverage policy is $421 more expensive than its minimum coverage option.

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.).

How much car insurance you need will have a major influence on 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 it can be difficult to compare quotes across multiple websites. This can be a daunting task for someone who doesn’t have the time to shop around for the best deal.

MoneyGeek’s car insurance calculator solves this problem. It provides a quick 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 kind of rates you can expect.

Age is one of the biggest factors affecting car insurance rates in Texas. MoneyGeek found that State Farm and Texas Farm Bureau offer the cheapest options on average, depending on what age group you and your family belong to.

Data from MoneyGeek 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

Allstate is typically the most expensive company for teens and their families, charging an average of $7,412 for males and $6,288 for females.

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

Adding a teen to a parent’s policy is typically much cheaper than buying the teen their own policy. Plus, 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 also reduce their insurance costs 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 most affordable car insurance from these providers:

• Texas Farm Bureau: $932 per year
• State Farm: $1,219 per year

The most expensive car insurance provider for young adults in the Lone Star State is Chubb, whose yearly rate averages $3,159. MoneyGeek’s data shows that drivers in their 20s typically pay $172 more for Texas Farm Bureau coverage than those in their 40s.

For seniors in Texas, the cheapest insurers are:

• Texas Farm Bureau: $629 per year
• State Farm: $848 per year

Foremost has the highest average rate for Texas seniors, charging around $2,262 annually. Drivers in their 60s can expect to pay around $131 per year less for Texas Farm Bureau coverage than middle-aged drivers. However, the rate for seniors increases as drivers reach their 70s and 80s as their risk factors increase for causing accidents.

In Texas, some of the most cost-effective insurers have discounts that can assist senior drivers in cutting down on auto insurance expenses.

For instance, Allstate, GEICO, Mercury and National General all offer senior discounts in Texas. You can also save money by comparing rates from multiple insurers.

In Texas, those with tickets and DWIs (Texas does not use DUI) on their records may get the most affordable car insurance from Texas Farm Bureau, while those with at-fault accidents may find the cheapest rates from State Farm. However, they should be aware that their rates will probably be much higher than those with a spotless driving record.

The cheapest auto insurance providers for Texas drivers with tickets are:

• Texas Farm Bureau: $760 per year
• Allstate: $938 per year

At roughly $2,603, Foremost offers the costliest auto insurance for drivers with tickets in Texas. People who have violations can expect to spend significantly more for their car insurance compared with those with a spotless record. Ticketed drivers pay an average of $278 more for their insurance in this state.

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

• State Farm: $1,156 per year
• Texas Farm Bureau: $1,246 per year

Foremost offers the most expensive coverage for drivers with accidents at an average of $4,910. Texans with at-fault accidents pay an additional $883 on average than those who have a perfect driving record.

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

• Texas Farm Bureau: $1,488 per year
• Allstate: $1,577 per year

Chubb offers the most expensive premium with a DWI in Texas, averaging $3,885 yearly. Just like drivers in states that give DUIs, Texans pay more after a driving while intoxicated infraction. MoneyGeek’s data shows that DWI drivers in Texas pay about $666 more than drivers with clean records.

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

• Allstate: $1,424 per year
• Nationwide: $1,509 per year

At approximately $5,116, State Farm is the priciest insurer for those with poor credit in Texas, of the companies MoneyGeek analyzed. Texas drivers with poor credit scores will pay an average of $1,228 more than those with good credit scores.

Insurers have found that drivers with lower credit-based insurance scores are more likely to submit claims. As a result, this 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 premiums for Texas drivers with sports cars:

• Allstate: $1,166 per year
• State Farm: $1,174 per year

Foremost is the costliest auto insurance provider for sports car owners at an average of $2,382 per year in Texas.

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 $300 more in annual premiums than those with a Camry due to the sports car’s higher repair and replacement costs.

MoneyGeek used a Ford Mustang as the representative sports car in our data, but the pricing could differ based on the car model. Generally, luxury, electric and sports cars are more costly to insure than other vehicles. Your insurance provider can give you an exact calculation of how much it will cost to insure your car.

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. Its services are specifically tailored to meet the needs of military members and their families.

Another option to look into is GEICO. It has multiple discounts available to military-affiliated drivers.

The cost of car insurance in Texas can vary drastically depending on your location within the state, 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 average cheapest full coverage policy from State Farm costing $1,192 annually.

Learn more about car insurance in various Texas cities by clicking on them 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 the least expensive option is to purchase the minimum insurance policy, it offers the least amount of protection.

Drivers who have been convicted of serious traffic violations, such as speeding or drunk driving, may be required to obtain SR-22 insurance, which is more expensive than regular insurance. The SR-22 form will be submitted to the state by your insurance provider and will be valid for two years from the date of your most recent conviction.

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. As the name implies, collision coverage pays for damage to your car in an on-road collision.

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

The most common car insurance alternative in Texas is the option to deposit $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 obviously quite rare.

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