The Cheapest Car Insurance in Texas for 2022
For the best car insurance quotes for your needs and budget, MoneyGeek analyzed rates from insurance companies in Texas. Farmers is the cheapest provider in the state at an average cost of $429 per year.
While Farmers offers the cheapest rates in Texas, factors including coverage amounts, driving history, age and credit score also determine your policy premiums.
For instance, Esurance is the cheapest provider for drivers with a DUI on their record. USAA is overall the most affordable policy, but it's only available to military personnel and family members. You can save up to $1,960 per year if you shop around.
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The Cheapest Car Insurance in Texas
MoneyGeek broke down the cheapest companies in Texas by city for those looking for an even more local solution. We also analyzed the best car insurance companies in Texas if you're looking to balance quality service and cost.
Why Trust MoneyGeek? Texas car insurance rates in this study are based on our analysis of data and information from the Texas Department of Insurance and Quadrant Information Services.
These rates were updated in August 2022 to reflect how car insurance rates in Texas have changed up to this month.
Cheapest Minimum Liability Car Insurance in Texas
Generally, the cheapest car insurance in Texas is a policy that meets the state's minimum liability coverage requirement. It's the most affordable insurance, but we recommend getting higher levels of coverage for better and broader protection.
MoneyGeek found that the cheapest car insurance providers for minimum coverage in Texas are:
- Farmers: $429 per year
- State Farm: $506 per year
If you or your family member has a military background, USAA also has affordable rates averaging $434 annually. The General is the most expensive company in Texas for minimum liability car insurance, at an average rate of $1,347 per year.
CHEAPEST MINIMUM CAR INSURANCE IN TEXAS
These prices are only estimates based on rates for an average Texas driver and should not be used to compare insurance prices.
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Cheapest Full Coverage Car Insurance in Texas
Some drivers prefer to have more protection and opt for a full coverage policy with comprehensive collision insurance covering most road and off-road accidents in Texas. While this policy has higher liability limits, it costs more than a minimum coverage policy. It also covers expenses related to damages to a policyholder's vehicle.
Based on average comprehensive and collision rates, the cheapest auto insurers in Texas are:
- Farmers: $840 per year
- State Farm: $945 per year
For current and former military members, USAA also has an affordable average annual rate of $905. The most expensive insurance company for minimum coverage in Texas is The General, at $2,844 per year on average.
CHEAPEST FULL COVERAGE CAR INSURANCE IN TEXAS
The prices stated above are estimated rates for the average driver in Texas and may differ from the rates you are able to get. These estimates are based on a policy with comprehensive and collision insurance with $100,000 for bodily injury liability per person, $300,000 for bodily injury liability per accident and $100,000 for property damage per accident.
How to Compare Cheap Texas Car Insurance Quotes Online
To find the best auto insurance in Texas, you need to get personalized quotes from multiple providers. Most insurance companies have tools on their websites that let drivers get a reasonably accurate quote online.
- Make sure you use the same limits when shopping for quotes. For instance, if you get a quote for $50,000 in bodily liability insurance from one insurer, use the same limits when you get quotes from other insurers.
- For easier access to an auto insurance quotes comparison, use MoneyGeek’s calculator to get an insurance cost estimate for an average driver in Texas. If you want a personalized quote, you’ll have to enter more information. You can also use MoneyGeek’s price data to help choose which company websites to visit.
- Overall, the cheapest companies in Texas are Farmers, USAA and State Farm. You can start searching for the best auto insurance by getting a personalized quote from these carriers.
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Cheapest Car Insurance in Texas for Young Drivers
Insurers charge younger drivers more for car insurance due to their inexperience on the roads. A 16-year-old driver in Texas pays an average of $3,588 annually, while 25-year-olds pay $1,224 per year for car insurance.
In Texas, the cheapest car insurance coverage for young drivers aged between 16 and 25 is from State Farm and GEICO. MoneyGeek based its analysis on sample drivers for every age within this range.
ANNUAL CAR INSURANCE IN TEXAS FOR YOUNG DRIVERS
However, some carriers are friendlier when setting rates for drivers in their teens and early 20s. Rates for this group vary substantially. It is wise to shop around, especially right before a teen driver goes to college or owns their first car.
Between a 25-year-old and a 16-year-old driver choosing State Farm as the cheapest provider, the more experienced driver could save around $1,797 per year.
Cheapest Car Insurance in Texas for Seniors
On average, senior drivers in Texas pay from $858 up to $3,623 per year for car insurance. Drivers between the ages of 79 and 84 must renew their license in person every six years, while drivers aged 85 and older are required to renew every two years.
Besides regular license renewals and screenings, senior drivers pay higher insurance rates in Texas. But not all companies start increasing premiums at the same age. Some hike rates at age 65, while others wait until age 70 or later. As you age, it pays to shop for affordable car insurance for seniors every few years.
Senior drivers in Texas tend to pay slightly more than young adults and middle-aged drivers. The average cost of car insurance for senior drivers in Texas is $1,455 per year, which is $139 more than what 40-year-old drivers pay for similar coverage.
The cheapest car insurance companies in Texas for senior drivers with full coverage are:
- Farmers: $853 per year
- State Farm: $911 per year
The General has the most expensive policy in the state, averaging $3,623. This is $2,770 more expensive than the cheapest provider.
CHEAPEST CAR INSURANCE RATES FOR SENIORS
Senior drivers often pay higher premiums in Texas. That's why shopping around for affordable car insurance for seniors every few years is advisable.
If you're an older driver, you may be able to offset higher premiums in several ways. You can either take advantage of the discounts offered or shop around and compare your options. For example, Farmers’ policies are $2,770 cheaper than The General. This means you could make savings for the same coverage just by comparing providers.
Cheapest Car Insurance for Drivers With Tickets in Texas
Speeding tickets raise the average auto insurance rate in Texas to $1,451 annually. That is $135 more than the annual rate for the average Texas driver with a clean record ($1,316).
Drivers with a speeding ticket may find the cheapest full coverage auto insurance from:
- State Farm: $945 per year
- Farmers: $1,103 per year
If you're a military family member, USAA's $1,017 annual average rate is also quite competitive.
AVERAGE CAR INSURANCE RATES WITH A TICKET
Moving violations can negatively impact your auto insurance premiums. Distracted driving is dangerous and increases your odds of getting in an accident, making this infraction a major concern for insurers.
On average, annual car insurance premiums in Texas with a single conviction for speeding or distracted driving increase by $274.10.
Cheapest Car Insurance for Drivers With a DUI in Texas
Shopping around for car insurance companies can give drivers in Texas a real opportunity to save. For example, opting for Esurance instead of The General saved our sample driver almost $1,996 per year, a difference that could be significant for you.
Not only can having a DUI in Texas increase your car insurance rates, but you may also face jail time and fines for the violation. The costs of a DUI can last for years in terms of insurance costs, legal fees, education expenses and more.
The cheapest car insurance companies for drivers with a DUI and full coverage in Texas are:
- Esurance: $1,175 per year
- Farmers: $1,234 per year
Although State Farm is the second-cheapest insurer for full coverage with a clean record, Esurance has lower rates for those with a DUI.
AVERAGE CAR INSURANCE RATES WITH A DUI
Those convicted of a DUI in Texas face jail time and a mandatory license suspension. There are also direct fines and fees of up to $2,000. Having a DUI in Texas will also increase your car insurance rates.
Comparing quotes from multiple providers can help you save on premiums. For example, choosing Esurance over The General can save drivers as much as $1,996 per year.
Cheapest in Texas for Drivers With an At-Fault Accident
You will pay more if you have an at-fault accident on your driving record in Texas. On average, car insurance for drivers with an at-fault accident on their record costs $2,048 per year.
The cheapest car insurance for at-fault drivers in Texas are:
- State Farm: $1,138 per year
- Farmers: $1,191 per year
By comparing providers, drivers with at-fault accidents can save as much as $2,456 by choosing State Farm over The General — the most expensive insurer in the state.
CHEAPEST CAR INSURANCE WITH AN AT-FAULT ACCIDENT
Cheapest Car Insurance in Texas for Drivers With Bad Credit
Car insurance rates for Texas drivers with poor credit range from $1,297 to $4,608 annually. Insurance companies often associate lower credit scores with an increased risk of claims. Texas is among the states that allow insurers to use credit scores as one factor in setting premiums.
You may qualify for an exception to credit underwriting because of identity theft or a specific life event beyond your control, including job loss, divorce or death of an immediate family member. If your request for an exemption is approved, your insurer can only consider credit information unrelated to the adverse life event or must assign a neutral credit score.
The least expensive car insurers for a driver with poor credit and full coverage in Texas are:
- Farmers: $1,297 per year
- Nationwide: $1,824 per year
For former or current military members, USAA offers a competitive rate for Texas drivers with bad credit, averaging $1,473 per year.
CHEAPEST CAR INSURANCE RATES FOR DRIVERS WITH BAD CREDIT
Texas allows car insurers to use credit scores for pricing. With an average credit score of 680, according to Experian, Texans rank 48th in the nation for good credit. This means that many drivers may be paying more for auto insurance.
Don't just settle on one provider when buying insurance. Comparing providers in Texas is one way to save on premiums. For example, The General offers policies at $4,608 per year if you have bad credit. But you can save as much as $3,311 if you choose Farmers.
Cheapest Car Insurance in Texas for Military Drivers
USAA is one of Texas's cheapest car insurance providers for veterans and military members. While Farmers is slightly more affordable, USAA's offerings are tailored exclusively to drivers with a military background and their families.
- Average rate: $434 per year
- Ranks 2nd cheapest out of 10 insurers
USAA is the second-cheapest option in Texas, with policies priced at roughly $434 per year. Although they already have low premiums, policyholders can take advantage of discounts to increase their savings. For example, you can bundle car insurance from USAA with your home or renters insurance to get discounted rates. Likewise, individuals who insure more than one car can save money on their premiums.
Cheapest Car Insurance in Texas by City
Your home address in Texas can significantly influence your car insurance costs. The cheapest city in Texas is Wichita Falls, with an annual average price of $1,052. The most expensive is Houston, with an average cost of $1,560. Both figures represent the cost of a full coverage policy.
Click on your city to know more about car insurance costs in your area.
AVERAGE INSURANCE RATE BY CITY IN TEXAS
Car Insurance in Texas: What You Need to Know
MoneyGeek dives into everything you should know about Texas insurance requirements, the amount of coverage you need and other alternatives.
Texas Insurance Requirements
The law requires you to purchase insurance coverage if you own or operate a motor vehicle in Texas. Drivers in the state must provide proof of insurance or alternative documentation when involved in an accident, when registering and renewing a driver's license, among other circumstances. Auto insurers are required to send policyholders an insurance card.
The state requires drivers to purchase minimum liability insurance coverage:
- $30,000 for each injured person
- $60,000 for injuries per accident
- $25,000 for property damage per accident
While Texas only requires 30/60/25 minimum liability coverage, many drivers should consider buying insurance beyond the minimum levels of protection. If you cause an accident with severe injuries or damages to the other driver or vehicle, a 100/300 liability policy is much more likely to protect you. The policy covers $100,000 for a single person and $300,000 for all individuals involved in an accident. It's also a good idea to carry comprehensive and collision coverage to cover damage to your car.
If you're having trouble finding a policy that meets your needs, a few options are available. Individuals who don't qualify for liability insurance through traditional channels may obtain coverage through the Texas Automobile Insurance Plan Association. Uninsured residents may also legally drive if they can present proof of financial responsibility in the form of a $55,000 bond or securities deposit. Texas drivers caught without insurance or a valid alternative can face fines, license suspension or jail time.
FAQs About Car Insurance in Texas
For many Texas drivers, price and which insurance company is the best are the most pressing questions they consider when looking for auto insurance.
Expert Advice on Finding Cheap Car Insurance in Texas
To help you find credible and accurate insight on car insurance in Texas, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.
- How does the Texas Department of Insurance act as a resource for consumers in regard to auto insurance? And home insurance?
- What are the key factors drivers in Texas should look for when searching for the best auto insurance coverage?
- What steps can drivers in Texas take to find affordable car insurance?
- How do regulations and rules in Texas impact insurance pricing and how consumers might shop for coverage?
- What resources does the Texas Department of Insurance have for consumers?
Deputy Commissioner, Property and Casualty Division of the Texas Department of Insurance
Department Chair and Professor of Economics and Finance at Stephen F. Austin State University
Director, Consumer Law Center at the University of Houston, Professor Emeritus
Associate Professor of Finance at the University of St. Thomas-Houston
Associate Professor of Finance at The University of Texas at Tyler
Assistant Professor, Marketing and Management at The University of Texas at El Paso
Professor of Accounting at Houston Baptist University
Senior Lecturer Department of Marketing and Management at the University of Texas at El Paso
State Farm Insurance Agent/Owner
Associate Professor of Finance at Houston Baptist University
Associate Professor of Marketing at Trinity University
Instructor of Finance and Management at West Texas A&M University
Associate Professor of Marketing at Wayland Baptist University
Professor of Finance at the University of Houston-Victoria
Associate Professor & MBA Program Director in the Satish & Yasmin Gupta College of Business at the University of Dallas
Lecturer — School of Family & Consumer Sciences at Texas State University
Professor of Business at Dallas College
Financial Planner and Founder, Life Strategy Financial
Business Development Manager at Braly Insurance Group
Clinical Assistant Professor at The University of Texas at Arlington
President of Manske Wealth Management
Partner at Financial Life Advisors
Financial Planner at Strategic Financial Planning
Managing Partner at Xponify Financial
CERTIFIED FINANCIAL PLANNER™(CFP®), Certified Wealth Strategist® (CWS®)
Associate Professor - Finance, Insurance & Real Estate at Baylor University
Assistant Professor of Marketing at McCombs School of Business, The University of Texas at Austin
About the Author
- Centers for Disease Control and Prevention. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed February 18, 2020.
- Experian. "2019 Consumer Credit Review." Accessed February 18, 2020.
- Governing: The Future of States and Localities. "Military Active-Duty Personnel, Civilians by State." Accessed January 27, 2021.
- National Association of Insurance Commissioners. "2018 Market Share Reports." Accessed February 18, 2020.
- National Highway Traffic Safety Administration. "Traffic Safety Facts." Accessed February 18, 2020.
- Texas Department of Insurance. "Automobile insurance guide." Accessed February 18, 2020.
- Texas Department of Public Safety. "Drivers Age 79 or Older." Accessed January 27, 2021.