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State Farm offers the best rates for minimum and full coverage, teens, young adults, military members and drivers with speeding tickets and sports cars. Allstate is the cheapest insurer for drivers with poor credit scores. For senior drivers, Texas Farm Bureau Group is the cheapest.

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

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2023

Cheapest Car Insurance Texas (April 2023)

Cheapest Minimum Liability Car Insurance in Texas (April 2023)

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

  • State Farm: $300 per year
  • Texas Farm Bureau Group: $339 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.

Company
Annual Premium
Monthly Premium

State Farm

$279

$23

Texas Farm Bureau

$295

$25

State Farm

$300

$25

Texas Farm Bureau

$339

$28

State Farm

$366

$31

Allstate

$383

$32

Allstate

$393

$33

Mercury

$404

$34

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.

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Cheapest Full Coverage Car Insurance in Texas (April 2023)

The cheapest full coverage car insurance providers in Texas are:

  • State Farm: $711 per year
  • Texas Farm Bureau Group: $760 per year

Foremost is the most costly full coverage insurance option in Texas, at an average annual rate of $2,016. State Farm's full coverage policy is $411 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.).

Company
Annual Premium
Monthly Premium

State Farm

$279

$23

Texas Farm Bureau

$295

$25

State Farm

$300

$25

Texas Farm Bureau

$339

$28

State Farm

$366

$31

Allstate

$383

$32

Allstate

$393

$33

Mercury

$404

$34

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.

How to Compare Cheap Texas Car Insurance Quotes Online

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.

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Cheapest Car Insurance in Texas for Teens and Their Families (April 2023)

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. In Texas, adding a 16-year-old to the family policy is approximately $3,267 cheaper per year than getting them a separate policy.

Company
Family Plan Annual Premium
Individual Plan Annual Premium

State Farm

$591

$917

State Farm

$688

$1,068

State Farm

$741

$1,150

State Farm

$802

$1,245

State Farm

$959

$1,101

State Farm

$1,067

$1,320

State Farm

$1,076

$1,235

Nationwide

$1,123

$1,999

Nationwide

$1,145

$2,305

Nationwide

$1,160

$1,589

Nationwide

$1,168

$1,474

State Farm

$1,183

$1,358

State Farm

$1,302

$1,609

Nationwide

$1,320

$1,665

State Farm

$1,326

$1,521

State Farm

$1,333

$1,675

Nationwide

$1,380

$1,891

Nationwide

$1,395

$1,760

Allstate

$1,413

$1,328

Nationwide

$1,465

$2,008

State Farm

$1,470

$1,817

Allstate

$1,476

$1,375

Nationwide

$1,480

$1,868

State Farm

$1,530

$2,062

Nationwide

$1,565

$2,144

Nationwide

$1,590

$2,829

State Farm

$1,596

$2,004

GEICO

$1,598

$1,573

GEICO

$1,628

$1,573

GEICO

$1,686

$1,257

State Farm

$1,699

$2,290

GEICO

$1,712

$1,276

Allstate

$1,716

$1,613

GEICO

$1,718

$1,304

Nationwide

$1,721

$3,463

GEICO

$1,759

$1,335

GEICO

$1,805

$1,346

State Farm

$1,825

$2,293

Allstate

$1,826

$1,716

GEICO

$1,838

$1,395

Nationwide

$1,841

$3,887

State Farm

$1,849

$2,575

Nationwide

$1,853

$3,297

Progressive

$1,861

$1,998

State Farm

$1,881

$2,535

GEICO

$1,890

$1,435

GEICO

$1,892

$1,862

GEICO

$1,931

$1,440

Allstate

$1,937

$1,804

Allstate

$1,947

$2,137

GEICO

$1,964

$1,898

Foremost

$1,975

$2,451

Nationwide

$1,980

$4,181

Progressive

$1,982

$1,999

Nationwide

$1,993

$4,207

GEICO

$2,000

$2,505

Allstate

$2,007

$1,886

State Farm

$2,052

$2,857

Progressive

$2,061

$3,277

GEICO

$2,063

$2,579

Nationwide

$2,103

$4,233

Nationwide

$2,107

$4,935

Allstate

$2,127

$1,980

GEICO

$2,134

$2,101

Progressive

$2,208

$3,541

GEICO

$2,216

$2,141

GEICO

$2,235

$2,800

Progressive

$2,247

$2,267

Progressive

$2,248

$2,414

Foremost

$2,258

$2,809

Nationwide

$2,266

$5,309

Allstate

$2,272

$2,501

State Farm

$2,273

$3,165

Nationwide

$2,281

$5,344

Foremost

$2,314

$2,134

GEICO

$2,337

$2,921

Allstate

$2,363

$2,201

Foremost

$2,422

$2,234

Foremost

$2,428

$6,613

Foremost

$2,428

$2,242

Progressive

$2,440

$2,461

Foremost

$2,451

$2,261

Foremost

$2,470

$6,696

Progressive

$2,486

$2,669

Foremost

$2,527

$2,330

Foremost

$2,528

$6,883

Progressive

$2,529

$4,020

Foremost

$2,601

$7,050

Foremost

$2,610

$2,410

GEICO

$2,640

$3,307

Allstate

$2,669

$2,930

Foremost

$2,722

$2,514

Progressive

$2,788

$4,432

GEICO

$2,795

$3,494

Progressive

$2,827

$2,851

Progressive

$2,846

$3,056

Foremost

$2,868

$2,649

Progressive

$2,875

$4,612

Allstate

$3,142

$3,450

Progressive

$3,151

$5,054

Allstate

$3,152

$3,471

Foremost

$3,260

$4,046

Foremost

$3,274

$4,074

Progressive

$3,387

$9,167

Foremost

$3,420

$4,246

Foremost

$3,449

$4,292

Foremost

$3,617

$9,850

Allstate

$3,622

$4,134

Allstate

$3,719

$4,095

Progressive

$3,783

$10,272

Foremost

$3,785

$10,259

Progressive

$3,926

$10,629

Progressive

$4,007

$10,846

Allstate

$4,262

$4,878

Progressive

$4,316

$11,719

Progressive

$4,402

$11,952

Allstate

$4,421

$5,044

Allstate

$5,203

$5,955

Allstate

$6,288

$7,174

Allstate

$7,412

$8,482

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MONEYGEEK EXPERT TIP

On average, car insurance rates for male teens tend to be significantly more expensive than for female teens. This rate difference is not as notable when drivers reach their 20s and beyond.

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.

Cheapest Car Insurance in Texas for Young Adults (April 2023)

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

  • State Farm: $920 per year
  • Texas Farm Bureau Group: $932 per year

The most expensive car insurance provider for young adults is Chubb, whose yearly rate averages $2,739. MoneyGeek’s data shows that drivers in their 20s typically pay $209 more for State Farm coverage than those in their 40s.

Company
Annual Premium
Monthly Premium

State Farm

$279

$23

Texas Farm Bureau

$295

$25

State Farm

$300

$25

Texas Farm Bureau

$339

$28

State Farm

$366

$31

Allstate

$383

$32

Allstate

$393

$33

Mercury

$404

$34

Cheapest Car Insurance in Texas for Seniors (April 2023)

For seniors in Texas, the cheapest insurers are:

  • Texas Farm Bureau Group: $629 per year
  • State Farm: $642 per year

Foremost has the highest average rate for Texas seniors, charging around $2,063 annually. Drivers in their 60s can expect to pay around $131 per year less for Texas Farm Bureau Group coverage than middle-aged drivers. However, the rate for seniors increases as drivers reach their 70s and 80s.

Company
Annual Premium
Monthly Premium

State Farm

$279

$23

Texas Farm Bureau

$295

$25

State Farm

$300

$25

Texas Farm Bureau

$339

$28

State Farm

$366

$31

Allstate

$383

$32

Allstate

$393

$33

Mercury

$404

$34

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.

Cheapest Car Insurance in Texas After a Ticket, Accident or DUI (April 2023)

In Texas, those with tickets, at-fault accidents or DUIs may get the most affordable car insurance from State Farm. However, they should be aware that their rates will probably be much higher than those with a spotless driving record.

CHEAPEST CAR INSURANCE COMPANIES AFTER A DRIVING INCIDENT

Cheapest after a ticket: State Farm ($711 per year)
Cheapest after an accident: State Farm ($874 per year)
Cheapest after a DUI: State Farm ($1,267 per year)

Cheapest Car Insurance in Texas After a Ticket

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

  • State Farm: $711 per year
  • Texas Farm Bureau Group: $760 per year

At roughly $2,367, 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 $245 more for their insurance in this state.

Company
Annual Premium
Monthly Premium

State Farm

$279

$23

Texas Farm Bureau

$295

$25

State Farm

$300

$25

Texas Farm Bureau

$339

$28

State Farm

$366

$31

Allstate

$383

$32

Allstate

$393

$33

Texas Farm Bureau

$433

$36

Cheapest Car Insurance in Texas After an Accident

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

  • State Farm: $874 per year
  • Texas Farm Bureau Group: $1,246 per year

Foremost offers the most expensive coverage for drivers with accidents at an average of $4,474. Texans with at-fault accidents pay an additional $784 on average than those who have a perfect driving record.

Company
Annual Premium
Monthly Premium

State Farm

$360

$30

State Farm

$382

$32

State Farm

$456

$38

Texas Farm Bureau

$536

$45

Texas Farm Bureau

$575

$48

Allstate

$654

$55

Allstate

$672

$56

Texas Farm Bureau

$738

$62

Cheapest Car Insurance in Texas After a DUI

The cheapest auto insurance providers for drivers with DUIs in Texas are:

  • State Farm: $1,267 per year
  • Dairyland: $1,356 per year

Chubb offers the most expensive premium, averaging $3,417 yearly. MoneyGeek’s data shows that DUI drivers in Texas pay about $589 more than drivers with clean records.

Company
Annual Premium
Monthly Premium

Dairyland

$497

$41

Dairyland

$513

$43

State Farm

$557

$46

Mercury

$573

$48

State Farm

$580

$48

Progressive

$604

$50

Dairyland

$607

$51

Progressive

$651

$54

Cheapest Car Insurance in Texas for Drivers With Poor Credit (April 2023)

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

  • Allstate: $1,375 per year
  • Nationwide: $1,509 per year

At approximately $3,865, State Farm is the priciest insurer for those with poor credit. Texas drivers with poor credit scores will pay an average of $1,034 more than those with good credit scores.

Company
Annual Premium
Monthly Premium

Allstate

$567

$47

Mercury

$573

$48

Allstate

$582

$49

Dairyland

$605

$50

Texas Farm Bureau

$616

$51

Mercury

$625

$52

Dairyland

$626

$52

Nationwide

$705

$59

Insurers have found that drivers with lower credit 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.

Cheapest Car Insurance in Texas for Sports Cars (April 2023)

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

  • State Farm: $885 per year
  • GEICO: $1,130 per year

Foremost is the costliest auto insurance provider for sports car owners at an average of $2,161 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 $282 more in annual premiums than those with a Camry due to the sports car’s higher repair and replacement costs.

Company
Annual Premium
Monthly Premium

State Farm

$279

$23

Texas Farm Bureau

$295

$25

State Farm

$300

$25

Texas Farm Bureau

$339

$28

State Farm

$366

$31

Allstate

$383

$32

Allstate

$393

$33

Mercury

$404

$34

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.

Cheapest Car Insurance in Texas for Military Drivers (April 2023)

In Texas, State Farm provides the most cost-effective car insurance for military members and veterans, with an average annual rate of $711.

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.

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MoneyGeek Top Pick
State Farm
  • $711 per year

State Farm provides its policyholders with a multitude of opportunities to save on car insurance. These may include discounts for owning a car with safety and security features, bundling policies, purchasing a new vehicle and completing a defensive driving course. Although there are no discounts specifically for military personnel, customers can still take advantage of the other options.

Cheapest Car Insurance in Texas by City

The cost of car insurance in Texas can vary drastically depending on your location within the state. For instance, San Angelo is the cheapest Texas city for car insurance, with a State Farm policy averaging $640 per year.

Conversely, Houston is the most expensive city for car insurance, with the cheapest full coverage policy from Texas Farm Bureau Group costing $975 annually.

Learn more about car insurance in various Texas cities by clicking on them in the table below.

City
Cheapest Company
Annual Premium

Abilene

State Farm

$662

Allen

State Farm

$793

Amarillo

State Farm

$795

Arlington

Texas Farm Bureau

$731

Austin

State Farm

$783

Beaumont

Texas Farm Bureau

$896

Brownsville

State Farm

$817

Carrollton

State Farm

$845

Car Insurance in Texas: What You Need to Know

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.

Texas Car Insurance Requirements

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.

  • male icon

    Bodily Injury Liability Coverage

    This coverage provides financial protection if you cause an accident that results in another person’s injury or death.

    The minimum limits for bodily injury liability coverage in Texas are $30,000 per person and $60,000 per accident. This coverage will help cover medical expenses, lost wages and other related costs in the event of an accident.

    The downside of only having the minimum amount of this coverage is that you’ll need to cover any additional expenses out of your pocket.

  • accident2 icon

    Property Damage Liability

    It covers the cost of repairing, replacing or paying for damages to another person’s property caused by the insured driver. In Texas, the minimum amount of property damage liability coverage is $25,000 per accident.

    This coverage does not cover the costs of repairing or replacing your own vehicle. While the minimum amount of coverage may be sufficient in some situations, it is often inadequate in cases involving extensive damage to a third party’s property.

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 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. 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.

Car Insurance Alternatives in Texas

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 at least 26 cars, 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.

FAQs About Car Insurance in Texas

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.

Expert Advice on Finding Cheap Car Insurance in Texas

To help you find credible and accurate insight into car insurance in Texas, MoneyGeek received expert advice from trusted professionals. The perspectives and opinions expressed are those of the individual contributor.

  1. How does the Texas Department of Insurance act as a resource for consumers in regard to auto insurance? And home insurance?
  2. What are the key factors drivers in Texas should look for when searching for the best auto insurance coverage?
  3. What steps can drivers in Texas take to find affordable car insurance?
  4. How do regulations and rules in Texas impact insurance pricing and how consumers might shop for coverage?
  5. What resources does the Texas Department of Insurance have for consumers?
Mark Worman
Mark Worman

Deputy Commissioner, Property and Casualty Division of the Texas Department of Insurance

Dr. Mikhail Kouliavtsev
Dr. Mikhail Kouliavtsev

Department Chair and Professor of Economics and Finance at Stephen F. Austin State University

Richard Alderman
Richard Alderman

Director, Consumer Law Center at the University of Houston, Professor Emeritus

Dr. Daniel Perez Liston
Dr. Daniel Perez Liston

Associate Professor of Finance at the University of St. Thomas-Houston

Dr. Hwan Shin
Dr. Hwan Shin

Associate Professor of Finance at The University of Texas at Tyler

Frank G. Cabano
Frank G. Cabano

Assistant Professor, Marketing and Management at The University of Texas at El Paso

Dr. Michael Kraten
Dr. Michael Kraten

Professor of Accounting at Houston Baptist University

Robin Grambling
Robin Grambling

Senior Lecturer Department of Marketing and Management at the University of Texas at El Paso

Kim Austin
Kim Austin

State Farm Insurance Agent/Owner

Yongli Luo
Yongli Luo

Associate Professor of Finance at Houston Baptist University

Mario Gonzalez-Fuentes
Mario Gonzalez-Fuentes

Associate Professor of Marketing at Trinity University

Juan E. Gallardo
Juan E. Gallardo

Instructor of Finance and Management at West Texas A&M University

Jason Geesey
Jason Geesey

Associate Professor of Marketing at Wayland Baptist University

Xavier Garza-Gomez
Xavier Garza-Gomez

Professor of Finance at the University of Houston-Victoria

Scott Wysong
Scott Wysong

Associate Professor & MBA Program Director in the Satish & Yasmin Gupta College of Business at the University of Dallas

 Ernest Jay Horn
Ernest Jay Horn

Lecturer — School of Family & Consumer Sciences at Texas State University

Emilio M. D. López, Jr.
Emilio M. D. López, Jr.

Professor of Business at Dallas College

Juan Munoz, CFP®, AIF®, CRC®, AAMS®
Juan Munoz, CFP®, AIF®, CRC®, AAMS®

Financial Planner and Founder, Life Strategy Financial

Caden Braly
Caden Braly

Business Development Manager at Braly Insurance Group

Dr. Yibing Du
Dr. Yibing Du

Clinical Assistant Professor at The University of Texas at Arlington

Christopher Manske, CFP
Christopher Manske, CFP

President of Manske Wealth Management

Ben Gurwitz, CFP®
Ben Gurwitz, CFP®

Partner at Financial Life Advisors

David Tenerelli, CFP®
David Tenerelli, CFP®

Financial Planner at Strategic Financial Planning

Dr. Wheeler Pulliam, PhD, CFP®, MBA, MHR
Dr. Wheeler Pulliam, PhD, CFP®, MBA, MHR

Managing Partner at Xponify Financial

Mark Holden
Mark Holden

CERTIFIED FINANCIAL PLANNER™(CFP®), Certified Wealth Strategist® (CWS®)

J. Franklin Potts
J. Franklin Potts

Associate Professor - Finance, Insurance & Real Estate at Baylor University

Dr. Sebastian Hohenberg
Dr. Sebastian Hohenberg

Assistant Professor of Marketing at McCombs School of Business, The University of Texas at Austin

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark earned a master’s degree in Economics and International Relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.