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The Best Cheap Car Insurance Companies for the Average Texas Driver in 2020

Most drivers in Texas will be able to choose from five major car insurance carriers. Those who are members or former members of the U.S. Armed Forces and their families can also choose USAA, which is priced very affordably in Texas.

Insurance cost estimates are averages. Your actual rates may vary significantly based on a variety of factors, including your age and the age of other drivers in your household, driving record, history of DUIs, personal credit score, zip code, your car, the number of miles you drive and whether you drive commercially.

Company
Amount
1. Farmers
In 2020, Farmers ranked #1 in Texas for the cheapest car insurance on average.
$821
per year
2. USAA
In 2020, USAA ranked #2 in Texas for the cheapest car insurance on average.
$885
per year
3. State Farm
In 2020, State Farm ranked #3 in Texas for the cheapest car insurance on average.
$924
per year
4. GEICO
In 2020, GEICO ranked #4 in Texas for the cheapest car insurance on average.
$952
per year
5. AAA
In 2020, AAA ranked #5 in Texas for the cheapest car insurance on average.
$1,118
per year
6. Esurance
In 2020, Esurance ranked #6 in Texas for the cheapest car insurance on average.
$1,149
per year
7. Allstate
In 2020, Allstate ranked #7 in Texas for the cheapest car insurance on average.
$1,168
per year
8. Nationwide
In 2020, Nationwide ranked #8 in Texas for the cheapest car insurance on average.
$1,284
per year
9. Mercury
In 2020, Mercury ranked #9 in Texas for the cheapest car insurance on average.
$1,441
per year
10. MetLife
In 2020, MetLife ranked #10 in Texas for the cheapest car insurance on average.
$1,525
per year
11. The General
In 2020, The General ranked #11 in Texas for the cheapest car insurance on average.
$2,781
per year

Each carrier underwrites these factors differently. Some may place a higher risk premium on DUIs or prior speeding tickets than others. Some companies may offer discounts for a good driving record, for a high school student with good grades, or for your vehicle's safety features. It pays to shop around.

The Best Car Insurance Companies in Texas for 2020

MoneyGeek used a combination of factors, including customer satisfaction, affordability, claims experience and financial strength, to determine the best car insurance companies in Texas.

Expand all Rankings +

1

USAAScore: 100
+

5/5

User Satisfaction

5/5

Claims Ratings

5/5

Affordability

A++

Financial Stability

2

GEICOScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

3

State FarmScore: 85
+

3/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A++

Financial Stability

4

AAAScore: 85
+

3/5

User Satisfaction

2/5

Claims Ratings

5/5

Affordability

A+

Financial Stability

5

AllstateScore: 80
+

3/5

User Satisfaction

2/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

6

ProgressiveScore: 80
+

2/5

User Satisfaction

3/5

Claims Ratings

3/5

Affordability

A+

Financial Stability

7

NationwideScore: 80
+

3/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A+

Financial Stability

8

FarmersScore: 77.5
+

3/5

User Satisfaction

3/5

Claims Ratings

2/5

Affordability

A

Financial Stability

9

Liberty MutualScore: 72.5
+

2/5

User Satisfaction

2/5

Claims Ratings

2/5

Affordability

A

Financial Stability


To arrive at our score for each criterion, MoneyGeek assessed information from both JD Power's U.S. Auto Insurance Study and AM Best's financial strength ratings the industry standards for insurance company ratings and review.
Each study was ranked equally to formulate MoneyGeek's final rating out of 100.

Market Share by Company

If you're looking for a combination of service, pricing and knowledge that matches your needs, you may want to consider getting a quote from one of the largest insurance companies in Texas. With 14.99% of the market share in the state, State Farm is the largest auto insurance carrier in Texas.

Company
Market Share
1. State Farm
14.99%
2. GEICO
13.10%
3. Allstate
11.65%
4. Progressive
11.18%
5. USAA
8.44%
6. Farmers
8.17%
7. Liberty Mutual
5.21%
8. Texas Farm Bureau Group
3.26%
9. CONSUMERS CNTY MUT INS CO
2.55%
10. Nationwide
1.78%

Cheapest Car Insurance for Drivers With a DUI in Texas

Those convicted of driving under the influence in Texas face jail terms of 3 days to six months, and a mandatory license suspension of 90 days to a year. There are also direct fines and fees of up to $2,000. If it's your second offense, that fine could go as high as $4,000. And if it's your third offense, or if there is a minor child in the car, your fine in Texas could run as high as $10,000.

Company
Amount
1. Esurance
In 2020, Esurance ranked #1 in Texas for the cheapest car insurance for drivers with a DUI.
$1,149
per year
2. Farmers
In 2020, Farmers ranked #2 in Texas for the cheapest car insurance for drivers with a DUI.
$1,207
per year
3. USAA
In 2020, USAA ranked #3 in Texas for the cheapest car insurance for drivers with a DUI.
$1,310
per year
4. State Farm
In 2020, State Farm ranked #4 in Texas for the cheapest car insurance for drivers with a DUI.
$1,550
per year
5. GEICO
In 2020, GEICO ranked #5 in Texas for the cheapest car insurance for drivers with a DUI.
$1,649
per year
6. AAA
In 2020, AAA ranked #6 in Texas for the cheapest car insurance for drivers with a DUI.
$1,682
per year
7. Allstate
In 2020, Allstate ranked #7 in Texas for the cheapest car insurance for drivers with a DUI.
$1,836
per year
8. Mercury
In 2020, Mercury ranked #8 in Texas for the cheapest car insurance for drivers with a DUI.
$1,871
per year
9. Nationwide
In 2020, Nationwide ranked #9 in Texas for the cheapest car insurance for drivers with a DUI.
$2,226
per year
10. The General
In 2020, The General ranked #10 in Texas for the cheapest car insurance for drivers with a DUI.
$3,101
per year
11. MetLife
In 2020, MetLife ranked #11 in Texas for the cheapest car insurance for drivers with a DUI.
$3,601
per year

On average, a Texas driver with a DUI record and a 100/300 policy (covering $100,000 for injuries sustained by a single person and up to $300,000 total per accident) can expect to pay $2,336.53 per year for auto insurance, according to MoneyGeek's analysis. That's much more than the $1,443 average throughout the State of Texas for a similar policy. The costs of a DUI can last for years in terms of insurance premiums, legal fees and education expenses and more.

Cheapest Car Insurance For Drivers With a Speeding or Distracted Driving Ticket in Texas

Moving violations can negatively impact your auto insurance premiums. In 2018, the National Highway Traffic Safety Administration reported 3,305 accidents involving distracted driving in Texas, making this infraction a serious indicator of accident potential for insurers.

Company
Amount
1. State Farm
In 2020, State Farm ranked #1 in Texas for the cheapest car insurance for distracted drivers.
$924
per year
2. USAA
In 2020, USAA ranked #2 in Texas for the cheapest car insurance for distracted drivers.
$995
per year
3. Farmers
In 2020, Farmers ranked #3 in Texas for the cheapest car insurance for distracted drivers.
$1,079
per year
4. GEICO
In 2020, GEICO ranked #4 in Texas for the cheapest car insurance for distracted drivers.
$1,116
per year
5. Esurance
In 2020, Esurance ranked #5 in Texas for the cheapest car insurance for distracted drivers.
$1,149
per year
6. Allstate
In 2020, Allstate ranked #6 in Texas for the cheapest car insurance for distracted drivers.
$1,168
per year
7. AAA
In 2020, AAA ranked #7 in Texas for the cheapest car insurance for distracted drivers.
$1,451
per year
8. Nationwide
In 2020, Nationwide ranked #8 in Texas for the cheapest car insurance for distracted drivers.
$1,478
per year
9. MetLife
In 2020, MetLife ranked #9 in Texas for the cheapest car insurance for distracted drivers.
$1,525
per year
10. Mercury
In 2020, Mercury ranked #10 in Texas for the cheapest car insurance for distracted drivers.
$1,838
per year
11. The General
In 2020, The General ranked #11 in Texas for the cheapest car insurance for distracted drivers.
$2,781
per year

On average, annual car insurance premiums in Texas with a single conviction for speeding or distracted driving increase by an average of $274.10.

Cheapest Car Insurance Companies in Texas for Drivers With Bad Credit

Many insurance companies note an increase in claims among people with poor credit scores. In fact, it was a 2003 University of Texas study commissioned by then-Lieutenant Governor Bill Ratliff that established a significant inverse correlation between credit scores and claims for the insurance industry.

Texas is among the states that allow insurers to use credit scores as one factor to set premiums. With an average credit score of 680 according to Experion, Texans rank 48th in the nation for good credit, which means that many may be paying more for auto insurance.

Company
Amount
1. Farmers
In 2020, Farmers ranked #1 in Texas for the cheapest car insurance for drivers with poor credit.
$1,269
per year
2. USAA
In 2020, USAA ranked #2 in Texas for the cheapest car insurance for drivers with poor credit.
$1,441
per year
3. Nationwide
In 2020, Nationwide ranked #3 in Texas for the cheapest car insurance for drivers with poor credit.
$1,784
per year
4. AAA
In 2020, AAA ranked #4 in Texas for the cheapest car insurance for drivers with poor credit.
$1,789
per year
5. State Farm
In 2020, State Farm ranked #5 in Texas for the cheapest car insurance for drivers with poor credit.
$1,811
per year
6. Allstate
In 2020, Allstate ranked #6 in Texas for the cheapest car insurance for drivers with poor credit.
$1,827
per year
7. Esurance
In 2020, Esurance ranked #7 in Texas for the cheapest car insurance for drivers with poor credit.
$1,993
per year
8. Mercury
In 2020, Mercury ranked #8 in Texas for the cheapest car insurance for drivers with poor credit.
$1,998
per year
9. GEICO
In 2020, GEICO ranked #9 in Texas for the cheapest car insurance for drivers with poor credit.
$2,539
per year
10. MetLife
In 2020, MetLife ranked #10 in Texas for the cheapest car insurance for drivers with poor credit.
$4,068
per year
11. The General
In 2020, The General ranked #11 in Texas for the cheapest car insurance for drivers with poor credit.
$4,507
per year

If your credit score has been negatively affected because of identity theft or a specific life event beyond your ordinary control, you may qualify for an exception to credit underwriting. Examples include job loss, divorce, the death of an immediate family member and the like. To request an exemption, simply submit the request to the insurance company in writing, along with documentation.

Once the carrier has your request and documentation, and the request meets state requirements, the carrier can only consider credit information not related to the negative life event, or they must assign a neutral credit score.

If you believe your request for a credit underwriting exception was improperly denied, you can visit the Texas Department of Insurance Complaint Process web page to file a complaint.

Cheapest Car Insurance Companies in Texas for Seniors

In Texas, older drivers are subject to increased safety laws and regulations. According to the Texas Department of Public Safety, 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.

Senior drivers are not only required to participate in more regular license renewals and screenings, but they often 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 even later. As you age, it pays to shop around every few years for affordable car insurance for seniors.

Company
Amount
1. Farmers
In 2020, Farmers ranked #1 in Texas for the cheapest car insurance for seniors.
$834
per year
2. State Farm
In 2020, State Farm ranked #2 in Texas for the cheapest car insurance for seniors.
$891
per year
3. USAA
In 2020, USAA ranked #3 in Texas for the cheapest car insurance for seniors.
$972
per year
4. GEICO
In 2020, GEICO ranked #4 in Texas for the cheapest car insurance for seniors.
$1,017
per year
5. AAA
In 2020, AAA ranked #5 in Texas for the cheapest car insurance for seniors.
$1,186
per year
6. Allstate
In 2020, Allstate ranked #6 in Texas for the cheapest car insurance for seniors.
$1,196
per year
7. Nationwide
In 2020, Nationwide ranked #7 in Texas for the cheapest car insurance for seniors.
$1,341
per year
8. MetLife
In 2020, MetLife ranked #8 in Texas for the cheapest car insurance for seniors.
$1,404
per year
9. Esurance
In 2020, Esurance ranked #9 in Texas for the cheapest car insurance for seniors.
$1,441
per year
10. Mercury
In 2020, Mercury ranked #10 in Texas for the cheapest car insurance for seniors.
$1,696
per year
11. The General
In 2020, The General ranked #11 in Texas for the cheapest car insurance for seniors.
$3,543
per year

If you're an older driver, you may be able to offset some or all of the higher premiums in several ways, including taking a defensive driving course.Texas drivers can save up to 15% on their car insurance premiums by taking a defensive driving course. Details vary depending on your carrier. Approved courses include Defensive Driving by the National Safety Council, American Safety Council or IMPROV

Cheapest Car Insurance for Students

Texas Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$1,969 INCREASE

This is a difference of 130%.

Younger drivers, including high school and college-aged drivers, are considered a higher-risk group. Teen drivers are especially accident prone, and insurance rates reflect this

However, some carriers are friendlier than others when it comes to setting rates for drivers in their teens and early 20s. Rates for this group vary substantially. It pays to shop around especially right before a teen driver goes to college or owns his or her first car.

If you're a parent or guardian, you should also explore adding your child to your insurance policy as an additional driver, rather than having them get their own separate policy. Whether you are a parent of a young driver, or you're a young driver buying your own coverage, you may be able to get a break on your premiums.


Company
Amount
1. State Farm
In 2020, State Farm ranked #1 in Texas for the cheapest car insurance for students.
$2,512
per year
2. GEICO
In 2020, GEICO ranked #2 in Texas for the cheapest car insurance for students.
$2,740
per year
3. Nationwide
In 2020, Nationwide ranked #3 in Texas for the cheapest car insurance for students.
$3,695
per year
4. Allstate
In 2020, Allstate ranked #4 in Texas for the cheapest car insurance for students.
$4,014
per year

Maintain a safe driving record, protect and improve your credit score, and drive a vehicle with safety features installed. Stick to sensible sedans, SUVs, vans and trucks these are cheaper to insure than sports cars.

You may also get a discount for bundling multiple policies within your family at the same company.

Increasing your deductible is another good way of saving money on premiums as long as you can afford the deductible if you have a claim.

If you're a Texan going to school in another state and taking your car with you, notify your insurance company as soon as possible. The agent can help you be sure that your policy matches the insurance requirements of your new state.

The Problem of Distracted Teen Driving

In 2018, there were more than 540,000 car accidents on Texas roadways, with 95,572 of them about 18% attributable to distracted driving, according to the Texas Department of Transportation. These are accidents that are due to things like texting while driving, cell phone use, etc. These distracted driving-related accidents were responsible for 394 deaths and 2,340 serious injuries.

Distracted driving is such a problem among young Texans that the Texas Department of Safety created an eight-part video about it. Called IMPACT Texas Teen Drivers (ITTD), the series explores the dangers of distracted driving through real-life stories of teens who died from texting, talking on cell phones and otherwise multitasking while driving. "It's not about bad kids doing bad things, but about good kids making poor choices," the department states. It's now a required part of every driver's education class for teens in Texas.

The insurance department also reminds drivers that some policies require all covered drivers to be named on the policy, so tell your insurance agent as soon as your child turns 16. Otherwise, the TDI warns, "if you don't have all the drivers in your family listed on the policy and the company learns about them later because of an accident claim, for instance the company may bill you for the extra premium you should have paid, deny your claim and coverage, or refuse to renew your policy in the future."

Premium Comparison by Student Type

No matter how much your teen or college student wants a sports car, insurers advise you to just say no. Sedans and minivans are a safer choice, and your annual premiums will likely be much lower.

Premium comparison for two adults + 16-year-old

car
Average premium for two 2014

Mustang GTs

$6,164
car
Average premium for two 2008

Town and Country Limiteds

$3,536
Anual benefits of minivans:$2,628 saved

This is 43% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$787 DECREASE

This is a savings of 21%.

Potential discounts for teens in texas

Impact on annual premium with good student and defensive driving discounts:

coins
$522 SAVED

Texas students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

male
Average premium for a 19-year-old male
car

$4,041 at home

graduation

$3,471 at school

$570 IN SAVINGS

female
Average premium for a 19-year-old female
car

$3,606 at home

graduation

$3,158 at school

$448 IN SAVINGS



Insurance Rate Information for Military Drivers and Veterans

Texas has more than 110,913 active duty personnel, more than 53,321 reservists and Guardsmen, and more than 1,460,000 veterans, according to Governing and the Texas Workforce Investment Council. Vets living in the Lone Star State may be eligible for military discounts on regular auto insurance. They may also be eligible for a USAA membership. Shop around for the best rates available to veterans, bearing in mind that a military discount also requires a good driving record.

Active-duty servicemen and women leaving Texas temporarily should check with their insurance company before they depart. Some companies allow veterans to suspend their auto insurance coverage while a vehicle is not in use.

Age savings for Texas service members

male
25 years$1,608
50 years$1,203
female
25 years$1,539
50 years$1,200

$405 Saved
$339 Saved

Median auto insurance for service members: $1.243

Who Needs Car Insurance in Texas?

If you own or operate a motor vehicle in Texas, you need to show that you are financially capable of covering any damage you or the driver of your vehicle may cause. State law requires that insurance must be carried for all vehicles (except semi-trailers and trailers) that are registered for on-road use.

The Texas Transportation Code outlines one exception to the rule: You can avoid the requirement for insurance if you deposit at least $55,000 in cash or eligible securities with the State Comptroller, or a cashier’s check with the county judge. For more information, see the section “Alternatives to Car Insurance in the State of Texas,” below.

Proof of Insurance in Texas

Drivers in the state must provide proof of insurance or alternative documentation (see below). According to the Texas Department of Motor Vehicles, you are required to show proof of insurance in several circumstances:

  • When asked for it by a police officer
  • When involved in a car accident
  • When registering and renewing a vehicle registration
  • When applying for and renewing a driver's license

Auto insurers are required to send policyholders an insurance card. Individuals relying on insurance alternatives will receive certificates in lieu of an insurance card. You can carry your card on your smartphone.

Minimum Liability Insurance Requirements in Texas

Drivers in Texas are required to post a $55,000 bond, or purchase and carry liability insurance. Collision and comprehensive coverage are optional, unless you financed the car, in which case the lender will probably require such coverage as a condition of the loan. But even if you own the car outright, liability coverage is a must. As of 2020, the minimum mandatory coverage limits outlined by the Texas Department of Insurance are:

  • $30,000 for each injured person per accident
  • Up to a total of $60,000 per accident
  • $25,500 for property damage per accident

A policy with this minimum level of insurance coverage is referred to as "30/60/25 coverage."

Note that these are just the statutory minimums. At a time when cars and medical care are both getting more expensive, the minimum amount may not be enough to cover the entire cost of the accident. Most insurance and consumer groups recommend drivers carry up to 10 times the state's minimum in liability coverage.

High-Risk Auto Insurance Program in Texas

Individuals who don't qualify for liability insurance through traditional channels may be able to obtain coverage through the Texas Automobile Insurance Plan Association. To qualify, applicants must meet these requirements:

  • Have a valid driver's license
  • Be a resident of Texas or have a vehicle registered in Texas
  • Certify that insurance coverage has been denied by two or more insurance companies within the past 60 days

Alternatives to Insurance in Texas

Under Texas law, uninsured residents may legally drive if they can present proof of financial responsibility. According to the Texas Transportation Code, approved alternatives to car insurance in Texas include:

  • A $55,000 cash or securities deposit with the state comptroller
  • A $55,000 cash or cashier's check deposit with the county judge
  • A surety bond filed with Texas Department of Public Safety

In each instance, drivers who opt for this alternative must carry a certificate of deposit or a surety bond deposit in lieu of an insurance card.

What Happens If You Don't Have Car Insurance in Texas?

Research presented by the National Association of Insurance Commissioners shows that most uninsured motorists do not have car insurance because they cannot afford it (or, in the case of illegal immigrants, are not allowed to buy it). Texas slaps uninsured motorists with stiff penalties. Motorists caught without insurance or a valid alternative can face the following consequences:

  • First offense: $175 to $350 fine
  • Second offense: $350 to $1,000, two-year suspension of driver's license and car impoundment
  • Driving without a driver's license: Up to $2,000 fine and/or 180 days in jail.

Texas has also launched TexasSure, an automated database that identifies drivers who do not have mandatory insurance coverage. This program notifies drivers who have allowed their coverage to lapse.

Car insurance companies use your location to calculate your rate.
Explore average rates for your city.

Car Insurance Requirements in Texas: How Much Coverage Do You Need?

What percentage of drivers in Texas lack vehicle insurance?

14.1%

National average: 13%

Source:

Insurance Information Institute.

Many drivers should strongly consider buying insurance that goes beyond the minimum levels of protection. A 100/300 liability policy, one that covers $100,000 for a single person in an accident and $300,000 for individuals in an accident, will be much more likely to protect you, according to the Insurance Information Institute. A 2017 MoneyGeek analysis found that adding another $100,000 in liability protection generally costs no more than $30 a month.

Insurance companies in the state offer a Texas Personal Automobile Policy, a standardized policy that offers eight types of insurance in one policy. But because exclusions vary from policy to policy, the Texas Office of Public Insurance Counsel recommends drivers know exactly who and what is covered.

It's also good to check up on the insurance company you're dealing with. The Texas Insurance Department advises you to find out about a company's license, history of complaints and financial rating by calling TDI's Consumer Help Line at 1-800-252-3439. Or, visit the website at www.tdi.texas.gov.

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Expert Advice on Finding Cheap Car Insurance in Texas

  1. What are the key factors drivers in Texas should look for when searching for the best auto insurance coverage?

    The limits – amounts of coverage for bodily injury per person and per accident as well as coverage for property damage per accident – are important. The minimum thresholds vary by state, but objectively speaking, those are probably too low for most drivers’ comfort and needs. Medical costs can rise very quickly, even with moderate injuries from an accident. Also, keep in mind that any vehicle you have financed will probably need to be covered up to $100,000 for injury and $300,000 property damage, but it is best to check with your lender. The size of the deductible is equally important; drivers will frequently opt to go with the higher deductible in exchange for a lower monthly premium payment, but this means when it is time to file a claim, you are responsible for a higher sum out of pocket.

    The first thing to be aware of is that rates for all drivers are not the same. Rates differ from one person to another, and from one company to the next. The cost depends on many factors, such as where you live, how much you drive, your driving record, the type of car, your age, and even your credit score. Also, all companies are not the same. Some try to sell to only the better drivers, others make a point of trying to lure customers who may have problems obtaining insurance. Another factor is how much insurance you want to purchase. Texas requires a minimum amount of insurance to protect people you injure, $30,000 per individual, $60,000 per accident, and $25,000 for property damages. Many people believe this is not sufficient to protect them and purchase much larger coverage amounts. You also should consider other types of auto insurance coverage to protect your losses. Think about how much and what type of coverage you want and then, shop around.

    Do not just go by price alone. When comparing quotes, be sure to make an apples to apples comparison. That is, pay particular attention to the coverages being offered by each insurance company and then compare the quotes. Try to avoid being underinsured or overinsured. Try to avoid being underinsured or overinsured. Too often, consumers select deductibles that are too low, resulting in higher premiums or select coverages that are too high, also resulting in higher premiums. Of course, the deductibles and coverages that a given consumer selects is a subjective decision, so be sure to make the choice that is right for you.

    Price and fulfillment of state requirements should be always the baseline. From there personal circumstances may enter, such as age, records, the price of the car to be insured, and the type of insurance needed. For Texas specifically, a client needs to know what kind of coverage they are getting. Texas law requires an insurer to have at least $30,000 of coverage for injuries per person, up to a total of $60,000 per accident, and $25,000 of coverage for property damage.

    Drivers should consider the required premiums and coverage, but also the likelihood that the insurance company will raise the customers’ rates if they get into an accident or if they receive a violation (e.g., speeding ticket) and how the customer service is of the company. Customer service is often an overlooked factor, but I think it is critical that an auto insurance company be easily accessible and helpful because getting into an accident is already a very stressful event. Customers don’t want their experience working with the car insurance company to be an even more stressful process than that.

    Texas drivers should not look exclusively at pricing. Customer service is very important too, as it varies widely from insurer to insurer, and as drivers will appreciate the importance of quality service when they need it the most.

  2. What steps can drivers in Texas take to find affordable car insurance?

    Most insurance companies are similar with respect to what they can provide their customers. As discussed above, however, rates can differ substantially, based on various factors. The Texas Department of Insurance (TDI) regulates and licenses insurance companies in Texas. Its website contains a great deal of helpful information under the “Consumer” tab, including a way to compare policy cost, number of customer complaints, and financial strength (www.tdi.texas.gov/consumer/index.html). Its Consumer Protection staff also can answer your insurance questions at 800-252-3439. Many other entities have similar websites allowing you to compare coverage and pricing.

    You can visit the Texas Department of Insurance website. There, you can compare quotes from various reputable insurance companies. The website also lists the contact information for the insurance company (phone and website link), and more importantly, it lists a “complaint index” for the company and an “AM Best” rating for the insurance company.

    The first step you can take to finding the most affordable insurance is to do your research, specifically shop around. Especially for online companies since proximity to your location is not an issue. Get different quotes from different companies and adjust your discounts to get the premium you want. Another benefit is to know your driving habits and adjust the policy as need be. Any buyer can save premium by coming prepared instead of just accepting the first offer. For this purpose, use third party comparison sites, get rates from several different highly rated insurance companies whose policies meet your personal needs and compare the premiums for those specific policies.

    It is a cliché, but I think it is important to shop around and compare different quotes that you receive. Then, if you have a preference towards one company but the quote may be higher than one you received from another company, then you should discuss it with your preferred company by informing them of the quote you received and asking if they can match that rate. There is often room for negotiation with insurance rates.

    Although it can be helpful to utilize web sites that promise to compare insurance coverage, it is always wise to contact insurance companies directly by phone or online to obtain reliable source information.

  3. How do regulations and rules in Texas impact insurance pricing and how consumers might shop for coverage?

    Texas requires that all drivers obtain a minimum amount of auto liability insurance to compensate the victims of an accident. As noted above, the minimum limits are $30,000 for an individual, $60,000 per accident and $25,000 for property damages. Unless you reject it, you will receive Personal Injury Coverage (PIP), which covers you and your passengers’ medical bills and some other losses. You also will receive uninsured/underinsured motorist coverage, which covers your injury and damage caused by a driver without sufficient insurance, unless you reject it. Both of these “optional” types of coverage are very good to have. In addition to PIP and Uninsured Motorist coverage, you should consider collision—which covers your car, and comprehensive—which protects you if your car is stolen or damaged by fire, flood, vandalism or something other than a collision. The bottom line, the state-required minimum coverage provides limited protection and you may want to shop around for a larger amount of coverage and additional protection. Another factor to consider is the amount of the deductible. Auto insurance deductibles apply to your recovery for each incident you cause and are not an annual amount. In general, the higher the deductible the lower the cost for the policy, but the more you will have to pay in the case of an accident. When deciding what deductible is right for you, think about how much you can afford.


Dr. Mikhail Kouliavtsev
Dr. Mikhail KouliavtsevDepartment Chair and Professor of Economics and Finance at Stephen F. Austin State University
Richard Alderman
Richard AldermanDirector, Consumer Law Center at the University of Houston, Professor Emeritus
Dr. Daniel Perez Liston
Dr. Daniel Perez ListonAssociate Professor of Finance at the University of St. Thomas-Houston
Dr. Hwan Shin
Dr. Hwan ShinAssociate Professor of Finance at The University of Texas at Tyler
Frank G. Cabano
Frank G. CabanoAssistant Professor, Marketing and Management at The University of Texas at El Paso
Dr. Michael Kraten
Dr. Michael KratenProfessor of Accounting at Houston Baptist University


Sources