Cheapest Car Insurance in Texas: Lowest 2026 Rates

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Updated: May 24, 2026

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Cheapest Minimum and Full Coverage Car Insurance in Texas

State Farm offers the best car insurance in Texas, as it leads both minimum coverage ($41/month) and full coverage ($95/month). Choosing State Farm over Dairyland (the most expensive at $244/month full coverage, according to our dataset) saves $149/month ($1,788/year). Dairyland is a specialty nonstandard insurer often positioned for drivers who cannot qualify elsewhere. The gap versus a standard insurer like GEICO ($113/month) is a more typical comparison of $18/month ($216/year). 

Texas minimum coverage is 30/60/25: $30,000 per person bodily injury, $60,000 per accident bodily injury, and $25,000 property damage. Texas is an at-fault state. Personal injury protection (PIP) is included by default on Texas policies but can be declined in writing.

State Farm
$41
$95
GEICO
$55
$113
Mercury Insurance
$56
$129
AAA
$60
$126
Germania Insurance
$66
$137
State Farm
Cheapest For Most Drivers in Texas

State Farm

State Farm is the cheapest full coverage option in Texas at $95/month and holds that advantage across more profiles than any other carrier in this analysis. It leads minimum coverage at $41/month, full coverage at $95/month, and all four violation categories. 
State Farm doesn't penalize drivers harshly after a violation in Texas. After a speeding ticket or texting violation, its rate doesn't change, staying at $95/month, the same as a clean record. After a DUI, it is the cheapest at $144/month. For seniors, it's cheapest at $106/month, just $11 above its adult rate. 

The one profile where State Farm isn't as cheap is bad credit, where GEICO at $189/month edges it out. For most Texas drivers, State Farm is the right first quote.

GEICO
Most Affordable for Young Drivers and With Poor Creidt

GEICO

GEICO is the second cheapest full coverage option in Texas at $113/month, $18/month above State Farm for a clean-record adult. That gap narrows in lower-risk ZIP codes and widens after violations, where State Farm pulls further ahead. Where GEICO is cheapest with is bad credit at $189/month and young adult policies at $204/month. For a 16-year-old on a family policy, GEICO is worth quoting directly against State Farm since it's the cheapest carrier for young Texas drivers specifically. 
While State Farm is cheaper across more driver profiles in Texas, we recommend getting quotes from GEICO to get the lowest rate in Texas.

Cheapest Car Insurance in Texas for Teens & Young Adults

GEICO is the cheapest for young adult policies at $204/month. State Farm is the cheapest for seniors at $106/month. Car insurance rates change by age. Texas uses gender as a rating factor: at age 16, State Farm charges females $376/month and males $436/month on a family policy, a $60/month ($720/year) gap with the same insurer. That gap narrows steadily, reaching zero at age 25 ($207/month for both genders).

16
State Farm
$376
State Farm
$436
17
State Farm
$352
State Farm
$407
18
State Farm
$333
State Farm
$385
19
State Farm
$315
State Farm
$369
20
State Farm
$299
State Farm
$347
21
State Farm
$275
State Farm
$311
22
State Farm
$265
State Farm
$295
23
State Farm
$252
State Farm
$274
24
State Farm
$241
State Farm
$259
25
State Farm
$207
State Farm
$207

Cheapest Car Insurance for Seniors in Texas

State Farm is the lowest cost for seniors in Texas at $106/month, which is $11/month above its standard adult full coverage rate of $95/month. GEICO at $122/month is the second cheapest. The range from State Farm to the fifth-cheapest option (Progressive at $179/month) is $73/month ($876/year).

State Farm
$106
GEICO
$122
Mercury Insurance
$143
AAA
$163
Progressive
$179

Cheapest High-Risk Car Insurance in Texas

State Farm leads all four violation categories in Texas: speeding tickets ($95/month, matching its clean-record rate), at-fault accidents ($109/month), DUI ($144/month), and texting while driving ($95/month, also matching the clean-record rate). GEICO leads the bad credit category at $189/month. Compare options using the high-risk car insurance in Texas guide.

Most Texas violations affect rates for three years. DUI violations remain on your record longer. Speeding tickets increase State Farm's rate by 0% (matching the clean-record rate), at-fault accidents by 15% ($95 to $109), DUI by 52% ($95 to $144) and texting while driving by 0% (matching the clean-record rate). Bad credit increases GEICO's rate by approximately 67% compared to its good-credit rate of $113/month.

Speeding Ticket
State Farm
$95
At-Fault Accident
State Farm
$109
DUI
State Farm
$144
Texting While Driving
State Farm
$95
Bad Credit
GEICO
$189

Cheapest Car Insurance Quotes in Texas by City

State Farm leads all 10 Texas cities analyzed, but where you live within Texas moves your rate more than which carrier you choose. Austin drivers pay $97 monthly while Dallas and Laredo drivers pay $118 to $119, a $264 annual difference for identical coverage with the same carrier. Dallas carries Texas's highest traffic density and accident frequency. Laredo's border city dynamics push theft and uninsured driver rates above the state average.

Fort Worth and Corpus Christi both come in at $102 monthly despite being different sizes and locations. That reflects how insurers model regional risk profiles rather than precise city-by-city differences. Your ZIP code within a city will move your rate further than the city average suggests.

Arlington
State Farm
$109
Austin
State Farm
$97
Corpus Christi
State Farm
$102
Dallas
State Farm
$118
El Paso
State Farm
$105
Fort Worth
State Farm
$102
Houston
State Farm
$117
Laredo
State Farm
$119
Plano
State Farm
$105
San Antonio
State Farm
$108

If you live in Dallas, Houston or Laredo, the city averages above are a starting point, not your rate. Drivers in high-density ZIP codes within those cities regularly pay $20 to $40 more monthly than the city average shown here.  State Farm leads every city in this table, but the gap between State Farm and GEICO narrows in lower-risk ZIP codes, making a second quote from GEICO worth getting regardless of where you live.

How to Get the Cheap Car Insurance in Texas

The largest controllable savings in our dataset comes from carrier selection. State Farm leads every standard and high-risk category we analyzed in Texas. The gap between State Farm and the next cheapest standard carrier, GEICO at $113 monthly, is $18 monthly. That gap widens significantly after violations, where State Farm's zero surcharge on speeding tickets and texting violations makes it the clear choice for drivers with a recent incident on their record.
The eight strategies below address each of these Texas-specific factors directly, not just generic insurance advice that applies anywhere.

  1. 1

    Compare quotes even when State Farm leads

    State Farm leads every category in our Texas dataset, but the $18 monthly gap between State Farm and GEICO for full coverage is real money over time. Whether reshopping is worth the effort depends on your profile. Drivers with violations will find the gap widens significantly, making State Farm the clear choice. Drivers with clean records and good credit in lower-risk ZIP codes should run a GEICO quote before assuming State Farm wins for their specific address and profile.

  2. 2

    Decline default PIP if it doesn't serve your needs

    Texas includes PIP by default on all policies. Drivers who already have comprehensive health insurance with low deductibles may be able to decline PIP in writing and reduce their premium. Drivers without strong health coverage should keep it. PIP covers medical costs for you and your passengers regardless of fault, which matters in a state with a high uninsured driver rate. Verify with your insurer before removing it.

  3. 3

    Match coverage to vehicle value

    Full coverage averages $150 monthly in Texas, but the hail exposure that makes comprehensive particularly valuable here also makes dropping it riskier than in most states. Before removing comprehensive on an older vehicle, check whether your ZIP code falls in a high-hail corridor. If it does, the 10% rule still applies but the risk of a large out-of-pocket claim is higher than the national average suggests. Use the car insurance calculator for Texas to estimate whether dropping coverage makes financial sense for your vehicle value and location.

  4. 4

    Enroll in a telematics program

    State Farm Drive Safe & Save and GEICO DriveEasy both operate in Texas and reward low-mileage, safe-braking drivers with meaningful discounts. For Texas drivers in high-density cities like Dallas and Houston where traffic congestion is unavoidable, telematics programs that penalize hard braking can work against you. Drive Safe & Save is the stronger option for most Texas drivers because it rewards mileage reduction more heavily than driving behavior scores alone.

  5. 5

    Bundle home and auto

    Bundling home and auto with the same carrier produces multi-policy discounts that reduce both premiums. In Texas, where homeowners insurance rates are already elevated due to hail and storm exposure, bundling produces larger absolute savings than in most states. State Farm leads Texas bundling as it does standalone auto. Review the home and auto bundle guide for Texas to compare savings across providers before assuming your current carrier offers the best combined rate.

  6. 6

    Take a defensive driving course

    Texas allows drivers to complete an approved defensive driving course to dismiss one traffic ticket every 12 months and potentially earn insurer discounts. Given that most Texas violations affect rates for three years, dismissing a ticket before it reaches your insurer can save significantly more than the course costs. Texas DPS-approved courses are available online and typically cost $25 to $50.

  7. 7

    Improve your credit score

    The gap between GEICO's bad-credit rate ($189 monthly) and its good-credit rate ($113 monthly) is $76 monthly ($912 annually) in Texas. Moving from poor credit to fair credit produces the largest single rate drop, typically within one to two renewal cycles after the score improvement registers. Texas allows credit-based insurance scoring, so a credit improvement that crosses a tier threshold six months before your renewal date will show up in your next bill. Improving your credit score is one of the highest-return actions a Texas driver can take outside of maintaining a clean record.

How MoneyGeek Analyzed the Cheapest Car Insurance in Texas

MoneyGeek analyzed rates from Quadrant Information Services, which collects ZIP-code-level premiums from major insurers nationwide. The analysis covers 12 car insurance companies across every residential ZIP code in Texas for minimum and full coverage comparisons and 11 companies for age and violation profiles.

Baseline driver profile: 40-year-old male, clean driving record, good credit, 100/300/100 full coverage, $1,000 deductible, 2012 Toyota Camry, 12,000 miles annually. All rates on this page reflect this profile unless the section specifies otherwise.

  • Young drivers: Ages 16 through 25 on a family policy. Texas uses gender as a rating factor, so male and female rates are shown separately. Both tables use the same family policy structure — one adult plus one teen — to reflect how most families insure young drivers in Texas.
  • Seniors: 65-year-old driver, same vehicle and coverage as the baseline.
  • Violations: Each violation type uses the baseline profile with one driving record variable changed. All other variables held constant.
  • Poor credit: Baseline profile with credit tier changed to below fair. Texas permits insurers to use credit as a rating factor, and the spread between good-credit and poor-credit rates in Texas is among the widest in the country.
  • Coverage tiers: Full coverage rates reflect 100/300/100 liability limits with a $1,000 deductible — $100,000 per person for bodily injury, $300,000 per accident and $100,000 for property damage. Minimum coverage rates reflect Texas's 30/60/25 state minimum.
  • USAA: Rates are excluded from the main provider tables. USAA is available only to active-duty military, veterans and their immediate family. Eligible Texas drivers should include USAA in any quote comparison.
  • Financial strength: AM Best financial strength ratings reflect each carrier's ability to pay claims. NAIC complaint index data measures how often a carrier receives formal complaints relative to its size, with 1.00 as the industry average.

Read MoneyGeek's full auto insurance methodology for a complete description of how rates are collected, normalized and compared.

About Mark Fitzpatrick

Mark Fitzpatrick, Licensed P&C Insurance Expert, MoneyGeek

Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he has produced original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.

He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.

Like all MoneyGeek analysts, he draws on independent cost and consumer experience data, and no insurance company partnership influences his recommendations.

Fitzpatrick earned his degrees from Johns Hopkins University (M.A. Economics and International Relations) and Boston College (B.A.). He began his career in financial risk management at State Street. He's also a five-time “Jeopardy!” champion.

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