Compare Cheap Auto Insurance in Texas

Look to Texas Farm Bureau for the cheapest full coverage. This regional provider offers coverage at $1,380 annually – nearly $1,500 cheaper than the state average – and is known for its personalized agent-centric service and high customer service marks. Keep in mind its offerings are simpler than other insurers’ and lack fancier add-ons like gap coverage.

USAA also boasts reasonable prices and high customer satisfaction ratings, though membership is limited to military, veterans, and their immediate families.

Texas requires minimum liability coverage to stay road legal. While it’s the cheapest option, we don’t recommend it for most since coverage can be inadequate. If you’re still set on minimum coverage, Texas Farm Bureau is cheapest, with USAA and State Farm a close second and third.

Teen drivers cost more to insure due to their driving inexperience: the average annual cost for a teen driver policy in Texas is a whopping $6,352. To maximize savings, go with Texas Farm Bureau, which has the cheapest teen driver rate at $2,458 annually.

A speeding ticket in Texas increases car insurance premiums by an average of 7 percent. Texas Farm Bureau ($1,750 annually) and State Farm ($1,900 annually) have the lowest average premiums after a speeding ticket among the insurers analyzed.

State Farm has the cheapest auto insurance rates for Texas drivers with an at-fault accident on their record with an average of $2,168 annually or $181 monthly. That’s over $1,500 less than the state average annual cost for drivers with an at-fault accident.

A DUI is a serious violation that can significantly raise your insurance premiums, on top of penalties like large fines and jail time. If you’ve got a DUI on your record, consider quotes from State Farm and GEICO — the companies have the lowest average rates at $2,382 and $3,240, respectively.

Texas allows insurers to consider your credit history, so you may be subject to higher premiums if you have low credit. To minimize costs, go with Texas Farm Bureau, which has the cheapest average rates for drivers with low credit at $2,065 annually. The only other provider that comes close is USAA at $2,476 annually (military-only membership).

USAA not only has reasonable rates across categories for those who qualify, but it also boasts high customer and claims satisfaction ratings from J.D. Power. For non-military drivers, AAA (Auto Club of Southern California) is worth looking into. Pricing data for the company is limited, so as with any other provider, get a quote to see how much you’ll pay.

Nationwide and State Farm are also solid alternatives.

Follow these tips to maximize your auto insurance savings in Texas:

1. Compare quotes from multiple companies: Get quotes from at least three providers and see how they stack up cost-wise, then select the cheapest rate.
2. Ask about discounts: Most providers offer significant discounts, including savings for bundling home and auto policies and low-mileage discounts for infrequent drivers.
3. Drive safe: Many insurers offer telematics-based programs that save you money when you exhibit safe driving. Some even lower your deductible if you remain accident-free.
4. Raise your deductible: You can lower your premium by raising your deductible, but this does increase how much you pay out of pocket before your coverage kicks in. Do the math and see if this makes sense for you. Not sure where to start? A $1,000 deductible often strikes a good balance.

In general, living in a city will result in a higher premium than a suburb or rural area. Dallas has the highest average rates in Texas at $3,223 annually, and Houston comes in next at $3,197 annually. Rates are more moderate in Austin at $2,676 annually.

Having auto insurance is legally required in Texas.⁴ The minimum car insurance requirements in are 30/60/25, meaning:

• Bodily injury liability: $30,000 per person and $60,000 per accident
• Property damage liability: $25,000 per accident

Texas is an at-fault state, meaning you are responsible for damages in an accident you cause. It’s wise to raise your limits above the minimum, to at least 100/300/50 or 100/300/100. If you drive a newer car, it’s also a good idea to add comprehensive and collision coverage (if you leased or financed, your lender may require it).

We analyze average auto insurance premiums in Texas for full and minimum coverage for good drivers with good credit as well as other driver profiles, including those with DUIs, accidents, low credit and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person / $300,000 per accident
• Property damage liability: $100,000 per accident
• Uninsured and underinsured motorist bodily injury: Same as bodily injury liability
• Comprehensive and collision: $500 deductible