INSURANCE - CAR INSURANCE

Best Car Insurance in Texas for 2024

Updated Oct. 16, 2023
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Everything may be bigger in Texas, but not necessarily your car insurance bill.

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Car insurance costs vary based on several factors. In Texas, the annual cost of auto coverage is $1,467, compared to the national average of $1,582. However, you could pay significantly more if you live in one of the bigger cities. For example, Drivers in Houston or Dallas generally pay more annually than the average driver in other parts of Texas.

In this article

Key takeaways

  • The best car insurance by customer satisfaction ranking in Texas is USAA, which costs $1,248 per year for comprehensive coverage.
  • Texas drivers with a clean driving record pay an average of $122 per month for car insurance.
  • On average, people in Houston are likely to pay $2,389 a year for full coverage.

Best car insurance companies in Texas

The average cost of car insurance in the U.S. is $1,582 a year. In Texas, however, drivers with clean records will likely pay an average of $1,467 annually. Farmers Insurance had the lowest annual full and minimum liability coverage of the companies surveyed below, followed by State Farm.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 860/1,000 $1,248/year $424/year
State Farm 838/1,000 $1,160/year $495/year
Farmers 813/1,000 $821/year $420/year
Progressive 813/1,000 $1,224/year $563/year
Allstate 809/1,000 $1,852/year $573/year
GEICO 801/1,000 $1,287/year $528/year

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USAA: Highest customer satisfaction

USAA has the highest customer satisfaction scores in Texas, earning 860 out of 1,000 in a recent survey from J.D. Power. Unfortunately, USAA only offers policies to current and former military members and their families, so not everyone can use their coverage. USAA offers multiple coverage options for those who qualify, though you may find cheaper options elsewhere.

Pros
  •  USAA has Texas’s second-lowest minimum liability coverage, costing just $424 annually
  •  Offers multiple insurance options, including comprehensive and uninsured/underinsured motorists
Cons
  •  Only current and former military members and their families can use USAA policies
  •  You may find more discounts and specialty policies with other carriers in Texas

Get a quote now | USAA review

State Farm: Best for multi-driver discounts

State Farm charges an average of $1,160 for full coverage annual car insurance and was the second most affordable carrier on our list of best car insurance providers. It provides multiple policies in Texas. Drivers can receive discounts for having multiple vehicles, taking a defensive driving course, and many other options.

Pros
  •  State Farm received the second-highest customer satisfaction rating in Texas
  •  It has agents and offices throughout Texas to assist with claims and quotes
Cons
  •  Only offers standard policies in Texas, with few specialty options
  •  You may need to work directly with a local agent for a quote

Get a quote now | State Farm review

Farmers: Most affordable coverage

Farmers Insurance has the most affordable coverage in Texas, costing an estimated average of $821 annually for full coverage and $420 for minimum liability. It was in the lower middle of the pack on customer satisfaction, tying with competitor Progressive with a score of 813 out of 1,000.

Pros
  •  Bundling a home and auto policy together may save you an average of 20%
  •  Offers standard insurance policies and some specialty policies, like collectible auto and rideshare coverages
Cons
  •  Has lower customer service ratings on Trustpilot and J.D. Power than some competitors
  •  It doesn’t offer gap insurance

Get a quote now | Farmers review

Progressive: Best for lowest deductible

Progressive is not the only insurance company offering a vanishing deductible, but it is the lowest-cost option in Texas with that add-on. If Progressive customers drive without an accident during the policy term, they may be able to reduce their deductible by $50 per six-month policy (or $100 for annual renewals).

Pros
  •  It has various standard and specialty coverages, including accident forgiveness
  •  Offers multiple discounts, including an average savings of 12% for insuring more than one car
Cons
  •  Has a lower customer satisfaction rating than other carriers in Texas

Get a quote now | Progressive review

GEICO: Best for new drivers

New drivers generally pay substantially more than the average for auto insurance. Unfortunately, that’s no different in Texas, where 18-year-old drivers are likely to pay an annual average of $5,110 for car insurance. Although GEICO is the second most expensive option for Texas, it offers discounts for good students, good drivers, and members of select organizations.

Pros
  •  Multiple insurance agents in Texas if you need assistance
  •  GEICO has standard insurance policies and some specialty policies, including assisting with auto insurance on trips to Mexico
Cons
  •  Lowest-rated carrier in customer satisfaction on our list, earning just 801 out of 1,000
  •  GEICO is the second most expensive option in Texas, behind Allstate

Get a quote now | GEICO review

Texas auto insurance requirements

Texas law requires that all drivers have minimum auto insurance coverages of:

  • $30,000 liability coverage for injuries per person
  • $60,000 liability coverage for injuries per accident
  • $25,000 liability for property damage

How to choose a car insurance provider in Texas

If you’re looking for a new insurance provider in Texas, consider the following:

  • Get multiple quotes: While you might be tempted to get a couple of auto insurance quotes and make a decision, it can pay to request multiple quotes from different carriers. Not only do you get to see the coverage options available, but you can be sure you’re getting the best price and discounts.
  • Check for a license: Not every insurance carrier has a license to operate in every state. Check with the Texas Department of Insurance to find out which companies are licensed and to find the number of customer complaints received compared to the number of policies it issued.
  • Look for financial stability: Before you sign up, research a company’s financial strength to gain insight into its ability to pay claims. To understand their financial capabilities, look for financial ratings on websites like A.M. Best or Standard & Poor’s.

How much does car insurance cost in Texas?

The average cost of car insurance in Texas is $1,467 per year, and the state minimum coverage averages $643. However, the cost of car insurance can vary dramatically based on factors like age, the type of car you drive, and even the city you live in.

For example, drivers in Austin pay an average of $1,928 annually for full coverage, while residents of Houston spend an average of $2,389 a year.

Texas car insurance rates by city

Texas drivers may pay more than the state average in some big cities with more crime or vandalism. People in Houston and Dallas are likely to pay the most for auto insurance, with bills averaging several hundred dollars more a year than in other parts of the state.

City Avg. annual full-coverage premium
Houston $2,389/year
Dallas $2,229/year
San Antonio $1,987/year
Fort Worth $1,953/year
Austin $1,928/year

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in Texas

What are the minimum car insurance coverage requirements in Texas?

In Texas, the law requires that drivers carry a minimum of $30,000 liability coverage for injuries per person, $60,000 per accident, and $25,000 liability for property damage.

How much does car insurance cost in Texas?

Car insurance in Texas costs an average of $1,467 a year for full coverage or $643 for the state minimum coverage.

Which car insurance companies cover Texas?

Many companies offer car insurance in Texas, including national carriers like State Farm, Allstate, GEICO, and Progressive, as well as some smaller carriers that only operate in certain states or regions.

What is the cheapest car insurance company in Texas?

Farmers had the cheapest car insurance in Texas, with an average full coverage cost of $821 a year and $420 for minimum coverage.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.