Finding the Right Car Insurance in Texas
The cost of car insurance in Texas can vary significantly based on various factors, including your location, age, driving record, and the type of coverage you choose. In March 2025, the average cost of full coverage was $2,573 per year, while minimum coverage averaged around $724 annually. This guide explores the best car insurance companies in Texas, helping you find the right policy to fit your needs and budget.
Key Considerations
Before diving into the specifics, it’s important to consider:
- Coverage Needs: Texas law requires liability insurance, but full coverage (including comprehensive and collision) is often recommended to protect your vehicle.
- Deductibles: Understand how deductibles impact premium costs. A higher deductible means lower premiums but requires you to pay more out-of-pocket after an accident.
- Discounts: Many insurers offer discounts for safe driving, bundling policies, and other factors. Be sure to inquire about all available discounts.
- Quotes: Get quotes from multiple providers to compare prices and coverage.
Our Top Picks for Car Insurance in Texas
Here are some of the best car insurance companies in Texas:
Best for Affordability: Allstate
Allstate consistently offers competitive rates in Texas, alongside various discounts to help drivers save money. They provide full coverage auto insurance in all 50 states.
- Pros: It has high ratings for claims processing from J.D. Power, and also offers discounts with the Drivewise telematics app (up to 25% off). They also have pay-per-mile insurance and rideshare insurance, both are available.
- Cons: Rates that are higher than competitors, specifically for high-risk drivers, and its rated below average for customer satisfaction in most regions.
- Standout Benefit: Their Milewise pay-per-mile car insurance can save infrequent drivers up to 40% over traditional insurance.
- Annual Texas sample premium: $3,121 a year
Best for Customer Service: State Farm
State Farm is known for its excellent customer service and offers a variety of discounts.
- Pros: it has high customer satisfaction ratings and offers affordable rates for teen drivers.
- Cons: It does not provide gap insurance, and accident forgiveness requires nine years without an at-fault accident.
- Standout Benefit: They provide rideshare insurance, including coverage for app-based delivery drivers like Uber Eats and DoorDash, and also offers a cheaper business-use option.
- Annual Texas sample premium: $1,160 a year
Best for Older Drivers: Farmers Insurance
Farmers Insurance provides a wide range of discounts.
- Pros: 23 different discounts and below-average NAIC complaints.
- Cons: Not all discounts are available in every state and the average premium is higher than average.
- Standout Benefit: Farmers offers Vehicle Replacement Plus, which can replace a totaled new car with another vehicle of the current model year and the same make and model.
- Sample rate in Texas: $1,108 a year
Best for Young Drivers: Progressive
Progressive offers competitive rates for young drivers, with various discounts available.
- Pros: Low rates for drivers with DUIs, they also offer non-owner car insurance and SR-22 certificates, and offer a vanishing deductible as well as accident forgiveness.
- Cons: They have below-average customer satisfaction ratings from J.D. Power as well as an above-average number of customer complaints.
- Standout Benefit: Progressive’s Deductible Savings Bank reduces your deductible by $50 for each policy period without an accident or violation.
- Sample rate in Texas: $745 a year
Best for Hard-to-Insure Drivers: Mercury Insurance
Mercury Insurance can be a good option for those who have difficulty obtaining insurance due to a less-than-perfect driving history.
- Pros: They offer affordable rates in California, with rideshare insurance as well under $1 per day and authorized garage repairs are guaranteed.
- Cons: They only offer auto insurance in 11 states, have below average customer satisfaction, and do not offer gap insurance coverage.
- Standout Benefit: MercuryGo, Mercury’s usage-based driving app, tracks your behavior behind the wheel and rewards safe driving habits with a discount of up to 40% at renewal.
- Sample rate in Texas: $1,299 a year
Best for Military Members and Veterans: USAA
USAA offers low rates and excellent customer satisfaction to military members, veterans, and their families.
- Pros: They have the cheapest insurer for liability-only coverage as well as stellar customer satisfaction scores across all 50 states.
- Cons: USAA insurance is limited to military families and veterans, does not have brick-and-mortar offices, and has limited customer service availability. They also do not offer a safe-driver discount in every state.
- Standout Benefit: USAA offers car replacement assistance, which can pay out 120% of a car’s cash value if it’s totaled or stolen.
- Annual Texas sample premium: $667 a year
Understanding Texas Car Insurance Requirements
Texas law requires drivers to carry liability insurance with minimum coverage levels of:
- $30,000 of coverage for injuries per person.
- Up to $60,000 of coverage per accident for injuries.
- $25,000 of coverage per accident for property damage.
This is commonly referred to as 30/60/25 coverage. However, it’s often wise to consider higher coverage limits to protect your assets.
How to Shop for Car Insurance in Texas
- Gather Information: You’ll need your driver’s license, the vehicle’s make, model, and VIN, and an estimate of your annual mileage.
- Determine Coverage Needs: Decide whether to purchase minimum liability coverage or opt for full coverage.
- Get Quotes: Obtain quotes from at least three insurance providers.
- Buy Your Policy: Once you’ve selected a policy, provide payment information and get proof of insurance.
Ways to Save on Car Insurance
- Bundle Policies: Combine auto and homeowners or renters insurance.
- Increase Your Deductible: This can lower your premiums, but you’ll pay more out-of-pocket if you have an accident.
- Pay Upfront: Paying your entire premium in advance can sometimes reduce your costs.
- Improve Your Credit: In Texas, credit scores can influence insurance rates, so paying bills on time and reviewing your credit report can help.
By following this guide and comparing your options, you can find the best car insurance in Texas to meet your needs while saving money. Remember to regularly review your policy and shop for new quotes to ensure you’re getting the best rates and coverage.
