Getting car insurance in Texas doesn’t have to be a big expense. It tends to be higher than the American average for car insurance costs, with the typical Texas driver paying $2,445 for full coverage, and $695 for minimum coverage according to Bankrate data.
You can get the best deal by shopping around and comparing prices, whether you live in Austin, Houston, Dallas or any other city in the Lone Star State. Here are the six best and cheapest car insurance companies in Texas. (See our methodology for more information on how we made this list.)
Shop for the best car insurance quotes
Best for affordability
Allstate Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Allstate offers auto insurance customers a total of 14 discounts in addition to a pay-per-mile car insurance program. It offers quotes by phone, through an agent, or online. The company also offers a number of other insurance products to bundle your coverage and save.
Cons
- Slightly above average NAIC complaint index
Who’s this for? Allstate offers competitive coverage for Texas residents looking for affordable coverage from a well-known insurer.
Standout benefits: Allstate offers online quotes for those who are shopping around. It offers several discounts, including discounts for bundling your coverage, owning a new car and discounts for students. Allstate also has pay-per-mile car insurance available in Texas that could be a good fit for those who drive less, including those who use alternative transportation or work from home.
Average annual Texas sample premium: $544
Best for customer satisfaction
State Farm Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
State farm is one of the largest auto insurers based on market share and has an excellent reputation for customer satisfaction. It offers 13 discounts, including ones for safe driving and young drivers.
Pros
- High customer satisfaction
- Largest car insurance company in the U.S.
- Accident forgiveness
Cons
- High volume of complaints
- Doesn’t offer gap insurance
- Premiums higher than average
Who’s this for? State Farm could be a good fit if you’re looking for sure coverage from one of the top U.S. car insurance providers. You’ll get a combination of affordability and excellent customer service in Texas.
Standout benefits: State Farm’s rates were some of the lowest we found from large insurance providers in Texas.
Average annual Texas sample premium: $759
Best from young drivers
Progressive Auto Insurance
Cost
The best way to estimate your costs is to request a quote.
App available
Policy highlights
Progressive offers a number of lines of insurance to allow for bundling, and convenient tools to help you keep your coverage in your budget.
Pros
- Available in all 50 states
- Low rates for drivers with DUIs
- Offers non-owner car insurance and SR-22 filings
- Offers vanishing deductible as well as accident forgiveness
Cons
- Below-average customer satisfaction ratings from J.D. Power
- Above-average number of complaints
- Snapshot safe-driving discount program could result in rates going up
Who’s this for? Progressive could be a good fit for your family if you have a young driver on your policy. It could also be a good fit if you don’t have a young driver since it has a strong record of making coverage affordable and reliable in Texas — it’s one of the top companies for customer service from J.D. Power’s auto insurance customer satisfaction survey in the state.
Standout benefits: While Progressive already offers affordable rates in Texas, its discount list is also extensive, with everything from discounts for safe drivers to discounts for students earning a B or better average and discounts for students leaving their car at home while away at college.
Average annual Texas sample premium: $625
Best for full coverage
Mercury Auto Insurance
Cost
The best way to estimate your cost is to get a personalized quote
App available
Policy highlights
Mercury’s auto insurance offers affordable coverage for auto insurance, including full coverage auto insurance. The company offers convenient online claim filing and quotes, helping you to compare rates or get back on the road quickly.
Pros
- Can submit claims online or over the phone
- Offers discounts for bundling home and auto insurance
- App available
Cons
- Only available in 10 states
- Not highly rated by J.D. Power’s auto insurance customer satisfaction study
- Only an “A” rating for financial strength from A.M. Best, the third tier of the company’s ratings
Best from a big-name insurer
Farmers Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
Farmers sells car insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia and offers a whopping 23 discounts.
Pros
- Offers 23 types of discounts
- Below-average NAIC complaints
- Ability to bundle coverage with other products
Cons
- Not all discounts are available in every state
- Average premium for maximum coverage is higher than the national average
Who’s this for? Farmers stood out for its competitive rates in Texas, compared to the other big-name companies we considered.
Standout benefits: For those with a Farmers homeowners insurance policy, this insurer could be even more competitive with a bundling discount.
Average annual Texas sample premium: $726
Best for military members and veterans
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Policy highlights
USAA’s auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.
Pros
- Cheapest insurer for liability-only coverage
- Stellar customer satisfaction
- Track record of financial strength
- Available in all 50 states
Cons
- Limited to military families and veterans
- No brick-and-mortar insurance agencies
- Customer service is not available 24/7
- Safe-driver discount not available in every state
Who’s this for? USAA offers relatively affordable car insurance rates to those who have served in the military (and their qualifying family members), along with strong records for financial strength and customer satisfaction.
Standout benefits: USAA’s car insurance rates and coverage are consistently competitive, and we’ve highlighted the brand as one of the best for those with military affiliations.
Average annual Texas sample premium: $601
More on our top Texas car insurance companies
Allstate
Allstate stands out for its competitive rates, offering the lowest average premium of the companies we considered. Its strong ratings for financial strength and customer satisfaction also make it a standout in terms of quality.
A.M. Best Rating
A+
J.D. Power score (Overall Customer Satisfaction Index Ranking)
813.4 out of 1,000
NAIC complaint index (Average is 1)
1.02, about average
State Farm
State Farm has offered insurance since 1929 and is highly rated for financial strength. In addition to car insurance, State Farm offers homeowners insurance, renters insurance, life insurance and more.
A.M. Best Rating
A++
J.D. Power score (Overall Customer Satisfaction Index Ranking)
838 out of 1,000
NAIC complaint index (Average is 1)
0.27, lower than average
Progressive
Progressive is a top choice if you’re looking for a combination of savings and quality coverage, covering more than 27 million drivers across the U.S.
A.M. Best Rating
A+
J.D. Power score (Overall Customer Satisfaction Index Ranking)
813 out of 1,000
NAIC complaint index (Average is 1)
0.92, lower than average
Mercury
Since 1962, Mercury has been helping families cover their cars and homes. While smaller, it offers affordable prices and quality customer service and convenience.
A.M. Best Rating
A
J.D. Power score (Overall Customer Satisfaction Index Ranking)
Not rated
NAIC complaint index (Average is 1)
0.71, lower than average
Farmers
Farmers is one of the largest insurance companies in the country. It offers competitive prices in addition to a generous number of discounts, making it an affordable option for many Texas drivers. You can save on coverage by enrolling in paperless billing, bundling other insurance products, paying premiums on time and completing other tasks.
A.M. Best Rating
A-
J.D. Power score (Overall Customer Satisfaction Index Ranking)
813 out of 1,000
NAIC complaint index (Average is 1)
1.47, higher than average
USAA
While it’s only available to those affiliated with the U.S. military, generally including military members and their spouses and children, USAA’s auto insurance is a strong option for those who are eligible. It’s consistently one of our top picks and offers competitive rates in Texas. Members have access to many discounts, including multi-vehicle and multi-policy discounts, a good student discount and a legacy discount.
A.M. Best Rating
A++
J.D. Power score (Overall Customer Satisfaction Index Ranking)
877 out of 1,000
NAIC complaint index (Average is 1)
0.34, lower than average
How to lower your car insurance in Texas
It’s possible to lower the amount you’ll pay for car insurance with a few tips:
- Work on your credit. Your credit score can be used in calculating your auto insurance prices. In general, the higher your credit score, the lower your auto insurance rates. Raising your credit score could help lower your car insurance bill.
- Bundle with other insurance coverages. Several top insurers offer more than just auto insurance. Whether you rent your home or own it, bundling your renters insurance or homeonwers insurance could help you save. If you have other things to cover, like an RV, motorcycle or a boat, consider bundling them with your auto insurance for more savings.
- Pay your premiums in full. Some insurers offer discounts for paying in full rather than paying monthly. If you can cover the cost upfront, it could be worth it.
FAQs
How much is car insurance in Texas per month?
Car insurance in Texas tends to cost between $45 per month and $64 per month, based on the companies we analyzed. However, this is only liability car insurance, or coverage that would protect you financially from damage you cause. To repair or replace your car after an accident or a natural disaster, you’ll need full coverage car insurance, which adds collision and comprehensive coverage.
Who has the best car insurance in Texas?
According to the data we gathered, Allstate offered the most affordable car insurance coverage in Texas.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto insurance products. To research the best auto insurance companies, we compiled data points on more than a dozen auto insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best Texas car insurance companies.
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Our methodology
To determine the best car insurance companies in Texas, CNBC Select analyzed several insurance companies offering car insurance coverage in the state.
When narrowing down and ranking the best car insurance companies, we focused on cost with a sample premium, coverage, ease of use, customer satisfaction ratings from J.D. Power, financial strength ratings from A.M. Best and complaint indexes from the National Association of Insurance Commissioners.
Sample premium data was gathered from the Texas Department of Insurance’s Helpinsure.com tool, and was based on liability coverage with limits of $50,000 per person in injury coverage, $100,000 limit for all injuries, and $50,000 for property damage. We focused on premiums for a single male driver who:
- Is 30 years old
- Drives 18,000 miles per year, mostly for work
- Has no violations or accidents on their record
- Drives a car (rather than a truck)
We considered sample premium data from several Texas cities and gathered sample premium data for the same driver with the qualifications above in Katy (Fort Bend County), El Paso (El Paso County), Frisco (Collin County), Grand Prairie (Dallas County) and Mckinney (Collin County). These were averaged to create the state average annual sample premium.
Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company’s policies.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
