The best car insurance in Texas in 2026

Car insurance in Texas is cheaper than coverage in many other states. But it can still be a hefty cost for many Texans.

In 2026, car insurance in the Lone Star State averaged $150 a month, according to data from car insurance comparison site The Zebra. That's slightly less than the national average of $194 per month.

If you're looking for affordable coverage that doesn't mean sacrificing on service or convenience, CNBC Select picked the best car insurance in Texas for cost, customer service, seniors and other categories.

For more on how we made our selections, see our methodology.

Who's this for? Geico has the lowest rates in Texas for both full coverage and liability-only policies. It's also an affordable option for high-risk drivers with speeding tickets or at-fault accidents on their record.

Standout benefits: Geico also has close to two dozen discounts, including for owning a new vehicle, remaining accident-free, installing anti-theft devices and bundling your auto policy with Geico home insurance.

Who's this for? Nationwide earned the top spot in Texas for customer satisfaction in J.D. Power's 2025 auto insurance study, based on price, customer service and other factors.

Standout benefits: Nationwide's pay-per-mile program bases your car insurance premiums more heavily on how much you drive, with a base rate and a per-mile rate. This program is available in Texas and could be a good fit for those who work from home, are retired or use alternative transportation often.

Who's this for? Texas Farm Bureau's Drive'n Save App rewards good habits by tracking your mileage and driving. Drivers get 10% off just for enrolling, with deeper discounts available for safe driving.

Standout benefits: Part of the American Farm Bureau Federation, Texas Farm Bureau is one of the few providers that offers death indemnity coverage, which pays up to $5,000 to a chosen beneficiary if you die in a covered accident.

Who's this for? Farmers has affordable rates for many Texas drivers. While those who have poor credit scores, typically below 580, tend to pay more for car insurance, Farmers has affordable rates.

Standout benefits: Farmers offers Vehicle Replacement Plus as an add-on, which can replace a new car that is totaled with another vehicle of the current model year and the same make and model.

Who's this for? Mercury specializes in high-risk motorists, including drivers with poor credit, speeding tickets, accidents and DUIs.

Standout benefits: 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.

Who's this for? USAA offers affordable rates for current and former service members and their families, paired with a strong record for customer satisfaction.  

Standout benefits: USAA offers car replacement assistance as an optional add-on, which can pay out 120% of a car's cash value if it's totaled or stolen. That's considerably more than standard gap insurance, which only covers the difference between what's owed on a totaled vehicle and its depreciated value.

The average cost of full-coverage car insurance in Texas in 2026 was $150 a month. In comparison, a liability-only policy averaged $79 per month.

However, individual rates vary and are based on location, age, gender, driving history, credit and the insurer.

In Texas, drivers are required to have liability insurance, which pays for the other driver's auto repairs and medical bills if you are found responsible for a collision.

The minimum amount of coverage is:

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

This is known as 30/60/25 coverage.

Follow these steps if you're shopping for car insurance:

1. Get the necessary information

To get a quote and buy a policy, you'll have to have some things on hand:

• Your driver's license
• Your car's make, model, year and VIN
• A rough estimate of the number of miles you drive in a year
• The expiration date of your current auto insurance policy

2. Decide how much coverage you need

Texas requires drivers to have the following minimum coverage to drive legally:

• $30,000 of bodily injury liability coverage per person
• $60,000 of bodily injury liability coverage per accident
• $25,000 of property damage liability coverage per accident

This is only the minimum, however. Getting liability coverage that's at least equal to your net worth can protect your assets if you're held responsible for an accident. (If you have a high net worth, an umbrella policy can go beyond your auto policy's limits.)

You should also consider getting full coverage, which includes comprehensive and collision protection that can pay to repair or replace your car. If you have an auto loan or at least your car, you are probably required to have full coverage.

3. Gather price quotes

Get quotes from at least three providers, making sure you request the same coverage limits and deductibles.

Find out if you qualify for any discounts or whether there are additional fees for paying monthly or by credit card.

4. Buy your new car insurance policy

Once you've decided on the policy you want, you'll need to provide payment information and get your proof of insurance. Most car insurance companies issue coverage in six-month or one-year increments, and it's often cheaper to pay in full upfront than to pay monthly.

If you're changing carriers, you can avoid a lapse in coverage by waiting to cancel your old policy until after your new one is scheduled to take effect. You should be able to get a prorated refund for the remainder of the policy term, though there may be a cancellation fee.

There are several ways to cut down the cost of car insurance in Texas.

Bundle your insurance policies

Most providers that offer more than one kind of insurance give customers a discount for taking out multiple policies, most commonly by bundling auto and homeowners insurance. But some companies offer deals for combining different plans — including renters insurance, life insurance and even pet insurance.

Raise your deductible

Your deductible is the amount you’re responsible for out-of-pocket before your insurance company pays for anything. Increasing your deductible from $200 to $500 can reduce the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute, while upping it to $1,000 could save you 40% or more.

Make sure that you have enough money on hand to pay the additional cost if you’re involved in an accident.

Pay for your whole term upfront

Many insurers will lower your premiums if you pay for your entire six-month or one-year term in advance, in some cases by more than 10%. If you need to cancel before the term is up, you should be able to get a partial refund.

Improve your credit

In Texas, insurance companies are allowed to consider your credit score when calculating your auto insurance premiums. Paying bills on time, avoiding applying for more credit cards and checking your credit report for errors can all help raise your credit score.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed financial decisions. 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. 

CNBC Select reviewed 20 insurance companies offering policies in Texas, focusing on cost, coverage, standout benefits, discounts and online experience. 

We incorporated customer satisfaction ratings from J.D. Power and the National Association of Insurance Commissioners' complaint index, as well as financial strength ratings from A.M. Best. 

Sample premium data was gathered from the Texas Department of Insurance, based on a 30-year-old single male driver in Fort Bend County with a clean record, who drives 18,000 miles a year, buying a liability policy with $50,000 per person in injury coverage, $100,000 limit for all injuries, and $50,000 for property damage.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

Based on that criteria, our selections for the best car insurance companies in Texas are:

• Best for affordability: Geico
• Best for customer service: Nationwide
• Best for safe drivers: Texas Farm Bureau
• Best for bad credit: Farmers Insurance 
• Best for high-risk drivers: Mercury Insurance
• Best for veterans: USAA

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