Getting car insurance in Texas doesn't have to be a big expense. It tends to be close to the American average for car insurance costs, with the typical Texan paying $2,019 for full coverage, and $565 for minimum coverage according to Bankrate data.
It's possible to get the best deal for you by shopping around and comparing prices, whether you're living in Austin, Houston, Dallas or any other Texas city. Here are the four best and cheapest car insurance companies in Texas. (See our methodology for more information on how we made this list.)
Best for discounts
Allstate Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
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.
Pros
- Quotes available online
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: $391
Best for affordability
Texas Farm Bureau Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
Policy highlights
Texas Farm Bureau's auto insurance is a strong choice for Texas residents, as it's earned accolades for customer satisfaction and offers relatively affordable rates compared to those we considered.
Pros
- Highly rated for customer satisfaction
Cons
- Quotes not available online
Who's this for? As its name suggests, Texas Farm Bureau Insurance is available exclusively to residents of the Lonestar State. It is highly rated for customer satisfaction by J.D. Power in the state.
Standout benefits: Texas Farm Bureau Insurance offers discounts for those who have gone without a claim in three years, a discount for students under age 25 with a B average, and a discount for vehicles with factory-installed safety features, among other discounts.
Average annual Texas sample premium: $406
Best from a big-name insurer
Farmers Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
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.
Terms apply.
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 who have a Farmers homeowners insurance policy, this insurer could be even more competitive with a bundling discount.
Average annual Texas sample premium: $470
Best for military members and veterans
USAA Auto Insurance
Cost
The best way to estimate your costs is to request a quote
App available
Yes
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.
Terms apply.
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 those who have served in the military (and their qualifying family members) relatively affordable car insurance rates 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: $456
More on our top Texas car insurance companies
Allstate
Allstate stood out for its competitive rates, resulting in it being the lowest average of the companies we considered. Its strong ratings for financial strength and customer satisfaction make it a standout in terms of quality, too.
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
Texas Farm Bureau Insurance
Texas Farm Bureau Insurance has been selling insurance policies since 1952. The company also offers homeowners insurance, farm and ranch insurance and life insurance.
A.M. Best Rating
A-
J.D. Power score (Overall Customer Satisfaction Index Ranking)
824 out of 1,000
NAIC complaint index (Average is 1)
0.15, 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)
801.5 out of 1,000
NAIC complaint index (Average is 1)
2.81, 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
FAQs
How much is car insurance in Texas per month?
Car insurance in Texas tends to cost between $32.58 per month and $39.17 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 cheapest car insurance in Texas?
According to the data we gathered, Allstate offered the most affordable car insurance coverage in Texas, with Texas Farm Bureau Insurance a close second.
How can I lower my 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.
Bottom line
Texans have many options when it comes to insuring their vehicles. To find the right one for you, get several quotes with the same levels of coverage and deductibles and compare the premiums.
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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 auto insurance companies.
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.
After reviewing the above features, we sorted our recommendations by the best overall and runner-up, best for military members, veterans and their families, and best from a large insurer.
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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