Cheapest Car Insurance in Texas

The cheapest car insurance in Texas costs $28 per month or $335 per year for a minimum liability policy from Texas Farm Bureau, which is which is 57% or $445 cheaper than the state annual average. These rates are from Quadrant Information Services and reflect the cheapest rates in Texas as of October 2024. Read our research methodology to learn about how we found the cheapest Texas car insurance.

Along with having the lowest overall rate, Texas Farm Bureau is the cheapest car insurance company for most Texas drivers, with rates averaging $46 per month across both full and minimum coverage policies. That's $57 cheaper than the average cost of car insurance in Texas. State Farm, Progressive, Mercury and AAA Texas follow close behind.

*We used combined minimum and full coverage rates for a 40-year-old driver with good credit and no driving violations to calculate these averages.

While Texas Farm Bureau may have the cheapest rate for most drivers, the cheapest rate for you depends on your personal background. In the table below, we highlight the cheapest car insurance rates in Texas for several major driving profiles:

Read More: Cheapest Car Insurance

Along with the cheapest rate offered by Texas Farm Bureau, Mercury, State Farm, and Progressive also offer cheap minimum lability coverage for Texas drivers. Use the table below to explore rates for similar companies with the best minimum coverage rates in Texas, as well as how they compare to the $65 monthly state average.

Read More: Cheapest Liability-Only Car Insurance

Texas Farm Bureau is also the cheapest provider for full coverage auto insurance in Texas, with policies averaging $63 per month or $756 per year. That's 55% less expensive than the Texas average for full coverage.

Read: Cheapest Full Coverage Car Insurance

Young adult drivers in Texas fare best with Texas Farm Bureau, which tends to be the cheapest company for this age group. An average policy with Texas Farm Bureau costs $36 per month for 25-year-old drivers for a minimum liability coverage.

*We used minimum coverage for a 25-year old driver with good credit and no driving violations to determine the cheapest provider.

Texas Farm Bureau, Mercury and State Farm tend to be the cheapest auto insurance providers for a variety of young adult driver preferences and backgrounds in Texas. Although your premium may vary depending on your driving record and other factors, the rates and companies in the table below are good starting points to find the cheapest rates as a young driver.

Read More: Cheapest Car Insurance for Young Drivers

Senior drivers in Texas will likely get the lowest rates with Texas Farm Bureau, where the average policy is $25 per month for 65-year-old drivers for a minimum liability car insurance policy.

*We used minimum coverage for a 65-year old driver with good credit and no driving violations to determine the cheapest provider.

Texas Farm Bureau and State Farm have the cheapest rates for different senior driver profiles and needs in Texas. You may receive a different quote from these companies, but you can use the rates in the table below to guide your car insurance shopping experience.

Read More: Cheapest Car Insurance for Seniors

Texas drivers that have a DUI, at-fault accident, or speeding ticket on record are considered "high-risk" to insurers and pay more for car insurance on average vs. Texas drivers with a clean record. Depending on the offense, average premiums vary for high risk drivers in Texas. Below are the best rates for Texas drivers with a DUI, at-fault accident, and speeding ticket.

Mercury has the best rates for Texas drivers with DWIs, averaging $50 per month ($600 per year) for minimum coverage insurance. Check the table below for a list of insurance providers and their average annual pemiums for drivers with DWIs in Texas.

*We used a 40-year-old driver with good credit and a DWI on record to calculate these averages.

With rates averaging $47 per month ($564 per year), State Farm is the cheapest company for drivers after an at-fault accident. The table below shows a list of other insurers offering affordable coverage for drivers with accidents on their records. Rates are for a minimum coverage policy.

*We used a 40-year-old driver with good credit and an at-fault accident on record to calculate these averages.

Texas Farm Bureau offers the cheapest insurance for Texas drivers after a speeding ticket, with average rates of $28 per month or $226 per year. See the table below to compare providers offering minimum coverage for drivers with a speeding ticket.

*We used a 40-year-old driver with good credit and a speeding ticket on record to calculate these averages.

The cheapest car insurance provider for drivers with poor credit scores is Mercury, charging an average of $50 per month ($600 per year) for a minimum coverage policy.

*These rates are based on a 40-year-old driver with bad credit and a clean driving record.

Location is a significant factor in determining car insurance rates. Even within the same state, there can be substantial differences across cities due to factors like population density, flooding and crime rates.

In Texas, for example, Texas Farm Bureau is cheapest in San Angelo, where average rates are $21 per month. But the same provider in Carrollton is $40 per month for the same minimum coverage policy. Browse the table below to find your city, the cheapest company there and its lowest average monthly car insurance premium.

*The lowest rate reference is for a minimum coverage policy for 40-year-olds with good credit and no driving violations.

If you're looking to bundle home and auto insurance in Texas, Farmers is the most affordable option. In the table below you can view more cheap companies for bundling home and auto policies.

*Rates are for a 40 year old driver with good credit and no driving violations

The average cost of car insurance in Texas is $140 per month for full coverage and $65 per month for minimum coverage. Knowing average auto insurance premiums for your location and desired coverage level can help you determine whether you're getting a good deal from an insurer.

Rates can fluctuate widely based on your specific location in Texas. The table below shows the average minimum and full coverage rates for different Texas cities.

Car insurance is expensive in Texas and compared to other states they are the 10th most expensive for full coverage and minimum liability policies. This is likely due to the high population density in the state, frequent natural disasters, and higher-than-average vehicle theft rate.

Texas law requires all drivers to carry car insurance policies that adhere to the 30/60/25 minimum coverage limits set by the state, shorthand for $30,000 in bodily injury liability per person, $60,000 bodily injury liability per accident and $25,000 property damage.

If you finance or lease your car, you will likely have to buy comprehensive and collision insurance in addition to minimum liability coverages. Although a minimum liability auto insurance policy is the least expensive option, it offers the lowest amount of financial protection. Experts recommend driving with full coverage insurance with the highest deductible and liability limits you can afford.

Drivers with serious traffic violations on their records — such as speeding or drunk driving — may be required to file for SR-22 insurance, which can drive up your premium. Your insurance provider will submit the SR-22 form to the state, and it will be valid for two years from the date of your most recent offense.

The most common car insurance alternative in Texas is depositing $55,000 in cash or a personal certificate of deposit (CD) with the Texas Comptroller. You will then receive a certificate that you can use as proof of financial responsibility.

If you’re a business owner with a fleet of at least 26 vehicles, you can also look into a Certificate of Self-Insurance. Surety bonds are another option, but you would need to find two individuals willing to list their Texas properties as collateral against your vehicle, which is quite rare.

MoneyGeek recommends that drivers get full coverage car insurance, which includes liability, collision and comprehensive coverage. We recommend the following liability limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage per accident

Comprehensive coverage pays for off-road damage to your car if it’s stolen, vandalized or damaged by something other than a collision, such as severe weather or a fire. Collision coverage pays for damage to your car in an on-road collision.

If you own a valuable car, MoneyGeek suggests purchasing comprehensive and collision insurance, even though you are not legally obligated to do so. Tailor your deductible for comprehensive and collision coverage based on what you can afford to pay out of pocket before your insurance kicks in to cover the rest.

Texas Farm Bureau has the cheapest car insurance in Texas for both minimum and full coverage policies and various driver profiles. Although it's tempting to go with the lowest-cost option, cheapest isn't always best when it comes to car insurance. Experts recommend getting as much coverage as you can afford for the best financial protection on the road.

MoneyGeek answers commonly asked questions about the cheapest car insurance in Texas to ensure you get the right coverage for your situation.

MoneyGeek obtained Texas auto insurance rates from the Texas Department of Insurance and Quadrant Information Services. We examined 328,384 auto insurance quotes from 14 providers across 370 ZIP codes to determine the most affordable car insurance companies in Texas.

Texas Driver Profile

We used a driver profile with the following background information to identify the cheapest auto insurance companies in Texas:

• 40-year-old male
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

To find the cheapest option for various driver backgrounds, we adjusted this sample profile by age, driving record, credit score, car make and model and military service where specified.

Standard Coverage Levels in Texas

We compared car insurance companies in Texas that offer both minimum and full coverage policies. We set the limits of the minimum coverage car insurance policy to the minimum amount required by law in Texas.

The minimum coverage liability limits in Texas are:

• $30,000 per person for bodily injury
• $60,000 per accident for bodily injury
• $25,000 per accident for property damage

For full coverage policy rates, we used the following liability limits:

• $100,000 for bodily injury liability per person
• $300,000 for bodily injury liability per accident
• $100,000 for property damage liability
• Comprehensive and collision coverage with a $1,000 deductible

Home and Auto Coverage Levels in Texas

MoneyGeek analyzed the rates of insurance companies for a full-coverage auto insurance policy that includes the following coverage and limits:

• $100,000 in property damage liability
• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• Comprehensive and collision coverage with a $1,000 deductible

We also analyzed rates for a homeowners insurance policy that includes the following limits and coverage:

• $250,000 dwelling coverage
• $25,000 other structures coverage
• $100,000 personal property coverage
• $25,000 loss of use coverage
• $100,000 personal liability coverage
• $1,000 medical payments coverage
• All-perils coverage with a $1,000 deductible