Texas Auto Insurance Review

As the saying goes, “everything’s bigger in Texas” — and that holds true for car insurance coverage. The Lone Star State has some of the highest minimum requirements in the nation (following only Alaska and Maine), but that doesn’t necessarily mean they’ll be enough to pay off all your expenses after an accident. Even if you’re not the one at fault in a crash, there’s a 1-in-7 chance that the other driver won’t be insured, in which case you’ll pay your bills yourself unless you’ve purchased uninsured/ underinsured motorist (UM/UIM) coverage. Texas does require insurers to offer at least $2,500 of Personal Injury Protection (PIP) coverage to offset medical bills, but that, too, is optional. Comprehensive insurance is also a smart addition to your policy in a state that ranks first for monetary losses from “catastrophes” like hail storms and hurricanes.

The 4 Best Auto Insurance Companies in Texas

We reviewed the four biggest car insurance companies in Texas by market share:

Guide to Texas Auto Insurance

Minimum liability

Texas mandates only that you insure yourself against bodily injury and property damage liability, so it’s your choice whether to add coverage for yourself, your passengers, and your vehicle. Here are the state’s liability minimums:

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

These are on the high side, but there are still instances in which they won’t be enough to fully cover you. For example, if you accidentally hit a luxury car, replacing it could easily cost more than the $25,000 legal minimum for property damage coverage. If the other driver is injured, his or her medical bills could also exceed the $30,000 bodily injury minimum fairly easily. In each case, you’d be responsible for making up the difference yourself.

Personal injury protection

When you apply for auto insurance in Texas, providers are legally required to offer $2,500 in Personal Injury Protection coverage (PIP). This type of coverage is mandated in so-called “no-fault” states, but it’s optional in Texas (although you do have to refuse it in writing). If you select it, 100% of the coverage amount will be available for your medical bills following an accident, regardless of who was at fault. While you may be covered under your own health insurance for those costs, PIP has the added benefit of covering up to 80% of your lost income if you’re unable to work following an accident. It’s a nice protection, but keep in mind that $2,500 won’t go that far in such a case. While most companies will let you raise the limit, it’s one of the costlier options to add, so if you’re on a budget you’ll have to weigh its value against things like comprehensive and UM/UIM coverage.

High-risk drivers can get covered through TAIPA

If you’re getting turned down by traditional insurers due to a spotty driving record, the Texas Automobile Insurance Plan Association (TAIPA) is probably your best option. It only offers the bare minimum required by law, it’s more expensive than traditional insurers, and you’ll have to show proof that you’ve been turned down by at least two companies. It’s a last resort, but TAIPA will get you back on the road.

Texas Auto Insurance FAQ

What are average auto insurance rates in Texas?

Texas auto insurance rates are right in line with the national average — $1,110 per year, compared to $1,009 nationwide. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. You can use our tool at the top of the page to find your best rates.

What impacts auto insurance premium costs?

Your premium cost depends largely on personal factors: your age, credit score, how much you drive, and the type of vehicle you’re insuring, among other things. But because different providers will charge the same individual more or less for the same coverage, the only way to nail down your best rate is to compare personalized quotes.

Why have auto insurance rates gone up in Texas?

Texas is one of four states that have seen the highest increase in auto insurance premiums over the last seven years, according to Consumer Reports. While part of that jump is due to increased repair costs for the added technology in new cars, extreme weather also plays a role, with Hurricane Harvey a recent glaring example. Over half a million vehicles flooded in Texas during that storm, significantly raising insurers’ annual losses for 2017, and in turn, causing around an 8% jump in premiums this year. Add the fact that Texas is number one in the nation for hail damage losses, and its position at the top of the rate hike leaderboard is no surprise.

The Best Texas Auto Insurance: Summed Up


State Farm

Allstate

Farmers

Progressive

A.M. Best Financial Strength Rating
A++
A+
A
A+

J.D. Power Customer Satisfaction Score
3/5
3/5
3/5
3/5

Consumer Reports Reader Score
89/100
88/100
89/100
87/100