USAA is our top auto insurance carrier in Texas due to its superior customer service ratings and unique perks and discounts. To find the best Texas car insurance companies, we looked at factors like overall customer satisfaction, included and optional coverage, available discounts, premiums, and more. We also analyzed J.D. Power scores, BBB ratings, and AM best financial strength ratings. You can find reviews and evaluations for all our top picks below.
The 5 Best Car Insurance Companies in Texas
|Our review||Our review||Our review||Our review|
|AM Best Financial Strength Rating||A++||A+||A+||A++||A++|
|J.D. Power 2019 Overall Customer Satisfaction Score(Texas region)||5/5||3/5||N/A||3/5||3/5|
|Avg. Annual Premium||$983||$1,716||$1,886||$751||$1,070|
|Compare rates||Compare rates||Compare rates||Compare rates||Compare rates|
Quadrant car insurance rate data as of 07/01/2019
- Unique discounts like vehicle and military installation discounts
- No down payment to start a policy
- Free accident forgiveness coverage after five years for eligible policyholders
- Only available for active military members, veterans, and their family members
If you’re eligible for USAA, you can take advantage of some of the lowest premiums and most flexible policies of any insurance company. USAA also offers unique savings, such as vehicle storage and military installation discounts.
- Higher premiums than the state average
Allstate has numerous benefits, like new car replacement and safe-driving bonuses, and it ensures you’ll be satisfied with your claims handling process or you get your money back.
- Easy claims handling
- E-Star Direct Repair program
- Most expensive of our picks
- Policy underwritten by another company
Esurance Mobile makes filing claims quick by letting you complete photo claims and get your payment sent in as little as one day. Together with Esurance’s guaranteed repairs program, the company is committed to having you back on the road in no time.
- Comprehensive mobile app
- Low rates
- No gap insurance
- Few local Texas agents
Geico has the lowest rates on this list, without sacrificing policy features or discounts. Its convenient app makes sure you can manage all aspects of your policies and claims right from your phone.
- Mixed consumer reviews when comparing J.D. Power and BBB ratings
- Uses non-OEM or recycled parts for claim repairs
State Farm has a huge statewide presence in Texas, with plenty of discounts available to those who choose to buy insurance. Its innovative mobile app only adds to the convenient user experience with features such as claim management and access to roadside assistance
The Cheapest Car Insurance Companies in Texas
|Largest Companies by Market Share in Texas||Average Annual Premium|
|Houston General Insurance||$853|
|State Auto Insurance||$1,761|
|Southern County Mutual||$1,851|
Car Insurance Premiums by County
|Top Texas County Premiums by Population||Average Annual Premium|
Car Insurance by Credit Rating
|Credit Rating tier||Average Annual Premium|
|Average Across Credit Rating Tiers||$1,420|
Top 3 Cheapest Car Insurance Companies in Texas
- Loya Insurance – $578
- Geico – $751
- Houston General – $853
Top 3 Most Expensive Car Insurance Companies in Texas
- Metropolitan Insurance – $3,092
- Kemper Insurance – $2,294
- National General – $2,081
The cheapest car insurance company in Texas is Loya Insurance, while the most expensive is Metropolitan Insurance. Our rates are based on general profiles, so requesting personalized quotes is the sure way to show you which insurer offers you the best value.
Guide to Texas Car Insurance
- Texas is an at-fault state, meaning those responsible for the damage must pay remuneration.
- Proof and verification of auto insurance is required at all times
- You get a $350 fine if you fail to produce a valid and current insurance card to authorities
- 30/60/25 coverage is required
- Car insurance companies use your C.L.U.E. report to help determine policy approvals
Texas Minimum Liability
Liability represents “responsibility,” and is divided into two categories: bodily injury and property damage. If you’re the at-fault party in an accident, your auto liability insurance will pay the other driver’s medical and vehicle repair costs.
In Texas, your car insurance policy must have at least these liability requirements:
- Bodily Injury – $30,000 per person and $60,000 per covered incident
- Property Damage – $25,000 per covered incident
Your safest bet is to purchase the most comprehensive coverage you can reasonably afford. That’s because you have to pay out of pocket for any costs exceeding your policy’s liability limits.
How We Found the Average Premium for Texas Car Insurance Companies
We worked with Quadrant Information Services to provide data on auto insurance rates by company and credit score. Quadrant makes this information available using rate data that insurers are required to file with the state Department of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes.
Texas Car Insurance Companies FAQ
Yes. All drivers in the Lone Star State are required to carry the minimum amount of liability insurance. This comes out to the following:
- $30,000 bodily injury coverage per person
- $60,000 bodily injury coverage per accident
- $25,000 property damage coverage per accident
This is sometimes abbreviated as 30/60/25. However, you do not necessarily want to settle for the minimum (despite these minimums being so expensive). This is because of the fact that these figures might not prove sufficient for covering an accident.
A general rule of thumb when shopping for auto insurance is to purchase as much as you can afford. You shouldn’t bankrupt yourself, but you also don’t want to purchase too little and find yourself paying out of pocket when you reach your liability limits. Shopping around for quotes is the best way to get the most bang for your buck.
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.
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. Mileage is a big one to look out for when driving around Texas, especially if your commute is shorter compared to someone else on the same policy. The more you drive, the higher your premiums tend to be.
“Texas is a big state, as you know. There are many miles of roads. If you have a short commute and drive a low number of miles annually, you’ll want to make sure you don’t share the risk equally with someone who puts on three times the miles you do,” says Sara E. Routhier, managing editor at 360 Quote. “Look for a company that will give you a low mileage discount, or a lower rate for the few miles you drive.”
However, because different providers will charge the same individual more or less for similar coverage, the only way to nail down your best rate is to compare personalized quotes.
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 No. 1 in the nation for hail damage losses, and its position at the top of the rate hike leaderboard is no surprise.
In some cases, yes. Of our top picks for Texas auto insurance companies, USAA offers exclusive and tailored discounts for military personnel and their families, with perks like vehicle storage and on-base discounts.
A tort state, more commonly known as an “at-fault” state, according to the Insurance Information Institute where “A policyholder at fault in a car crash can be sued by the other driver and by the other driver’s passengers for the pain and suffering the accident caused as well as for out-of-pocket expenses such as medical costs.” This means after an accident, the police and insurance companies will determine who is “at-fault” or responsible for the auto accident. After a decision is made, the “at-fault” driver is required to pay any accrued expenses from the accident. Texas is a tort state, and in fact, a majority of the United States uses the tort system, with only 12 states opting for a “no-fault” model.