The Best Texas Auto Insurance Companies
The best Texas auto insurance should have you covered when an accident strikes, whether it’s the result of inclement weather or a collision with an uninsured driver. Because of the high minimum requirements on texas auto insurance, many choose to opt for lower standards of coverage for a lower price. As a result, it can be perilous, as it currently stands with Texas, in the event of an accident, there’s a one in seven chance that the other driver won’t be insured. Unless you’ve purchased uninsured/underinsured motorist (UM/UIM) coverage, that’s money out of your pocket. With this in mind, we picked six top providers that will provide excellent coverage at a competitive price that will keep you and your wallet out of harm’s way.
We searched some of the most accredited rating agencies, J.D Power, AM Best, and parsed through insurance data from Quadrant Information Services, to find the very best Texas has to offer. Each of our picks has something to offer, whether it’s Progressive’s ease of use or Allstate’s cheap rates. With these picks, you won’t have to worry about breaking the bank if you break your car.
Texas has some of the highest minimum coverage requirements in the nation, an ideal insurance provider offers affordable coverage with limits that protect you.
Since 2013, Reviews.com has helped millions of people find the best of the best when it comes to all sorts of products and services, including the best auto insurance companies in Texas. We’ve analyzed the auto insurance market in Texas, compared the top providers based on market share, consulted with financial professionals and insurance experts, and updated this review regularly in order to bring you the most current information in the Lone Star state. The author of this review does not own stock in any of the products or companies mentioned.
The 5 Best Auto Insurance Companies in Texas
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The Cheapest Car Insurance Companies in Texas
In order to find the cheapest car insurance, you’ll want to shop around and gather as many quotes as possible while taking in factors such as how often you drive, the age of your vehicle, and your own age as the driver. You also shouldn’t skimp on important coverage such as bodily injury/property damage liability, collision, comprehensive, personal injury protection (PIP), or uninsured/underinsured motorist (UM/UIM). Add-ons like these can make or break a policy and your ability to get a reliable return on your claims. Featured below are sample rates based on data gathered from our research and organized by affordability. Shopping around will make sure you get the price you’re looking for, but these sample rates can give you an idea of what to expect when you get your quote.
Quadrant car insurance rate data as of 07/01/2019.
These rates are a sample set meant only for general comparison. Your own premium will vary. Learn how we tested rates for the cheapest car insurance companies below.
Top 3 Cheapest Auto Insurance Companies in Texas
• USAA: $685
• State Farm: $749
• Geico: $771
Top 3 Most Expensive Auto Insurance Companies in Texas
• Allstate: $1,508
• National General: $1,273
• Nationwide: $1,172
USAA, State Farm, and GEICO ended up being the cheapest auto insurance companies in Texas. In Texas auto insurance is fairly reasonable relative to what many other Americans pay. In the past few years weather is one factor that has played a major role in determining insurance rates in Texas. In 2017, Hurricane Harvey caused damage to vehicles across the state, which led to insurers taking on major losses, and raising premiums. Additionally, Texas leads the nation in losses due to hail damage, according to the Insurance Information Institute, meaning comprehensive coverage can be a real financial life saver.
- Great online presence
- High claims satisfaction scores
Poorly designed mobile app
State Farm has many satisfied customers in Texas, judging by its 15% market share — the largest in the state. State Farm outperformed almost every company on our list in customer service scoring by J.D. Power and Consumer Reports. It also has a stellar website, which helps you understand which coverage best fit your specific needs. We would’ve liked a Live Chat feature, but there are plenty of contact alternatives, including a mobile app.
That said, the State Farm quotes we received were shockingly expensive when compared to the competition — typically around three times as much. While the extra cost may be worth the guarantee of good financial strength and customer service, we always recommend gathering quotes from multiple providers to see which strikes the best balance between cost and coverage.
Allstate is more reasonable in terms of pricing, and it came out cheapest for drivers under age 25 in our quotes. Consumer Reports readers rated it lower than State Farm in overall satisfaction, but Allstate pulled ahead in J.D. Power ratings with a superior score in agent interaction. There’s no denying that Allstate is popular in Texas, with the second-most market share of any company at roughly 11.7%. It’s also one of the only companies to offer “gap” insurance for new cars, something that State Farm is missing. And if your Allstate quote is lower than those from its competitors, it could mean the difference in whether you can afford comprehensive and/or UM/UIM coverage, two especially valuable add-ons in Texas.
Farmers has the fifth-largest market share in Texas at 8.2%. According to J.D. Power, Texans are more impressed with their Farmers claims experiences than they are with Allstate’s. Although Farmers’ score for claims satisfaction from Consumer Reports is on par with State Farm and Allstate. Farmers’ financial strength is also a couple of notches lower than the rest. This doesn’t mean that the company’s about to go bankrupt — it’s just the difference between “quite stable” and “completely rock-solid.”
The bigger drawback for Farmers, at least in Texas, is its high premiums. It is the second-most expensive provider on our list for five of the six driver profiles for which we got quotes, but it’s roughly average for young drivers. We still think it’s worth getting a quote from Farmers, though, as it offers the most discounts of our contenders.
Progressive is another solid option for Texans, but it lags slightly behind our top picks in both financial strength and claims satisfaction ratings. The differences are pretty minor, but they make it hard to justify Progressive over State Farm or Allstate on the basis of anything except price, which was about average. We did like how easy it was to get a quote through the website, though, and Progressive was one of the only companies we looked at to provide a Live Chat option.
Progressive has a slew of available discounts — including one for adding a newly licensed teen driver to your existing auto policy (surprising, given that teenage drivers are among the riskiest to insure). But a policy loaded with discounts isn’t necessarily cheaper than a non-discounted policy, and the Texas Department of Insurance’s data on premiums show that Progressive is, on average, the most expensive for young drivers among the top five in Texas.
- High customer satisfaction ratings
- Offers a variety of discounts for members
- Only for active or retired military and their families
Texas is home to the second-highest number of active duty military personnel in the country. USAA caters to both active and retired military service members and their families and holds down 8.4% of the Texas auto insurance market share. Its auto insurance comes with a plethora of discounts, and you can even save by bundling auto with homeowners or renters insurance. You can also get ride-share coverage through USAA, which is an emerging but still uncommon add-on in the current market.
USAA maintains a strong financial standing and ranked the highest of our top picks with Consumer Reports and J.D. Power. This means you won’t have to worry about settling up financially with the company, and you’ll likely have a decent time maneuvering through its claims process. If you or anyone in your immediate family is an active or retired service member, you should definitely give USAA a call and get a quote.
How We Found the Best Texas Auto Insurance Companies
We started by identifying Texas’ five biggest auto insurers by market share and comparing their financial strength, coverage options, and customer service using methodology similar to that in our review of the best car insurance providers. Then we checked J.D. Power and Consumer Reports to see how each company’s customers scored them on overall satisfaction and on the claims experience. Finally, we collected quotes for six hypothetical drivers, taking note of each company’s available endorsements and discounts.
Guide to Texas Auto Insurance
Texas mandates only that you insure yourself against bodily injury and property damage liability, so it’s your choice whether to add additional coverage for yourself, your passengers, and your vehicle. The state’s liability minimums are:
- $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, their 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
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.
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 insurers are required to file with state Departments of Insurance. Rates are based on sample profiles created by Reviews.com for comparative purposes.