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The Best Texas Car Insurance Companies for 2021

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    The Lone Star State is one of the most expensive states for auto insurance in the United States. High insurance rates in Texas may be largely affected by weather conditions and density of drivers. This means that finding the best car insurance in Texas may require some research to determine which coverage, pricing, and discounts are offered by different insurers.

    We looked at factors like overall customer satisfaction, including optional coverage, available discounts and third-party ratings to pick the best car insurance companies in Texas. Three of our choices were also included in our list of the best car insurance companies in the nation.

    The 4 Best Auto Insurance Companies in Texas

    • USAA: Best for military members
    • Allstate: Best for wide coverage
    • GEICO: Best for affordable policies
    • State Farm: Best for customer service

    Compare the Best Car Insurance Companies in Texas

    Average Price for Minimum Coverage* Average Price for Full Coverage* Reviews.com Score Score is based on company’s customer experience, financial stability, and coverage options. AM Best Financial Strength AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. J.D. Power Overall Customer Satisfaction J.D. Power scores are based on surveys for customer satisfaction and product quality.
    Pin USAA$746$2,2604.8A++879
    Pin Allstate$768$2,6864.2A+836
    Pin Geico$775$1,9594A++832
    Pin State Farm$956$2,4484.4A++838

    Information accurate as of September 2021

    * Data provided by Coverage.com

    **J.D. Power 2021 Auto Insurance Satisfaction Study rating for the Texas region. Based on a 1,000-point scale.

    Best for military members

    USAA offers affordable and top-rated car insurance to members of the military, their spouses and children.
    • 4.8 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $2,260 Average Premium Pricing data comes from our partners at Coverage.com.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 879** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    USAA offers affordable and top-rated car insurance to members of the military, their spouses and children.

    Pros

    • Personalized customer service
    • Affordable policies
    • Many discounts

    Cons

    • Only available to active and retired military members
    • Very few branch locations
    Read More

    Types of Coverage Offered

    • Personal injury protection 
    • Extended benefits coverage 
    • Roadside assistance 
    • Rental car reimbursement 
    • Accident forgiveness

    Discounts Available

    • Safe driver 
    • Defensive driving course 
    • Driver training course 
    • Good student 
    • New vehicle 
    • Multi-vehicle 
    • Annual mileage 
    • Vehicle storage 
    • Family discount 
    • Length of membership 
    • Military installation 
    • Policy bundling

    Further Reading on USAA:

    Best for wide coverage

    Allstate car insurance offers a variety of coverage to ensure customers get the protection they need.
    • 4.2 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $2,686 Average Premium Pricing data comes from our partners at Coverage.com.
    • A+ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 836** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Allstate car insurance offers a variety of coverage to ensure customers get the protection they need.

    Pros

    • Streamlined claims process with a satisfaction guarantee
    • Strong online policy management and learning materials
    • 24/7 claims center
    • Drivewise program

    Cons

    • Rates are slightly more expensive compared to other top providers
    • Missing some common discounts
    Read More

    Types of Coverage Offered

    • Collision coverage 
    • Comprehensive coverage 
    • Liability coverage 
    • Medical payments coverage 
    • Personal injury protection 
    • Personal umbrella policy 
    • Rental reimbursement coverage 
    • Roadside coverage 
    • Sound system insurance
    • Uninsured and underinsured motorist coverage

    Discounts Available

    • Anti-lock brake discount 
    • Anti-theft device discount 
    • Automatic withdrawal discount 
    • Early signing discount 
    • Full-pay discount 
    • Multi-policy discount 
    • New car discount 
    • Paperless discount 
    • Responsible payer discount 
    • Safe driver discount 
    • Smart student discount

    Further Reading on Allstate:

    Best for affordable policies

    Geico is known for offering cheap car insurance in TX and other expensive states, even for high-risk drivers and drivers with poor credit.
    • 4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $1,959 Average Premium Pricing data comes from our partners at Coverage.com.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 832** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    Geico is known for offering cheap car insurance in TX and other expensive states, even for high-risk drivers and drivers with poor credit.

    Pros

    • Affordable full coverage policies
    • Variety of discounts
    • Strong financial ratings
    • Fast and convenient auto repairs

    Cons

    • No discounts for hybrid/electric cars
    • Coverage might be subject to affiliated and non-affiliated insurance companies.
    • Does not offer gap insurance
    Read More

    Types of Coverage Offered

    • Personal injury protection 
    • Roadside assistance 
    • Rental car reimbursement 
    • Mechanical breakdown coverage
    • Medical coverage 
    • Uninsured motorist coverage 
    • Collision coverage 
    • Comprehensive coverage

    Discounts Available

    • Vehicle safety features (airbags, anti-lock brakes, anti-theft system and daytime lights) 
    • New vehicle 
    • Good driver 
    • Seat belt use 
    • Defensive driving course 
    • Driver education course 
    • Good student
    • Emergency deployment 
    • Federal employee 
    • Employee membership 
    • Military 
    • Multi-vehicle
    • Multi-policy

    Further Reading on Geico:

    Best for customer service

    State Farm offers great customer service with nearly 19,000 agents and plenty of online support options.
    • 4.4 Reviews Score Score is based on company’s customer experience, financial stability, and coverage options.
    • $2,448 Average Premium Pricing data comes from our partners at Coverage.com.
    • A++ AM Best Rate AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim.
    • 838** J.D. Power J.D. Power scores are based on surveys for customer satisfaction and product quality.

    Why we chose it

    State Farm offers great customer service with nearly 19,000 agents and plenty of online support options.

    Pros

    • Impressive financial strength
    • High claims satisfaction ratings
    • Great discounts

    Cons

    • Expensive policies
    • Fewer add-on coverages than competitors
    • No accident forgiveness
    Read More

    Types of Coverage Offered

    • Rental car and travel expenses coverage 
    • Roadside assistance coverage 
    • Rideshare driver coverage

    Discounts Available

    • Policy bundling 
    • Accident-free 
    • Defensive driving course 
    • Student away at school 
    • Good driver 
    • Driving training 
    • Good student 
    • Vehicle safety 
    • Passive restraint 
    • Anti-theft device
    • Multi-vehicle

    Further Reading on State Farm:

    The Average Cost of Car Insurance in Texas

    Texas is one of the most expensive states for auto insurance, based on our research of quoted annual premiums from Coverage.com. The average annual rate for full coverage is around $1,974 for Texas. Compared to the national average of $1,555, the Lone Star state is 26% more expensive. For minimum coverage that only meets the state liability requirements, then the average annual rate is $708. Texas’ high population density means that there is a higher risk of accidents with more people driving in crowded cities and towns in urban areas. The state is also prone to extreme weather, which insurance companies see as a greater risk and a higher number of claims. This, in the end, means higher prices for you, depending on your specific proximity to these risk factors.

    Remember that every driver will get different rates based on age, gender and claims history, among other factors.

    Top 3 Cheapest Car Insurance Companies in Texas

    CompanyAverage Annual Premium*
    USAA$746
    Garrison Property and Casualty$752
    Allstate$768

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Most Expensive Car Insurance Companies in Texas

    CompanyAverage Annual Premium*
    Metropolitan Lloyds Insurance $1,829
    Dairyland County Mutual Insurance$1,320
    Esurance$1,238

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Cheapest Cities for Car Insurance in Texas

    CityAverage Annual Premium*
    Perryton $622
    Hereford $624
    Brownfield $625

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Top 3 Most Expensive Cities for Car Insurance in Texas

    CityAverage Annual Premium*
    South Houston$1,160
    Houston $1,145
    Humble $1,132

    * Data provided by Coverage.com, price based on the state minimum required policy.

    Guide to Texas Car Insurance 

    Given the size of the state and risk variables present, drivers in Texas are up against a variety of financial hazards. For those trying to get the best auto insurance in Texas, experts recommend you consider purchasing as much coverage as you can afford, so you are protected financially in the event of a costly loss.

    The Texas Department of Insurance created an automobile insurance guide to help you understand the kind of coverage you need and what to look for when renewing your policy. If you are getting to know the roads of this state, we recommend checking out some surprising Texas traffic laws. Here are other important things for policyholders in this state.

    Key things to know about car insurance in Texas

    • Texas is an at-fault state, meaning those responsible for the damage must pay for injuries and property damage they cause.
    • An estimated 13 million drivers are licensed to operate vehicles in the state of Texas.
    • In this state, proof and verification of auto insurance are required at all times. This can be a paper ID card or a digital version on your phone.
    • You can get a $350 fine or even suspension of driving privileges if you fail to produce a valid and current insurance card to authorities. 
    • According to the Insurance Information Institute, Texas is the number one state for hail damage losses. Hail damage is paid under comprehensive coverage, so consider this optional coverage if you want your car protected from weather events like hail.

    Car Insurance Add-Ons That Will Further Protect You 

    Your car insurance policy must meet Texas’s liability requirements, as having the minimum coverage keeps you from being fined. Still, your safest bet is to purchase the most comprehensive coverage you can reasonably afford. Adding some extras can help limit your out-of-pocket expenses in excess of your policy’s limits. Here are the add-ons that we recommend in the Lone Star State:

    • Collision coverage: This will pay to repair or replace your car if you impact another vehicle or object, up to policy limits. 
    • Comprehensive coverage: Often called “other than collision”, this coverage pays for theft of the car, vandalism, broken windows and windshields, and if you hit an animal — effectively, any damage to your vehicle not sustained in a collision incident..
    • Rental reimbursement coverage: If your car is stolen or needs to be repaired, having this reimbursement allows you to pay for renting a car. With some providers, this may cover taxi charges as well. 
    • Medical payments coverage: If you and/or your passenger have medical bills as a result of an accident, this coverage will pay for related expenses. It will also pay if you get hurt while walking, biking, or even if you are a passenger in someone else’s car.
    • Uninsured/underinsured motorist coverage: This coverage will protect you in case you are hit by someone that does not have insurance or the expenses from a crash exceed the limits of the other driver’s insurance.
    • Towing and labor coverage: Adding this to your policy will help cover expenses if your car needs to be towed. If you need to pay for labor, such as having a flat tire, this coverage will help cover the cost.

    Texas Minimum Insurance Requirements

    All drivers in the Lone Star State must carry a minimum amount of liability insurance. If you used to drive in any other state, you should know that these minimum requirements vary per state and you could be fined for failing to comply.

    Minimum liability required in the state of Texas is divided as follows:

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

    Texas Car Insurance FAQ

    Methodology 

    Reviews.com scores products, services and companies using five quantifiable criteria to help readers choose the best one for them. For the best car insurance in Texas, our editorial team compared affordability, customer support, coverage options, customer satisfaction scores and online resources from each company and averaged the scores to produce our very own Reviews.com score. These scores were created with our readers in mind and are meant to be a helpful tool to simplify the process of choosing which car insurance company is best for you. 

    As for average pricing, we used Coverage.com’s data of car insurance in Texas, based on the profiles of a 30-year male and female. For full coverage, the details used were the following:

    • $100k bodily injury liability per person
    • $300k bodily injury liability coverage per crash
    • $100k property damage liability coverage per crash
    • $500 collision coverage deductible
    • $500 comprehensive coverage deductible

    Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting five days a week and driving 12,000 miles per year. Since auto insurance rates vary widely among different profiles, we encourage you to compare options that fit your specific needs.

    About the Authors

    Nina Rodríguez-Quirós

    Nina Rodríguez-Quirós Feature Writer

    Nina Rodríguez-Quirós is a feature writer for Reviews.com. Over the last year, she has covered insurance providers, claims handling, coverage and more. She has been featured in Allconnect.com and holds a Master’s Degree in Theory and Research of Communications from the University of Puerto Rico. Her favorite review is Millennials and Auto Insurance.

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