The Lone Star State is one of the most expensive states for auto insurance in the United States. Mainly due to weather conditions and density of drivers. This means that finding the best car insurance in Texas will require that you look into what each provider’s coverage, pricing and the discounts they offer.
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 State Minimum* | 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 | $746.28 | $2,260.45 | 4.8/5 | A++ | 878/1,000 | |
| Pin Allstate | $767.81 | $2,686.10 | 4.2/5 | A+ | 832/1,000 | |
| Pin Geico | $774.49 | $1,959.12 | 4.4/5 | A++ | 845/1,000 | |
| Pin State Farm | $955.63 | $2,447.57 | 4.6/5 | A++ | 844/1,000 |
Information accurate as of 10/26/2020
* Data provided by Coverage.com
Best for military members
Why we chose it
Pros
- Personalized customer service
- Affordable policies
- Many discounts
Cons
- Only available to active and retired military members
- Very few branch locations
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
* Data provided by Coverage.com, price based on the state minimum required policy.
** J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Texas region. Based on a 1,000-point scale.
Further Reading on USAA:
Best for wide coverage
Why we chose it
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
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
* Data provided by Coverage.com, price based on the state minimum required policy.
** J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Texas region. Based on a 1,000-point scale.
Further Reading on Allstate:
- Allstate auto insurance review
- Allstate homeowners insurance review
- Allstate motorcycle insurance review
Best for affordable policies
Why we chose it
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
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
* Data provided by Coverage.com, price based on the state minimum required policy.
** J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Texas region. Based on a 1,000-point scale.
Further Reading on Geico:
Best for customer service
Why we chose it
Pros
- Impressive financial strength
- High claims satisfaction ratings
- Great discounts
Cons
- Expensive policies
- Fewer add-on coverages than competitors
- No accident forgiveness
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
* Data provided by Coverage.com, price based on the state minimum required policy.
** J.D. Power’s 2020 U.S. Auto Insurance Study rating for the Texas region. Based on a 1,000-point scale.
Further Reading on State Farm:
Average cost of car insurance in Texas
Texas is one of the most expensive states for auto insurance. It ranks seventh in the top 10 most expensive states for auto insurance for Coverage.com. The price for an annual premium with full coverage is around $1,974. Compared to the national average of $1,555, this state is 26% more expensive. If what you are looking for is a policy that meets the state minimum requirements, then the average is $708. Texas’ high population density means that there is a higher risk of accidents, and if you add that the state is prone to extreme weather, insurance companies can expect a higher number of claims. This, in the end, means higher prices for you.
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
| Company | Average Annual Premium* |
| USAA | $746.28 |
| Garrison Property and Casualty | $752.32 |
| Allstate | $767.81 |
* Data provided by Coverage.com, price based on the state minimum required policy.
Top 3 Most Expensive Car Insurance Companies in Texas
| Company | Average Annual Premium* |
| Metropolitan Lloyds Insurance | $1,829.27 |
| Dairyland County Mutual Insurance | $1,319.67 |
| Esurance | $1,237.53 |
* Data provided by Coverage.com, price based on the state minimum required policy.
Top 3 Cheapest Cities for Car Insurance in Texas
| City | Average Annual Premium* |
| Perryton | $622.46 |
| Hereford | $624.07 |
| Brownfield | $625.36 |
* Data provided by Coverage.com, price based on the state minimum required policy.
Top 3 Most Expensive Cities for Car Insurance in Texas
| City | Average Annual Premium* |
| South Houston | $1,159.55 |
| Houston | $1,144.88 |
| Humble | $1,131.85 |
* Data provided by Coverage.com, price based on the state minimum required policy.
Guide to Texas Car Insurance
In an annual study, the Lone Star State ranked in seventh place among the states with the worst drivers in the United States. For those trying to get the best auto insurance in Texas, this should push to get the more comprehensive coverage you can afford, so you are protected under any circumstances.
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 remuneration.
- There are more than 17 million licensed drivers in the state of Texas.
- In this state, proof and verification of auto insurance are required at all times.
- 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.
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 would help you avoid 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.
- Comprehensive coverage: If fire, flood or vandalism causes any damage to your vehicle, or even if it gets stolen, this coverage will cover you.
- Rental reimbursement coverage: If your car is stolen or needs to be repaired, having this reimbursement allows you to pay for renting a car. You can ask your provider if it covers taxi charges as well.
- Medical payments coverage: Say you and your passenger have any medical bills as a result of an accident, this coverage will pay for that. 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: Even if all drivers need to have insurance in Texas, 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 cover expenses if your car needs to be towed. If you need to pay for labor, such as having a flat tire or need to jump-start your car’s battery, this coverage will pay for it as well.
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 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.
