Best Cheap Car Insurance in Texas (November 2023 Rates)

Recently updated on November 26th, 2023 at 11:05 pm

The cheapest car insurance company in Texas is State Farm, with average monthly rates as low as $29 for minimum coverage and $72 for full coverage. Texas Farm Bureau is another excellent choice for cheap car insurance in Texas, especially if you have teens, tickets, accidents or other high risk factors on your driving record. USAA also has very affordable premiums, but is only available for military members and their families.

Key Takeaways

  • The best cheap car insurance in Texas comes from State Farm, with an average monthly rate of just $29 for minimum coverage and $72 for full coverage.
  • Texas Farm Bureau has the most affordable car insurance for teen drivers in the state, costing $62 per month for minimum coverage and $140 per month for full coverage.
  • Drivers with speeding tickets or accidents on their record can still find affordable rates from State Farm, Texas Farm Bureau and USAA in Texas.
  • Texas Farm Bureau offers the cheapest car insurance for high risk drivers, including those with poor credit or a DUI, while State Farm and USAA also have very affordable rates.

Cheap Car Insurance in Texas for 2023

Finding an affordable car insurance policy in Texas can save you hundreds of dollars per year. But with dozens of companies to choose from, how do you find the best cheap car insurance in Texas?

I compared rates from top insurance providers across the state to uncover which ones offer the most affordable premiums for minimum and full coverage car insurance. I also looked at which insurers offer the best rates for high risk drivers, including teens, drivers with accidents or tickets, poor credit and DUIs.

Below I share everything I learned about getting cheap car insurance quotes in Texas, including:

  • The cheapest car insurance companies in Texas
  • Average rates by coverage type
  • Minimum insurance requirements
  • Factors that influence car insurance premiums
  • Tips for getting cheap car insurance quotes

I’ll also explain why cheaper isn’t necessarily better when choosing an insurance policy, and provide pros and cons of Texas minimum coverage versus full coverage car insurance.

By the end, you’ll know exactly where to get the cheapest car insurance in Texas that meets your needs.

Who Has the Cheapest Car Insurance in Texas?

I checked rates from major car insurance companies in cities and towns across Texas to find the carriers with the lowest average premiums.

State Farm consistently offers the most affordable car insurance rates in the state, with an average monthly premium of just $29 for minimum coverage and $72 for full coverage.

Texas Farm Bureau and USAA also have very low car insurance rates. However, USAA policies are only available to active and former military members and their families.

Here are the cheapest car insurance companies in Texas and their average monthly premiums:

CompanyMinimum CoverageFull Coverage
State Farm$29$72
Texas Farm Bureau$32$85

πŸ’‘ Pro Tip: Get quotes from at least 3-5 different insurance companies before choosing a policy. Rates can vary a lot between insurers and you could save hundreds per year by shopping around.

How Much is Car Insurance in Texas?

Car insurance rates in Texas average $48 per month for minimum coverage and $136 per month for full coverage, based on our rate analysis.

That’s 17% lower than the national average premium for minimum coverage and 9% lower than the U.S. average for full coverage.

Some parts of Texas often have higher or lower car insurance rates than others. For example, monthly premiums average $162 in Houston but just $114 per month in Marfa.

Here’s a breakdown of average monthly car insurance rates for minimum and full coverage policies in some of Texas’ biggest cities:

CityMinimum CoverageFull Coverage
San Antonio$75$153
Fort Worth$77$155
El Paso$61$153

Where you live, what car you drive, your age, driving record and other factors also influence your insurance rates. I explain more details below on what determines your car insurance premiums.

First, let’s look at Texas’ minimum insurance requirements.

What is the Minimum Car Insurance Required in Texas?

Texas is an β€œat-fault” auto insurance state. That means drivers are required to carry a minimum amount of liability insurance in case they cause an accident.

The minimum liability car insurance requirements in Texas are:

  • Bodily injury (BI) coverage: $30,000 per person injured and $60,000 per accident
  • Property damage (PD) liability coverage: $25,000 per accident

This is often called a β€œ30/60/25” policy. It covers medical bills for other people if you injure them, plus repairs to their vehicle or property, up to these amounts.

πŸ‘ Editor’s Note: Consider getting more than the minimum 30/60/25 liability coverage if possible. That provides limited protection. 100/300/100 or higher coverage is safer.

Does Texas Require Uninsured Motorist Coverage?

Texas allows – but does not require – uninsured motorist coverage and personal injury protection. However, your lender may insist you carry these if you finance or lease a vehicle.

Uninsured motorist coverage pays for injuries to you or your passengers if you’re hit by a driver with no insurance.

Personal injury protection (PIP) covers immediate medical expenses and lost wages after an accident, regardless of who was at fault.

Adding these extras will raise your insurance premiums. But they provide important protections in the event of a serious accident.

Cheapest Minimum Liability Car Insurance in Texas

Drivers looking for the absolute cheapest rates can find basic liability policies in Texas starting around $29 per month.

State Farm has the lowest average premiums for minimum coverage at just $29 monthly, compared to the Texas average of $48 per month.

Texas Farm Bureau and USAA also have very affordable minimum liability rates, while Geico offers modest savings compared to other major insurers.

Here are the cheapest companies for minimum coverage car insurance in Texas and their average monthly premiums:

CompanyAvg Monthly Rate% Below State Avg
State Farm$2939% lower
Texas Farm Bureau$3233% lower
USAA$3429% lower
Geico$464% lower

🚘 Editor’s Note: Remember that minimum liability policies only cover damage and injuries you cause to others. They do NOT include comprehensive and collision to repair or replace your own vehicle after an accident.

Cheapest Full Coverage Auto Insurance in Texas

Adding comprehensive and collision coverage costs more upfront. But full coverage car insurance can save you thousands if your vehicle gets damaged or totaled.

State Farm offers the best rates for full coverage in Texas, averaging just $72 per month. Texas Farm Bureau and USAA also have affordable premiums for full coverage.

Here are the most affordable insurers for full coverage car insurance in Texas and their average monthly rates:

CompanyAvg Monthly Rate% Below State Avg
State Farm$7247% lower
Texas Farm Bureau$8537% lower
USAA$10423% lower
Geico$11019% lower

Rates for full coverage average $136 per month across Texas. So drivers can save $64 or more per month by going with State Farm, Texas Farm Bureau or USAA.

πŸ’― Pro Tip: Adding a higher deductible lowers your monthly premiums. For example, raising your deductible from $500 to $1,000 could reduce your premiums by 10-40%.

Cheapest Car Insurance for Teen Drivers

Younger drivers tend to have the highest insurance rates in Texas. That’s because teens are more likely to get into accidents than more experienced motorists.

Texas Farm Bureau offers the most affordable car insurance rates for teenagers in the state. Their average monthly premiums are:

  • Minimum coverage: $62
  • Full coverage: $140

State Farm and Geico also offer relatively low rates for teen drivers in Texas. Just avoid Progressive or Allstate if possible, as their premiums for teen drivers tend to run very high.

Here’s a comparison of average monthly teen driver insurance rates from top companies in Texas:

CompanyMin. CoverageFull Coverage
TX Farm Bureau$62$140
State Farm$100$213

πŸ€” Editor’s Note: Consider starting your teenager on a cheaper minimum coverage policy. You can always add collision and comprehensive later once they gain more experience behind the wheel.

Cheapest for Drivers with Speeding Tickets

A speeding ticket can raise your insurance costs an average of 10% per year in Texas. However, State Farm and Texas Farm Bureau don’t raise rates significantly for one ticket.

Drivers with speeding tickets can still find affordable full coverage rates from:

πŸ‘‰ State Farm: $72 per month πŸ‘‰ Texas Farm Bureau: $85 per month

Meanwhile, Progressive and Allstate tend to penalize drivers heavily for speeding tickets. Their average premiums increase by 29-72% after just one ticket!

πŸ’‘ Pro Tip: Enroll in defensive driving to prevent points on your license and keep insurance rates low. Also, compare quotes each renewal since different insurers calculate tickets differently.

Cheapest Car Insurance After an Accident

Getting into an at-fault accident can drive up your car insurance rates an average of 51% per year in Texas. Ouch! 😣

However, State Farm and Texas Farm Bureau don’t raise rates too drastically after just one accident. USAA is also affordable for drivers with accidents.

Here are the cheapest Texas car insurers if you’ve caused a crash, with monthly full coverage premiums:

CompanyAvg Monthly Premium
State Farm$86
Texas Farm Bureau$134

πŸ’― Pro Tip: Comparison shop for a better rate if your current insurer hits you with a big premium increase after an accident. New companies may overlook a single past claim.

Cheapest Car Insurance After a DUI

Sadly, a DUI conviction nearly doubles car insurance rates in Texas. Monthly premiums rise by about 92% on average! 😲

But State Farm, USAA and Texas Farm Bureau offer the most affordable DUI car insurance rates in the state. Full coverage from State Farm starts around $117 per month, while Texas Farm Bureau and USAA remain under $165 monthly.

Here are the cheapest Texas car insurers for drivers with a DUI:

CompanyAvg Monthly Rate
State Farm$117
Texas Farm Bureau$163

Cheapest for Drivers with Poor Credit

Texans with poor credit scores pay 65% more on average for car insurance coverage.

But Texas Farm Bureau manages to keep rates relatively low for drivers with less-than-perfect credit, with full coverage averaging $192 per month. State Farm is also an affordable option at $376 per month for drivers with poor credit.

CompanyAvg Monthly Rate
Texas Farm Bureau$192
State Farm$376

πŸ’‘ Pro Tip: Contact your car insurance company and politely ask for the best rate possible. Provide details on any discounts you may qualify for. Being polite and asking if there is a better rate can sometimes yield savings!

Average Cost of Car Insurance by Texas City

Car insurance rates within the same state can vary widely depending on which city drivers live in.

We found premiums range from an average of $114 per month in Marfa up to $175 monthly in North Houston for a full coverage policy.

Here are average monthly car insurance rates for full coverage in some of the biggest cities around Texas:

CityAvg Monthly Premium
San Antonio$121
Fort Worth$119
El Paso$115
Corpus Christi$123

πŸ” Key Fact: Rates can even vary drastically by zip code and neighborhood. So be sure to get quotes tailored to your address and specific vehicle.

What Factors Influence Car Insurance Premiums?

Car insurance companies set rates based on how likely they think you are to file a claim. They assess this risk level through a pricing process that weighs several key rating factors about your vehicle, driving history and more.

Here are some major factors that go into calculating your auto insurance rates:

πŸ”‘ Where you live: Your zip code and neighborhood play a big role. Insurance rates tend to be higher in cities than in rural areas, for example.

πŸš— What car you drive: More valuable, newer vehicles that cost more to repair mean higher premiums. Sports cars also draw higher rates.

πŸ‘©β€πŸ‘¦ Your age: Teenagers and elderly drivers have higher average accident rates, hiking their insurance prices.

πŸ“ Driving record: Multiple tickets, accidents or a DUI lead insurers to charge more due to the risk of future incidents.

πŸ‘ Credit history: Texas allows insurers to reference your credit. Those with poor credit often see increased rates.

🚦 Coverage types: Minimum liability is cheaper than full insurance. Comprehensive and collision raise rates but offer more protection.

πŸŽ“ Discounts: Defensive driving courses, good student discounts, multi-policy discounts and more can reduce your costs.

πŸ’² Deductibles: Choosing a higher deductible lowers monthly payments but means you pay more out-of-pocket after an accident.

🀝 Multi-policy bundling: Insure both your home and car (or multiple vehicles) with the same carrier for possible discounts.

As you can see above, State Farm, Texas Farm Bureau and USAA manage to maintain affordable rates even for higher-risk drivers. So be sure to check their quotes if you have accidents, tickets or other violations on your history.

πŸ” Key Fact: Your driving record is usually more important than your credit score or age when it comes to Texas auto insurance rates. So maintaining a clean driving history saves you the most!

Tips for Finding Cheap Car Insurance in Texas

Here are my top 7 tips to unlock cheaper car insurance rates in the Lone Star State:

1. Compare quotes – Rates vary greatly between companies, so get at least 4-5 free quotes before choosing. This can save you hundreds!

2. Review coverage needs – Don’t overpay for unneeded extras, but make sure you have adequate protection.

3. Ask about discounts – Mention any discounts upfront to ensure they apply all possible markdowns.

4. Maintain good credit – Having very good credit knocks an average of 31% off Texas car insurance prices compared to bad credit scores.

5. Drive safely – No speeding tickets, accidents or DUIs for 5+ years keeps rates affordable.

6. Increase deductibles – Paying more out-of-pocket after an accident reduces monthly costs. $500 is the baseline, but $1000 deductibles save up to 40%.

7. Use insurance comparison sites – Answer a few questions to quickly view custom quotes from multiple insurers at once.

🀝 Pro Tip: Independent insurance agents shop at multiple companies for you. Direct insurers like Geico and Progressive can only sell their own policies. An independent agent makes sure you get the cheapest compatible policy for your situation.

Minimum Liability vs Full Coverage in Texas

Choosing minimum liability over full coverage insurance saves you money each month. But it leaves your own car vulnerable after an accident.

Here’s an overview of differences between minimum and full coverage car insurance in Texas:

Minimum Liability Insurance

  • Only satisfies state requirements
  • Covers damage/injuries you cause others
  • Average monthly cost: $48
  • DOES NOT cover your own vehicle damage or medical bills

Full Coverage Insurance

  • Liability + comprehensive + collision
  • Covers damage to your car from virtually all accidents
  • Average monthly cost: $136
  • Protects your asset (your car)!

About 69% of Texas drivers opt for full coverage over just minimum liability. But choose based on your budget, assets and risk tolerance.

For example, full coverage makes more sense if you drive a late-model vehicle still being paid off. But minimum could work if you have an old paid-off car and want to save maximum cash.

πŸ’‘ Pro Tip: If you own an expensive vehicle free and clear, dropping collision coverage can save over 50% monthly! But tally the risk of out-of-pocket repairs before removing this valuable coverage.

Who Has the Best Car Insurance in Texas Overall?

The top performers combine affordable premiums with strong financial health, customer service ratings and coverage options.

Texas Farm Bureau stands out as the best overall insurer in the state. They earn top marks for financial strength from AM Best and a decent rating for customer satisfaction from J.D. Power. Plus Texas Farm Bureau offers very affordable rates for all types of drivers.

State Farm takes second place by virtue of having the lowest average premiums in Texas across the board. As the largest auto insurer nationwide, State Farm certainly has brand recognition. They earn strong financial and customer service ratings as well. Any Texas driver who prioritizes low rates should consider State Farm.

USAA also combines affordable premiums with stellar service and an A++ rating from AM Best. The only catch is that USAA products are restricted to current and former military members and their families. But for those who qualify, USAA auto insurance offers exceptional overall value.

While the above three insurers stand out from the crowd, make sure to get quotes from a mix of companies when shopping for a policy. Everyone’s situation is different, so securing rate estimates from a range of carriers helps uncover the best fit.

How Insurers Determine Your Rates

Insurance providers assess dozens of attributes about your risk profile when pricing coverage. But when quoting car insurance, the main characteristics that affect your premiums are:

πŸ”‘ Driving history – Multiple tickets or accidents make you high-risk

πŸš— Type of vehicle – More valuable cars cost more to insure

πŸ“ Location & driving routes – Urban areas draw higher rates

πŸŽ“ Discounts – Defensive driving & other discounts reduce pricing

πŸ‘©β€πŸ‘¦ Age – Teens & elderly have higher accident rates

πŸ’΅ Coverage limits & deductibles – Higher deductibles equal lower premiums

So even though insurers consider other factors like credit, marital status and gender, your driving record and actual policy selections carry the most weight by far.

Maintaining a clean history for 5+ years keeps rates affordable more than almost anything else. Choosing appropriate coverage limits for your situation also reduces unnecessary spending.

πŸ’‘ Pro Tip: Ask about all possible discounts when getting a car insurance quote. For example, rates can be lowered through defensive driver courses, good student discounts, bundling home & auto policies, agreeing to e-documents instead of mailed statements, and more.

Common Questions About Texas Car Insurance

Below I answer some frequently asked questions about auto insurance rates, laws and requirements specific to Texas:

πŸ”Ί How much is car insurance per month in Texas?

Average car insurance rates run $48 per month for minimum coverage and $136 per month for full coverage based on our analysis of major Texas cities. But your actual premiums depend on your age, vehicle, address and other factors.

πŸ”Ί Who has the cheapest auto insurance in Texas?

State Farm offers the lowest average premium in Texas at just $29 per month for minimum coverage and $72 per month for full coverage. Texas Farm Bureau and USAA also have very affordable car insurance rates.

πŸ”Ί What credit score do I need for cheaper insurance in Texas?

Drivers with poor credit scores below 580 pay an average of $192 per month for coverage, while good credit over 670 qualifies Texas motorists for the lowest rates around $115 monthly.

πŸ”Ί Can I get 6 months of car insurance in Texas?

Yes, 6 month car insurance policies are available from most major insurance companies in Texas. Getting a 6 month term instead of a full year may raise your per-month premium slightly, but enables more flexibility.

πŸ”Ί How much is SR-22 insurance in Texas?

Texas drivers needing an SR-22 certificate of financial responsibility file after a DUI or major violation face rates around $163 per month on average. State Farm and Texas Farm Bureau have the most affordable SR-22 car insurance pricing.

πŸ”Ί Can you get car insurance without a license in Texas?

No, you cannot legally drive or get car insurance without a valid driver’s license in Texas. Some car insurance companies allow named non-owner policies, but the insured drivers must still carry licensed.

I hope this guide gives Texas drivers ample tips for securing cheap car insurance quotes! Remember to shop around and compare policies from multiple insurers before choosing coverage. Rates and discounts can vary greatly between providers.

People Also Ask About Texas Auto Insurance

Here are answers to some other common questions drivers have about insurance rules, rates, and claims in Texas.

Is car insurance cheaper in Texas or California?

Car insurance costs about 16% less per year in Texas compared to California. Full coverage premiums average $136 per month in Texas versus $160 monthly in California.

How much down payment is required for car insurance in Texas?

Most Texas auto insurers don’t require a down payment and allow customers to pay for their entire premium in monthly installments. But some may request 10-20% down.

Can I pay car insurance monthly in Texas?

Yes, pretty much every major insurance provider in Texas offers monthly payment plans for auto insurance. This splits up your total 6-month or 12-month premium cost into more manageable chunks versus one large lump sum.

What insurance do I need to drive for Uber or Lyft in Texas?

Rideshare drivers in Texas need contingent liability coverage from either their personal insurer or a rideshare policy to fill gaps during Period 1 and Period 3 driving. This covers injuries to passengers and damage above and beyond what their personal car insurance handles.

Can I insure a car temporarily in Texas?

Yes, Texas offers short-term 30-day car insurance policies perfect for temporarily using a vehicle. The average cost is around $43 for 30 days of basic coverage.

What is the grace period for car insurance lapse in Texas?

Texas auto insurers typically allow a 31-day grace period after a policy lapses due to non-payment. Drivers face fines and license/registration suspension if they go uninsured for longer without reinstating active coverage.

How soon can you get insurance after buying a car in Texas?

Drivers in Texas should secure car insurance on any vehicle they purchase before driving it off the dealership lot. Most insurers allow instant binder of coverage provided you have an existing policy in your name or apply early in the day. Late submissions may take 1 business day to process but full insurance should activate right away.

How much is a deductible for car insurance in Texas?

Average car insurance deductibles range from $500 to $1000 for collision and comprehensive coverage. Insurers may offer deductibles as low as $100 or over $2500. Choosing a higher deductible reduces your premiums but means you pay more out-of-pocket when you file a claim.

What car insurance covers hitting a deer in Texas?

Collision and comprehensive auto insurance provide coverage for deer collisions in Texas. Collision covers your own vehicle damage regardless of cause, while comprehensive reimburses for damage from events other than collisions like deer hits, vandalism, fires, floods and more.

Does car insurance go down at 25 in Texas?

Yes, Texas car insurance rates decrease significantly when drivers turn 25. Average full coverage costs drop from $265 per month for a 24-year-old down to $142 per month by age 25. Rates decline gradually each year older until around age 65 when premiums slowly start to increase again.

Let me know if you have any other questions about finding cheap car insurance in Texas! I’m happy to help explain requirements, pricing, discounts and more.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *