The Best Auto Insurance in Texas of 2025

Known for its slogan, “You’re in good hands,” Allstate is the nation’s fourth-largest auto insurance company by market share, according to the National Association of Insurance Commissioners.² It’s competitive bundling discount makes it a good option for those who also plan to purchase property insurance.

Bundling Options

Allstate is our top pick for the best auto insurance for bundling in Texas and nationwide. You can bundle your home, auto, motorcycle, and even life insurance for discounts up to 25 percent. 

Allstate also offers bundling discounts for insuring other types of vehicles with your car insurance, including motorcycles, ATVs, and boats. The company also allows customers to bundle a variety of other forms of insurance, including life, flood, and pet insurance. 

Mexico Insurance 

If you plan to drive to Mexico, your U.S. car insurance might not auto apply once you cross the border. It’s important to get the appropriate insurance and ensure you remain covered whenever you take your car abroad, even if it’s just for the afternoon. 

Allstate offers Mexico tourist auto insurance for drivers who use their vehicles for personal purposes south of the border. This specialized international insurance includes the following types of coverage:

• Bodily injury per person/accident and property damage liability per accident (up to $500,000 total)
• Medical payments coverage for you and your passengers
• Comprehensive coverage that protects you from weather damage, vandalism, and theft
• Loan or lease payoff for a totaled new car (also known as gap insurance)
• Legal assistance if you break the law while driving or face a lawsuit
• Roadside assistance
• Medical evacuation in case you’re seriously injured in an accident and need to be evacuated to the U.S. for urgent medical treatment

Personalized Service From Local Agents

Allstate employs thousands of insurance agents located in more than 200 cities and towns throughout Texas. Allstate ranked fifth — and above average — in J.D. Power’s 2024 customer satisfaction index for Texas, just below State Farm and GEICO. Additionally, the Better Business Bureau gave Allstate an A+ rating, the organization’s maximum possible score.³

As the largest car insurance provider in the U.S.⁴, State Farm has insured customers for over a century. It offers below-average premiums and several discounts, especially for drivers under 25. State Farm only increases your rate by 13 percent after an at-fault accident (compared to the Texas average of 32 percent), which may be beneficial for young drivers who are prone to accidents.

Steer Clear

Steer Clear is one of State Farm’s two telematics programs and is specifically designed for young drivers under 25. In order to be eligible for the program, the driver must have no moving violations in the past three years. Steer Clear consists of educational modules that drivers complete and tracks driving behavior to help instill safe driving habits. Young drivers can qualify for a discount after completing the app-based driver education program. Drivers of any age can also save with State Farm’s Drive Safe & Save program.

Additional Young Driver Discounts 

If you plan to add a teen to your policy, you can save extra by taking advantage of State Farm’s young driver discounts. Not all of State Farm’s discounts require you to be a student to qualify, making saving on your premium even easier. Here’s a rundown of their discounts for teens and young drivers:

• Good student: Full-time students get up to 25 percent off if they have a 3.0 GPA or rank in the top 20 percent of their class. 
• Student away at school: Students under 25 can save on their premium if they attend school 100 miles from the covered vehicle. 
• Driver training: Drivers under 21 enjoy discounts on their car insurance policies if they take a qualifying driver’s education course.  
• Safe driving: Teens who use usage-based discount programs can earn up to 30% off their premium for safe driving habits. 

Strong Third-Party Ratings

State Farm has reliable customer service and great customer satisfaction, as indicated by third-party ratings. In 2024, J.D. Power rated it third overall in Texas for customer satisfaction (654 out of 1,000 points), coming just after Auto Club of Southern California (AAA). The study fielded over 41,000 responses from car insurance customers from August 2023 to April 2024. 

The provider also placed sixth overall in J.D. Power’s 2024 claims satisfaction study (710 out of 1,000 points), scoring more than 10 points above the study average.⁵ 

USAA is our top pick for military families in Texas. Texas is home to 15 active duty major military installations, including Fort Cavazos (formerly known as Fort Hood), the third-largest military base in the U.S. USAA memberships are available to current and former members of the U.S. military exclusively (including pre-commissioned officers and ROTC members), and their immediate families. With its excellent customer satisfaction and special military discounts, USAA provides top-notch service for active duty and retired service members.

Specialized Options for Military Service Members

USAA offers specialized coverage options and discounts to its active duty members. These include a military on-base discount of up to 15 percent off your comprehensive coverage premium when you garage your car on base. You can also earn up to 60 percent off your car insurance rates for storing your insured car on base or at another approved facility while you’re deployed. 

If you decide to bring your vehicle along on your deployment, the company’s international insurance policies allow you to transfer your liability coverage and personal injury coverage abroad.

Pay-Per-Mile Insurance

USAA is also one of our picks for the best pay-per-mile auto insurance thanks to its SafePilot Miles program. With this program, the less you drive, the more you’ll save. This is especially helpful for military personnel who may be deployed away from their vehicles or who don’t use their personal cars often. UBI also makes pay-as-you-go pricing possible, which can be an advantage with the military’s monthly payment schedule. 

Car-Buying Tools and Discounts

Thanks to USAA’s unique status as both a banking and financial services provider and an insurance underwriter, the company offers its members several benefits when it comes to buying new cars. 

Think of it as a convenient one-stop shop for financing and insuring a car. If you enroll in automatic payments, you’ll also get a 0.25 percent discount on your APR for both new and used car loans. 

Certain car dealers also offer special discounts and rebates to USAA members, so be sure to check what’s available in your area if you’re looking to purchase a new car.

Texas Farm Bureau is a Texas-specific company that underwrites insurance policies for Farm Bureau members — it offers auto, home, farm & ranch, commercial, and life insurance. As a regional company, it provides localized service via a network of agents and has very high customer satisfaction ratings. It also has some of the cheapest average rates for most driver profiles in Texas.

Strong Customer Service Record

Texas Farm Bureau relies on a network of local agents to provide service to its policyholders, which generally leads to higher rates of customer satisfaction. For example, it ranked first in J.D. Power’s 2024 Auto Insurance Study for the Texas region with a score of 686 out of 1,000, which is 41 points above the region average.

The company earned a B- rating from the CRASH Network Insurer Report Card, landing just short of the Honor Roll and ranking 39th out of 97 insurers.⁶ In addition, it has an NAIC Complaint Index of 0.73, indicating that it receives fewer complaints than average.⁷

Affordable Rates for High-Risk Drivers

Drivers in Texas with a high-risk designation, such as a recent speeding ticket, accident, or DUI conviction, can expect their rates to increase significantly. In Texas, the average annual insurance rate for drivers with a DUI is $3,206, and those with recent accidents can expect to pay around $3,107 a year. 

Texas Farm Bureau has some of the most affordable rates in Texas, even for drivers with bad driving records, making it a great option for those in this situation looking to save money on premiums.

Drive’n Save Discount

Texas Farm Bureau launched a usage-based telematics discount program called Drive’n Save in 2023, which is not always an option available from smaller regional insurers. Drive’n Save is a great way to get lower premiums if you’re a safe driver. 

While Texas Farm Bureau doesn’t advertise percentage discounts for the program, it states that drivers will receive a discount just for signing up, and an additional discount based on their driving score. Drive’n Save Direct Auto uses a smartphone app with the same name to collect information about your driving habits and determine how safely you drive. The program measures your mileage, as well as the following driving habits: 

• Time of day
• Speed
• Sudden breaking
• Distracted driving due to phone handling

Liberty Mutual offers a large variety of auto insurance coverages, as well as life, homeowners, and business insurance.

Save on Repairs and Replacements 

As of 2024, Texas leads the nation in pickup truck sales volume, with almost 20 percent of Texans driving a pickup.⁸ However, full-size trucks tend to be expensive to repair.

If you’re concerned about the possibility of high repair and maintenance costs for your vehicle, Liberty Mutual is a great choice. It offers: 

• Lifetime repair guarantee: This coverage pays for repairs to your vehicle at Liberty Mutual’s more than 2,000 Guaranteed Repair Network (GRN) facilities for as long as you own your car. The company will pay the GRN shop directly for the full cost of your repairs beyond your deductible, advertising a 100 percent lifetime guarantee for these repairs. 
• Original parts replacement: This optional coverage pays for the original manufacturer parts for your vehicle, ensuring you never have to settle for inferior or incompatible parts. If original manufacturer parts for your vehicle are unavailable or are no longer produced, Liberty Mutual will pay for the cost of comparable or reconditioned parts. 

Classic and Collectible Vehicle Insurance

Texas is home to approximately 2.6 million classic and collectible cars, second only to California. A significant proportion of those vehicles are trucks, and the Chevy/GMC GMT 400 pickup is the second-most popular classic car in the state.⁹

Classic cars require specialized insurance that offers the benefits of conventional car insurance and unique protection for the specific needs of classic cars. Liberty Mutual’s classic car policies cover expenses like pricey, hard-to-find vintage parts and specialized labor. Unlike new cars, classic cars don’t lose most of their value over time. Instead, their age is part of what makes them so valuable, and they tend to gain value over time. 

Rather than insure your truck’s worth based on its Blue Book value, Liberty Mutual will work with you to determine an agreed-upon value for the vehicle, weighing factors like age, condition, and rarity. The higher the value, the more your policy will cover. If you continue to put money into working on your truck or restoring it, you can work together to increase that agreed-upon value.

Loyal Customers Save on Deductibles

Liberty Mutual offers a deductible fund, allowing you to save on your deductible each year that you continue to insure your vehicle or vehicles with the company. Each year, you’ll pay $30 in addition to your annual premium. That extra money goes into your deductible fund. Liberty Mutual will contribute an additional $70 for a total of $100. 

Liberty Mutual will then lower your deductible by $100 every year that you stay enrolled with the company. If you’re ever involved in a claim, these savings will reduce the balance you will need to pay out of pocket before your coverage kicks in.