The Best Auto Insurance in Texas

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.¹ Read on to learn what Allstate offers Texan drivers.

Great Bundling Options

Not only is Allstate our top pick for the best auto insurance in Texas, we’ve also identified it as the best auto insurance for bundling throughout the nation. Whether you’re a renter or a homeowner, you can save up to 25 percent by bundling your home and auto insurance with Allstate.

Additionally, Allstate 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

Just because some parts of Texas are a quick drive away from Mexico doesn’t mean that your U.S. car insurance will 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.

Fortunately, 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. If you want to go to a nearby office and work with an insurance agent in person, Allstate is a great choice.

Consumer insights authority J.D. Power holds an annual survey of customer satisfaction with car insurance providers. In 2022, J.D. Power gave Allstate a customer satisfaction index score of 832 out of 1,000 in Texas. Texas Farm Bureau, the top-scoring insurer in the survey, received a score of 873.² Additionally, the Better Business Bureau gave Allstate an A+ rating, the organization’s maximum possible score.³

Founded in 1991, Direct Auto was created to provide high-risk auto insurance in the Southeastern U.S. While it has since expanded to offer standard insurance, it remains our top pick for high-risk auto insurance, also known as nonstandard insurance, in the Lone Star State.

Specialized Coverage for High-Risk Drivers

Direct Auto specializes in covering high-risk drivers who may not be able to find auto insurance elsewhere. The company issues SR-22s, certificates verifying that high-risk drivers have the legally required amount of auto insurance. If the state requires you to have an SR-22, Direct Auto will file it directly with the Texas Department of Motor Vehicles on your behalf.

Customizable Payment Options

Direct Auto offers the option to choose your own payment frequencies, amounts, and dates so you can create a payment schedule that works for you. Additionally, the company accepts a range of payment methods, allowing customers to pay online, over the phone, or even in cash at any Direct Auto office location. As of March 2023, Direct Auto has 67 offices located in 45 cities and towns across Texas.

DynamicDrive Discount

You can save up to 10 percent off the cost of your premium by signing up for DynamicDrive, Direct Auto’s telematics driving data reporting program. Direct Auto uses a smartphone app called Routely to collect information about your driving habits and determine how safely you drive. The program measures the frequency of the following unsafe driving behaviors:

• Extensive late-night driving
• Distracted driving due to phone handling
• Hard and extreme braking
• Speeds at or above 80 miles per hour (mph)

In addition to the 10 percent sign-up discount, you can save up to 15 percent based on your DynamicDrive score. All in all, this program could lower your rate, regardless of your bad driving record.

USAA stands for United Services Automobile Association. The word “services” in the name refers to the U.S. Armed Forces; USAA caters exclusively to military members and their immediate families.

Specialized Options for Military Service Members

Texas is home to 15 active duty major military installations, including 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), as well their immediate families. USAA is our top pick if you’re among the tens of thousands of military personnel in Texas.

The company 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-as-You-Drive Insurance

USAA is also one of our picks for the best pay-per-mile auto insurance. With usage-based insurance (UBI), the less you drive, the more you’ll save. Not only is this especially helpful for military personnel who may be deployed away from their vehicles or who don’t use their personal cars often, but 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, one that can save you some serious money. USAA’s car loans include interest rates of 5.29 percent (for 2022 or newer models) or 5.54 percent (for 2016 to 2021 models). However, if you enroll in automatic payments, you’ll get a 0.25 percent discount on your APR for both new and used car loans.

USAA even works with car manufacturers to get its members discounted prices on new vehicles. See below for some of USAA’s car discounts:

• Honda: Up to $500 off select models
• Hyundai: Up to $1,000 off select new models
• Jeep: $500 discount on purchase or lease
• Mazda: $500 military appreciation bonus cash
• Nissan: Up to $1,000 on purchase or lease
• Toyota: $500 rebate on select new models
• Volkswagen: Up to $500 off select new models.

Liberty Mutual is the nation’s sixth-largest property and casualty insurer. It offers a large variety of auto insurance, as well as life, homeowners, and business insurance, and even more specialized types of coverage.

Save on Repairs and Replacements

As of 2022, Texas leads the nation in pickup truck sales volume, with almost 20 percent of Texans driving a pickup.⁴ However, according to car authority Repair Pal, full-size trucks tend to be expensive to repair, with an average annual repair cost of $936 compared to an average of $652 across all makes and models.⁵

If you’re concerned about the possibility of high repair and maintenance costs for your vehicle, Liberty Mutual is a great choice. It offers a couple of add-ons to address this issue:

• 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.⁶

Classic cars necessitate specialized insurance that offers both 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 into your truck or restoring it, you can work together to increase that agreed-up 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. How does it work? 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 auto insurance 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.