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The Best Auto Insurance in Texas

Find the best car insurance in the Lone Star State.

Best Overall
Allstate Logo 2023

Thanks to its great bundling options, Mexico coverage, and many local agents, Allstate is our top pick for auto insurance in Texas.

Best Auto for High-Risk Drivers
Direct Auto Logo

Direct Auto has specialized in providing insurance to high-risk drivers throughout the Southeast for more than 30 years.

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According to the Texas Department of Motor Vehicles, Texas residents own more than 22 million registered vehicles. Whether you’re in El Paso or Beaumont, in Amarillo or Brownsville, Texas is home to a whole lot of drivers with unique car insurance needs. Fortunately, has done extensive market analysis and has compiled a list of recommendations for the best full-coverage car insurance companies in Texas.

Note that full-coverage insurance company costs are higher than the cost of minimum coverage car insurance companies in Texas, but having sufficient coverage will save you money in the long run.

Summary of the Best Texas Insurance

  1. 1.

    Best Auto Insurance in Texas Overall: Allstate

  2. 2.

    Best High-Risk Auto Insurance in Texas: Direct Auto

  3. 3.

    Best Auto Insurance for Military Members in Texas: USAA

  4. 4.

    Best Truck Insurance in Texas: Liberty Mutual

Comparison of the Best Auto Insurance in Texas

Company What it’s best for Average annual auto insurance rates Available discounts Full review
Allstate Overall $1,673
  • Anti-lock brakes
  • Anti-theft equipment
  • Automatic payments
  • Early signing
  • Good student
  • Multiple policy
  • New car
  • Paid-in-full
  • Paperless billing
  • Responsible payer
  • Safe driving bonus
Allstate review
Direct Auto High-risk drivers $2,847
  • Affinity member/partner organization
  • Anti-lock brakes
  • Anti-theft equipment
  • Automatic payments
  • Driver education
  • DynamicDrive
  • Good student
  • Homeowner
  • Multiple cars
  • Multiple policies
  • New vehicle
  • Paid-in-full
  • Paperless
  • Prior coverage
  • Renewal
  • Safe driving
  • Senior citizen
  • Welcome back
Direct Auto review
USAA Military members and their families $1,151
  • Anti-theft equipment
  • Automatic payments
  • Bundling
  • Defensive driving course
  • Family
  • Good student
  • Low mileage
  • Military on-base
  • Multiple vehicles
  • New car
  • Safe driving
  • Vehicle storage
USAA review
Liberty Mutual Trucks $1,637
  • Automatic billing
  • Claims-free
  • Early shopper
  • Good student
  • Homeowner
  • Military
  • Multiple cars
  • Multiple policies
  • Online purchase
  • Paperless
  • RightTrack
  • Student away at school
  • Violation-free
Liberty Mutual review

Detailed List of the Best Auto Insurance in Texas

1. Best Auto Insurance in Texas Overall - Allstate

What We Like Most:

  • Three ways to earn a student discount
  • Pay-per-mile option for drivers with low mileage
  • No waiting period to purchase accident forgiveness

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.

ProsWho It's Best For
  • pro
    Homeowners and renters looking to bundle their home and auto insurance
  • pro
    Drivers who want to work with local agents
  • pro
    Rideshare drivers
ConsWho It's Not Best For
  • con
    Electric vehicle drivers, since Allstate doesn’t offer a specific discount

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


Allstate’s Mexico car insurance does not apply to cars that drivers rent within Mexico or vehicles with Mexican plates. It only covers vehicles with U.S. or Canadian plates.

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

2. Best High-Risk Auto Insurance in Texas - Direct Auto
Direct Auto Logo

What We Like Most:

  • Low rates for high-risk drivers
  • Can pay in cash locally
  • Save money by bundling with life insurance

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.

ProsWho It's Best For
  • pro
    High-risk drivers
  • pro
    Customers who want to be able to pay in cash
  • pro
    Drivers taking their cars to Mexico
ConsWho It's Not Best For
  • con
    Low-risk drivers
  • con
    Rideshare drivers


Your individual cost may be significantly lower than Direct Auto’s average price. Getting a personalized car insurance quote before you make any decisions is always worthwhile.

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.

3. Best Auto Insurance for Military Members in Texas - USAA

What We Like Most:

  • Cheapest rates for teens on a family policy or on their own
  • Special discount for teens transitioning off their parents’ policy
  • Strong customer service and claims process

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.

ProsWho It's Best For
  • pro
    Active duty members and veterans of the U.S. military and their immediate families
  • pro
    Military personnel keeping their cars in the U.S. while stationed overseas
  • pro
    Rideshare drivers
ConsWho It's Not Best For
  • con
    Drivers who aren’t in the military or veterans
  • con
    Non-USAA members

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.
4. Best Truck Insurance in Texas - Liberty Mutual

What We Like Most:

  • Save up to 30 percent with driver monitoring program
  • Cheap average rates
  • Over 2,000 local agents throughout the U.S.

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.

ProsWho It's Best For
  • pro
    Truck drivers
  • pro
    Drivers who prioritize great customer serviceClassic car owners
ConsWho It's Not Best For
  • con
    Drivers looking to save on their car insurance

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.


At, we use a three-part approach to select the best auto insurance providers for different types of drivers:

  • Insurer information: We analyze data about each auto insurance company and the coverage that it provides, from prices to discounts to availability. We also consider customer satisfaction and financial strength ratings from external industry authorities, including (but not limited to) AM Best, the Better Business Bureau, J.D. Power, Moody’s, the National Association of Insurance Commissioners, and Standard and Poor’s.
  • Proprietary data: has been connecting drivers with the best car insurance providers for more than 20 years. Throughout this time period, we’ve collected millions of data points from Texans signing up for insurance policies. We use this data to determine which insurance companies different types of customers in Texas have had the most success with. Not every insurer caters to every type of customer. By breaking down each company’s demographics and offerings, we match you only with companies that want you as a customer.
  • Institutional knowledge: Thanks to our two decades of experience in the auto insurance industry, we’ve amassed a wealth of institutional knowledge about providers. Paul Ford, President of Insurance at Centerfield,’s parent company, has spent nearly 30 years working in the insurance field, with tenures at Bankrate, Canadian Access, Capital One Insurance Services, Datalot, Inslogic, and NetQuote. Paul’s extensive insider knowledge of the auto insurance industry is another invaluable tool we use in our quest to match drivers with their perfect car insurance providers.

Auto Insurance FAQs

What kind of car insurance do I need in Texas?

You need at least $30,000 of coverage for bodily injury liability per person, up to a total of $60,000 for bodily injury per accident, and $25,000 for property damage liability insurance per accident, to be legally insured in Texas. However, these amounts are the bare minimum amount of insurance you need. To protect yourself in case of damage to your vehicle or medical bills for you and your passengers, we recommend additional insurance such as collision and comprehensive coverage, medical payments coverage, and uninsured/underinsured motorist coverage.

Is Texas a no-fault insurance state?

No, Texas is an at-fault state for car insurance. That means that the party deemed responsible for an accident is responsible for paying for the losses, including property damage and medical care, for both parties.

How much is car insurance in Texas per month?

As of 2020, the average cost of car insurance per month in Texas is $109, according to a report from the National Association of Insurance Commissioners. However, insurance will be cheaper for a driver with a clean driving record and more expensive for young drivers under 25 and teen drivers.


  1. NAIC Releases 2022 Market Share Data. National Association of Insurance Commissioners. (2023, Mar 1).

  2. Usage-Based Auto Insurance Takes Center Stage as Satisfaction Flatlines, J.D. Power Finds. J.D. Power. (2022, Jun 13).

  3. Business Profile: Allstate. Better Business Bureau. (2023).

  4. Which States Drive the Most Pickup Trucks? iSeeCars. (2023).

  5. RepairPal’s 2019 Reliability Rating Leaders. Repair Pal. (2019).

  6. Everything is bigger in Texas, including classic car culture. Hagerty Media. (2022, Jul 7).