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Last updated: December 22, 2025Best Cheap Car Insurance in Austin
Texas Farm Bureau has the lowest average rates for both full and minimum coverage auto insurance in Austin, at $1,401 and $539 per year, respectively.
Cheapest
Editor's Rating:4.4/5
Average Cost in Austin
- Full Coverage Monthly: $117
- Minimum Coverage Monthly: $45
Best for Bundling
Editor's Rating:4.9/5
Average Cost in Austin
- Full Coverage Monthly: $124
- Minimum Coverage Monthly: $46
Best for Customer Satisfaction
Editor's Rating:4.8/5
Average Cost in Austin
- Full Coverage Monthly: $129
- Minimum Coverage Monthly: $65
Key Takeaways
- Texas Farm Bureau offers the cheapest auto insurance in Austin for both full and minimum coverage, on average.
- Full coverage auto insurance averages $2,369 annually in Austin, and minimum coverage runs $778 per year.
- The cost of auto insurance in Austin is comparable to the Texas and national averages.
- Nationwide, USAA, State Farm and AAA all scored above average for claims and customer satisfaction, both nationally and in Texas.
Our Top Picks for the Best Cheap Auto Insurance in Austin
- Cheapest: Texas Farm Bureau
- Best for Bundling: State Farm
- Best for Customer Satisfaction: Nationwide
- Best for Military/Veterans: USAA
- Best for Perks: AAA
Compare the Best Cheap Auto Insurance in Austin
| Company | Full coverage annual average | Minimum coverage annual average | Texas customer satisfaction (J.D. Power) |
|---|---|---|---|
| Texas Farm Bureau | $1,401 | $539 | Below average |
| State Farm | $1,486 | $557 | Above average |
| Nationwide | $1,551 | $778 | Above average |
| USAA | $1,653 | $568 | Above average* |
| AAA | $1,774 | $714 | Above average |
| Austin | $2,369 | $778 | – |
*Because of its eligibility restrictions, USAA doesn’t officially qualify for J.D. Power’s rankings.
Detailed List of the Best Cheap Providers in Austin
1. Cheapest - Texas Farm Bureau
What We Like Most:
- Cheapest rates in Austin
- Local agents
- Lowest rates for high-risk drivers in Texas
Why we chose it
Texas Farm Bureau offers the lowest average rates for both minimum and full coverage auto insurance in Austin.
Although it scored below average in J.D. Power’s study for overall customer satisfaction in Texas, it received a B grade from CRASH Network, which means it ranked above average for claims handling from the perspective of auto repair shops. Texas Farm Bureau also has a National Association of Insurance Commissioners (NAIC) Complaint Index score of 0.74, which indicates that it receives fewer customer complaints than average.
Who it’s best for
As a Texas-based insurer, Texas Farm Bureau is a great choice for Austin drivers who value local service and are seeking the cheapest rates in the region. On average, Texas Farm Bureau’s full coverage premiums are about 41 percent less than the city average, and its minimum coverage runs about 31 percent below average. It also has the lowest rates in Texas for high-risk drivers, including teens, people with low credit, and drivers with DUIs or speeding tickets on their records.
Texas Farm Bureau insurance is available only to Farm Bureau members. The annual fee also provides access to a variety of noninsurance perks, like discounts on travel (e.g., hotels, theme parks) and vehicle purchases (e.g., Ford and John Deere).
Texas Farm Bureau Austin Pricing
| Texas Farm Bureau | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $117 | $45 |
| Annually | $1,401 | $539 |
| Difference from Austin average | -41% | -31% |
2. Best for Bundling - State Farm
What We Like Most:
- Numerous discounts, including for bundling
- High customer and claims satisfaction
- Local Austin agents
Why we chose it
In addition to having affordable rates, State Farm offers a wide variety of discounts for bundling, vehicle safety features, and students away from school.
State Farm also ranks above average in J.D. Power’s national study for claims satisfaction, as well as for overall customer satisfaction in Texas. The company has a strong reputation for quality service, supported by a large network of local agents who provide personalized assistance.
Who it’s best for
State Farm is great for Austin drivers who are seeking affordable rates and personalized service. It’s especially appealing for those who want to take advantage of the company’s wide variety of discounts, including those for bundling home and auto insurance.
State Farm also has some of the lowest average rates for drivers with an accident on their record in Texas. However, State Farm does not offer gap insurance or accident forgiveness.
>>COMPARE: Check out our side-by-side breakdown of USAA vs. State Farm.
State Farm Austin Pricing
| State Farm | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $124 | $46 |
| Annually | $1,486 | $557 |
| Difference from Austin average | -37% | -28% |
3. Best for Customer Satisfaction - Nationwide
What We Like Most:
- No. 1 for customer satisfaction in Texas
- Accident forgiveness
- Strong usage-based insurance program that rewards safe driving
Why we chose it
Nationwide earned top scores in J.D. Power’s study for overall customer satisfaction in Texas and ranked above average in J.D. Power’s national study for claims satisfaction.
The company offers numerous discounts, including savings for bundling, maintaining a safe driving record, and being a good student. It also stands out for its accident forgiveness and vanishing-deductible program, which rewards drivers for each year of claim-free driving by reducing the policyholder’s deductible.
Who it’s best for
Nationwide is a strong choice for Austin drivers who value excellent customer service and below-average rates for full coverage auto insurance.
Safe and low-mileage drivers also may benefit from exploring Nationwide SmartRide, Nationwide’s usage-based insurance program, which offers a 15 percent discount for registering and up to 40 percent off at your next policy renewal, based on safe driving habits tracked through the company’s app or plug-in device. Although the program collects your driving data, Nationwide states there’s no penalty or risk of a rate increase for poor driving, so it’s a low-risk way to potentially save more.
Nationwide Austin Pricing
| Nationwide | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $129 | $65 |
| Annually | $1,551 | $778 |
| Difference from Austin average | -35% | 0% |
4. Best for Military/Veterans - USAA
What We Like Most:
- Focus on the military community's needs
- High ratings for claims and customer satisfaction
- Deployment storage discount
Why we chose it
USAA consistently earns top marks for customer service and claims satisfaction. Although it’s listed separately in J.D. Power’s rankings due to its eligibility restrictions (USAA is available only to military members, veterans and their families), its scores are the highest both nationally and in Texas.
USAA doesn’t offer the absolute lowest rates in Austin, but its pricing is still competitive. On average, USAA’s full coverage rates are about 30 percent lower than the city average, while its minimum coverage rates are 27 percent below average.
Who it’s best for
USAA is best for military members, veterans and their families who value high-quality customer service and insurance benefits tailored to the unique demands of military life.
USAA offers a discount of up to 60 percent for deployed service members who store their vehicles, and up to 15 percent off for garaging a vehicle on a military base. These military-specific savings, combined with a strong reputation, make USAA a standout option for those who are eligible.
FYI:
If you’re a veteran shopping for car insurance, there are plenty of ways to save. While USAA is a well-known option for military members, many other insurers offer special discounts for veterans.
USAA Austin Pricing
| USAA | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $138 | $47 |
| Annually | $1,653 | $568 |
| Difference from Austin average | -30% | -27% |
5. Best for Perks - AAA
What We Like Most:
- Travel services, hotel discounts, and other perks
- 24/7 roadside assistance
- Strong claims and customer satisfaction ratings
Why we chose it
Numerous AAA regional clubs sell car insurance in Texas, including AAA Texas and the Auto Club of Southern California (don’t let the name fool you).
Auto Club of SoCal scored above average in J.D. Power’s studies for both claims and customer satisfaction, both nationally and in Texas. It also earned a B on CRASH Network’s Insurer Report Card, which reflects above-average claims handling from the perspective of auto repair shops.
AAA Texas isn’t rated in J.D. Power studies, but it also earned a spot on the CRASH Network Honor Roll, placing 16th nationally out of 97 insurers.
Who it’s best for
AAA insurance is available only to AAA members, so it’s a great fit for Austin drivers who are already members or are interested in the added perks of joining. Beyond roadside assistance, membership includes access to travel and hotel discounts. AAA is also a great pick for drivers seeking gap insurance in Texas.
AAA Austin Pricing
| AAA (Auto Club of SoCal) | Full coverage | Minimum coverage |
|---|---|---|
| Monthly | $148 | $60 |
| Annually | $1,774 | $714 |
| Difference from Austin average | -25% | -8% |
Austin Best Cheap Picks — Detailed Customer Satisfaction Summary
| Company | J.D. Power Auto Insurance Study – Texas1 | CRASH Network Insurer Report Card2 | J.D. Power Auto Claims Satisfaction Study3 | NAIC Complaint Index4 |
|---|---|---|---|---|
| Texas Farm Bureau | 628 | B- | Not rated | 0.74 |
| State Farm | 645 | C- | 716 | 2.16 |
| Nationwide | 657 | C | 729 | 2.78 |
| USAA | 732* | D+ | 741* | 2.74 |
| AAA | 655 (Auto Club of SoCal) | B (both Auto Club of SoCal and AAA Texas) | 726 (Auto Club of Southern California) | Data unavailable |
| Average | 640 (out of 1,000) | C+ | 700 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share; the lower the score, the better |
*Due to its eligibility restrictions, USAA technically doesn’t qualify to rank on J.D. Power’s studies.
Cheapest Full Coverage Car Insurance in Austin
Texas Farm Bureau offers the cheapest full coverage car insurance in Austin, at $1,401 annually, on average. Texas Farm Bureau is limited to Farm Bureau members, so if you don’t qualify, look into State Farm and Nationwide, which have the next-cheapest average rates.
| Company | Monthly Austin average | Annual Austin average |
|---|---|---|
| Texas Farm Bureau | $117 | $1,401 |
| State Farm | $124 | $1,486 |
| Nationwide | $129 | $1,551 |
| USAA | $138 | $1,653 |
| GEICO | $140 | $1,678 |
| AAA | $148 | $1,774 |
| Germania | $193 | $2,310 |
| Mercury | $201 | $2,412 |
| Progressive | $201 | $2,416 |
| Allstate | $213 | $2,555 |
| National General | $248 | $2,979 |
| Austin average | $197 | $2,369 |
| Texas average | $196 | $2,353 |
| U.S. average | $196 | $2,356 |
Cheapest Minimum Coverage Car Insurance in Austin
Texas Farm Bureau has the lowest average rate for minimum coverage car insurance in Austin, at $539 per year. That’s about 31 percent cheaper than the city average of $778. State Farm is a close second, at an average of $557 annually, followed by USAA, at $568 per year.
| Company | Monthly Austin average | Annual Austin average |
|---|---|---|
| Texas Farm Bureau | $45 | $539 |
| State Farm | $46 | $557 |
| USAA | $47 | $568 |
| GEICO | $50 | $604 |
| Mercury | $51 | $612 |
| AAA | $60 | $714 |
| Allstate | $62 | $745 |
| National General | $63 | $754 |
| Nationwide | $65 | $778 |
| Progressive | $68 | $818 |
| Austin average | $65 | $778 |
| Texas average | $72 | $864 |
| U.S. average | $60 | $722 |
How Many Car Accidents Happen in Austin?
As of Dec. 10, 2025, 89 traffic fatalities had been reported in Austin for the year, which is an increase from 80 fatalities at the same time last year. While fatalities have risen, the overall number of traffic incidents has decreased slightly, with 10,784 crashes recorded so far in 2025, compared with 10,935 during the same period in 2024. These incidents included collisions involving motorists, pedestrians, motorcyclists, bicyclists and e-scooter riders.
The most common contributing factors were speeding, intoxicated driving and distracted driving. The majority of the crashes occurred between 4 p.m. and midnight.5
Minimum Auto Insurance Requirements in Texas
As of 2025, the minimum auto insurance requirements according to Texas car insurance laws are as follows:
- Bodily injury liability: $30,000 per person/$60,000 per accident
- Property damage liability: $25,000 per accident6
Frequently Asked Questions
Texas Farm Bureau offers the cheapest car insurance in Texas, on average, at $1,312 per year for full coverage and $517 per year for minimum coverage. USAA is the next cheapest, with average annual rates of $1,627 for full coverage and $563 for minimum coverage. Both Texas Farm Bureau and USAA have eligibility requirements, so if you don’t qualify, check out State Farm for full coverage ($1,741 annually) or Progressive for minimum coverage ($600 annually).
Full coverage car insurance averages $197 per month in Austin, and minimum coverage averages $65 per month.
Insurers look closely at your driving history and claims record when calculating your premium. If you have a clean record, you’re viewed as a low-risk driver, which often translates to lower premiums and more car insurance discounts. By contrast, high-risk drivers with a bad record can expect to pay more for coverage, including after an accident, DUI or speeding ticket in Texas.
The average cost of car insurance in Austin is actually pretty comparable to both the average cost of auto insurance in Texas and nationally. For full coverage, the Austin average is $2,369 per year, which is right in line with the Texas average of $2,353 and the national average of $2,356. For minimum coverage, Austin drivers pay an average of $778 annually, which is lower than the Texas average of $864 but higher than the national average of $722.
In Austin, GEICO is cheaper than AAA for both full and minimum coverage. For full coverage, GEICO averages $1,678 per year, compared with AAA’s $1,774 per year, and for minimum coverage, GEICO averages $604 per year, compared with $714 annually for AAA.
Methodology
At AutoInsurance.com, we evaluate auto insurance providers based on four key factors:
- Price (40%): We analyzed average premiums for full and minimum coverage in Austin, Texas, for good drivers with good credit. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Claims handling (25%): A good claims handling process from an auto insurer is prompt, transparent and efficient, with clear communication throughout, fair evaluation of the damages, and a timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
- Customer experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC Complaint Index, Better Business Bureau ratings, and app store reviews.
- Coverage options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like rideshare coverage, accident forgiveness and gap insurance.
Read more about our ratings and methodology.
Writer & Editor
Tracy S. Lee holds over 10 years of professional experience in writing, research, and storytelling for brands and individuals. She understands that the world of auto insurance can feel intimidating, like learning a new language, and she is committed to empowering consumers to ask more questions and to find the best protection and coverage to suit their specific needs. Tracy received a B.A. in Creative Writing at NYU’s Gallatin School of Individualized Studies.
Sources
It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, June 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
https://www.crashnetwork.com/irc/Satisfaction with Auto Insurance Claims Strained by Higher Deductibles, More Total Losses, J.D. Power Finds. J.D. Power. (2025, Oct 28).
https://www.jdpower.com/business/press-releases/2025-us-auto-claims-satisfaction-studyConsumer Insurance Search Results. NAIC. (2025).
https://content.naic.org/cis_refined_results.htmBy Year & Month, By Travel Mode. Vision Zero. (2025).
https://visionzero.austin.gov/viewer/Auto insurance guide. Texas Department of Insurance. (2025).
https://www.tdi.texas.gov/pubs/consumer/cb020.html
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