AutoInsurance.com
Published: May 11, 2022Last updated: October 20, 2022

Cheap Car Insurance in Texas

They say everything’s bigger in Texas, and that applies to car insurance premiums.

Texas is the largest state in the continental U.S. You can expect to find enormous cities, rolling prairies, and gigantic portions of food on your plate in the Lone Star State. Unfortunately, the cost of auto insurance in Texas is higher than average as well — 6 percent higher than the rest of the country, in fact. If you’re a driver in Texas, here’s how to save money on insurance rates.

Cheap Car Insurance in Texas

By Gender

Commonwealth Casualty is the cheapest car insurance provider in Texas for both men and women, although it’s cheaper for women. The average cost for men is $708 a year, while the average annual cost for women is $684. Allstate is the cheapest car insurance provider for teenagers in Texas, with annual averages of $1,511 for female teens and $1,749 for male teens. Texas is one of the many states where men pay more for car insurance than women.

By Marital Status

Married people in Texas pay lower rates than single people, even if they’re single due to divorce, separation, or death of a spouse. Commonwealth Casualty is the cheapest option for both married and single people, but married people could pay as little as $612 a year, while $720 is the low end for single people.

By Military Status

USAA offers military personnel in Texas car insurance for $424 a year, which is the lowest rate we’ve found.

By Coverages

If you want to get only the minimum coverage Texas requires, look into GEICO, which offers policies for as little as $372 a year. For full coverage, Farmers offers policies for $821 annually.

By Credit Scores

Texas is one of the states where car insurance companies can base premiums on credit scores. If you have a good credit score, you’ll find the lowest rate — $1,756 per year — at State Farm, while Clearcover is the best option for those with bad credit scores. The lowest cost we’ve seen from Clearcover is $612 a year.

By Age

The cost of auto insurance for teens is higher than the rates for any other age group due to their lack of driving experience. Here are the cheapest prices we’ve found for any age.

Age Cheapest company Lowest annual rate
16 State Farm $2,780
17 State Farm $2,505
18 State Farm $2,250
19 GEICO $1,834
20s Texas Farm Bureau $843
30s GEICO $379
40s GEICO $377
50s GEICO $361
60s GEICO $351

By Driving Record

If you have a good driving record, Clearcover is an excellent option, with policies available for as little as $468 per year.

Best Auto Insurance Companies in Texas

  • Allstate
  • Amica
  • Fred Loya
  • GEICO
  • Liberty Mutual
  • Nationwide
  • Progressive
  • State Farm
  • Texas Farm Bureau
  • Travelers
  • USAA

How to Save Money

  1. Improve your credit score. Legally, car insurance companies in Texas can base their rates on credit scores, charging higher prices to those with bad credit. By improving your credit, you can find lower auto insurance premiums.
  2. Take a defensive driving course. Do you have at-fault accidents, tickets, or DUIs on your driving record? You may be able to get a discount for taking a defensive driving course, even if your driving record is clean.
  3. Get more discounts. Defensive driving courses aren’t the only way to get an insurance discount. Ask your agent if you could save money by paying for a year in advance or bundling your home and auto insurance, for example.
  4. Drop full coverage. If you feel confident you won’t get into a costly at-fault accident or have your car stolen, vandalized, or destroyed by a hurricane, you can opt for the minimum coverage. However, the lack of full coverage could cost you more in the long run, especially if you have an accident that results in injuries or damage to your property.
  5. Raise your deductibles. If you’ve chosen to keep collision and comprehensive coverage, raising your insurance deductibles will lower your costs.
  6. Keep a clean driving record. The cost of your car insurance partly depends on your driving history. Expect a higher rate if you have a speeding ticket on your record. Much like young drivers, drivers with DUI convictions also pay higher car insurance rates, whether for minimum or full coverage car insurance.
  7. Shop the market. To find the lowest price, compare car insurance quotes from multiple companies — Allstate, State Farm, and everything in between.

Minimum Coverage: Is It Enough?

You need car insurance for registration in Texas. To drive legally, you’ll need $30,000 of bodily injury coverage per person, $60,000 per accident, and $25,000 of property damage coverage.1 However, this coverage only applies to the other party’s losses in at-fault accidents. If you only have minimum coverage, you’ll have to pay for your bodily injuries and property damage out of pocket.

We recommend buying as much liability insurance as you can afford, plus collision coverage and personal injury protection (PIP) for your losses following an at-fault collision. Of course, not all damage comes from collisions; your car could also be damaged by everything from vandalism to hurricanes, so get comprehensive coverage for these damages as well.

CheckFYI:

From 1851 to 2020, Texas experienced 64 hurricanes, 19 of which were considered major. If you lack comprehensive coverage and a hurricane hits, you’ll have to pay for your car’s damage out of pocket.2

We also recommend uninsured motorist coverage for accidents caused by uninsured drivers. Your liability coverage, PIP, and uninsured motorist coverage should have limits up to $500,000, while your collision and comprehensive coverage should have limits equal to your car’s fair market value. That way, if a hurricane renders your car a total loss, your insurance company will reimburse you for the car’s worth so you can replace it.

Alternatives

The only alternative to buying personal auto insurance in Texas is to self-insure. However, you’ll have to prove you can meet the minimum car insurance requirement in Texas, a combined liability limit of $115,000. To do this, you’ll need to let the insurance department determine your net worth and self-insurance program using any of these considerations:

  • Reserves
  • Sinking funds
  • Third-party financial guarantees
  • Parent company or affiliate sureties
  • Excess coverage
  • Security or agreement

You must also prove your compliance with federal safety regulations. Self-insurance doesn’t make sense for most people, but if you have a high enough net worth and are willing to create a self-insurance program, it could be an option for you.

Texas Department of Motor Vehicles Contact Information

  • Phone number: 888-368-4689, or 512-465-3000 in Austin
  • Fax number: 512-465-4129
  • Mailing address:
    • Texas Department of Motor Vehicles
    • 4000 Jackson Ave.
    • Austin, TX 78731
  • URL: https://www.txdmv.gov/contact-us

Conclusion

While car insurance in Texas isn’t exorbitant on average, everyone wants to save money where they can. Besides, car insurance is required in Texas, so if you get caught driving without it, you could face fines up to $1,000, license and registration suspension, and vehicle impoundment. In other words, driving without insurance isn’t worth the risk, so find auto insurance within your budget.

Frequently Asked Questions

What is the cheapest car to insure in Texas?

These are some of the cheapest cars to insure in Texas:

  • Mazda CX-5 — $1,092 to $2,343 a year on average
  • Nissan Kicks — $1,120
  • Chevrolet Trailblazer — $1,126
  • Honda Passport — $1,152
  • Honda HR-V — $2,333

Is GEICO cheap in Texas?

Yes, GEICO is cheap in Texas. It costs $1,047.33 a year on average, ranging from $603 to $1,339 on the low end.

How much is car insurance in Texas monthly?

On average, car insurance in Texas costs around $95 monthly, based on 2019 data from the National Association of Insurance Commissioners. This cost is 6 percent higher than the national average of $89.20 per month.

How much is USAA car insurance a month in Texas?

USAA car insurance in Texas costs an average of $183 a month.

Citations

  1. Automobile insurance guide. Texas Department of Insurance. (2022).
    https://www.tdi.texas.gov/pubs/consumer/cb020.html

  2. Hurricanes Frequently Asked Questions. NOAA’s Atlantic Oceanographic and Meteorological Laboratory. (2022).
    https://www.aoml.noaa.gov/hrd-faq/#landfalls-by-state

  3. Texas Administrative Code. Texas Register. (2015).
    https://texreg.sos.state.tx.us/public/