Texas Farm Bureau has the cheapest car insurance rates in Texas at $87 per month for a full-coverage policy. That’s 43%, or $777 per year, cheaper than the state average in Texas, which is $1,818 per year.
Our other picks for the best cheap car insurance companies in Texas are State Farm, Germania, Redpoint, and GEICO. You can find your cheapest company in Texas by comparing quotes from multiple providers.
Methodology & why you can trust our rates
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states plus Washington, D.C. For full coverage policies, the following coverage limits were used:
Bodily injury liability: $50,000 per person/$100,000 per accident
Property damage liability: $50,000
Uninsured/underinsured motorist: $50,000 per person/$100,000 per accident
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by state or insurer.
Rates for overall average rate, rates by ZIP code, and cheapest companies determined using averages for single drivers ages 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles/year.
Rates for driving violations and “Poor” credit determined using average rates for a single male 30-year-old driver with a credit score under 578.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
The cheapest car insurance companies in Texas
Texas Farm Bureau
Why we chose it
Texas Farm Bureau is one of the top car insurance companies in Texas thanks to its affordable rates, even for young and newly-licensed drivers, and its high customer service ratings.
Pros and cons
Pros
Lower-than-average rates
Offers a death indemnity benefit
Owned by its policyholders
Cons
Only available in Texas
Limited coverage options
Texas Farm Bureau membership required
More details
Why we chose Texas Farm Bureau
Average rates with Texas Farm Bureau are hundreds of dollars cheaper than the statewide average, plus it offers discounts for bundling, taking a driving safety class, and owning a safe vehicle that lower your rates even more.
Texas Farm Bureau makes up for its lack of customization options with its high customer service ratings. According to the National Association of Insurance Commissioners (NAIC), Texas Farm Bureau received fewer complaints than expected for its size.
You do need to become a member to get car insurance, but membership fees are minimal.
How does the cost of car insurance from Texas Farm Bureau compare to the average in Texas?
The average cost of car insurance from Texas Farm Bureau in Texas is $87 a month or $1,1044 per year, which is 43% cheaper than the statewide average.
State Farm
Why we chose it
State Farm is one of the best and cheapest car insurance companies in Texas thanks to its cheap rates for lots of different types of drivers and its solid reputation for customer service.
Pros and cons
Pros
Available in almost every state
Low rates for teens and drivers with accidents
High customer satisfaction ratings
Cons
Limited coverage options
More details
Why we chose State Farm
State Farm has some of the best car insurance rates in Texas. State Farm also offers affordable coverage for drivers who have been in an accident, or have a speeding ticket or DUI on their records.
One of the things we like most about State Farm is its customer service. State Farm has high customer satisfaction ratings and receives fewer complaints than is average for the industry, according to the National Association of Insurance Commissioners.
How does the cost of car insurance from State Farm compare to the average in Texas?
The average cost of State Farm car insurance in Texas is $90 a month or $1,080 per year, which is 41% cheaper than the statewide average.
Germania
Why we chose it
Germania is a top car insurance company in Texas, especially if you want to work with a local company with cheaper-than-average rates.
Pros and cons
Pros
Cheap car insurance rates
Affordable car insurance for high-risk drivers
Lots of discounts, many of which are easy to qualify for
Cons
Few ways to customize a car insurance policy besides roadside assistance
Only available in Texas, so drivers who leave the state will have to switch insurance companies
More details
Why we chose Germania
Brenham-based Germania only offers car insurance in Texas, so it’s a good choice if you want coverage from a company with lots of local experience and good customer service scores.
Germania offers straightforward coverage that’s easy to understand, but not many add-ons; although roadside assistance protection and coverage for recreational vehicles are available.
How does the cost of car insurance from Germania compare to the average in Texas?
The average cost of car insurance from Germania in Texas is $112 a month or $1,344 per year, which is 26% cheaper than the statewide average.
Redpoint
Why we chose it
Redpoint is one of the cheapest car insurance companies in Texas, especially for high-risk drivers who are having trouble finding coverage anywhere else.
Pros and cons
Pros
Some of the cheapest rates in Texas
Much cheaper rates than competitors for high-risk drivers
Affordable coverage for teens and new drivers
Cons
Sparse online presence makes it necessary to work with Redpoint in person
More details
Why we chose Redpoint
Redpoint is one of the cheapest car insurance companies in Texas if you’re a high-risk driver, like a teen or newly-licensed driver, you have bad credit, or you have a spotty driving record.
Even if you’re not a high-risk driver, Redpoint still offers some of the best car insurance rates in the Lone Star State. Rates are nearly $500 cheaper than average for Texas drivers with a clean driving record.
How does the cost of car insurance from Redpoint compare to the average in Texas?
The average cost of car insurance from Redpoint in Texas is $113 a month or $1,356 per year, which is 25% cheaper than the statewide average.
GEICO
Why we chose it
GEICO is among the top car insurance companies in Texas for its low rates, highly rated customer service, and convenient mobile app.
Pros and cons
Pros
Available in all 50 states
Easy-to-use digital tools
Plenty of discounts
Cons
Only sells through GEICO agents
Doesn’t underwrite its other products
More details
Why we chose GEICO
Nationally-known GEICO receives fewer complaints than expected, according to the National Association of Insurance Commissioners. GEICO also ranks higher-than-average for claims satisfaction on J.D. Power’s 2022 Claims Satisfaction Study.
GEICO doesn’t offer as many ways to customize a policy as some competitors, but it has all the basic coverage most drivers need. We also like GEICO’s convenient mobile app. You can make a claim, access your policy details, and call for roadside assistance whenever you need it, all through the GEICO smartphone app. You can even estimate your vehicle’s damage after an accident to see what repairs might cost using a photo tool.
How does the cost of car insurance from GEICO compare to average in Texas?
The average cost of car insurance from GEICO in Texas is $122 a month or $1,464 per year, which is 19% cheaper than the statewide average.
Best car insurance companies in Texas
The best car insurance in Texas is USAA, which is only available to drivers affiliated with the military. USAA scored the highest on J.D. Power’s 2023 Auto Insurance Survey for the Texas region, which measures how policyholders in the Lone Star State feel about their company’s customer service, billing, claims, and price. [1]
State Farm and Texas Farm Bureau also earned top scores and are available to the general public, which USAA is not.
Cheapest car insurance companies by age in Texas
Teens and young adults don’t have much driving experience, which means they are more likely to be in an accident than older drivers. Because of this, it can be harder for young adult drivers to find cheap car insurance.
We found that Redpoint has the cheapest average car insurance rates in Texas for younger drivers.
Choosing the right car insurance company in Texas
Choosing the best car insurance company for you doesn’t have to be an overwhelming experience. There are several factors to consider, including:
Cost: Finding the company that has the best rates and the most available discounts can help keep your insurance costs low.
Coverage: Having enough coverage is vital. If you don’t have enough liability coverage you'll still be held accountable for damage that goes beyond your coverage levels, so having the highest levels of liability coverage you can afford is an important consideration when choosing a policy.
Customer service: Feeling valued by your insurance company is an important part of choosing coverage. Having an insurance company that treats you with respect can be worth paying a little more for insurance.
Are you ready to start shopping for insurance? Our insurance experts at Policygenius are ready to help you find the right insurance coverage for your needs
Car insurance rates for drivers with driving violations in Texas
Your driving history is one of the biggest factors insurance companies use to help determine your rates. A single accident or a traffic ticket can make your auto insurance much more expensive.
The cheapest car insurance in Texas for drivers with a single driving violation on their records is State Farm.
Cheapest car insurance after an accident in Texas
The cheapest car insurance company in Texas for drivers with an at-fault accident on their records is State Farm. On average, coverage from State Farm costs $107 a month or $1,280 per year after an accident.
Cheapest car insurance for drivers with a DUI in Texas
Texas drivers with a DUI or DWI are likely to see a significant increase in their car insurance rates. Drivers in Texas pay an average of $1,818 per year for car insurance, but the average rate for a driver with a DUI is $2,962 per year, which is 63% higher than the state average.
But drivers with a DUI can still save money by comparing rates. According to our research, Redpoint County Mutual, State Farm, and Farm Bureau have the lowest rates for drivers with a DUI on their record.
Cheapest car insurance for drivers with a speeding ticket in Texas
A speeding ticket can also make your car insurance rates go up. Texas drivers with a speeding ticket on their record have an average car insurance rate of $2,296 per year, which is almost $500 higher than the average rate for drivers with a clean driving history.
We found that State Farm, Farm Bureau, and Redpoint had the cheapest average rates for Texans with a speeding ticket on their record.
→ Read more about finding SR-22 insurance in Texas
Cheapest car insurance for drivers with bad credit in Texas
Drivers with poor credit histories and low credit scores can expect to pay more for their insurance than drivers with high credit scores. Working to improve your credit score is one way to lower your insurance rates.
On average, the company with the cheapest car insurance in Texas for drivers with poor credit is Redpoint.
Cheapest car insurance in Texas by city
Local factors like crime rates, population density, or the number of accidents in a given area all impact the cost of insurance.
Here are the cheapest car insurance companies in the 10 most populated cities in Texas.
Buying car insurance in Texas
Texas requires everyone who owns a vehicle in the state to be able to pay for damage they may cause in an accident. The best way to meet this requirement is to have car insurance.
Texas minimum levels of liability insurance are:
$30,000 per person/$60,000 per accident for bodily injury liability
$25,000 for property damage liability
Drivers who don’t have at least the minimum levels of insurance or higher and cause an accident will receive a citation.
Uninsured drivers may also have their driver’s license suspended for up to two years or face other penalties. This hasn’t stopped some people, however, and about 20% of Texas drivers are uninsured. [2]
Texas only requires drivers to purchase basic bodily injury and property damage liability coverage. This means drivers who purchase the minimum required levels of insurance have no coverage for damage to their own vehicle and they have no protection against uninsured or underinsured motorists.
Comprehensive and collision coverage will pay to repair or replace your vehicle in the event of a covered peril, while uninsured and underinsured motorist coverage will protect you if the person who hits your car doesn’t have insurance. These coverages can be purchased for an additional cost as part of your insurance policy.
While some states have programs that allow low income residents to purchase insurance at reduced rates, Texas is not one of them.
Texans who are looking for cheaper car insurance should work with an insurance expert to compare quotes from multiple companies to make sure they are getting the lowest possible rate.
How to get cheap car insurance in Texas
Most insurance companies have a variety of discounts available to their customers, including:
Good student discount - Students who maintain a B average or higher can earn up to 15% off of their car insurance.
Bundling discount - Insurance companies typically offer a substantial discount to customers who carry multiple insurance policies (home, auto, renters, etc.) through the same company.
Safe driver discount - Taking a safe driver course can sometimes earn drivers a discount on their insurance, but some companies offer discounts on your premium for drivers who maintain a clean driving record for three years or more.
Group discount - Insurance discounts are often available to people based on profession. For example, teachers are often given a discount on their car insurance. Some insurance companies also partner with larger employers and offer discounts as part of an employee benefits package.
Low mileage discount - Insurance companies often charge lower rates for drivers who have short commutes.
Military discount - Many insurance companies offer a discount to active military members and their families.
Drivers who don’t qualify for these discounts or want even lower insurance rates can work to improve their credit score, clean up their driving record and compare quotes from multiple companies to make sure they are getting the cheapest price for their car insurance.
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Frequently asked questions
How much is car insurance per month in Texas?
The average cost of car insurance in Texas is $152 per month, or $1,818 per year.
Is there low-income car insurance in Texas?
Many states offer an alternative insurance policy for residents who fall below the poverty line, but Texas is not one of them. Texas residents who cannot afford a standard insurance policy should work with an insurance agent to find the cheapest possible plan available to them.
What is recommended for car insurance in Texas?
Texas drivers must carry minimum levels of liability coverage, but most drivers probably also have to carry comprehensive and collision insurance. That’s because most auto loan lienholders require these forms of insurance.
Is Texas a fault or no fault state?
Texas is an at-fault state, which means the driver who is at fault for an accident is responsible for all the bodily injury and property damage costs caused by the accident, whether or not they have enough insurance to cover those costs.
