Here's what you need to know when driving in Texas
The average car insurance rate in Texas is $1,415 per year — 9% less than the U.S. average.
However, auto insurance costs are affected by more than just state lines. Auto insurance premiums incorporate a number of factors, including a motorist's age, gender, marital status, credit and driving history.
We reviewed Texas auto insurance premiums by each of the more significant pricing factors. Read on to see how much auto insurance costs in your state — or enter your ZIP code above to view free, unique rates from leading insurance companies.
Affordable insurance companies in Texas
What's the cheapest car insurance in Texas?
| Rank | Company Name | Avg. Annual Premium |
|---|---|---|
| 1 | Travelers | $1,031 |
| 2 | Cal Casualty | $1,410 |
| 3 | USAA | $1,461 |
| 4 | Elephant | $1,464 |
| 5 | Esurance | $1,478 |
| 6 | Mercury | $1,491 |
| 7 | State Farm | $1,574 |
| 8 | Texas Farm Bureau | $1,679 |
| 9 | Allstate | $2,516 |
| 10 | Dairyland | $3,012 |
See rates from dozens of companies in Texas by entering your ZIP code below.
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Cheap auto insurance for good drivers in Texas
Drivers with good records typically enjoy lower car insurance costs than drivers with histories of speeding tickets, at-fault accidents, or DUI citations. Texas drivers without a recent moving violation save 8% on their car insurance premiums, on average — compared to the national average of 25%. In addition to earning a cheaper premium for driving incident-free, you may qualify for a safe-driving bonus through your car insurance company. The amount of these discounts may vary, but they typically run between 5 and 10%.
If you feel like your rates are high in spite of your clean driving record, get car insurance quotes every few months to ensure you're getting a good deal.
TEXAS CAR INSURANCE AVERAGE SAVINGS FOR GOOD DRIVERS
| Rating Factor | $ Savings | % Savings |
|---|---|---|
| No Traffic Tickets | $247 | 17.47% |
| No Accidents | $253 | 17.87% |
| Good Credit | $946 | 51.82% |
Cheap auto insurance for young drivers in Texas
Young drivers — aged between 16 and 25 — pay very high car insurance rates, with those aged 16 to 19 paying the most expensive premiums of all. Because of the risk presented by inexperienced drivers, teen drivers pay more than three times the national average for car insurance. In Texas, teen drivers pay especially high rates: $3,300 per year — more than $1,750 more than the nationwide average and over twice as much as a typical Texas driver.
TEXAS CAR INSURANCE RATES BY AGE GROUP
| Age | Annual Average Premium |
|---|---|
| 16 | $4,049 |
| 17 | $3,433 |
| 18 | $3,035 |
| 19 | $2,681 |
| 20s | $1,757 |
Cheap auto insurance for bad drivers in Texas
If you have a clean driving record in Texas — no at-fault accidents, speeding tickets, DUIs, or other recent citations — you'll probably pay less for car insurance. Conversely, a bad driving record will cause your rates to skyrocket: car insurance premiums typically increase by 54% after a DUI, 50% after an at-fault accident, and 9% after a speeding ticket in Texas. If you have a sparkling clean driving history, be sure to inquire about your insurer's safe driver discount.
| Rating Factor | Annual Rate | % Increase |
|---|---|---|
| At-Fault Accident | $2,129 | 50% |
| DUI | $2,177 | 54% |
| Speeding Violation | $1,536 | 9% |
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Top rated car insurance companies in Texas
Every auto insurance company advertises its low premiums. As with any product, the cheapest auto insurance policy isn't always the best choice. Considering the stakes, it's worthwhile to do your homework to discover an insurance policy that covers your vehicle adequately after an accident. It's worth comparing insurance options to find the best value, instead of settling for the most affordable car insurance in Texas.
Use the table below to better understand the quality of service you'll receive. You'll see reviews for popular auto insurers' financial strength, claims satisfaction, and customer satisfaction including an internal satisfaction score from The Zebra's customers.
| Insurance Company | Claims Satisfaction (J.D. Power) | Customer Satisfaction (J.D. Power) | Financial Strength (A.M. Best) | Customer Satisfaction (The Zebra) |
| Allstate | Above average | Average | Superior | 4.3 / 5 |
| Cal Casualty | N/A | N/A | Good | N/A |
| Esurance | Average | N/A | Superior | N/A |
| GEICO | Average | Average | Superior | 4.4 / 5 |
| Nationwide | Above average | Poor | Superior | 4.3 / 5 |
| Progressive | Below average | Below average | Excellent | 4.3 / 5 |
| State Farm | Above average | Above average | Superior | 4.5 / 5 |
| Texas Farm Bureau | N/A | N/A | Excellent | N/A |
| Travelers | Below average | Below average | Superior | 4.3 / 5 |
| USAA | Excellent | Excellent | Superior | 4.6 / 5 |
Texas auto insurance laws
In the state of Texas, the state minimum coverage requirement is liability insurance with limits of:
- Bodily injury liability: $30,000 per person
- Bodily injury liability: $60,000 per accident
- Property damage liability: $25,000 per accident
Optional coverage in Texas (varies by carrier):
- Uninsured/Underinsured Motorist Coverage
- Uninsured Motorist Property Damage
- Personal Injury Protection (PIP)
- Additional Medical Coverage
- Comprehensive Coverage
- Collision Coverage
- Rental Car Reimbursement
- Roadside Assistance/Towing and Labor
If you choose the legal minimum coverage level in Texas, expect to pay an average of $576 annually. This expenditure is less expensive than the nationwide average by 8%. If you opt for better coverage, you can choose a policy with comprehensive and collision, which will protect against the costs of car accidents, theft, vandalism, or weather incidents. But better coverage comes with a cost: in Texas, a comprehensive insurance policy with a $1,000 deductible costs $1,254, 118% more than liability-only car insurance. For a comprehensive policy with a $500 deductible, expect to pay 160% more than you would for basic coverage.
Learn more about minimum auto insurance requirements in Texas.
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How tickets change insurance rates in Texas
If you receive a ticket or citation, your auto insurance premiums will probably rise. By how much depends on the violation, your insurer's pricing standards, and differing local insurance regulations and risks. That's why tickets may have a different impact on insurance in your state compared to the national average.
See below average auto insurance rates in Texas after a few common citations.
Texas car insurance FAQs
Who has the cheapest car insurance in Texas?
Our data shows Travelers offers the cheapest car insurance in Texas, at $515 for a six-month policy, or $86 per month. Use The Zebra's comparison tool to find the best and cheapest rate for you in Texas.
What is the average cost of car insurance in Texas?
On average, car insurance in Texas costs $1,415 per year — 9% less than average. This is an average rate based on our user profile. Depending on your driving history, age, and vehicle, your rate can be cheaper or more expensive. Shop quotes for car insurance in Texas today.
Why is car insurance so expensive in Texas?
Insurance companies use the previous year’s claims data to price their rates. Texas not only has more claims than other states, but they have more expensive claims. Thus making it more expensive to do business in Texas for insurance companies. In order to have a profit, insurance providers will raise rates. Your best option for finding the cheapest rates in Texas is to shop around as much as possible. Use our comparison tool to see rates and offers from GEICO, Progressive, Travelers and Esurance.
How much does car insurance cost in Texas cities?
Car insurance companies calculate your rate based on many factors, location of the vehicle being an important one. The cheapest car insurance is found in Killeen, Texas, and the most expensive in Dallas, Texas.
| Rank | City | Avg. Annual Premium |
|---|---|---|
| 1 | Dallas | $1,680 |
| 2 | Houston | $1,671 |
| 3 | Mesquite | $1,638 |
| 4 | Garland | $1,606 |
| 5 | McAllen | $1,580 |
| 6 | Grand Prairie | $1,561 |
| 7 | Pasadena | $1,546 |
| 8 | Beaumont | $1,529 |
| 9 | Brownsville | $1,522 |
| 10 | Irving | $1,518 |
| 11 | Amarillo | $1,516 |
| 12 | Arlington | $1,508 |
| 13 | Laredo | $1,507 |
| 14 | San Antonio | $1,501 |
| 15 | Carrollton | $1,481 |
| 16 | Lubbock | $1,453 |
| 17 | Fort Worth | $1,446 |
| 18 | El Paso | $1,442 |
| 19 | Plano | $1,428 |
| 20 | Austin | $1,424 |
| 21 | Corpus Christi | $1,416 |
| 22 | McKinney | $1,402 |
| 23 | Waco | $1,322 |
| 24 | Abilene | $1,294 |
| 25 | Killeen | $1,263 |
