Top rated auto insurance companies in texas

Finding affordable insurance in Texas does not come cheap. That said, there are many auto insurance companies in Texas that provide discounts and special offers to customers.

In this article, you will find out more about car insurance in the Lone Star State, including the state requirements, average costs, and cheapest insurance providers.  Make sure to check our list of best car insurance providers if you are located outside of Texas.

Have a look at our price comparison table for a quick summary!

What Are State Minimum Requirements?

Before you register your vehicle in the Lone Star State, you should be aware of the Texas car insurance requirements. Remember, Texas is not a “no-fault” state. As per rules and regulations within the state, everyone shares financial responsibility if they cause an accident and are at 50% fault.

Here are some Texas auto insurance minimum laws that you must follow:

Liability Coverage

Texas minimum auto insurance requires you to buy a mandatory insurance amount of $30,000/$60,000/$25,000. This means that if you get into an accident, you can avail $30,000 coverage for bodily injury for one person, $60,000 coverage for more than one person, and $25,0000 for property damage for each accident.

If you are a resident of Texas, your insurance policy must include two forms of liability coverage - property damage and bodily injury liability.

If you are found responsible for an accident, the property damage coverage will safeguard your assets. This can prove to be particularly helpful if you cause damage to any other vehicle or property.

Moreover, if you get into an accident, the bodily injury liability covers expenses of bodily harm that may have been inflicted on others.

Uninsured Motorist Coverage

Of course, you will find drivers in Texas who barely have minimum insurance coverage or none at all. If you come across one, you can build a case using the uninsured motorist coverage. This coverage will help you pay the medical and auto repair bills. 

In case of a hit-and-run accident, this will keep you covered. It provides coverage of $100,000 per person and $300,000 per accident. Even though you can reject it in writing, Texas auto insurance companies have to provide you with uninsured motorist coverage.

Personal Injury Protection (PIP)

This includes $2,500 in personal injury protection (PIP) that covers medical bills for you and your passengers, regardless of who was responsible for the accident.

You can opt-out of this if you have good health insurance. However, PIP is responsible for covering some expenses that health insurance won’t, so carefully go over the details before making your choice.

Average Car Insurance Cost in Texas

The table below shows the minimum Texas car insurance rates. This is the least possible coverage that one must buy to adhere to the laws mentioned by the state. 

Drivers below 20 end up paying the most because they have less experience. Moreover, many insurance companies base your car insurance price on your gender. Men pay higher average rates before the age of 20, while women pay slightly more by the time they’re 30.

 Auto Car Insurance Rates in Texas by Top Cities

The annual average car insurance rate in Texas is $677. Houston is the most expensive city, while Austin is the least expensive, according to the table given below. 

Many factors come into play when insuring a vehicle in Texas, including the city you live in and the place you park your vehicle. Here are the top cities with their average auto insurance rates:

Cheapest Providers

It is possible to get cheap auto insurance from several companies in Texas. Have a look at some of the top

auto insurance providers in Texas for different types of drivers.

Full Coverage Auto Insurance in Texas

If you are a good driver in Texas, you can definitely take advantage of the rates at Farmers and GEICO. The average rates for these companies are less than the national average.

If you are only looking for the required minimum coverage, State Farm also offers some of the most affordable auto insurance rates in Texas.

Car Insurance for Drivers With a DUI

Between 2009 and 2018, a total of 13,592 people were killed in DUI car crashes. Drivers convicted of a DUI can go to prison for up to 6 months in Texas and have their license suspended from 90 days to a year.

Some of the top auto insurance providers for drivers with a DUI in Texas include Farmers, USAA, and State Farm.

Cheapest Car insurance in Texas for Speeding or Distracted Driving Tickets

There is no denying that distracted drivers are more likely to get a speeding ticket, after which the insurance rates will rise. The cheapest car insurance in Texas for such drivers is State Farm, as well as Farmers.

Here, you will find competitive rates and superior packages. In Texas, a speeding ticket stays in the records for a period of three years.

Cheapest Car Insurance Companies in Texas for Drivers with Bad Credit

If you are a driver in Texas with poor credit, you will end up paying hundreds of dollars each year. So look for some cheap providers, such as Farmers and Nationwide, that offer affordable auto insurance rates in Texas.

Cheapest Car Insurance for Seniors in Texas

Did you know that in 2017, drivers over 65 years of age were responsible for 9.9% of the car accidents in Texas? This is why car insurance is necessary for older people.

Most affordable car insurance for seniors in Texas includes Farmers with an annual average of $834 and State Farm, with an average of $891.

Cheapest Car Insurance for Students and Young Drivers

Adding a teen driver on an auto insurance policy plan means that you will have to pay extra. This is because young people are more likely to get into accidents. If you shop around for good rates and discounts, such as a student discount, you will end up paying less each year.

The two auto insurance providers that have the cheapest rates for young drivers in Texas are Nationwide and State Farm.

Car Insurance for Veterans in Texas

Members who have been a part of the military can avail military discounts on auto insurance in Texas. As you look around for discounts and good car insurance providers in Texas, keep in mind that having a decent driving record is crucial.

Traffic Rules and Penalties

Texas auto insurance laws state that all drivers must be able to hand over their proof of insurance at any given point. If drivers are unable to do so, they will be penalized. The fines for failure to provide proof of insurance can go up to $350, along with additional court costs.

If you get caught again without proof of insurance, the financial penalties and those on your driver’s license will get worse. The fines, according to Texas auto insurance law, can go up to $1,000, with additional court fees. 

Moreover, license suspension may also take place. In some places within Texas, your vehicle can get towed if you do not have insurance, and your driving privileges may be revoked.

The cost of insurance depends on the coverage you choose, the vehicle you drive, your driving record, and the area you live in. Auto insurers, when deciding whether you are eligible for insurance, can also take a look at your credit history.

Top Car Insurance Companies in Texas

According to our research and the table below, here are some of the top Texas auto insurance providers based on their customer service, average rates, and customer satisfaction, according to J.D. Power’s 2020 US Auto Insurance Satisfaction Study.

Wide coverage

7.26%

A+

$767.81

Affordable policies

3.98%

A+

$774.49

Home and life insurance policies

7.84%

A-

$821

Customer service

16.15%

A++

$955.63

Low rates of complains

3.3%

A-

$709

Deductible savings bank

6.56%

A+

$801

Military members

2.65%

A++

$746.28

Allstate Auto Insurance

Allstate ranks among the top-rated auto insurance companies in Texas and has offices all over the state. Known for its brilliant customer service that focuses on all your local needs, Allstate keeps your budget and goals in mind when providing a car insurance quote.

You can opt for any of the insurance discounts to save on premiums. Some featured discounts include multiple policies, new car, and teen driver discounts.

GEICO Car Insurance

Falling third in the study, GEICO is one of the cheapest car insurance providers in Texas. It allows customers the ability to file claims online easily. 

You can call the company representatives or take full advantage of the mobile application that is available on Android, as well as iOS, and has received a 4.8 out of 5 in star ratings. 

GEICO is known for helping policyholders save large sums of money on car insurance. It provides discounts for anti-theft devices, front-seat airbags, military members, drivers with no accident history, and has numerous other policies.

Farmers Auto Insurance

Farmers is among the largest and most affordable car insurance companies in Texas. It has a high market share and is known to rank well among customers. In fact, it is one of the companies with the highest satisfaction ratio.

At Farmers, you will find a variety of discounts. There are also discounts for being a good student, or for being part of a professional group.

State Farm Car Insurance

Fourth place in the J.D. Power’s 2020 US Auto Insurance Satisfaction Study, State Farm is best known for its large number of standard and optional coverages for Texas residents. 

State Farm’s mobile application also works well for Android and Apple users. It includes wonderful features, such as a digital insurance I.D. card. Your agent can be contacted via the application, a claim can be filed, and you can also request assistance at any point.

Texas Farm Bureau Car Insurance

This Texas car insurance company operates in one state. If you want to buy coverage here, you must first purchase the full membership, which can cost $35 to $50 per year. Through this, you can access cheap full coverage car insurance in Texas.

Texas Farm Bureau provides students with good discounts and also gives discounts to homeowners. If your vehicle has an identification number, VIN, you are eligible for a discount too.

Progressive Auto Insurance

Looking for cheap liability car insurance in Texas? Regardless of where you live, Progressive can be found everywhere. According to several studies, Progressive ranks high in terms of customer satisfaction. It also has some cheap car insurance rates in Texas.

Depending on where you live, there are several options to choose from. Your insurance policy may provide pet injury protection as part of collision coverage. Moreover, the company provides you with a “savings bank” that reduces deductibles by $50 over a claim-free policy period. This amount can go down to $0.

USAA Auto Insurance

Even though USAA ranks the highest in the study, we have not included it in our ranking as it is only for active and retired military members and their families. However, it is ranked as the top car insurance in Texas.

USAA provides a large number of coverages whether you want to ensure an old vehicle that needs state-mandated coverage or a brand-new vehicle that requires full coverage.

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