Cheapest car insurance in Texas For April, 2024

State Farm offers the best cheap car insurance in Texas, with average rates of $81 a month for minimum coverage.

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Updated: 08 March 2024
Written by
Doug Schaffer
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If you’re seeking the most affordable vehicle insurance in Texas, one insurer to focus on is State Farm. The company, one of the best-known insurers in the U.S., stands out from the pack. Recognized for its competitive premiums and reliable service, State Farm offers the best deal for both minimum and comprehensive coverage policies.

In this thorough guide, we compare different vehicle insurance options while focusing on cost-effectiveness. With 10+ years of experience in analyzing the nitty-gritty of auto insurance policies, I’ve compiled our findings to assist you as you explore this complex market. My analysis isn’t merely surface level. Instead, I’ve painstakingly combed over dozens of premier vehicle insurance companies, and I’ve graded them using several parameters to ensure you get information you can use to make informed decisions.

Keep in mind that simply going for the lowest-cost policy might wind up costing you more in the end. That’s especially true if you live in a state, like Texas, that presents unique driving situations. Through this comprehensive guide, I am to give you the knowledge you require to choose the right car insurance coverage for you. You need to gain peace of mind and protect your investment. So, get ready as Insuranceopedia takes you through the vital aspects of selecting the right auto insurance in Texas, ensuring you get affordable coverage.

Our Methodology

For our quest to find the cheapest auto insurance rates in Texas, we looked at findings from car insurance review sites, some of which assessed rates from public filings obtained through Quadrant Information Services. Our team of insurance industry professionals also used our combined 25 years of expertise to critically assess each insurer. Here’s why you can trust our research the next time you need to get car insurance in Texas: While the listed rates in this guide are accurate, keep in mind that premiums change daily and can be higher or lower based on each individual driver.

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Quotes Assessed

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Cheapest car insurance companies in Texas

Cheapest car insurance in Texas for minimum coverage

State Farm offers the cheapest minimum coverage car insurance, with average monthly premiums of $34.

Provider Average Monthly Cost Average Annual Cost
State Farm $34 $408
Progressive $59 $708
Allstate $60 $720
GEICO $64 $764
Nationwide $75 $900

Liability only vehicle insurance represents the most basic level of protection that you can secure in the state of Texas. This level of vehicle insurance includes two major components, namely Property Damage Liability (PDL) and Personal Injury Protection (PIP).

PDL refers to the expense of damage to someone’s property due to an accident caused by you. This coverage is especially enticing to motorists looking for coverage that is affordable and lines up with Texas’s legal requirements. PIP, meanwhile, refers to medical expenses and lost salary for you and your passengers, whether or not you’re the at-fault motorist.

Even so, it’s vital to recognize that choosing liability-only coverage won’t afford you protection in many situations – particularly in serious collisions. While it fulfills state requirements and offers some protection, a minimum coverage policy does not cover many scenarios that a full comprehensive car insurance policy does.

For example, it lacks collision or comprehensive coverage. That means damage to your own car in the event of an accident or other problems like natural disasters or vandalism will fall outside of coverage. Therefore, motorists must thoughtfully consider their individual situations, their risk-tolerance level, and if they might require further coverage outside of the bare minimum required by the state to ensure the best protection.

Cheap auto insurance in Texas for full coverage

GEICO has the lowest-cost full comprehensive coverage auto insurance in Texas. You can purchase coverage for around $115 per month.

Provider Average Monthly Cost Average Annual Cost
GEICO $115 $1,380
Allstate $122 $1,464
Nationwide $124 $1,488
Progressive $127 $1,524
Chubb $160 $1,920

Comprehensive coverage auto car insurance includes a wider range of safeguards versus a liability only policy, making it a better option for many motorists. This sort of policy usually combines comprehensive and collision insurance, creating a strong robust safety net. Full comprehensive insurance covers non-collision related events like theft, vandalism, and natural disasters, whereas collision insurance covers damages to your car in an accident whether or not you’re at fault.

This dual-layered option gives motorists comprehensive protection for many scenarios ranging from collisions to unexpected environmental damages. Full coverage is often recommended for motorists with newer models or high-value cars since these vehicles usually require more extensive and expensive repairs or replacements.

The full coverage expense is usually higher than the minimum coverage expense, but this price increase adds a great deal of extra protection. For people who own newer or costlier vehicles, full coverage is not just a value-added option. It’s a must to protect their investment.

Cheapest auto insurance in Texas for seniors

Seniors can expect to pay $129 per month for cheap car insurance, using Progressive.

Provider Average Monthly Cost Average Annual Cost
Progressive $129 $1,548
Chubb $146 $1,752
Mercury $151 $1,812
GEICO $119 $1,428
Allstate $114 $1,368

Seniors in Texas can get competitive premiums for their vehicle insurance because of different things that work in their favor. Age can be a big factor in determining car insurance premiums. As people get older and their reflexes slow down, their rates tend to go up. But this is written in stone. Many elderly drivers maintain strong driving records even as they advance in age.

Insurers realize this and usually reward such experienced senior motorists with lower premiums. A good driving record with few or zero accidents and traffic infractions can tip the scales in the favor of senior drivers. Some insurers acknowledge the maturity and experience that seniors bring to the table since such drivers are often more responsible and less likely to make careless rookie mistakes.

Further improving the appeal for older motorists, some insurers offer price cuts specifically tailored to the senior driver demographic. Criteria for such programs can include the motorist’s age, the vehicle use frequency, and the successful completion of senior driver safety classes. Many car insurers encourage elderly drivers to take defensive driving classes, sometimes offering premium price cuts upon successful completion. These courses can refresh and update driving skills and know-how, ultimately contributing to better driving practices.

Cheap car insurance in Texas for drivers with poor credit

If you have bad credit, UAIC offers the best choice for affordable premiums. Premiums are around $255.

Provider Average Annual Cost Average Monthly Cost
Nationwide $2,016 $168
Allstate $2,220 $185
Progressive $2,652 $221
GEICO $3,972 $331
State Farm $5,148 $429

Credit scores impact how car insurance companies set premiums. They’re looked at as vital indicators for insurance providers in determining a motorist’s risk profile. Statistics provide that people with lower credit scores file insurance claims with greater regularity, which makes them higher-risk clients from the perspective of insurers. What this means for drivers with lower credit scores is higher car insurance premiums.

Motorists with poor credit scores usually face higher insurance expenses versus drivers with better credit. The credit score rating is used to determine someone’s overall reliability and responsibility. So, it paints a picture of someone’s management skills and financial stability.

Despite this trend, the insurance industry does offer some relief for motorists with less-than-stellar credit histories. Certain insurers have created policies to meet the needs of this demographic, offering rates that don’t heavily penalize had credit as much as usual. These insurers factor into the equation a more holistic approach in assessing risk, considering things other than merely the credit score.

This can include where the driver lives in Texas, the driving history, and the type of car insured. For people impacted by a bad credit score, it’s essential to look around and compare quotes from these specialized auto insurance companies. These insurers might offer more lenient pricing, making auto insurance more accessible and cost-effective despite their credit issues.

Cheapest car insurance in Texas for young drivers in Texas

In Texas, young adult drivers usually benefit from lower auto insurance premiums than their teenage counterparts. The reason for this pricing gap is that young adult motorists tend to be more mature and responsible – taking fewer risks – than teen drivers. Statistically, young adults file fewer claims than teenage drivers, so that reflects fewer accidents. Car insurance providers adjust vehicle insurance premiums downward, acknowledging the improved safety records and lower odds of claims from more experienced motorists.

Cheap Texas auto insurance for 16-year-olds

American Family Insurance has the lowest-cost premiums for 16-year-olds, with an average monthly cost coming in at $459.

Provider Average Monthly Cost Average Annual Cost
American Family Insurance $459 $5,503
State Farm $462 $5,542
USAA $535 $6,420
Industry Average $629 $7,546
Progressive $843 $10,115

Cheapest Texas car insurance for 17-year-olds

American Family Insurance offers the lowest rates for 17-year-old motorists, with an average premium of $313.

Provider Average Monthly Cost Average Annual Cost
American Family Insurance $313 $3,752
State Farm $319 $3,832
GEICO $351 $4,215
Nationwide $354 $4,246
Travelers $440 $5,279

Cheap Texas auto insurance for 18-year-olds

American Family Insurance has the lowest premiums for 18-year-olds, with an average monthly rate of $303.

Provider Average Monthly Cost Average Annual Cost
American Family Insurance $303 $3,632
State Farm $320 $3,834
Travelers $479 $5,753
Progressive $621 $7,446
United Automobile Insurance Co. $638 $7,653

Cheapest Texas car insurance for 21-year-olds

American Family Insurance has the cheapest premiums for 21-year-old drivers, with an average monthly rate of $232.

Provider Average Monthly Cost Average Annual Cost
American Family Insurance $232 $2,784
Travelers $261 $3,132
State Farm $287 $3,446
American Family Insurance $303 $3,632
Farmers $386 $4,632

Cheap car insurance in Texas for drivers with prior incidents

Motorists in Texas with a track record of incidents, including collisions, speeding tickets, or DUIs, usually face big challenges when seeking affordable auto insurance. These incidents categorize them as substantial-risk drivers for many car insurance companies. This high-risk category is meant for people who are statistically more likely to be involved with accidents leading to claims. Insurance companies tend to boost rates for such drivers to compensate for the increased risk of financial payouts.

This is especially true in Texas, where the traffic incident rate can be higher than in other states in the U.S. The rationale underpinning this pricing strategy is based on statistical analyses and risk assessment models, which show that a track record of driving accidents usually means higher odds of future claims.

Cheapest car insurance in Texas for good drivers

Good motorists, namely people with clean driving records, are usually rewarded with lower auto insurance premiums. Insurance providers gauge risk based on a person’s driving history, and people without any violations or collisions naturally fit in the low-risk segment. This good risk profile is based on a proven history of responsible and safe driving. It also suggests lower odds of filing claims down the road.

Insurance providers are more likely to give such motorists enticing cost cuts since these drivers present a lower risk than the average driver. For drivers who regularly obey traffic laws, steer clear of accidents, and display safe driving behavior, this works out to big price cuts on their auto insurance over time.

Provider Average Monthly Cost Average Annual Cost
USAA $156 $1,869
GEICO $158 $1,899
Germania Mutual $161 $1,935
Nationwide $167 $1,998
National General $210 $2,516

Cheap auto insurance in Texas for drivers with a speeding ticket

AAA Texas offers motorists average premiums of $86, which makes it the lowest-cost option for people with a speeding ticket.

Insurer Average Monthly Cost Average Annual Cost
AAA Texas $86 $1,032
Allstate $128 $1,536
State Farm $135 $1,620
GEICO $143 $1,716
Nationwide $148 $1,776

Cheapest car insurance in Texas for drivers after a DUI

AAA Texas offers average auto insurance rates of $145, making it the most affordable option for people with a DUI on their record.

Provider Average Monthly Cost Average Annual Cost
AAA Texas $145 $1,740
Progressive $155 $1,860
State Farm $158 $1,896
National General $164 $1,968
Dairyland $185 $2,220

Cheap car insurance in Texas for drivers with an at-fault accident

AAA Texas offers average premiums of $103 for Texas drivers with an at-fault accident on their record, making the insurer the cheapest option for people with an at-fault accident.

Provider Average Monthly Cost Average Annual Cost
AAA Texas $103 $1,236
Texas Farm Bureau $108 $1,296
State Farm $158 $1,896
Nationwide $174 $2,088
GEICO $192 $2,304

Average cost of car insurance in Texas

Average cost in Texas – By age

Age Average Monthly Cost Average Annual Cost
16 $599 $7,185
17 $555 $6,654
18 $449 $5,385
19 $320 $3,843
21 $253 $3,035
25 $191 $2,296
35 $145 $1,744
45 $125 $1,503
55 $120 $1,435
65 $125 $1,505
75 $160 $1,923

Average cost in Texas – By credit tier

Credit Tier Average Monthly Cost Average Annual Cost
Excellent $120 $1,435
Good $179 $2,147
Fair $217 $2,615
Poor $262 $3,145

Average cost in Texas – By gender & marital status

Gender Marital Status Average Annual Cost
Female Single $1,732
Male Single $1,783
Female Married $3,264
Male Married $3,366

Cheapest car insurance in Texas by city:

City Average Monthly Cost Average Annual Cost
Lubbock $147 $1,769
Austin $148 $1,781
Corpus Christi $151 $1,815
Plano $152 $1,825
San Antonio $153 $1,842
El Paso $161 $1,932

Minimum car insurance requirement in Texas

The minimum Texas auto insurance coverage requirements under state law include the following:

  • PIP: $30,000 or up to $60,000 per accident
  • Property damage liability: $25,000 per accident

In the state of Texas, you’re required by law to have a minimum level of auto insurance to legally operate a vehicle in the state. This requirement is required because of the Financial Responsibility Law and the No-Fault Law, which are intended to ensure that people can cover the expenses connected with car collisions. Specifically, the law mandates two primary types of coverage: Personal Injury Protection (PIP) and Property Damage Liability (PDL).

Personal Injury Protection (PIP) is required under a no-fault state’s law. This coverage means that in the event of a car accident, each driver’s insurance will pay for their medical expenses, regardless of who was at fault. Unlike some states, however, Texas is not a no-fault state. What this means is that the at-fault party in a car crash must shoulder responsibility for any injuries or losses caused by the accident. If you’re in a car crash and are injured, you can go after the at-fault driver for compensation.

Property Damage Liability (PDL) is mandatory coverage in Texas. It covers costs of damages for the policyholder or members of the policy members’ households if injuries occur in a car accident. The minimum mandated coverage for PDL in Texas is $25,000. PDL does not cover the people’s car damages. It only covers damages caused to property.

Car insurance discounts in Texas

While seeking auto insurance, it makes sense to focus on insurers that offer the most beneficial price cuts tailored to your situation. Additionally, speaking to your insurance agent can find possible savings that you might not have known existed or were available to you.

Below is more information about the common kinds of discounts offered by top insurers.

  • Multi-policy: Bundle multiple insurance products with the same insurer.
  • Multi-vehicle: Insuring more than one vehicle under the same policy or merging auto insurance policies earns you this price reduction.
  • Senior: This is often available to customers who are 55 or older.
  • Pay-in-full: Reduce your car insurance premium by paying for it up front in full
  • Military: This is available to both veterans and active-duty military members.
  • Homeowners: If you own a home, you may qualify for this discount.
  • Driver training: Get a cost cut by taking a driver education training program.
  • Good student: This is usually available to post-secondary and high school students under the age of 25 who maintain a B average in their classes.
  • Good driver: You can reduce premiums by maintaining a good driving record with zero at-fault collisions, DUIs, or traffic tickets over the last three years.
  • Defensive driving: People who take defensive driving courses get lower premiums.
  • New car: Drivers who buy new vehicles, usually no more than three model years old, get a price cut.
  • Safe car: If your car has safety features such as anti-theft technology, you can save money.
  • Paperless: Get a discount by choosing to receive your documents via email.

FAQs

How much is car insurance a month in Texas?

The monthly cost of auto insurance in Texas ranges from $156 to $430. Things influencing the cost include the make and model of your car, the age of your car, your driving record, and your coverage level.

What is the minimum car insurance one must have in Texas?

In Texas, the minimum auto insurance required is Personal Injury Protection (PIP) of up to $60,000 per accident and Property Damage Liability (PDL) of $25,000 per accident.

Which insurance is better in Texas?

The “best” insurance in the state depends on individual requirements. GEICO and State Farm are both well-known and highly regarded for their cost-effectiveness and customer service,

Sources

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