10 Best Car Insurance Companies in Texas in 2021
Finding the best car insurance in the Lone Star State—that’s also affordable—may look like a daunting task. In our experience, Texas is among the most expensive places for auto insurance. To make things easier, we ranked every major Texas car insurance company. We used parameters like the quality of its customer service, financial strength, discounts, optional coverages, and prices.
Furthermore, we’ve provided a specialized guide for the most common categories of drivers, plus a separate list of the cheapest insurance options in the biggest cities in Texas. Whatever your needs are, rest assured that you will find the best car insurance in Texas right here.
The Cheapest and Best Car Insurance: Texas
- Overall Winner: Geico Insurance
- Runner Up: MetLife Insurance
- Best for the Military: USAA Insurance
- Cheapest & Best for High-Risk Drivers: Progressive Insurance
- Best for Optional Coverages: AAA Insurance
- Best for Customer Service: Texas Farm Bureau
The Overall Winner: Geico Insurance
The competition for the best insurance company in Texas was a hotly contested battle between TX Farm Bureau, Allstate, MetLife, Progressive, and Geico. In the end, the last emerged as the winner. Geico offers reasonable prices, various discounts, and the best website and mobile app in the market. The company’s financial strength is second to none, further ensuring it deserves a place at the top when it comes to Texas car insurance. Geico is a subsidiary of Berkshire Hathaway, the third company on the 2018 Fortune 500 list.
GEICO even does reasonably well in the customer service department. While it earned only three stars, it is ranked fourth overall among ten insurers in 2019’s J.D. Power regional study for Texas. Companies that score significantly better are TX Farm Bureau and Allstate. However, Allstate is more expensive.
This means that every insurer presents a compromise. Nonetheless, we assume that Geico will top the list of the best insurance companies in Texas for the majority of customers.
Choose Geico for affordable rates and great overall performance.
Look elsewhere if you are want the best customer service.
The Runner Up: MetLife Insurance
MetLife has much going in its favor in Texas, making it an appealing option. While it is usually among the more expensive options for the majority of the US market, it offers cheap auto insurance for Texas residents. The company is particularly affordable for the more experienced, safer driver categories. It is even an excellent choice for newer car owners.
Furthermore, those who work in MetLife’s associated corporations and organizations are in for a treat. They can get an astonishing 50% off their premium. Even if you aren’t a member of an affiliated organization, it’s worth giving MetLife a shot.
MetLife, however, is not ranked in the latest J.D. Power’s study for Texas, but that shouldn’t be a concern. It recorded a better-than-average score in the national study, which goes to show that customers by and large are happy with it.
Choose MetLife for solid overall performance and significant discounts.
Look elsewhere if you are a younger driver and want affordable car insurance.
The Best for the Military: USAA Insurance
In every state guide on our site, we end up praising the quality of USAA insurance. USAA offers everything you could ask for in your Texas auto insurance, from their reliable customer service and reasonable prices to the streamlined website and the company’s top-of-the-line financial strength. It seems we’re running out of compliments for this insurer.
One major obstacle for a potential customer is its restricted availability. Only former and current US army members and their close family can buy USAA insurance. But if you qualify for their membership, you are in for a treat. USAA offers the best car insurance Texas residents can buy. And the company isn’t limited only to insurance. USAA also provides banking services, car loans, and financial advice to its customers.
Choose USAA for all parameters if you are eligible.
Look elsewhere if you are not a member of the US army or a family member.
The Cheapest & Best for High-Risk Drivers: Progressive Insurance
Progressive offers the cheapest auto insurance Texas residents can buy. Furthermore, the company doesn’t inflate their prices for high-risk or young drivers. Whether you got your license recently, have a poor credit rating, or need SR22 insurance, Progressive will be there for you.
However, we can’t give a universal recommendation of Progressive. The company scores only two out of five stars and it’s third from the bottom in J.D. Power’s 2018 regional study.
Nonetheless, Progressive has some redeeming qualities. It has solid financial strength (A+) and a polished website that offers a sleek user experience. If you want to get the most bang for your buck or avoid being overcharged because you’re a younger driver, give Progressive a chance.
Choose Progressive for cheap insurance in Texas, even for high-risk drivers.
Look elsewhere if you want the best customer service or financial strength.
The Best for Optional Coverages: AAA Insurance
AAA is an automotive club that provides car insurance to its members. This means that you get all the perks of being a AAA member in addition to their well-rated auto insurance. These include free roadside assistance, travel vouchers, and discounts at over 100,000 shops, restaurants, and hotels nationwide. The AAA Classic package costs only $56 year, meaning all those benefits are quite affordable.
AAA insurance in Texas is average in customer service. It scores three out of five stars in J.D. Power’s regional study. On the other hand, the company’s financial strength is mediocre, being “A” or “Excellent.” In comparison, Geico, State Farm, and Travelers all scored “A++” or “Superior.”
When it comes to prices, AAA is the most expensive Texas company for young drivers, costing $630 per month. The company is also the least affordable option for a 70-year-old driver. However, for experienced middle-aged motorists, you’ll find very reasonable AAA car insurance prices in Texas. That’s why we recommend that only customers near their forties get a quote from AAA. The company is just too expensive for other driver categories.
Choose AAA for the benefits of being a AAA club member, like top-notch roadside assistance.
Look elsewhere if you want top financial strength, the finest customer service, or the best prices.
The Best for Customer Service: Texas Farm Bureau
If you want superior customer service, Farm Bureau insurance is the way to go in Texas. The company is the only one to achieve a full five stars in J.D. Power’s 2018 regional rating. Furthermore, Texas Farm Bureau has a 0.28 NAIC ratio. The lower the score, the fewer complaints the company gets. Better-known insurers like Geico, State Farm, and Progressive have received 0.62, 0.48, and 0.75, respectively.
Unfortunately, as we noted in our review, TX Farm Bureau does not provide online insurance quotes in Texas. Furthermore, the company requires a membership fee for its services. Nonetheless, we checked other insurance reviews, and it seems that TX Farm Bureau offers some of the best prices in Texas.
In terms of financial stability, the company’s A. M. Best rating is “A” or “Excellent.” In comparison, bigger companies like USAA, Travelers, and Auto-Owners hold the best possible rating: “A++” or “Superior.” Moreover, they offer more discounts and optional coverages. But if you’re looking for a regular protection plan from a reliable and affordable company, Texas Farm Bureau demands your attention.
Choose Texas Farm Bureau for high-quality customer service and affordable prices.
Look elsewhere if you want a lot of optional coverages or a company with the best financial strength.
Best Auto Insurance in Texas by City
We requested auto insurance quotes from the most well-regarded insurance companies in the state’s five biggest cities for a 40-year-old driver with a clean record. Here’s our choice for the best car insurance in each city.
Does the phrase “Houston, we have a problem” sound familiar? That’s because NASA’s Mission Control Center is in Houston. The city is also home to the Texas Medical Center, the largest medical facility in the world. It has over seven million visits annually. Once these visitors get healthy, they can enjoy Houston’s exciting culinary scene. The city has over 10,000 restaurants, where you can find every kind of food imaginable.
There’s one big reason Houston insurance companies have to charge more here: Houston is the fourth most populous town in the US, with 2.3 million people. This creates a much higher potential for an accident.
You can count on our perennial champion of low prices, Progressive, to help you out in Houston. Geico and AAA insurance also offer reasonable rates, close to the Texas average. However, Houston car insurance is the second most expensive in the state of Texas overall, so prices are still a little high.
San Antonio attracts the highest number of tourists annually out of all the cities in Texas. The major attractions are the River Walk, Six Flags Fiesta, and the Alamo. Furthermore, the third largest zoo in the US is in San Antonio—it occupies over 35 acres of land and has over 3,500 animals, including leopards and Komodo dragons. The city is also the second biggest in Texas, and it was among the top ten fastest-growing cities in the US from 2000 to 2010.
The auto insurance San Antonio residents can get is $251 a month on average, which is $15 below the state average. Progressive is by far the most affordable option. Its monthly premium for our reference driver is significantly less than the other two cheapest companies, Geico and AAA. Allstate insurance, on the other hand, is too expensive for our liking. We would choose it only if we wanted high-quality customer service. In this situation, we would also consider Texas Farm Bureau good car insurance in San Antonio.
Home to the newest NBA rookie sensation Luka Doncic, Dallas is the third most populous city in Texas. Dallas is also where the first microchip was invented in 1958. They called it an integrated circuit computer chip in the beginning. Without it, there would be no internet, and you would not be reading this guide. The city also hosts the Dallas Public Library. There, you can find the original copies of the Declaration of Independence and the First Folio of Shakespeare’s comedies, histories, and tragedies.
Dallas is the most expensive city in Texas for car insurance. The average price is $297, which is $29 more than the state average. Nonetheless, Progressive, which won our award for the most affordable company, also offers good prices in Dallas. Its premium is a whopping $175 less monthly than the second cheapest option, which is Geico. Progressive should be near the top of your shortlist if you are looking for cheap car insurance in Dallas.
To say that Austin is an excellent place to live would be an understatement. The US News & World Report ranked the city as the top place to live in the US for 2017 and 2018. Furthermore, the FBI named Austin the second safest big city in the US for 2012. In 2016, Forbes ranked Austin number one on its “Cities of the Future” list. Austin’s many music festivals are an added benefit of living there. In fact, the city’s official slogan is “The Live Music Capital of the World.”
Auto insurance in Austin is the most affordable in TX. Progressive is again the cheapest option, costing only $106 per month. Geico is absolutely worth considering too. It got the award for the best company in Texas, and its premiums are reasonably priced.
Did you know that 60% of the nation’s dollars are printed in Fort Worth? The city is also the place where John F. Kennedy delivered his last speech before he was shot in Dallas. Furthermore, the first ship the United States Navy ever deployed bears the name of Fort Worth.
When it comes to car insurance, Fort Worth drivers will find their city to have the second cheapest prices on average in the state of Texas, which is already a good start. As in all the other cities we’ve listed so far, Progressive is again by far the most affordable option. Geico and AAA complete the list of companies providing reasonable prices. The former won the award for the best auto insurance in Texas, meaning it certainly deserves your attention.
El Paso hosts a lot of military facilities. Biggs Army Airfield and Fort Bliss are located in this City. Given this level of military presence, it comes as no surprise that El Paso is the safest large city in the US. It won that award in 2014 for the fourth consecutive time, and it was among the top three since 1997.
The most highly rated insurance companies in Texas include Progressive, MetLife, and Geico. The trio also represents the cheapest companies in the state. This is worth noting since, despite the city’s high safety ratings, car insurance prices in El Paso are equal to the overall Texas average. We would advise drivers in their thirties or older to add Farmers and Allstate to their shortlist. These two companies have excellent customer service ratings.
Car insurance Quotes in Texas: The Average Price
Based on our experience with and research into the other US states, Texas auto insurance is quite expensive. The average price is $268 per month; however, the following section helps give an idea of the ways you can bring your premium down.
Additionally, in our detailed analysis into Texas’s car insurance scene, we found that the cheapest car insurance Texas drivers can buy is also among the best. The most affordable companies, like Geico, USAA, and MetLife, have all received awards for being the best insurers in Texas. Based on this, we would advise a potential customer to choose more expensive companies only if there is some specific optional coverage or a unique feature that they particularly like.
Discounts on Car Insurance in Texas
To get the cheapest insurance, you need to take advantage of some of the various discounts available. We have listed the options that the majority of Texas insurance companies offer.
Defensive Driving Discount – Drivers older than 54 years can get a 5% premium reduction if they complete a defensive driving course approved by the Texas Education Agency. Naturally, they must be the principal operator of the vehicle. All of the best car insurance companies in Texas offer this discount.
Accident-Free Discount – If you haven’t had an accident or traffic violation for three to five years, depending on the insurer, you can get up to 30% off. The best news is that the discount increases over time if you stay accident-free.
Good Student Discount – A young driver or a teen can get a discount on car insurance. They must be enrolled full-time in an approved academic institution and maintain a GPA of 3.0 (B) or higher. Drivers under 21 can also complete certified training for an additional discount.
Bundle Discount – The majority of Texas auto insurance companies offer this discount. If you are insuring multiple vehicles or buying home and car insurance from the same company, you are bound to pay a lower price.
Safety Features – Common factory-installed safety mechanisms like anti-theft devices, airbags, and anti-lock brakes can get you a discount. Even driving a car that has a proven record of being safe and reliable can get you a premium reduction.
Texas Auto Insurance Laws
Minimum Insurance Requirements in Texas
You can drive without insurance in Texas if you guarantee that you will pay for damages in some way. One route is to invest in a surety bond. With this, all your belongings will be foreclosed on if you cannot afford to pay for damages. You can also deposit $55,000 or more with the county judge, which will be used to cover expenses if an accident happens when you’re driving without insurance in Texas. The final option is to become self-insured, which requires owning a minimum of 25 registered vehicles.
However, buying car insurance seems like the natural course of action for the vast majority of customers. In this case, the minimum insurance limits in Texas are as follows:
- $30,000 per person and $60,000 per accident for bodily injury liability
- $25,000 for property damage liability
No other protection plan, like comprehensive or collision, is mandatory, although a lender may require these types of insurance. Those looking for cheap auto insurance in Texas will likely opt for minimum coverage. And unlike in California or Florida, the minimum coverage in Texas provides sufficient protection in most situations. Nonetheless, we would still suggest choosing a cheaper insurer, like Geico or Progressive, and doubling the limits. This option may cost around 20%–30% more annually, but it provides peace of mind in almost any situation.
SR22 Insurance in Texas
Like in other states, SR22 insurance in Texas is a form that the insurance company has to fill out and send to the government as proof that your car insurance is adequate after a serious violation. Various infringements demand an SR22 form, such as driving under the influence or inflicting bodily injuries in an at-fault accident. Once you enter the program, the government will check your driving record for several years, until you are deemed fit to buy regular auto insurance.
Most of the companies in Texas offer SR22 compatible plans, meaning they’re capable of providing coverage that satisfies the SR22 requirements. These demands are equal to the minimum liability insurance in Texas.
Price Optimization and No-Fault Laws
Texas is not a no-fault state. This implies that the party that inflicted the injuries, also called the at-fault party, pays for any medical expenses. We actually prefer this system, since it generally leads to lower insurance prices.
One thing we don’t like is the fact that Texas car insurance laws allow the practice of price optimization. Price optimization is the procedure of using different kinds of data to assess the highest reasonable price that the insurance company can charge a given customer. In practice, this means that someone may get a lower premium for the same coverage just by shopping around and showing their willingness to leave the company if the opportunity presents itself.
Driving in Texas If You Are Not a Full-Time Resident
Most drivers can use their vehicle for up to 25 days during a single month if their car is not registered in the state of Texas. Furthermore, they can’t make more than five trips back-and-forth between Texas and their home state. Different rules apply to out-of-state college students and members of the armed forces on active duty.
Tips for Finding Cheap Auto Insurance in Texas
Compare Multiple Quotes
Insurance quotes are very specialized. Many different factors influence the final premium. Often a small change in zipcode can add hundreds of dollars annually. Furthermore, factors like your age, credit score, driving history, and the make and the model of your vehicle can all alter the final price. That’s why we suggest getting a quote from at least five different insurance companies to find high-quality and cheap auto insurance in Texas.
There’s no need to undertake the time-consuming effort of checking all the insurers out there when someone has done that for you. Take a look at our car insurance reviews to find detailed data on the quality of every major US insurance company. And it’s not just about the overall rating of a company. You can also find information on the optional coverages and discounts that suit your needs. To get the best auto insurance in Texas, make a shortlist of five to seven companies based on our research, and get a quote from all of them.
Check the Discounts
It’s important to check which company offers the discounts you are eligible for and where the premium reduction will be the highest. Our reviews have all the information you will need to find the cheapest auto insurance in Texas. However, in some cases, a company won’t show the exact price reduction on their website. Furthermore, the precise amount often varies by state. In situations like these, it’s wise to call the company to find out more.
Because price optimization is legal in Texas, it’s essential to explore the market at every renewal term. This way, you’re showing your insurance company that you’re willing to jump ship if a better deal comes along. Once they know this, they’ll present their best offer to stay competitive. And it may even happen that you find a better option when you’re shopping around. If you want to get the best Texas car insurance, comparing different insurers is a must.
In our research, we found choosing the best insurance company to be quite difficult. Each insurer excelled in some departments and scored below average in others. Nonetheless, when we analyzed all the parameters, Geico was the clear winner.
Despite the high prices in the Lone Star state, there are many high-quality cheap car insurance options for Texas drivers. Progressive, Geico, and MetLife would be our top choice for affordable coverage. However, the stiff competition for the top spot in Texas, together with the fact that price optimization is legal in this state, means that shopping around in Texas is a must.
Frequently Asked Questions
1. Who has the cheapest car insurance in Texas?
Progressive provides by far the most affordable car insurance in Texas. Its monthly premium in El Paso for a 21-year old driver is $210, for a 40-year-old driver is $126, and for a 70-year-old driver is $127. Furthermore, it’s average for a middle-aged driver in the five biggest Texas cities is $122. Other affordable insurers in Texas are Geico, TX Farm Bureau, and MetLife.
2. What is the average cost of auto insurance in Texas?
Texas has a relatively high cost of car insurance, due its significant number of densely populated cities. Nonetheless, Texas has low-cost insurance compared to a state like New Jersey. The average price in Texas is $268 per month.
We got a quote for a 21-year-old, a 40-year-old, and a 70-year-old driver from the seven different companies in El Paso. Furthermore, we looked into car insurance prices in the other major cities by getting a quote for a 40-year-old driver from five different companies. All of the results we’ve provided are based on a detailed Texas auto insurance quotes comparison.
3. What is Texas full coverage auto insurance?
There is no universal definition of full coverage insurance. Nonetheless, we can advise you on the coverage that would make us feel completely protected, which you can use as a guideline when requesting and comparing quotes. No matter what, the good news is that those looking for cheap car insurance in Texas will be able to purchase full coverage from many affordable, high-quality companies.
Our version of full coverage would include $50,000/$100,000 liability limits, together with comprehensive and collision coverages with $500 deductibles. We would also add uninsured/underinsured motorist coverage. If possible, we would base our medical coverage on our current health insurance.
4. Who offers the best car insurance in Texas?
Geico offers the overall best car insurance Texas residents can buy. Texas Farm Bureau insurance ranks at the top in the customer service department. It’s also a very affordable insurer. However, it does not have first-rate financial strength.
Potential customers should also give MetLife a chance. The company is the third overall in the Texas region in customer service, and it belongs among the cheaper options. Furthermore, it offers excellent coverage for new drivers and a terrific 50% discount for associated employees, so if you’re looking for high-quality Texas car insurance, MetLife is a great option.