Cheapest Car Insurance in Texas in 2020 (from $39/month)
Texas is the 38th most expensive state for car insurance out of all 50 states and Washington D.C., according to QuoteWizard research. Our sample base driver in Texas pays about $10 more per month for car insurance compared to the national average.
Our base driver in Texas pays $750 annually, or about $63 a month, for the state-required minimum insurance. The national average is $641 a year, or about $53 a month, for our sample base driver with the minimum car insurance required in each state.
Our driver in Texas pays $1,373 annually, or about $114 a month, for full coverage car insurance. The national average is $1,254 a year, or about $104 a month, for our sample base driver with a full-coverage auto insurance policy. Full-coverage car insurance typically includes liability, comprehensive and collision coverage.
To find cheap car insurance in Texas, we recommend that you shop around. Looking for quotes from several companies can help you find your best, most affordable rate for auto insurance in Texas. Texas does not offer any state car insurance programs for low-income households, so shopping around is essential for finding low-cost auto insurance.
In this article we’ll cover...
- Finding cheap car quotes insurance in Texas
- Best car insurance rates in 10 biggest cities in Texas
- State-required liability insurance in Texas
- Why car insurance in Texas is so expensive
Affordable car insurance: Houston General and USAA are the cheapest car insurance companies in Texas
Here are the cheapest companies we found for car insurance in Texas:
- Houston General
- USAA
- GEICO
- State Farm
For our base driver, Houston General and USAA offer the most competitive rates for minimum liability insurance and for a full-coverage policy. While they offer the lowest average rates for our base driver, Houston General is a small provider and USAA is only available for members of the military, veterans and their families. Among the largest car insurance companies, GEICO and State Farm are the cheapest car insurance companies for liability coverage and full-coverage policies.
How much auto insurance costs in Texas may vary based on many factors, but we found rates for our base sample driver for as low as $39 a month.
Auto insurance as low as $39 a month: cheapest car insurance companies in Texas for liability insurance and full-coverage auto insurance
Cheap auto insurance options for minimum liability coverage include:
- Houston General: $39/month
- USAA: $41/month
- GEICO: $47/month
- State Farm: $59/month
Companies offering cheap, full-coverage auto insurance in Texas for our base driver include:
- Houston General: $78/month
- USAA: $78/month
- GEICO: $84/month
- Chubb: $94/month
When comparing auto insurance in Texas, consider what coverages you need and the cost of your premium, among other factors. The first step to finding low-cost auto insurance in Texas is gathering quotes.
| Company | Average rate(minimum coverage) | Average rate(full coverage) | Difference |
|---|---|---|---|
| Houston General | $464 | $931 | $467 |
| USAA | $493 | $938 | $445 |
| Southern County | $537 | $1,097 | $560 |
| Chubb | $552 | $1,122 | $570 |
| GEICO | $564 | $1,012 | $448 |
| State Farm | $709 | $1,187 | $477 |
| Metropolitan | $747 | $1,347 | $599 |
| Allstate | $751 | $1,467 | $716 |
| Esurance | $944 | $1,595 | $650 |
| Nationwide | $1,109 | $1,732 | $623 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | |||
Looking for affordable full-coverage auto insurance in Texas is worth it
Opting for a full-coverage policy with higher liability, comprehensive and collision coverage increases your rates by at least 50%. Given Texas’s high levels of uninsured drivers and propensity for natural disasters such as floods, drivers should still opt for full coverage if they can afford it, unless their car isn't worth much.
Affordable auto insurance quotes for different types of drivers in Texas
We found the most affordable car insurance companies for young drivers, older drivers, bad drivers with an accident and high-risk drivers with poor credit.
For all demographics, we found Houston General, USAA, GEICO, Allstate, State Farm, and Chubb to offer below-state-average auto insurance rates.
Young drivers in Texas pay nearly three times more for car insurance
An average car insurance quote for an 18-year-old driver in Texas is $2,143 for minimum liability coverage and $3,892 for a full-coverage auto policy. At both levels of coverage, Houston General is the most affordable option for our sample driver. Out of the largest auto insurance companies, USAA, GEICO, Chubb, Allstate and State Farm all offer below-average rates for young drivers in Texas.
| Company | Minimum liability premium | Full-coverage premium |
|---|---|---|
| Houston General | $899 | $1,945 |
| USAA | $916 | $1,745 |
| Chubb | $1,218 | $2,333 |
| GEICO | $1,537 | $2,846 |
| Allstate | $1,621 | $3,518 |
| State Farm | $1,803 | $3,111 |
| Average | $2,143 | $3,892 |
| MetLife | $3,124 | $5,181 |
| Esurance | $3,204 | $5,861 |
| Nationwide | $3,261 | $4,962 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Young drivers are typically more expensive to insure because they pose a statistically higher chance of getting into an accident and filing a claim. A 50-year-old driver pays nearly one third of the premium of an equivalent 18-year-old driver in Texas across full and minimum coverages.
Having poor credit can nearly double your car insurance premiums in Texas
An average car insurance quote for a 35-year-old driver in Texas with poor credit is $1,386 for minimum liability coverage and $2,540 for a full-coverage auto policy. At both levels of coverage, Houston General is the most affordable option for our sample driver with poor credit. Out of the largest auto insurance companies, USAA, GEICO, Chubb and Allstate all offer below-average rates for drivers with bad credit in Texas.
| Company | Minimum liability premium | Full-coverage premium |
|---|---|---|
| Houston General | $691 | $1,591 |
| Allstate | $950 | $1,866 |
| Chubb | $1,027 | $2,228 |
| USAA | $1,152 | $2,176 |
| GEICO | $1,192 | $2,153 |
| Average | $1,386 | $2,540 |
| State Farm | $1,712 | $2,993 |
| Nationwide | $1,844 | $2,806 |
| Esurance | $1,845 | $2,990 |
| MetLife | $2,839 | $5,023 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Across most states, credit scores are one factor that car insurance companies use to determine how risky of a driver you might be. Higher credit scores usually mean more affordable car insurance rates. In Texas, our average sample driver pays nearly two times as much for a car insurance policy if they have poor credit instead of excellent credit.
Pay 47% more in Texas for auto insurance after one accident
An average car insurance quote for a 35-year-old driver in Texas with one at-fault accident is $1,164 for minimum liability coverage and $2,148 for a full-coverage auto policy.
Chubb offers the most affordable rate for a minimum liability coverage policy, and USAA and State Farm offer the cheapest rates for full-coverage policies. Out of the largest auto insurance companies, USAA, GEICO, Chubb, State Farm and Allstate offer below-average rates for bad drivers in Texas. This driver has an at-fault accident with $3,000 in bodily injury costs.
| Company | Minimum liability premium | Full-coverage premium |
|---|---|---|
| Chubb | $754 | $1,593 |
| USAA | $757 | $1,403 |
| GEICO | $893 | $1,664 |
| State Farm | $898 | $1,490 |
| Houston General | $925 | $1,923 |
| Allstate | $962 | $1,868 |
| Average | $1,164 | $2,148 |
| Nationwide | $1,397 | $2,176 |
| Esurance | $1,595 | $2,851 |
| MetLife | $1,703 | $2,895 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Being found at-fault for an accident typically leads to higher car insurance premiums. Our findings show that in Texas, our average sample driver pays a 47% premium for a car insurance policy if they have an at-fault accident on their driving record.
Average car insurance in the top 10 largest cities in Texas
Car insurance companies typically charge higher premiums for cars that are kept in highly populated locations. Car insurance companies in Texas are no exception — living in a densely populated city in Texas will cost you more.
Chubb and GEICO are the cheapest major providers across all top 10 most populated cities in Texas
Chubb and GEICO alternate as the cheapest, most affordable car insurance companies for drivers in large cities such as Austin, Houston and Dallas.
| City | Cheapest car insurance company | Annual premium for minimum coverage |
|---|---|---|
| Arlington | Chubb | $611 |
| Austin | GEICO | $559 |
| Corpus Christi | Chubb | $604 |
| Dallas | GEICO | $669 |
| El Paso | Chubb | $522 |
| Fort Worth | Chubb | $575 |
| Houston | GEICO | $686 |
| Laredo | GEICO | $517 |
| Plano | GEICO | $586 |
| San Antonio | Chubb | $619 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
With the exception of El Paso, big cities in Texas have higher car insurance rates.
| City | Annual rate for minimum coverage | Annual rate for full coverage |
|---|---|---|
| Houston | $967 | $1,699 |
| Dallas | $923 | $1,648 |
| Corpus Christi | $850 | $1,457 |
| Arlington | $845 | $1,506 |
| San Antonio | $844 | $1,500 |
| Fort Worth | $805 | $1,451 |
| Plano | $805 | $1,414 |
| Austin | $779 | $1,400 |
| Laredo | $771 | $1,523 |
| El Paso | $723 | $1,392 |
| Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||
Texas minimum state required insurance: 30/60/25
In Texas, you must maintain a minimum coverage level of 30/60/25. This means that you must have a policy with at least the following coverages:
- Bodily injury liability per person: $30,000
- Bodily injury liability per incident: $60,000
- Property damage liability per incident: $25,000
State minimum required insurance may not be enough coverage in case of an accident. We suggest buying as much liability coverage as you can to protect all of your assets. And if you can afford it, buy underinsured/uninsured motorist coverage as well.
Uninsured drivers and poor average credit cause high insurance rates in Texas
Texas has particularly expensive car insurance for many reasons, one being that Texas has more uninsured drivers than f average, according to the Insurance Research Council.
As of 2015, 14.1% of drivers in Texas were uninsured, whereas nationally 13% of drivers were uninsured. According to the Office of Highway Policy Information, Federal Highway Administration, Texas had approximately 15.9 million licensed drivers in 2016. That means there are around more than 2.2 million drivers in Texas without car insurance.
Texas also has a lower average credit rating than the national average, according to Experian. Texas’s average is among the lowest in the country, at 656, compared to the national average of 675.
In short, more uninsured drivers and poor credit lead to higher average auto insurance rates in Texas.
Methodology
We conducted a comprehensive study of auto insurance rates across a sample of 20 ZIP codes in Texas through Quadrant Information Services. For our base driver, we used a 35-year-old single male with a 2012 Honda Accord, clean driving record, 15,000 annual miles and excellent credit.
Variations from our base driver include:
- Changing the age of our base driver from 35 years old to 18 years old and 50 years old.
- Using a different geographic sample of the top 10 most populous cities.
- Changing the driving record of our base driver to include one at-fault bodily injury damage of $3,000 in an accident.
- Changing the base driver to have either average or poor credit.
Unless otherwise noted, state averages are for our sample 35-year-old base driver. Some company premium quotes are not publicly available and are not accounted for in this study. Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
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