Best Auto Insurance Rates in Texas

On average, your neighbors pay $77 a month.

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Compare Auto Insurance in Texas

Everything is bigger in Texas, but your insurance rates don't have to be. We've compiled everything you need to know to find the best car insurance rates in the Lone Star State.

Learn how your rates stack up with state averages, how to save money on car insurance, and more.

Average Texas Car Insurance Rates

How much is car insurance in Texas? For many, car insurance in Texas is expensive. Average car insurance rates are higher than the national average. The average cost of auto insurance in Texas is $934.22 per year. The national average price is $889.01 per year.

Rates vary depending on your driving record, policy type, claim history, and more. The number of claims filed in your zip code could also be a factor.

Texas Average Annual Car Insurance Rates
Coverage Rates
Liability $516.26
Collision $357.61
Comprehensive $192.33
Total Cost Per Year $934.22
Price Per Month $77.85

The graph below shows the change in average auto insurance rates in Texas from 2011 to 2015, the most recent year the data is available. According to the Insurance Information Institute, car insurance rates in Texas increased from $808 in 2011 to $934 in 2015, a jump of $125, or 15.48 percent.

Texas average car insurance rates

If you're looking to get a good deal on car insurance in Texas, you're going to need to shop around.

Let QuoteWizard help. We’ll put you in touch with top insurance companies. You can compare insurance quotes and get the best rates.

Last year, 247,646 used QuoteWizard to get an auto insurance quotes comparison in Texas from multiple companies to find the best rates.

Most Popular Car Insurance Companies in Texas

These are the most common car insurance companies reported by QuoteWizard users living in Texas last year. Out of the 247,646 Texans that used QuoteWizard to request insurance quotes, 28,644 had no insurance.

Best Car Insurance Companies in Texas

Texan drivers are spoiled for choice when it comes to car insurance companies. While having lots of insurance options is great, it can also make it difficult to choose just one! QuoteWizard these three options, in no particular order, as Texas’ best car insurance companies.

State Farm

State Farm has the largest car insurance market share in Texas. They oversee nearly 17 percent of all policies in the state. There’s a reason they’re the most popular car insurance company in the state.

State Farm boasts the ninth best rating for overall claim satisfaction from J.D. Power’s 2017 car insurance claim study. They’re the third best car insurance company in the country in that regard, according to J.D. Power. The company also received an 89/100 reader rating in Consumer Reports.

J.D. Power and Consumer Report’s findings are backed by the Texas Department of Insurance’s complaint database. In 2017, only 129 of about 3 million State Farm policyholders filed complaints. That complaint ratio is well below average.

When it comes to financial strength, State Farm has an impressive resume. They received a super rating from A.M. Best and an AA rating from Standard & Poor’s. It’s no surprise that the company with Texas’ biggest market share also has impressive financial strength.

State Farm isn’t the cheapest option. But the company has a plethora of insurance offerings, making bundling a breeze. Plus, they offer numerous discounts like their Drive Safe & Save program, where you can earn discounts for safe driving.

Allstate

Allstate has the second highest customer satisfaction ranking in Texas according to J.D. Power. They also earned 88/100 from Consumer Reports.

That’s especially impressive considering that Allstate has the third highest car insurance market share in Texas. Their 2,600,000 policyholders represent more than 11 percent of Texas’ total car insurance customers.

Allstate boasts impressive financial strength: the company earned an A+ from A.M. Best, AA- from Standard & Poor’s, and Aa3 from Moody’s. 

Allstate in Texas offers every standard discount that you could need. Their extensive network of agents means policyholders can always count on in-person service. And Allstate’s New Car Replacement coverage option is great for people who own a new car.

Texas Farm Bureau Insurance

As Texas’ largest local insurance company, we have to include the Texas Farm Bureau.

And it seems that consumers agree with us. It’s J.D. Power’s number one rated car insurance company in Texas based on overall customer satisfaction. It received their prestigious ‘Among the best’ distinction. That ranking accounts for interaction, policy offerings, price, billing, and claims.

It has the ninth largest market share in Texas according to the Insurance Information Institute. And the company boasts a better-than-average complaint ratio, too.

Texas Farm Bureau is a relatively simple insurance company. It’s founded by Texans for Texans. And while it's a local company, it doesn’t lose a competitive edge because of it. Texas Farm Bureau employs over 750 agents and 300 claims personnel in 250 offices across the state.

If you like to shop local, you can’t go wrong with Texas Farm Bureau insurance.

Best High-Risk Insurance Companies

If you have a bad driving record or a history of insurance claims, you might be labeled high-risk. It costs significantly more to insure high-risk drivers. Some companies may even refuse to cover high-risk drivers.

Drivers who have been rejected by two insurance companies within 60 days can find coverage through the Texas Automobile Insurance Plan Association. TAIPA helps ensure that every driver can get minimum coverage levels. In Texas, that's 30/60/25. We'll discuss what those coverage levels entail in the 'Car Insurance Minimum Coverage' section below.

Regardless, these companies offer insurance policies for high-risk drivers:

Best Teen Driver Insurance Companies

Teenage drivers pay the more for insurance than any age group. Teens are considerably more likely to make a mistake while driving. Between car accidents and citations, teens are a big liability for insurance companies.

Our research shows that teen drivers pay an average of $438 a month for an individual policy. That number drops to $278 to add a teen to their parent's policy. Even then, that's a substantial amount. Fortunately, most companies have discounts for students with good grades.

These insurance companies offer good coverage for Texas teens:

What company suits your needs best? You can study them side by side on our compare companies page. We've compiled guidelines for the 30 biggest insurance companies in America. Getting educated is the first step to getting the right policy. What better way to compare auto insurance quotes in Texas?

Top 10 Vehicles in Texas

These are the most common cars owned by QuoteWizard users in Texas:

  1. Ford F150
  2. Chevrolet C1500 Silverado
  3. Honda Accord EX/LX
  4. Ford Mustang
  5. GMC Sierra C1500
  6. Dodge Ram
  7. Nissan Altima 2.5 S
  8. Chevrolet Tahoe
  9. Toyota Camry LE/XLE/SE
  10. Chevrolet Suburban
Get a quote for your vehicle. Request Quote Get a Quote For Your Vehicle

Texas Car Insurance Rate Factors

A standard car insurance policy in Texas is more expensive than the national average. Why is auto insurance in Texas so expensive? Great question.

First, 14 percent of Texas drivers are uninsured, the 16th highest rate in the country. Car insurance is more expensive in areas with lots of uninsured drivers because the cost of damages caused by uninsured drivers are passed onto insured drivers.

Also, living in a large state with many rural areas means Texans drive more miles than the average American. More time behind the wheel increases your chances of an accident or violation. That's part of the reason why Texas has the 11th highest DUI rates and the sixth highest number of crashes in the country.

These factors mean Texans pay more for insurance than the average American.

Texas drivers saved up to $383 on their car insurance policies by comparing rates through our simple form.
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Texas Car Insurance Laws

Minimum Car Insurance Requirements

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:

  • $30,000 of coverage for bodily injury liability per person
  • $60,000 of coverage for bodily injury liability per incident
  • $25,000 of coverage for property damage liability per incident

Recommended Coverage Levels

While minimum coverage is cheaper, it becomes more expensive if you file a claim. Why? Minimum coverage does not include comprehensive or collision coverage. It's easy to exceed minimum coverage levels after an accident. You can end up with substantial out-of-pocket costs if you exceed your coverage.

Minimum coverage pays for damages to other people, their car, and their property. Minimum coverage does not cover you, your injuries, or your property. If you have minimum coverage and you cause an accident, you're on the hook for your expenses.

Collision coverage pays for damages to your car after an accident. Comprehensive coverage pays for damages that don't involve another car. That includes natural disasters, falling tree branches, theft, vandalism, and more. With Texas's unpredictable weather, collision and comprehensive coverage are a good investment.

With that in mind, we recommend that Texas drivers buy the following coverage:

  • Individual Body Injury Liability: $100,000
  • Total Bodily Injury Liability: $300,000
  • Property Damage Liability: $100,000

If you can afford it, buy comprehensive and collision coverage. You should choose a reasonable deductible. Also consider uninsured/underinsured coverage. This covers damages caused by drivers who have little or no insurance. Finally, medical payment coverage and personal injury protection covers medical costs after an accident.

Required Proof of Car Insurance

Drivers in Texas must have an insurance identification card at all times. You'll get this identification card from your car insurance company when you buy a policy. The card must include all the following:

  • Name of the insurance company
  • Policy number
  • Effective date of the policy
  • Expiration date of the policy
  • Description of the year, make, or model of the insured vehicles, or the name of the insured driver

Failure to show proof of insurance at an accident or traffic stop may result in a fine of up to $350. And a surcharge of $250 will be added to your annual driver’s license fee the next three years. You may also have your license and registration suspended until you're able to show proof of insurance

SR-22 Requirements

After a license suspension, Texans need to file an SR-22 form. “SR” stands for safety responsibility. It certifies that a driver has the minimum amount of insurance required by state law.

Texas State law requires that an SR-22 be carried for 36 consecutive months. If a driver fails to renew their policy 15 days before expiration, the state suspends their license. Once renewed, the license will be reinstated, but this can be a time-consuming process.

Totaled Cars with Rebuilt or Salvage Titles

If your car is damaged and the cost to repair it exceeds its value, your insurer will deem it a total loss. A total loss vehicle comes with a salvage title. Once it's repaired, it gets a rebuilt title.

Each state has their own laws regarding totaled cars. In Texas, total loss is calculated by a percentage of the car's actual cash value. If the damage exceeds that percentage, the car is totaled. In Texas, it's 100 percent. If damages to your car meet or exceed 100 percent of the car's actual cash value, your insurer will consider it a total loss.

Buying insurance for a rebuilt or salvage vehicle in Texas is tricky. Some insurance companies won't cover such vehicles. Expect to pay higher rates if your car has a rebuilt or salvage title -- if you can get coverage.

State of Texas Traffic Safety Laws

Distracted Driving Laws

Distracted driving is increasingly common. Texas prohibits school bus drivers and novice drivers, under 18, from making or receiving cell phone calls. Texting while driving is also illegal.

DWI Law and Penalties

Drive in Texas with a Blood Alcohol Content (BAC) of 0.08% or higher, you're guilty of Driving While Intoxicated (DWI).

The penalties for a first offense DWI conviction are:

  • Between three and 180 days in jail
  • A fine of up to $2,000
  • Driver's license suspended up to one year
  • Annual fee of $1,000 to $2,000 for three years to keep your driver's license

With each subsequent DWI, punishments increase. That can include a required ignition interlock device, lengthy license suspension, and jail time.

And the fun doesn’t stop there. Your insurance rates will climb each time you’re convicted of a DWI. Our research shows that drivers can expect to pay $830 more per year for car insurance after a DUI. But that's only if you can find a company willing to insure you.

Senior Drivers in Texas

Car insurance rates often increase around the time drivers turn 65. It's a small increase for drivers with clean records. But it goes up considerably as drivers continue to age.

All drivers are required to renew their driver’s licenses every 6 years. Beginning at age 79, you must renew your driver’s license in person. Beginning at age 85, renewal is required every two years.

Vehicles Registered in Another State

If you drive a car in Texas that is registered in another state, it must have the insurance coverage required by that state. You must also be able to provide proof of this insurance to law enforcement upon request.

Car Insurance Risk in Texas

Best and Worst Drivers in Texas

Our nationwide study found that Texas ranks #29 for worst drivers. We ranked Texas cities with data from our users to compare drivers in each city. We used accidents, speeding tickets, DUI's and citations to find the city with the best and worst drivers in Texas. These are the 11 worst driving cities in Texas:

  1. Pearland
  2. Irving
  3. Plano
  4. Round Rock
  5. Austin
  6. Killeen
  7. San Antonio
  8. Arlington
  9. Dallas
  10. Odessa
  11. Houston

Traffic Fatalities

In 2016, there were 3,773 traffic fatalities in Texas, an 5.4% increase from the 3,578 traffic fatalities in 2015.

Vehicle Thefts

In 2016, Texas had the second most stolen vehicles in the country behind California. According to the Texas Department of Public Safety, 68,523 cars were reported stolen. That's a 2.1 percent increase from 2015. If you live in an area with high car theft rates, expect to pay more for insurance.

Top 10 Most Stolen Vehicles in Texas

You might pay higher insurance rates if you drive a commonly stolen vehicle.

Source: National Insurance Crime Bureau - Hot Wheels Report 2016

  1. 2006 Ford Pickup
  2. 2005 Chevrolet Pickup
  3. 2004 Dodge Pickup
  4. 1996 Honda Accord
  5. 2000 Honda Civic
  6. 2004 Chevrolet Tahoe
  7. 2001 GMC Pickup
  8. 2016 Toyota Camry
  9. 2015 Nissan Altima
  10. 2008 Chevrolet Impala

Uninsured Drivers

14.1 percent of Texas drivers are uninsured. That puts Texas as #16 among US states. It's worse than the national average of 13 percent. High percentages of uninsured drivers raise rates for insured drivers.

Save Money with Discounts

Want to get cheap car insurance? There are many auto insurance discounts for Texas drivers:

  1. Buy a new car. You can earn a new car discount from many insurance companies.
  2. Drivers 55 and up can qualify for age discounts.
  3. Drop comprehensive coverage from your policy.
  4. Did you get married? Insurance companies often offer discounts to married drivers.
  5. Avoid tickets or accidents. People with clean driving records earn lower insurance rates.
  6. Live in a safe area with low crime rates. Drivers in neighborhoods with bad crime and lousy driving conditions file more claims.
  7. Get a car with modern safety features or anti-theft devices.
  8. Bundle your auto policy with homeowners or renters insurance. Bundling can earn you discounts of 15%.
  9. Enroll in a defensive driving course at a certified driving school.
  10. Shop around and compare car insurance in Texas

Texas Department of Insurance

Website:
Homepage
Insurance Commissioner:
Kent Sullivan
Insurance Hotline:
(800) 252 - 3439
Office Hours:
Monday - Friday
8:00 am to 5:00 pm
File a Consumer Insurance Complaint
Complaint Page

Sources:

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