Top-Rated Car Insurance in Texas for 2025: Best Coverage & Lowest Rates
According to Bankrate’s analysis of Quadrant Information Services data, the average annual cost of full coverage car insurance in Texas is $2,572, while liability-only policies average $724 per year. However, individual rates can differ significantly based on factors such as your location within the state, age, driving history, and more.
We have identified the top affordable car insurance companies in Texas across various categories. For more details on how we compiled this list, refer to our methodology section.
Top car insurance options in Texas:
- Most affordable: Allstate
- Exceptional customer service: State Farm
- Ideal for older drivers: Farmers Insurance
- Best suited for young drivers: Progressive
- Great for high-risk drivers: Mercury Insurance
- Top choice for military members and veterans: USAA
These recommendations highlight the best car insurance providers in Texas based on specific needs and demographics.
Most affordable: Allstate
Allstate provides full coverage auto insurance in all 50 states, featuring optional enhancements such as accident forgiveness, rideshare insurance, and coverage for custom parts and equipment. Additionally, Allstate’s MileWise pay-per-mile plan offers infrequent drivers the potential to save up to 40% compared to a standard policy.
Advantages:
- Received high ratings for claims processing from J.D. Power.
- Offers a discount of up to 25% with the Drivewise telematics app.
- Provides pay-per-mile insurance in 18 states.
- Includes rideshare insurance options.
Disadvantages:
- Premiums tend to be higher than those of competitors, particularly for high-risk drivers.
- Rated below average for overall customer satisfaction in most areas.
Ideal for: Drivers in Texas looking for affordable options, as Allstate offers some of the lowest premiums we discovered in the state. Policyholders can also enjoy additional savings through discounts for bundling policies, owning a new vehicle, installing anti-theft systems, maintaining good grades, and more.
Notable Benefits: Allstate’s Milewise pay-per-mile insurance is particularly beneficial for infrequent drivers, offering potential savings of up to 40% compared to traditional insurance plans.
Sample Annual Premium in Texas: $2,808 per year.
Exceptional customer service: State Farm
Cost:
The most accurate way to determine your costs is by requesting a personalized quote.
Policy Highlights:
As the largest auto insurer in the U.S., State Farm is renowned for its strong customer satisfaction and provides over a dozen discounts, such as those for safe driving, policy bundling, and good student performance.
Advantages:
- Excellent customer satisfaction ratings.
- Services available in most states.
- Offers affordable rates for teen drivers.
Disadvantages:
- Does not provide gap insurance.
- Accident forgiveness is only available after nine years of driving without an at-fault accident.
Ideal for: Drivers in Texas who prioritize customer satisfaction, as State Farm ranks highly in the 2024 J.D. Power U.S. Auto Insurance Study and scores above average for claims processing. Customers can conveniently manage their insurance—get quotes, purchase policies, file claims, and make changes—through the user-friendly website or mobile app.
Notable Benefits: State Farm provides rideshare insurance coverage for delivery app drivers (e.g., Uber Eats, DoorDash) and offers a business-use option that may cost less than a full rideshare policy.
Sample Annual Premium in Texas: $2,015 per year.
Ideal for older drivers: Farmers Insurance
Cost:
To accurately estimate your costs, it’s best to request a personalized quote.
Policy Highlights:
Farmers provides car insurance in all states except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia. The company offers an impressive 23 discounts, making it easier for customers to save on their premiums.
Advantages:
- Provides 23 different types of discounts.
- Has a below-average number of complaints, according to the NAIC.
- Allows customers to bundle car insurance with other products for potential savings.
Disadvantages:
- Not all discounts are offered in every state.
- The average premium is higher than the national average.
Ideal for: Drivers aged 55 or older who can qualify for Farmers’ mature drivers discount by completing an approved driver safety course.
Notable Benefits: Farmers provides an add-on feature called Vehicle Replacement Plus, which replaces a totaled new car with a vehicle of the same make and model from the current model year in the event of a total loss.
Sample Rate in Texas: $1,100 per year.
Best suited for young drivers: Progressive
Cost:
To accurately estimate your costs, it’s best to request a personalized quote.
Policy Highlights:
Progressive provides a variety of add-ons, such as rideshare insurance and a Deductible Savings Bank feature, which reduces your deductible by $50 for each policy period you remain claim-free.
Advantages:
- Operates in all 50 states.
- Offers low rates for drivers with DUIs.
- Provides non-owner car insurance and SR-22 certificates.
- Features a vanishing deductible and accident forgiveness options.
Disadvantages:
- Received below-average customer satisfaction ratings from J.D. Power.
- Has an above-average number of complaints.
- The Snapshot safe-driving discount program may potentially lead to increased rates for some drivers.
Ideal for: Families with teenage drivers, who are typically the most costly demographic to insure. Progressive offers several discounts for young drivers, such as maintaining a B average in school or leaving their car at home while attending college. Additionally, you can receive a rate reduction just by having a driver under 18 on your policy for 12 consecutive months.
Notable Benefits: Progressive’s Deductible Savings Bank reduces your deductible by $50 for each policy period you remain accident- and violation-free.
Sample Rate in Texas: $633 per year.
Great for high-risk drivers: Mercury Insurance
Cost:
The most accurate way to estimate your cost is by obtaining a personalized quote.
Policy Highlights:
Mercury provides affordable auto insurance with easy online options for quotes and claim filing. Discounts are available for anti-theft devices, bundling policies, and paying premiums in full.
Advantages:
- Offers competitive rates in California.
- Rideshare insurance is available for less than $1 per day.
- Repairs from authorized garages come with a guarantee.
Disadvantages:
- Auto insurance is only offered in 11 states.
- Received below-average customer satisfaction ratings from J.D. Power.
- Does not provide gap insurance coverage.
Ideal for: Mercury caters specifically to high-risk drivers, such as those with poor credit, speeding tickets, accidents, or DUIs.
Notable Benefits: MercuryGo, the company’s usage-based driving app, monitors safe driving habits and rewards policyholders with discounts of up to 40% at renewal.
Sample Rate in Texas: $1,232 per year.
Top choice for military members and veterans: USAA
Cost:
To accurately estimate your costs, request a personalized quote.
Policy Highlights:
USAA provides auto insurance exclusively to service members, veterans, and their families in all 50 states and Washington D.C. The company offers competitive rates along with discounts for deployments or storing vehicles on base.
Advantages:
- Offers the lowest rates for liability-only coverage.
- Known for exceptional customer satisfaction.
- Demonstrates strong financial stability.
- Available nationwide.
Disadvantages:
- Restricted to military families and veterans.
- No physical branch locations.
- Customer service is not available around the clock.
- Safe-driver discounts are not offered in all states.
Ideal for: USAA is perfect for current and former military personnel and their families, providing affordable premiums and a reputation for excellent customer service.
Notable Benefits: USAA’s optional car replacement assistance can pay up to 120% of a vehicle’s cash value if it’s totaled or stolen, offering significantly more coverage than standard gap insurance, which only covers the difference between what’s owed and the depreciated value.
Annual Sample Premium in Texas: $1,736
Additional Information on Our Top Car Insurance Companies in Texas
Allstate
Allstate has been providing car insurance since 1931 and now boasts over 8,000 agents nationwide to assist with policy selection and management. Through its Drivewise telematics program, safe drivers can earn discounts of up to 25% on their premiums.
Availability: Allstate offers car insurance in all 50 U.S. states and Washington, D.C.
Customer Satisfaction: According to J.D. Power, Allstate ranks below average in customer satisfaction. However, the company has fewer complaints than expected, as indicated by the NAIC complaint index.
State Farm
State Farm, headquartered in Bloomington, Indiana, was established in 1922 and has since become the largest car insurance provider in the nation, with over 18% of the private passenger auto insurance market share. In addition to car insurance, State Farm offers policies for motorcycles, boats, RVs, campers, and off-road vehicles.
Availability: State Farm car insurance is available in all U.S. states except Massachusetts and Rhode Island.
Customer Satisfaction: State Farm ranks above average in customer satisfaction according to J.D. Power, but the NAIC complaint index shows more complaints than expected.
Farmers
Founded in 1928 in Los Angeles, Farmers is the seventh-largest auto insurance provider in the U.S. In addition to car insurance, it offers policies for renters, condos, homeowners, and businesses.
Availability: Farmers car insurance is available in 42 states.
Customer Satisfaction: Farmers ranks above average in customer satisfaction according to J.D. Power, and the NAIC complaint index indicates fewer complaints than expected.
Progressive
Progressive, headquartered in Ohio, is the second-largest car insurance company in the U.S., with $48.26 billion in direct personal auto premiums written in 2023. In addition to auto insurance, Progressive offers homeowners, renters, and other types of coverage, making it simple to bundle policies and save money.
Availability: Progressive car insurance is available in all 50 U.S. states and Washington, D.C.
Customer Satisfaction: Progressive ranks below average in customer satisfaction according to J.D. Power, but the NAIC complaint index shows fewer complaints than expected.
Mercury Insurance
Founded in 1962, Mercury provides car insurance for a wide range of drivers, including high-risk individuals who may struggle to secure coverage from other insurers. Although quotes can be obtained online, policies must be purchased through a Mercury agent.
Availability: Mercury car insurance is available in 11 states: Arizona, California, Florida, Georgia, Illinois, Nevada, New Jersey, New York, Oklahoma, Texas, and Virginia.
Customer Satisfaction: Mercury ranks below average in customer satisfaction according to J.D. Power, but the NAIC complaint index indicates fewer complaints than expected.
USAA
USAA, or the United Services Automobile Association, provides car insurance exclusively to active service members, veterans, National Guard and Reserve members, as well as their spouses and children. In addition to auto insurance, USAA offers homeowners, renters, and other financial products.
Availability: USAA car insurance is available in all 50 U.S. states and the District of Columbia.
Customer Satisfaction: USAA ranks above average in customer satisfaction according to J.D. Power, though the NAIC complaint index shows more complaints than expected.
Guide to Buying Car Insurance in Texas
Here’s how to shop for car insurance in Texas:
- Gather Essential Information
To obtain a quote and purchase a policy, you’ll need the following details:- Your driver’s license
- Your vehicle’s make, model, year, and VIN (Vehicle Identification Number)
- An estimate of your annual mileage
- The expiration date of your current auto insurance policy
- Determine Your Coverage Needs
Texas law requires drivers to carry the following minimum coverage:- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
- Collect Price Quotes
Obtain quotes from at least three insurers, ensuring you request identical coverage limits and deductibles for accurate comparisons. Be sure to inquire about available discounts and any potential fees for paying monthly or using a credit card. - Purchase Your New Policy
Once you’ve selected a policy, provide payment information and secure your proof of insurance. Most companies issue policies in six-month or one-year terms, and paying upfront may offer cost savings compared to monthly payments.If switching providers, avoid gaps in coverage by waiting to cancel your old policy until your new one becomes active. You may receive a prorated refund for the remaining term of your old policy, though a cancellation fee might apply.
Ways to Reduce Car Insurance Costs in Texas
Here are several strategies to lower the cost of car insurance in Texas:
- Bundle Policies: Many insurers offer discounts for customers who combine multiple policies, such as auto and homeowners insurance. Some providers also provide deals for bundling other types of coverage, like renters, life, or even pet insurance.
- Increase Your Deductible: The deductible is the amount you pay out-of-pocket before your insurance kicks in. Raising your deductible from $200 to $500 can decrease the cost of collision and comprehensive coverage by 15% to 30%, according to the Insurance Information Institute. Boosting it to $1,000 could save you 40% or more. However, ensure you have enough savings to cover the higher deductible if an accident occurs.
- Pay in Full Upfront: Paying for your entire six-month or one-year policy upfront may result in premium reductions, sometimes exceeding 10%. If you cancel early, you’re typically eligible for a partial refund.
- Enhance Your Credit Score: In Texas, insurers can use your credit score to determine premiums. Improving your credit by paying bills on time, limiting new credit applications, and reviewing your credit report for errors can help reduce your insurance costs.
FAQs
- How much does car insurance cost in Texas?
The average cost of full coverage car insurance in Texas is approximately $214 per month, while liability-only coverage, which is the state’s minimum requirement, averages around $60 per month. - Which company offers the cheapest car insurance in Texas?
Based on our data, Allstate provides the lowest car insurance rates in Texas. - What is the minimum car insurance required in Texas?
Texas mandates that drivers carry at least $30,000 in bodily injury liability coverage per person, $60,000 per accident for bodily injury, and $25,000 for property damage liability per accident.
Why Trust Insurance Tips?
At Insurance Tips, we are committed to delivering high-quality service journalism and in-depth consumer advice to help our readers make well-informed financial decisions. Each auto insurance review is crafted through thorough research conducted by our team of experienced writers and editors, who possess extensive expertise in the auto insurance industry. To identify the top auto insurance companies, we analyzed data from over a dozen providers.
While Insurance Tips earns commissions from affiliate partnerships, our content remains entirely independent and is produced without influence from our commercial team or external parties. We uphold strict journalistic standards and ethical practices. For more details on how we select the best Texas car insurance companies, refer to our methodology section.
Advertising
ملاحظة:
إذا لم تشتغل الحلقة إختر سيرفر 1 أو 2
