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Texas Car Insurance – Cheapest Auto Insurance in Texas

Finding the cheapest car insurance in Texas can be a hassle with so many insurance companies competing for your business. The worst part is that consumers never know if they are getting a good combination of the best coverage and affordable rates. For this reason, MyCarInsurance123.com has compiled a comprehensive set of data outlining how to get cheap car insurance in Texas.

In addition to providing you details on Texas auto insurance rates, laws, regulations, minimum liability coverage requirements, and the best companies to buy from in each city, consumers can compare car insurance quotes online to find the lowest cost coverage.

Average Car Insurance Rates in Texas

In 2014, the average cost of car insurance in Texas was $135 per month or $1,620 per year, which was more expensive than the national average of $125/month, or $1,503 annually. If you are paying more than the state average, you may want to research the best auto insurance companies in Texas and get an instant quote online to compare rates.

Texas Car Insurance Requirements

Texas auto insurance mandates $30,000/$60,000/$25,000 coverage. These minimum liability coverage requirements mean that your insurer will cover up to $30,000 per injured person and a total of $60,000 per accident, including medical expenses. Any property damage, including public and private property repairs and claims, will be covered up to $25,000.

Because the minimum car insurance requirements in Texas are low and any expenses in excess of these liability limits will be paid by policyholders, insurance experts recommend drivers buy policies with $100,000/$300,000/$100,000 coverage. These higher liability limits for your Texas auto insurance will ensure your family’s financial security by protecting your personal assets, such as your home, savings, investments, etc.

Texas Car Insurance Coverage

  • Minimum Bodily Injury Liability: $30,000/$60,000 Limit
  • Minimum Property Damage Liability: $25,000 Limit

Auto insurance companies in Texas also offer uninsured/under-insured coverage in the event that you are involved in an accident with a driver who doesn’t have enough or any coverage. This policy option is not mandatory and will increase your monthly premiums. However, if your car is being financed, then your lender or leasing company will require you to purchase both collision and comprehensive coverage.

Texas Car Insurance Laws

Texas is an at-fault insurance state, meaning whoever causes the accident is legally liable and thus responsible for the other party’s auto repairs, medical bills, and possible lost wages. Under an at-fault system, drivers are required to carry at least the minimum amount of coverage.

Proof of Insurance

Proof of insurance is required in Texas and must be immediately accessible at all times. Failure to buy enough car insurance in Texas can result in fines between $175 and $350 for a first offense. A second conviction may result in license suspension, a fine between $350 and $1,000, and you may be required to file an SR-22 form. With multiple convictions, your driver’s license may be suspended and your car could be impounded.

No Grace Period

In Texas, there is no 30-day grace period to obtain insurance after buying a car.

Cheap Car Insurance in Texas

Here is a list of the best car insurance companies in Texas with the lowest rates. Finding cheap car insurance from the best insurer is especially important when you live in expensive cities such as Houston, Austin, El Paso, Dallas, Fort Worth, San Antonio, or Corpus Christi.

RankCompanyAverage Annual Rates
1USAA*$497
2Allstate$589
3Foremost County Mutual$654
4Farmers$668
5GEICO$688
6AAA Texas$693
7Texas Farm Bureau Mutual$693
8Merastar$739
9Direct General$747
10AIG$755
11Nationwide$770
12Fireman's Fund$771
13Amica Mutual$866
14State Farm$882
15Progressive$1,156
16Liberty Mutual$1,183
17Metropolitan Lloyds$1,221
18Mercury County Mutual$1,292
19National General$1,364
20Encompass Indemnity$1,681

Please note that USAA is a specialty insurer and only serves military members and their families.

Cheapest Auto Insurance in Texas By City

Below is a breakdown of the cheapest car insurance rates in Texas by city and company.

CityCheapest Insurer #1Cheapest Insurer #2Cheapest Insurer #3
HoustonAllstate$811Foremost$847GEICO$857
San AntonioAllstate$787Foremost$799Direct General$839
DallasAllstate$761Foremost$817Farmers Auto$858
AustinGEICO$751Foremost$778Allstate$782
Fort WorthTexas Farm$739Allstate$748AAA Texas$755
El PasoAllstate$629Foremost$661Farmers Auto$681
ArlingtonNationwide$650Allstate$689Fireman's Fund$744
Corpus ChristiAllstate$748Foremost$799Farmers Auto$851
PlanoAllstate$712GEICO$753Foremost$797
LaredoAllstate$655AAA Texas$664GEICO$672
LubbockAllstate$597Foremost$672Farmers Auto$686
IrvingGEICO$773Allstate$810Foremost$815
AmarilloAllstate$595GEICO$650Direct General$674
BrownsvilleAllstate$613Foremost$711Fireman's Fund$744
McKinneyAllstate$723Foremost$749GEICO$753
MesquiteAllstate$803GEICO$809Foremost$817
McAllenDirect General$746Foremost$780Allstate$780
KilleenAllstate$538Texas Farm$651AAA Texas$658
WacoAllstate$578GEICO$666Texas Farm$693
CarrolltonNationwide$655Allstate$731GEICO$735
DentonNationwide$590Allstate$691GEICO$735
MidlandAllstate$562Texas Farm$580AAA Texas$616
AbileneAllstate$519AAA Texas$596Fireman's Fund$647
BeaumontAllstate$807Foremost$819GEICO$857
Round RockGEICO$725Nationwide$740Foremost$742
OdessaForemost$638Farmers Auto$645Direct General$663
Wichita FallsAllstate$487AAA Texas$594GEICO$606
TylerForemost$709Farmers Auto$734Allstate$739
LewisvilleNationwide$649Allstate$715GEICO$735
College StationAllstate$621AAA Texas$663GEICO$677

Largest Car Insurance Companies in Texas

Here is a list of the largest auto insurance companies in Texas ranked by market share.

RankCompanyMarket Share
1State Farm19.3%
2Allstate11.3%
3Farmers10.9%
4Progressive8.8%
5GEICO8.1%
6USAA7.5%
7Texas Farm3.8%
8Nationwide3.6%
9Home State3.5%
10Old American3.0%