Best cheap car insurance in Texas for 2024

Geico, State Farm, Texas Farm Bureau, and Nationwide are the best car insurance companies in Texas for 2024, based on expert analysis. Texas Farm Bureau is the cheapest option at $1,301 per year.

Leslie Kasperowicz is an insurance expert with four years of direct agency experience and over a decade of creating educational content to help insurance shoppers make confident, informed decisions.

Laura Longero is a content strategist and communications leader with more than 15 years of experience in content development in journalism, marketing and communications for start-ups to global companies. She started her career as a reporter and editor and honed her journalistic skills at the USA Today Network, working in several roles, as well as managing content and writing at MoneyGeek and XYZ Media.

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Texas Farm Bureau offers the cheapest car insurance in Texas at about $1,301 per year, on average. This is below the average Texas car insurance rate of $2,043 a year.

Cheap isn’t everything, and an Insurance.com analysis of rates, complaints, and financial stability found Geico also to be the best insurance company in Texas.

Many factors go into your insurance premium. Insurance companies use your driving record, the type of car you drive, and the coverage you select to determine your rates. 

Read on to compare Texas auto insurance rates by company, age, and more.

Key takeaways

Best car insurance in Texas: Geico 

Geico is the best car insurance company in Texas, based on an analysis by Insurance.com, with an overall rating of 3.66. State Farm, Texas Farm Bureau, Nationwide, and Allstate are among the other top car insurance companies in Texas based on price, NAIC complaint ratio, J.D.Power, and AM Best financial ratings.

The total Insurance.com score is calculated out of five using these factors.

Data updated in 2024 Read our full methodology

Cheapest car insurance in Texas: Texas Farm Bureau

Based on a rate analysis by Insurance.com, Texas Farm Bureau offers the cheapest full coverage car insurance in Texas, with an average annual rate of $1,301.  

Texas Farm Bureau is the cheapest company for state minimum liability, with an average annual rate of $363. At $462 annually, the Texas Farm Bureau also offers the cheapest liability-only car insurance in Texas. 

Don't just go with the first insurer you come across. Comparison shopping is the key when it comes to finding the best deal on auto insurance. Get quotes from several different insurers and compare their rates. You may be surprised at how much difference there can be in rates from one company to another. 

We have gathered price quotes from all the major insurance providers and put together a list of the cheapest car insurance companies in Texas.

Data updated in 2024 Read our full methodology

Cheapest auto insurance in Texas for drivers with an at-fault accident: State Farm

If you have an accident on your record, you can expect your insurance rate to increase. Based on the recent data analysis by Insurance.com, State Farm offers the cheapest rate for drivers with 1 at-fault accident at $1,642 per year. This is $278 more than the rates for a driver with a clean record.

Look at the increase in rates across companies after an at-fault property damage accident below.

Data updated in 2024 Read our full methodology

Cheapest Texas car insurance rates with a speeding ticket: Nationwide

While a speeding ticket will increase your rates, it won’t cost you nearly as much as an accident. Our analysis found that Nationwide offers the cheapest car insurance rates after a speeding ticket, at $1,664 per year. This is $369 more than the rates for adriver with a clean record.

Here are the cheapest companies for car insurance with a speeding ticket in Texas

Data updated in 2024 Read our full methodology

Texas car insurance rates for teen drivers: Nationwide

Adding a teen driver to your car insurance is expensive, so shopping around for the best rates is necessary. In Texas, Nationwide has the lowest rates for a teen driver on a parent’s policy for both female and male teens at $2,050 per year and $2,250 per year, respectively.

Look at the increase in rates across companies after adding a male or female teen driver to a parent's policy below.

Note: The above teen rates are for when teen is added to their parent's policy

Cheapest car insurance in Texas for bad credit: Nationwide

Few things will increase your car insurance rates as much as bad credit. In Texas, it’s legal for insurance companies to use your credit history when calculating rates. The cheapest company for a driver with poor credit in Texas is Nationwide at $1,986 a year. It is a 53% increase in rates with Nationwide for Texas drivers with poor credit. Farmers have the smallest increase for poor credit at only 19%, but base rates start higher.

*USAA offers coverage only to military veterans and their family

Data updated in 2024 Read our full methodology

Texas car insurance requirements

In Texas, you need a minimum of 30/60/25 liability car insurance coverage. Ohio’s state minimum liability insurance costs an average of $567 annually or $47 monthly.

Minimum liability insurance requirements for Texas:

Cheapest car insurance companies for minimum liability coverage in Texas

According to Insurance.com data, the Texas Farm Bureau provides the cheapest state minimum liability insurance, averaging $386 annually or $32 monthly. 

Below is the list of Texsa's most affordable car insurance companies with their state minimum coverage rates.

*USAA offers coverage only to military veterans and their family

Data updated in 2024 Read our full methodology

How much car insurance do you need in Texas?

When you shop for car insurance, first determine what level of coverage suits your needs. The minimum car insurance coverage in Texas is 30/60/25, which means:

However, state minimum requirements are typically too low to provide sufficient coverage. Even minor accidents can cause damage, resulting in repairs and medical bills that exceed these levels, leaving you to pay the difference. Higher limits are recommended.

Also, state-required liability coverage does not cover damage to your car. For that, you need the optional coverages of comprehensive and collision.

Compare Texas auto insurance quotes

To find the best price on car insurance in Texas for your needs, request quotes from three to five different companies. Make sure you use the same coverage levels for every quote.

In addition to comparing quotes, be sure you’re getting the best deal by doing the following:

Compare auto insurance rates by city in Texas

Auto insurance rates in your city can differ significantly from the state average due to factors such as population density, increased instances of auto theft or accidents, and a few other factors. It's best to compare quotes from various insurance providers to find the most competitive rates for your specific city in Texas.

Car insurance premium trends in Texas

Car insurance average rates increase most years and various factors contribute to these changes, including shifts in economic conditions, changes in state laws, and the number and severity of insurance claims.

That's why it's important to keep track of car insurance premiums to make better decisions. The graph below shows how insurance rates in Texas have increased or decreased from 2020 to 2023.

Whether you're planning to renew your policy with your current insurer or looking for a new one, this analysis is invaluable for making informed insurance choices.

Methodology

Insurance.com commissioned Quadrant Information Services in 2023 to field rates from major insurers in every state across most ZIP codes. Driver profile: male, age 40, driving a 2023 Honda Accord LX with full coverage of 100/300/100 with comprehensive and collision; $500 deductible.

The car insurance rates for drivers with accidents and tickets are averaged based on rates for the following accidents and tickets: 

Accidents: 

Tickets: 

Insurance.com analyzed rates from more than 34,000 ZIP codes, 56 million quotes, and 136 companies. Rates sourced from Quadrant Data Services are for comparison purposes only; your rates may differ.

Compare Texas car insurance rates with other states

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