Cheapest Auto Insurance in Texas (2025)
Texas drivers can find the cheapest car insurance rates with State Farm, which has liability only rates as low as $58 per month.
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Car insurance rates are rising across the country, and Texas is no exception. The average Texas driver pays $171 per month for auto insurance, according to Insurify data.
Full-coverage auto insurance costs Texans an average of $218 per month — more than the national average of $182. A liability-only insurance policy costs an average of $124 per month in Texas, compared to the national average of $103.
Texans may be paying more for car insurance because the state has a large population with multiple major cities, where rates tend to be higher. Wildfires, hurricanes, and winter storms can cause car damage that cost insurers more for claims and drive rates higher.
Fortunately, savvy insurance shoppers can usually find a few ways to save. Here’s what you need to know if you’re shopping for the best car insurance in Texas.
Quick Facts
State Farm is one of the cheapest insurers in the state, with liability-only and full-coverage policies priced at $58 and $94 per month, respectively.
Texas is an at-fault state, meaning the driver who caused an accident is responsible for bodily injury and property damage costs. The at-fault driver’s insurance company covers the other involved parties.
Texas drivers pay an average of $2,612 per year for full-coverage car insurance.
6 of the cheapest car insurance companies in Texas
The insurers below are some of the cheapest car insurance companies in Texas.
Data in this table has been sourced from Insurify’s users who have indicated they are insured with the listed providers
Finding the best car insurance in Texas is about balancing cost with coverage and finding discounts to help you save. GEICO, Allstate, and USAA are some of Insurify’s top car insurance picks for Texas drivers.
GEICO
Allstate
USAA
Calculate how much your Texas car insurance might cost
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How to get the cheapest car insurance in Texas
Car insurance rates are surging across the country due to skyrocketing inflation, labor shortages, high repair costs, and an increase in traffic accidents.
Texas drivers have a few options to lower their rates. The number one way you can reduce your premiums is by increasing your deductible. A higher deductible means you’ll pay more out of pocket if you get into an accident. If you don’t want to raise your deductible, here are some other things you can do to save on car insurance:
Enroll in a defensive driving course to qualify for discounts or points reduction.
Talk to an insurance agent who can navigate complicated policies and help you save.
Invest in a car with robust anti-theft and safety features.
Take advantage of any car insurance discounts your insurer offers.
Compare quotes and shop around for the cheapest car insurance companies.
Cheapest liability-only car insurance in Texas: State Farm
Liability car insurance can reduce your out-of-pocket costs by paying for medical bills and property damage if you cause an accident. But liability-only insurance covers the other person’s vehicle and medical expenses if you’re at fault — not your car or medical bills.
Texas requires a minimum of $30,000 in liability coverage, $60,000 per accident, and $25,000 for property damage.1 If you want to stick with the minimum and keep your car insurance costs as low as possible, you can purchase a liability-only auto insurance policy.
Liability insurance in Texas costs an average of $124 per month. Take a look at the cheapest liability-only insurers in the table below.
Cheapest full-coverage car insurance in Texas: State Farm
Texas doesn’t require full-coverage auto insurance, but it’s smart to purchase this type of policy if you want more robust financial protection. Full-coverage policies include liability insurance but also have comprehensive and collision coverages.
If you get into an accident, collision insurance will cover repairs to your vehicle. Comprehensive covers damage from non-collision events, like hailstorms or falling branches. While full-coverage policies have more expensive average rates than liability-only insurance, the difference is often worth it for drivers who want to avoid unexpected expenses. If you leased or financed your car, your leasing company or lender will likely require you to have full-coverage car insurance.
Texas drivers pay $124 per month, on average, for a full-coverage policy. The table below shows which insurers offer the cheapest full coverage in Texas.
Car insurance requirements in Texas
Texas law requires 30/60/25 coverage, meaning all drivers must carry at least $30,000 in bodily injury coverage per person, up to a total of $60,000 per accident, and $25,000 coverage for property damage.
The required bodily injury liability coverage pays medical bills for the other driver and their passengers if you’re at fault in an accident. Property damage liability coverage pays for damage to the other driver’s car or property.
All insurance policies in Texas include personal injury protection (PIP), which pays for your and your passengers’ medical bills, lost wages, and funeral expenses in the case of a fatal accident. But you can opt out of the coverage by sending written notice to your insurance company.2
Texas insurers must also provide uninsured/underinsured (UM/UIM) motorist coverage, which pays if someone without sufficient insurance hits you. To opt out of PIP or UM/UIM coverage, you need to tell your insurance company in writing.
The required 30/60/25 coverage might not be enough to cover a serious accident and could leave policyholders with major out-of-pocket expenses, says Deon Williams, owner of Texas-based 4J Insurance Agency.
“I would rather send you to a different carrier than be responsible for writing bad policy. So, we don’t usually write that [30/60/25 policy] unless it’s something extenuating, like a senior citizen on a fixed income,” says Williams.
Instead, Williams says the ideal minimum would be $100,000 for bodily injury, $300,000 per accident, and $100,000 for property damage. “Usually, the difference between that and the state liability limits is about $15 a month. People spend more on Netflix.”
If Texas drivers feel the minimum coverage isn’t sufficient, they can add additional coverages to ensure they’re protected no matter the circumstances, including:
Cheapest car insurance for drivers with an incident
Insurance companies analyze your level of risk to determine your premium, so your driving history affects your auto insurance rates. If you have an at-fault accident, DUI, or speeding violation on record or have other traffic violations like rolling through a stop sign, insurers may charge you more for car insurance.
The difference between premiums for drivers with and without an incident on record isn’t insignificant. Insurify’s proprietary data reveals drivers with at-fault accidents on record pay an average of $186 per month for auto insurance — noticeably more than drivers with clean records, who pay $143.
If your premium increases after a driving incident, you’re not necessarily stuck with a higher rate. Some insurance companies penalize incidents with steeper increases than others, and shopping around could help you save.
Cheapest car insurance for drivers with a speeding ticket: State Farm
Insurance companies take speeding seriously for a good reason. Nearly 30% of fatal crashes involve speeding. An additional 13% of injury crashes and 10% of property-damage-only crashes were speeding-related, according to the National Highway Traffic and Safety Administration (NHTSA).
Most auto insurance companies raise rates after a speeding ticket. But some insurers might not raise rates for drivers older than 25 without a similar violation in the past three years.
In Texas, drivers with a speeding ticket on their record pay an average of $261 per month. Comparing quotes from multiple insurers and maintaining a clean driving record going forward can help you secure affordable car insurance after a speeding violation.
Cheapest car insurance for drivers with an at-fault accident: State Farm
Getting into an at-fault accident can cause your car insurance rates to increase by an average of 26%, according to Insurify’s proprietary data. Even drivers who aren’t at fault face average increases of nearly 10% after an accident.
On average, Texas drivers who have had an accident pay $279 per month. Some insurers include accident forgiveness in your policy, but others offer it as add-on coverage or not at all.
If you don’t qualify for accident forgiveness, your rates will eventually decrease after an accident if you maintain a safe driving record. In the meantime, completing a defensive driving course approved by your insurer, raising your deductible, or comparing rates could reduce your car insurance premium.
Cheapest car insurance for drivers with a DUI: State Farm
Finding cheap car insurance can be more difficult if you have a DUI on your driving record. Texas drivers with a DUI pay an average cost of $351 per month for full-coverage car insurance. In fact, drivers with a DUI/DWI pay about 66% more for auto insurance than people with a clean driving record. But you can still find ways to get a cheaper rate.
Shopping around, comparing quotes, and taking advantage of insurer discounts can reduce your premium, even if you have a DUI.
Cheapest car insurance for seniors: State Farm
Your age affects your car insurance premium significantly. Rates typically decrease after age 25 as drivers gain more experience behind the wheel, and senior drivers pay the lowest rates on car insurance as a group.
But insurance companies tend to raise rates for drivers older than 70 due to an increased risk of accidents. Drivers older than 70 have higher crash and death rates than drivers ages 35–53 due to age-related declines in visual, cognitive, and physical function and increased vulnerability to injury, according to the Insurance Information Institute.3
Senior drivers in Texas pay a monthly average of $105 for liability-only car policies and $185 for full coverage. Many insurers also offer discounts to seniors with clean driving records.
Cheapest car insurance for teens: State Farm
Getting a driver’s license is a thrilling rite of passage for most teenagers. The insurance rates for teen drivers are a lot less exciting. Insurance companies set higher premiums for young drivers due to increased risk and lack of experience. For example, teen drivers in Texas pay an average monthly cost of $243 and $427 for liability only and full coverage, respectively.
Drivers ages 16–19 have a higher risk of motor vehicle crashes than any other age group and a crash fatality rate that’s nearly three times as high as for drivers ages 20 and up, according to the Insurance Institute for Highway Safety.4
Teenage drivers can secure a lower car insurance rate by being added to their parents’ policies, driving a car model that’s cheaper to insure, qualifying for good student discounts, or comparing rates.
Texas car insurance quotes by credit tier
Insurance companies pay out nearly twice as much on property damage liability policies for customers with the lowest credit scores compared to people with the highest scores, according to the Federal Trade Commission (FTC). Because people with low credit scores tend to be more costly to insure, insurance companies typically charge these customers more for auto insurance.
While some states, like California, ban using credit scores for insurance pricing, Texas insurers can and do consider your credit history when setting rates. An excellent or good credit score could secure you a lower rate, but the average cost of car insurance goes up if you have a poor credit score.
Texas car insurance FAQs
If you still have questions about buying car insurance in the Lone Star State, here’s some more information to help as you research your coverage options.
How much is car insurance in Texas?
The overall average cost of car insurance in Texas is about $171 per month. Texans pay an average of $218 per month for full-coverage auto insurance and $124 for a liability-only policy.
What is the cheapest car insurance company in Texas?
State Farm is the cheapest car insurance company in Texas, with monthly liability-only rates of $58.
What is the best car insurance in Texas?
No single “best” insurance company exists for every type of driver. But GEICO, Allstate, and USAA are a few top insurers in Texas. They each have competitive rates, customizable policies, and discounts that can help you save.
Why is auto insurance so expensive in Texas?
Everything’s bigger in Texas — including the state’s exposure to increasing auto claims tied to climate-related events. Texas has a long history of costly storms that cause billions of dollars in property damage. When insurance companies face big losses in a state, raising rates is one way to cover their losses.
Can your driving record affect the cost of car insurance in Texas?
Yes. Your driving record can significantly affect your car insurance costs. For example, drivers with a clean record free of traffic infractions typically pay the lowest rates for car insurance. Drivers with DUIs, at-fault accidents, and other moving violations typically face the highest car insurance premiums.
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