Best Car Insurance Companies in Texas (October 2025)

GEICO, Allstate, and USAA are the top insurers in Texas, offering competitive rates and coverage options.

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Every driver has a unique profile that insurers consider when setting rates. Your neighbor might recommend their insurance company, but if you have different driving habits, you could possibly find a better policy from another insurer.

Comparing car insurance rates will always help you find the best fit, but finding the best coverage can be time-consuming. To help you find the best car insurance in Texas, Insurify analyzed 155 insurers based on criteria including customer satisfaction, discounts, affordability, availability, and financial strength.

Quick Facts

  • State Farm offers the cheapest rates for auto insurance in Texas, with liability-only rates as low as $58 per month.

  • Texans pay above-average rates for car insurance.

  • According to the latest report from the Insurance Research Council, approximately 13.8% of Texas drivers don’t have car insurance.1

Best car insurance companies in Texas

Insurify prioritized affordable rates and quality customer service when researching the best car insurance companies in Texas. GEICO, Allstate, and USAA offer cheaper-than-average rates to Texas drivers and rank well in overall customer satisfaction.

Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

Best insurer for drivers with a clean record: GEICO

Best insurer for infrequent drivers: Allstate

Best insurer for military families: USAA

How to find the best car insurance for you

Your lifestyle, location, and budget all matter when you’re searching for the best auto coverage. Here are some tips to start the process:

Average cost of car insurance in Texas

The average cost of car insurance increased by 24% last year nationwide, according to Insurify data. Texans pay more than the national average for car insurance. The state’s average monthly quote is $124 for liability-only insurance and $218 for full coverage, Insurify data shows.

In 2024, car insurance costs spiked 15% nationwide by mid-year. The average price of full-coverage car insurance continues to rise nationwide, and Insurify data scientists predict a 23% average increase in Texas by the end of 2024.

Why is car insurance in Texas so expensive?

Texas doesn’t have the highest premiums in the country (Maryland currently does), but Texans pay rates that are higher than the national average. Multiple factors affect the cost of car insurance, but inflation and severe weather are mainly responsible for Texas’ higher rates.

The rising cost of labor, repairs, and new-car prices mean even small accidents can result in expensive claims. Natural disasters like hurricanes, tornadoes, and hailstorms are driving weather-related claims in new areas. For example, Houston drivers face higher premiums than Austin or Dallas drivers, according to Insurify data.

As you search for the best car insurance, comparing quotes will help you find the most affordable coverage in your area since location is a significant factor affecting premiums.

How much car insurance coverage you need in Texas

Texas law requires all drivers to have at least $30,000 of bodily injury protection per person, up to $60,000 per accident, and $25,000 of property damage liability insurance. You may also see this written as 30/60/25 coverage.1

State-minimum vs. full coverage

Whether you should get liability-only or full-coverage car insurance may not be entirely up to you. For example, if you lease or finance your vehicle — meaning you still owe money on your loan or lease — your leasing company or lender will require you to have collision and comprehensive coverage in addition to minimum liability coverage.

If you own your car outright, full coverage may still be the best option since it’ll help protect your financial investment in your vehicle. If your vehicle is older and worth less than a full-coverage policy or you have enough money to cover unexpected damages out of pocket, liability-only coverage could save you money on premiums.

The Texas Department of Insurance recommends drivers consider buying more liability coverage than the state’s minimums. If you cause an accident and damage costs exceed your liability coverage limits, you’ll be responsible for paying the rest out of pocket.

For Example

The average cost of a new car was $48,759 at the end of 2023, according to Kelley Blue Book.3 If you’re at fault in an accident that totals the other driver’s new car, the cost to replace the vehicle will likely be much higher than the Texas state minimum of $25,000 for property damage.

Best car insurance in Texas FAQs

Searching for the best car insurance in the state of Texas can be time-consuming, so here’s some additional information to help you along the way.

  • What is the best car insurance in Texas?

    GEICO, Allstate, and USAA are the top insurers selling coverage in Texas, based on Insurify’s analysis. But the best car insurance company for you will depend on your needs and unique driver profile.

  • What is the cheapest car insurance in Texas?

    The cheapest Texas car insurance company is State Farm, with an average liability-only rate of $58 per month. Rates will vary by location, driving record, and more individual rating factors.

  • What car insurance discounts should I look for in Texas?

    Look for any and all discounts. You can get discounts for bundling your insurance policies and insuring multiple vehicles with the same company, having safety features, maintaining a clean driving record, and more.

Julia Taliesin
Julia TaliesinData Journalist

Julia Taliesin is a data journalist at Insurify. She began her career as a journalist, covering local government and business in Somerville, Mass. She reported multiple investigative stories about municipal finances and budget allocation, building development and inspection, and personnel. When the pandemic began she became a de facto public health reporter, writing daily and weekly reports using available data to quickly communicate rates of infection and city response.

She's worked for print and digital outlets, writing everything from quick-hit breaking news to long-form community features. More recently, Julia managed content strategy at a startup creating a social platform for licensed nurses, overseeing a team of nurse freelancers and editing interview transcripts and news articles for publication.

She holds a Bachelor's degree in communications from Simmons University, with a focus in journalism. Outside of work, Julia enjoys working on crafting projects, learning about homesteading, and singing in cover bands.

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