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.

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.

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 $220 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.