Best Cheap Auto Insurance In Texas: Save Money, Stay Covered

Texas Farm Bureau offers the cheapest car insurance in Texas, with an average rate of $863 per year, according to a 2024 analysis by U.S. News. The average rate of insurance for Texas drivers is $1,716 per year. The cheapest rates for teen drivers are from Farmers and USAA, while USAA has the cheapest rates for young adults, seniors, and drivers with a clean record. GEICO offers the cheapest rates for drivers with bad credit and teen drivers. State Farm has the cheapest rates for drivers after an accident, while Progressive has the cheapest rates for drivers with a DUI.

Cheapest for good drivers

Texas Farm Bureau offers the cheapest full coverage in Texas, with an average rate of $1,268 per year, according to NerdWallet's September 2024 analysis. The average cost of full coverage in Texas is $2,567 per year, or $214 per month.

If you want the cheapest policy possible, get minimum coverage. The average cost of minimum coverage in Texas is $832 per year, or $69 per month.

State Farm offers the cheapest rates in Texas at $376 per year, on average, for minimum coverage car insurance for a 35-year-old driver with a clean driving record.

USAA has the lowest average annual rate in our study for drivers with a clean driving record at $840 per year, on average. That’s $424 cheaper than the statewide average in this category.

The Zebra's data shows that GEICO is the cheapest car insurance in Texas at $716 for a 6-month policy or $119/month.

Cheapest for full coverage

Texas Farm Bureau offers the cheapest full-coverage car insurance in Texas, with an average rate of $1,268 per year according to NerdWallet's September 2024 analysis. The average cost of full coverage in Texas is $2,567 per year, or $214 per month.

Full coverage insurance in Texas includes liability, comprehensive, and collision insurance. Liability insurance covers the cost of any damage, injuries, or deaths you cause in a car accident, up to your policy's predefined limits. Comprehensive insurance covers damage to your vehicle resulting from a variety of situations, such as weather events or vandalism, up to the market value of your car. Collision insurance covers repairs to your vehicle if it is damaged in a collision, regardless of who is at fault.

Texas law requires drivers to have a minimum amount of liability insurance, often written as 30/60/25. This means that drivers must have at least $30,000 in bodily injury liability coverage per person, $60,000 per accident, and $25,000 in property damage liability coverage per accident. While these are the legal minimums, it is recommended that drivers consider higher coverage limits to adequately protect their assets in the event of a costly accident.

In addition to Texas Farm Bureau, other insurance companies that offer cheap full-coverage car insurance in Texas include State Farm, USAA, and GEICO. It is important to note that insurance rates can vary based on factors such as age, driving record, location, and vehicle type. Therefore, it is advisable to shop around and compare quotes from multiple insurance providers to find the best rate for your specific situation.

Cheapest for teens

Teenage drivers in Texas are likely to pay thousands of dollars more for auto insurance than older drivers. This is because insurance companies consider inexperienced drivers to pose more risk. However, there are still ways to minimize monthly payments.

GEICO

GEICO is known for offering some of the lowest rates in the industry, making it an attractive option for budget-conscious drivers. It also has a user-friendly website and app, and offers a wide range of discounts. The cheapest policy for a teen is around $35 per month, and GEICO offers the best discounts for teen drivers in Texas.

USAA

USAA has the second-cheapest rates for teens in Texas. It offers competitive rates, especially for military members and their families, and has high customer satisfaction and financial ratings. However, its coverage is not available to everyone.

State Farm

State Farm is the third-cheapest option for teens in Texas. It is one of the largest insurance companies in the US and has high levels of customer satisfaction. It also offers a wide variety of discounts and has affordable rates for people with a speeding ticket or accident on their record.

American Family Insurance

American Family Insurance offers loyalty discounts, as well as bundling discounts for customers who bundle their auto insurance with other policies such as home or life insurance. They also offer a Teen Safe Driver Program, which uses technology to monitor and improve young drivers' behaviours, potentially reducing premiums over time.

Nationwide

Nationwide offers a Vanishing Deductible program, which reduces deductibles for safe driving over time. They also offer multi-policy discounts and accident forgiveness, which can help keep costs down for teen drivers.

Cheapest for poor credit

Texas Farm Bureau offers the cheapest car insurance in Texas for drivers with poor credit, with an average rate of $195 per month for full coverage. This is 42% cheaper than the average cost of minimum coverage in Texas.

Other cheap car insurance companies for drivers with poor credit in Texas include USAA and State Farm, but USAA is only available to current and former military members and their families.

Cheapest for seniors

Car insurance rates for seniors in Texas vary depending on age, gender, location, driving history, and other factors. Here is a breakdown of the cheapest car insurance options for seniors in the state:

Cheapest Overall for Seniors: State Farm

State Farm offers the cheapest car insurance rates for seniors in Texas, with an average annual cost of around $1,130, or $94 per month. This is significantly lower than the average cost of car insurance for seniors in Texas, which is $1,841 per year.

Nationwide provides the cheapest rates for 60-year-old drivers in Texas, with an average monthly cost of $88.

State Farm again offers the most affordable option for 65-year-old seniors, with an average monthly rate of $90.

State Farm continues to be the cheapest option for seniors in this age group, with an average monthly cost of $94.

State Farm is once again the cheapest, with an average monthly rate of $101 for 75-year-old drivers.

Other Affordable Options for Seniors:

In addition to State Farm and Nationwide, other insurance companies that offer competitive rates for seniors in Texas include USAA, Progressive, and The Hartford. It's important to note that USAA is only available to military members, veterans, and their families.

Frequently asked questions