Best Auto Insurance Company In Texas: Who's Number One?

Finding the best auto insurance company in Texas can be a challenge, especially since the state has higher-than-average traffic density and the highest speed limits in the country.

According to a study by MarketWatch, the best car insurance companies in Texas are Texas Farm Bureau, USAA, State Farm, Geico, and Progressive. Texas Farm Bureau also has the cheapest average car insurance rate in Texas at $863 per year, according to the study.

NerdWallet's analysis found that Travelers offers the best car insurance in Texas overall, while State Farm is the best option for those on a budget. Chubb is ideal for those who want to avoid customer complaints, and Farmers is the best for ease of use.

Other notable mentions include Allstate, which CNBC Select found to have the most affordable rates, and Mercury, which CNBC Select recommends for full coverage.

Best for young drivers

Young drivers in Texas have a few options when it comes to auto insurance. State Farm is a good choice for young drivers looking to get their own policies. State Farm offers cheap rates and good customer service. The average rate for an 18-year-old is $293 per month, which is about one-third less than the national average.

State Farm also offers a good student discount and the Steer Clear program, a safety course for new drivers to improve driving habits. You can also add roadside assistance for peace of mind if you need a tire change, lock your keys in the car, or break down. However, State Farm does not offer accident forgiveness or gap insurance.

If you're adding a teen driver to an existing policy, Auto-Owners has the cheapest rates. It costs $153 per month to add an 18-year-old to a 50-year-old's policy, which is only $42 more. Erie, Farm Bureau, and State Farm also offer cheap insurance for young drivers when added to a parent's policy.

Erie Insurance is another good option for young drivers, offering some of the lowest rates at $256 per month for a teen driver on their own and $174 for an older driver adding a younger one to their policy. Erie also offers a wide set of discounts for young drivers, including a young driver discount, a young driver longevity discount, and a driving training discount. However, Erie is only available in 12 states.

For young drivers looking to avoid paying more after an accident, Auto-Owners offers accident forgiveness. Although it costs more to enroll in the program, the savings may be worth it over time. Auto-Owners also has cheap rates for teens on their own and is the cheapest option for adding a young driver to a parent's policy. However, Auto-Owners lacks digital tools, and you must work through an agent to manage your policy.

Overall, State Farm is a good choice for young drivers in Texas due to its cheap rates, good customer service, and various discount programs.

Best for affordability

When it comes to affordability, Allstate, State Farm, and Texas Farm Bureau are the best auto insurance companies in Texas.

Allstate

Allstate offers competitive coverage for Texas residents looking for affordable insurance from a well-known insurer. They provide a total of 14 discounts, including bundling your coverage, owning a new car, and having a good student discount. Allstate also has a pay-per-mile insurance program, which is a good option for those who drive less. The company offers slightly above-average customer satisfaction and has a higher-than-average number of complaints.

State Farm

State Farm is a popular insurer with high customer satisfaction ratings and fewer complaints compared to other large competitors. They offer generous coverage and discounts for good driving habits. State Farm is also a good option for bundling multiple policies, as they offer a generous multi-policy discount. However, they do not offer gap insurance.

Texas Farm Bureau

Texas Farm Bureau offers the cheapest car insurance rates in Texas, with an average annual rate of $863. They have the lowest overall rates and top customer service in the state. The company is a local business, which means they can provide better personalized service for Texas residents than larger providers. However, you must be a member of the Farm Bureau to qualify for coverage, and they do not have usage-based insurance programs.

Best for customer satisfaction

When it comes to customer satisfaction, Chubb is the best auto insurance company in Texas. Chubb offers rare original equipment manufacturer (OEM) coverage and more commonly found rental car/travel reimbursement. Chubb also offers unique coverage for antique or classic cars, ideal for collectors to ensure vehicles retain their value and are accurately restored after a covered loss. Diminished value coverage can also be a game-changer for new car owners, as it allows you to recover the lost resale value following an accident. Chubb's impressive satisfaction score of 45 and top claims score of 30 affirm its commitment to customer service and reliable claims resolution.

Another company that ranks high in customer satisfaction is State Farm. State Farm's rates were some of the lowest we found from large insurance providers in Texas. State Farm's rates were some of the lowest we found from large insurance providers in Texas. The company's average annual premium is $759. State Farm also offers a combination of affordability and excellent customer service in Texas. State Farm offers several discounts, including bundling, safe driving, and good student.

Best for military members and veterans

If you're a military member, veteran, or a part of a military family based in Texas, there are a few auto insurance companies that offer specialised services and discounts.

USAA is a popular choice for military-related auto insurance in Texas. It offers exclusive insurance coverage for current and former military members and their families. USAA provides some of the cheapest rates for military families and has great customer service reviews. It also offers a variety of discounts, such as a 15% discount for parking on a military base and up to a 60% discount for storing your vehicle during deployment.

Geico is another good option for military members and veterans. It offers a military discount of up to 15% on its already low rates, and an additional discount of up to 25% for deployment to imminent danger zones. Geico also provides a dedicated customer service line for military members, which is staffed by veterans.

State Farm is also worth considering. While it doesn't offer specific military discounts, it does provide affordable rates and a variety of other discounts. State Farm also allows policy suspension if you're deployed and need to store your car for an extended period.

Other auto insurance companies that offer military discounts or services include Liberty Mutual, Farmers Insurance, and Armed Forces Insurance.

Best for discount opportunities

When it comes to discount opportunities, Allstate is a great choice for auto insurance in Texas. Allstate offers its customers a total of 14 discounts, including for bundling your coverage, owning a new car, and for students. Allstate also has a pay-per-mile insurance option that is a good fit for those who drive less.

Geico is another great option for discount opportunities. Geico offers 16 car insurance discounts, including for safe driving, being a good student, and for military service. Geico also offers a telematics program that can save you up to 25% on your premium.

State Farm is also worth considering for their over a dozen discounts, including for safe driving, bundling, and good students.

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