HomeRenters InsuranceBest Car Insurance in Texas of 2024

Best Car Insurance in Texas of 2024


Getting car insurance in Texas doesn’t have to be a big expense. It tends to be close to the American average for car insurance costs, with the typical Texan paying $2,019 for full coverage, and $565 for minimum coverage according to Bankrate data.

It’s possible to get the best deal for you by shopping around and comparing prices, whether you’re living in Austin, Houston, Dallas or any other Texas city. Here are the four best and cheapest car insurance companies in Texas. (See our methodology for more information on how we made this list.)

Best car insurance in Texas

Best overall    

Allstate Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Allstate offers auto insurance customers a total of 14 discounts in addition to a pay-per-mile car insurance program. It offers quotes by phone, through an agent, or online. The company also offers a number of other insurance products to bundle your coverage and save.

Cons

  • Slightly above average NAIC complaint index

Who’s this for? Allstate offers competitive coverage for Texas residents looking for affordable coverage from a well-known insurer.  

Standout benefits: Allstate offers online quotes for those who are shopping around. It offers several discounts, including discounts for bundling your coverage, owning a new car and discounts for students. Allstate also has pay-per-mile car insurance available in Texas that could be a good fit for those who drive less, including those who use alternative transportation or work from home.  

Average annual Texas sample premium: $391 

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Runner-up  

Texas Farm Bureau Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Texas Farm Bureau’s auto insurance is a strong choice for Texas residents, as it’s earned accolades for customer satisfaction and offers relatively affordable rates compared to those we considered.

Pros

  • Highly rated for customer satisfaction

Cons

  • Quotes not available online

Who’s this for? As its name suggests, Texas Farm Bureau Insurance is available exclusively to residents of the Lonestar State. It is highly rated for customer satisfaction by J.D. Power in the state.  

Standout benefits: Texas Farm Bureau Insurance offers discounts for those who have gone without a claim in three years, a discount for students under age 25 with a B average, and a discount for vehicles with factory-installed safety features, among other discounts.  

Average annual Texas sample premium: $406 

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Best from a big-name insurer 

Farmers Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    Farmers sells car insurance in every state except Alaska, Delaware, Hawaii, Maine, New Hampshire, Rhode Island, Vermont, Washington, D.C., and West Virginia and offers a whopping 23 discounts.

Pros

  • Offers 23 types of discounts
  • Below-average NAIC complaints
  • Ability to bundle coverage with other products

Cons

  • Not all discounts are available in every state
  • Average premium for maximum coverage is higher than the national average

Who’s this for? Farmers stood out for its competitive rates in Texas, compared to the other big-name companies we considered.  

Standout benefits: For those who have a Farmers homeowners insurance policy, this insurer could be even more competitive with a bundling discount. 

Average annual Texas sample premium: $470 

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Best for military members and veterans

USAA Auto Insurance

  • Cost

    The best way to estimate your costs is to request a quote

  • App available

  • Policy highlights

    USAA’s auto insurance is available in all 50 states, Washington D.C. and some international locations. In addition to low rates and coverage options for unique circumstances, such as for active-duty members, customers have access to an intuitive mobile app.

Pros

  • Lowest average premium for minimum coverage 
  • Highest customer satisfaction ranking
  • Superior discounts for military members

Cons

  • Only available to military members, veterans and their immediate family members

Who’s this for? USAA offers those who have served in the military (and their qualifying family members) relatively affordable car insurance rates along with strong records for financial strength and customer satisfaction.  

Standout benefits: USAA’s car insurance rates and coverage are consistently competitive, and we’ve highlighted the brand as one of the best for those with military affiliations.  

Average annual Texas sample premium: $456 

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More on our top Texas car insurance companies 

Allstate  

Texas Farm Bureau Insurance 

Farmers 

USAA 

FAQs

How much is car insurance in Texas per month?  

Car insurance in Texas tends to cost between $32.58 per month and $39.17 per month, based on the companies we analyzed. However, this is only liability car insurance, or coverage that would protect you financially from damage you cause. To repair or replace your car after an accident or a natural disaster, you’ll need full coverage car insurance, which adds collision and comprehensive coverage.  

Who has the cheapest car insurance in Texas?  

According to the data we gathered, Allstate offered the most affordable car insurance coverage in Texas, with Texas Farm Bureau Insurance a close second.  

How can I lower my car insurance in Texas? 

It’s possible to lower the amount you’ll pay for car insurance with a few tips:  

  • Work on your credit. Your credit score can be used in calculating your auto insurance prices. In general, the higher your credit score, the lower your auto insurance rates. Raising your credit score could help lower your car insurance bill.  
  • Bundle with other insurance coverages. Several top insurers offer more than just auto insurance. Whether you rent your home or own it, bundling your renters insurance or homeonwers insurance could help you save. If you have other things to cover, like an RV, motorcycle or a boat, consider bundling them with your auto insurance for more savings.  
  • Pay your premiums in full. Some insurers offer discounts for paying in full rather than paying monthly. If you can cover the cost upfront, it could be worth it.

Bottom line  

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Why trust CNBC Select? 

Our methodology  

To determine the best car insurance companies in Texas, CNBC Select analyzed several insurance companies offering car insurance coverage in the state. 

When narrowing down and ranking the best car insurance companies, we focused on cost with a sample premium, coverage, ease of use, customer satisfaction ratings from J.D. Power, financial strength ratings from A.M. Best and complaint indexes from the National Association of Insurance Commissioners. 

Sample premium data was gathered from the Texas Department of Insurance’s Helpinsure.com tool, and was based on liability coverage with limits of $50,000 per person in injury coverage, $100,000 limit for all injuries, and $50,000 for property damage. We focused on premiums for a single male driver who: 

  • Is 30 years old 
  • Drives 18,000 miles per year, mostly for work 
  • Has no violations or accidents on their record 
  • Drives a car (rather than a truck) 

We considered sample premium data from several Texas cities and gathered sample premium data for the same driver with the qualifications above in Katy (Fort Bend County), El Paso (El Paso County), Frisco (Collin County), Grand Prairie (Dallas County) and Mckinney (Collin County). These were averaged to create the state average annual sample premium. 

After reviewing the above features, we sorted our recommendations by the best overall and runner-up, best for military members, veterans and their families, and best from a large insurer. 

Note that the premiums and policy structures advertised for car insurance companies are subject to fluctuate in accordance with the company’s policies. 

Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date. 

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.





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