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.)

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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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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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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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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Allstate stood out for its competitive rates, resulting in it being the lowest average of the companies we considered. Its strong ratings for financial strength and customer satisfaction make it a standout in terms of quality, too.  

A.M. Best Rating  

A+  

J.D. Power score (Overall Customer Satisfaction Index Ranking) 

813.4 out of 1,000 

NAIC complaint index (Average is 1)  

1.02, about average 

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Texas Farm Bureau Insurance has been selling insurance policies since 1952. The company also offers homeowners insurance, farm and ranch insurance and life insurance. 

A.M. Best Rating  

A- 

J.D. Power score (Overall Customer Satisfaction Index Ranking) 

824 out of 1,000 

NAIC complaint index (Average is 1)  

0.15, lower than average 

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Farmers is one of the largest insurance companies in the country. It offers competitive prices in addition to a generous number of discounts, making it an affordable option for many Texas drivers. You can save on coverage by enrolling in paperless billing, bundling other insurance products, paying premiums on time and completing other tasks.

A.M. Best Rating  

A 

J.D. Power score (Overall Customer Satisfaction Index Ranking) 

801.5 out of 1,000 

NAIC complaint index (Average is 1)  

2.81, higher than average 

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While it’s only available to those affiliated with the U.S. military, generally including military members and their spouses and children, USAA’s auto insurance is a strong option for those who are eligible. It’s consistently one of our top picks and offers competitive rates in Texas. Members have access to many discounts, including multi-vehicle and multi-policy discounts, a good student discount and a legacy discount.

A.M. Best Rating  

A++ 

J.D. Power score (Overall Customer Satisfaction Index Ranking) 

877 out of 1,000 

NAIC complaint index (Average is 1)  

0.34, lower than average 

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Texans have many options when it comes to insuring their vehicles. To find the right one for you, get several quotes with the same levels of coverage and deductibles and compare the premiums.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every auto insurance review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of auto insurance products. To research the best auto insurance companies, we compiled data points on more than a dozen auto insurance companies. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best Texas auto insurance companies. 

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. 

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