ValuePenguin analyzed car insurance quotes in 78 cities in Texas from 11 companies to identify the cheapest insurers and rates in the state. Our analysis showed a wide range in costs from company to company.
For example, in Houston, the difference between the cheapest and the most expensive company was $696 a year. This is why to get the right rates, consumers should shop around. Enter your zip code above now to start shopping for great auto rates in your area among the top U.S. insurers, or read more by clicking directly on each section below.
Cheap Car Insurance in Texas
Cheapest Car Insurance in Texas: by City
Best Auto Insurance Companies in Texas
What’s the Average Cost of Car Insurance in Texas?
Cheap Car Insurance Companies in Texas
To identify the cheapest companies, we reviewed auto liability insurance quotes for a sample driver in Texas and then ranked them based on their average across 78 cities. Here are the five companies with the best auto insurance rates in Texas:
This graph identifies and ranks the five companies in Texas with the best rates for insuring our sample drivers’ cars
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The cheapest car insurance companies in Texas include Texas Farm Bureau, GEICO, Progressive, State Farm, and Mercury. Overall, Texas Farm Bureau had the best rates, but it does require a membership fee.
Here are the average rates across 78 cities for our sample driver, a thirty year old single male with a clean driving record. While your actual quotes will depend on where you live and park your car, as well as how you’ve driven, these companies are a good place to start finding low cost insurance. The same driver will get different quotes from different companies. Comparing quotes from at least three companies is the best way to get good rates. Start by entering your zip code below to see what top US insurers are covering your area.
Cheap Car Insurance in Texas: by City
We analyzed auto liability insurance rates in each city to identify the top three insurers with the lowest rates. In the table below, we’ve prepared a list of 78 largest cities in Texas along with the city’s three lowest cost insurers and average annual premiums to give drivers a sense of costs. Rates are averaged for a single 30 year old with a good credit score and driving history.
Note that USAA ranked in the first or second spot in almost all cities, but we’ve excluded them from this table because the company only serves military and affiliated members. Below is also a deeper dive by the largest cities of the most affordable insurers by age and marital status to give drivers a further idea of the going rates for auto insurance. We’ve excluded USAA from the city specific tables as well.
Policies in the Big D cost on average $2,457, but you can still save with cheap car insurance in Dallas if you know where to look. Start with Progressive, Texas Farm Bureau, and State Farm — the three cheapest insurers in Dallas based on our study. Quotes from these three companies are about 39% less than the Dallas composite.
Image shows the cheapest auto insurance companies in Dallas, Texas based on our quote comparison.
Paying for car insurance in Houston can cost an annual premium of $2,881, making it the most expensive in our study of Texas auto insurance. You can save money though by going with quotes from Texas Farm Bureau, Progressive, and State Farm. The three companies’ yearly average are about can save you 34 — 51% off of the average auto insurance rate in Houston.
Graph shows the five companies with the most affordable car insurance rates in Houston, Texas
Which companies have the cheapest auto insurance rates in Austin, TX? We suggest 30 year old drivers in Austin compare quotes starting at Texas Farm Bureau, Progressive, and GEICO based on our graph below. Auto insurance in Austin can cost drivers about $2,191 a year, which is about 6% less than elsewhere in the Lone Star state. At these three companies, however, drivers can save on average 44% versus the average city cost.
This graph shows the five best car insurance rates for our 30 year old driver in Austin, Texas
San Antonio, TX
In San Antonio, we have Progressive and Texas Farm Bureau sweeping the boards with the lowest rates, with State not far behind. It costs about $2,348 to insure your car in the Alamo City, Texas’s second largest city — about 7% more than the the state average.
This chart displays the five lowest auto insurance premiums we found for our driver living in and commuting in San Antonio, Texas
El Paso, TX
Despite being the sixth largest city in Texas, El Paso has a car insurance cost just lower than the average city in Texas. It costs just $2,239 a year to insure a car in a town that has been named one of the Happiest Cities to Work In, or one of America’s Safest Cities. Annual premiums are already 8% cheaper than the state average. Keep Texas Farm Bureau and Progressive in mind if you’re looking for cheap auto insurance in El Paso.
Here are the names and average premiums of the auto insurers in El Paso, Texas with the most affordable rates
Best Auto Insurance Companies in Texas
To find the best insurers in Texas, we’ll be looking at the companies with the fewest complaints compared to their competitors. These are thirty of Texas’s largest auto insurance companies, and are ranked based on their complaint index, which measures how many valid complaints the company gets compared to the average insurer. An index of 1.00 is average, and a number below 1, such as State Farm County’s index, is better (gets fewer complaints than the average company).
The best car insurance companies in Texas with the fewest complaints are the Hartford, State Farm, and Germania Insurance. The cheapest companies in our study, Foremost County Mutual, Allstate, and USAA, had lower than average complaints as well.
Rank Insurer 2012 Index
1 Hartford Fire Insurance Company 0.00
2 State Farm County Mutual Insurance Company Of Texas 0.24
3 Germania Select Insurance Company 0.29
4 Dairyland County Mutual Insurance Company Of Texas 0.31
5 Foremost County Mutual Insurance Company 0.32
6 State Farm Mutual Automobile Insurance Company 0.33
7 21st Century Centennial Insurance Company 0.36
8 USAA Casualty Insurance Company 0.46
9 Allstate Property And Casualty Insurance Company 0.65
10 Consumers County Mutual Insurance Company 0.68
11 Texas Farm Bureau Casualty Insurance Company 0.70
12 Garrison Property And Casualty Insurance Company 0.76
13 Allstate County Mutual Insurance Company 0.77
14 Farmers Texas County Mutual Insurance Company 0.79
15 Colonial County Mutual Insurance Company 0.85
16 Texas Farm Bureau Mutual Insurance Company 0.85
17 United Services Automobile Association 0.86
18 Progressive County Mutual Insurance Company 0.91
19 Liberty County Mutual Insurance Company 0.91
20 Allstate Fire And Casualty Insurance Company 0.92
21 Allstate Indemnity Company 0.93
22 Government Employees Insurance Company (GEICO) 0.94
23 USAA General Indemnity Company 0.94
24 Southern County Mutual Insurance Company 1.23
25 AAA Texas County Mutual Insurance Company 1.37
26 Home State County Mutual Insurance Company 1.46
27 ACCC Insurance Company 1.70
28 GEICO Indemnity Company 1.80
29 Loya Insurance Company 2.27
30 Old American County Mutual Fire Insurance Company 2.69
Average Cost of Car Insurance in Texas
How much do people pay on average for car insurance in the state of Texas? $2,330, according to our data. Going into this number are rates for 78 cities in the Lone Star State for a thirty year old single male driver with a good driving history and credit score.
How cities in Texas rank for car insurance
Auto Insurance in Texas: Minimum Liability Insurance Requirements
The absolute minimum you can have on a basic car insurance policy in Texas is liability protection for the categories and limits below. Other types of coverage such as collision and comprehensive, personal injury protection or medical payments coverage, and uninsured motorist coverage are optional in Texas.
Bodily Injury (BI) Liability Insurance: $30,000 per person/$60,000 per accident
Property Damage (PD) Liability Insurance: $25,000 per accident
We always advise drivers to purchase as much coverage as they have in assets to protect themselves. That’s because if you’re involved in a serious car accident, your insurer will only cover you up to the amounts on your policy. Any medical bills or car repair costs that exceed your car insurance limits, you would be on the hook for. That’s true whether you live in Houston, which the Texas Department of Transportation recently reported had 67,000 car crashes, or Adrian, which reported just one this past year.
Methodology & Assumptions
Average rates are for illustrative purposes, as individual quotes will differ based on driving history, coverage sought, vehicle type, and other factors.
Data was obtained from the Texas Department of Insurance for a thirty year old single male driver across 78 cities. He owns his car and uses it primarily for work purposes, averaging about 12,000 miles annually. Insurance policies include Texas’s minimum auto insurance liability requirements: $30,000 for bodily injury liability per person (up to $60,000 per accident), and $25,000 of property damage (30/60/25 coverage) liability insurance, 50/100/50, as well as 100/300/100. Car insurance costs are based on a 2011 Toyota Camry four-door sedan, with 2.5 liter/4 cylinder engine.