Best Car Insurance In Texas For 2022


WRITTEN BY: Julia Matseikovich

UPDATED: SEPTEMBER 14, 2022 | 3 MIN READ

There’s an adage that “everything is bigger in Texas,” which is also true of car insurance. Texans pay 28% higher car insurance rates compared to the U.S. average. Our guide breaks down requirements, what affects your premium, and how to save on your policy to help you find the best car insurance in Texas.

Best Texas Car Insurance Companies

Due to the state’s high rates, finding the best Texas car insurance carrier can be confusing. We reviewed all available insurers to ensure you make the proper selection based on price, customer service, and possible discounts. 

Cheapest Company

State Farm Auto Insurance

Drivers concerned about the cheapest car insurance rates in Texas choose State Farm. The national insurer offers minimum liability insurance for an annual average of $450, or $38 a month.

Company With the Best Premium-Reducing Programs

Progressive Auto Insurance

Texas drivers who want a reduced car insurance premium choose Progressive, which offers some Texas-sized savings. Progressive discounts are available to young drivers, including teen motorists and students away from home. Other discounts include multi-car and multi-policy savings. You may save with Progressive’s Snapshot tool as it monitors your driving. 

Company With the Best Discounts

Several car insurance companies in Texas offer bundle discounts. Farm Bureau is the best for Texans in the agricultural industry, but for everyone else, the choice is Allstate. Allstate has the best bundle savings based on discounts. You can save up to 25% on your home and auto insurance policy when you bundle. 

Company With the Best Customer Service

State Farm Auto Insurance

State Farm also offers the best customer service for Texas car insurance customers. Ranked 838 out of 1,000 in the JD Power consumer survey, State Farm is the highest scoring out of the national carriers in Texas.

Texas Insurance Demographics

Texas’ population is exploding with a 15.9% increase in residents from 2010-2020. More residents mean more people on Texas’ busy highways. The population boom, a rise in vehicle thefts, and high-speed limits influence Texas car insurance rates. 

  • Crime Rates:  Texas sees over 60,000 vehicles stolen each year and is the state with the second-highest car theft rate. 
  • Average Household Income: The average household income in Texas is $79,299 a year.
  • Median Age Range:  Texas has a median age of 34.4, while the national average is 37.
  • Education: Texas’ population includes 19.9% with a Bachelor’s degree. 

Common Risk Factors In Texas

Texas has some of the country’s highest speed limits, with roads featuring up to 85 miles per hour. The potential for crashes is high, and Texas can be dangerous for drivers. Texas’ weather, including the potential for hurricanes and flooding, also poses risks for vehicle damage.  

Auto Insurance Laws In Texas

In Texas, car insurance is mandatory. The insurance typically follows the car, and your policy covers your car even if someone else drives it. Driving without insurance in Texas is a misdemeanor and may come with penalties. If you finance your vehicle, your lender will require additional coverage. 

What are the minimum car insurance requirements in Texas?

Texas car insurance laws require 30/60/25 liability coverage of $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage. The state mandates $2,500 in personal injury protection (PIP) unless you specifically reject it in writing. 

Am I required to carry uninsured motorist coverage in Texas?

Insurers must offer you uninsured motorist coverage. You can reject it, but you must do so in writing. 

Texas SR-22 policies

If you drive while under the influence or commit other traffic violations, Texas requires an SR-22. An SR-22 is not insurance but a Financial Responsibility Insurance Certificate that verifies you meet the minimum liability requirements. Texas car insurance laws require the SR-22 to stay on file for at least two years. 

Is Texas a no-fault state?

Texas is an at-fault state, meaning the driver responsible for the accident pays for damages, lost wages, and other expenses of the other driver. The same applies if a driver is at least 50% responsible for the crash. 

What happens if my vehicle isn’t adequately insured in Texas?

If you drive without car insurance, Texas law considers this a misdemeanor. You may pay fines up to $350, plus a $250 surcharge per year for your driver’s license renewal for three years. Texas might also require an SR-22. Subsequent offenses can result in car impoundment impounded and your registration suspended. 

Does Texas accept digital insurance cards?

Texas accepts electronic insurance cards as proof of insurance

How Much Does Car Insurance In Texas Cost?

Insurance rates vary but average $1,316 a year. You may pay more or less based on your age, gender, vehicle,  and other factors. Rates could vary by over $900 depending on your location, especially if you live in an area with higher theft, crime, and population density. 

Average Cost of Car Insurance In Texas By City

Houston has some of the most expensive car insurance in Texas and the country. Major metropolis areas like Dallas, Austin, and Fort Worth are fast-growing areas. Densely populated, these cities often feature expensive luxury cars, increased car theft, and more crashes. 

CityAverage Texas Car Insurance CostDifference From Texas Average
Houston$2,11020%
San Antonio$1,8606%
Dallas$2,04016%
Austin$1,760-2%
Fort Worth$1,8556%

Average Cost of Car Insurance In Texas By Company

Your premium varies based on your Texas insurance company. Allstate is one of the most expensive car insurers in the Lone Star State. Geico is often one of the cheapest companies in Texas.

Car Insurance CompanyAverage Full-Coverage Premium (Annually)
Allstate$2,580
GEICO$1,390
MetLife$2,245
Nationwide$1,685

Average Cost of Car Insurance In Texas By Age

Your age informs your premium. Teen drivers pay higher car insurance rates, but rates decrease with age. The gradual premium decrease continues until drivers turn age 70, provided they maintain a good driving record.

AgeAverage Full-Coverage Premium (Annually)
Age 16$3,975
Age 18$5,430
Age 20$4,230
Age 25$2,205
Age 30$1,975
Age 40$1,870
Age 50$1,755
Age 60$1,705
Age 70$1,830

Average Cost of Car Insurance In Texas By Gender

Male drivers pay higher Texas car insurance rates because insurers view men as riskier drivers. This isn’t the case everywhere, though. In many places, women pay more than men.

Average Full-Coverage Premium (Annually)
Male$1,880
Female$1,860

Average Cost of Car Insurance In Texas By Credit Score

In Texas, your credit affects your insurance rates. Drivers with poor or average credit will pay more than drivers with good credit. Research shows drivers with lower credit scores have a higher risk of accidents and claims.

PoorAverageGood
National Average$3,005$1,910$1,775
Texas$3,090$2,035$1,825

Average Cost of Auto Insurance In Texas By Driving Record

If you maintain a good driving record, you may only have a slight premium increase. A speeding ticket, accident, or DUI increases your rates by nearly 60%. It’s also more difficult for bad drivers to get car insurance.

Driving IncidentAverage Full-Coverage Premium (Annually)% Increase In Average Full-Coverage Premium
Clean driving record$1,8250%
Speeding ticket$2,02512%
Accident$2,69553%
DUI$2,81059%

What Optional Texas Auto Insurance Coverages Should You Consider?

Texas roads feature high-speed limits, and the state contains some of the deadliest highways in the country. You can expand your protection when you opt for these Texas vehicle insurance coverages:

  • Collision: Texas sees over 200,000 crashes yearly, and its high-speed limits raise the potential for severe accidents. Collision insurance helps pay for your car’s repair or replacement bills if you’re in an accident. 
  • Comprehensive: When your vehicle is damaged from vandalism, hitting an animal, theft, fire, or flood, Comprehensive coverage helps cover the repair costs. 
  • Medical Payments: If you’re in an accident, Medical Payments pays you and your passenger(s) medical bills. This coverage applies if you’re riding in someone else’s car and injured. 
  • Uninsured Motorist: The Texas Department of Motor Vehicles estimates that 20% of Texans hit the road without insurance. Uninsured Motorist coverage offers more protection if you’re in an accident and the other driver lacks insurance or doesn’t have enough insurance. 

What Auto Insurance Discounts To Look For In Texas

Drivers in Texas enjoy access to several car insurance discounts that may save up to 30% off their premiums. Standard discounts for Texans include a good driving discount, low-mileage savings, and discounts for insuring multiple cars. Many Texas car insurance companies offer savings for consumer loyalty, car safety features, and good grades. You might save if you pay your policy in full or sign up for electronic billing. 

Texas Car Insurance FAQs

How much is car insurance in Texas a month?

The average for car insurance is $1,316 a month. Your rate will vary depending on the coverage you have. If you have a liability-only policy, you’ll pay less than those with full-coverage car insurance.

Is Texas expensive for car insurance?

Texas has expensive car insurance and pays 28% more than the national average. 

What is the minimum car insurance required in Texas?

You must have liability coverage of $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage. 

What happens if the person at fault in an accident has no insurance in Texas?

Penalties for driving without insurance include a fine, a ticket, and impoundment. The state may suspend their license depending on the severity of the accident. 

Does insurance follow the car or the driver in Texas?

Insurance follows the vehicle, not the driver in Texas.

How To Purchase Texas Car Insurance

It’s easy to purchase Texas car insurance, but you want to ensure you get the best rates. The rate you pay depends on your age, gender, vehicle, and the insurer, among other factors. Use an online auto insurance quote tool to find the best rates.