Best Car Insurance in Texas for 2025 [Check Out the Top 10 Companies]

The best car insurance in Texas comes from Geico, State Farm, and Progressive. Geico offers the lowest starting rates at $23 per month and makes policy management easy with 24/7 online account access and mobile app support.

State Farm stands out for its local agents, offering Texans personal service, in-person claims support, and rideshare coverage during app-on periods.

Our Top 10 Company Picks: Best Car Insurance in Texas

Progressive helps safe drivers save with Snapshot®, which tracks driving habits to offer personalized discounts. Let’s breakdown the car insurance guide from top companies, coverage options, and discounts to help you find the best car insurance in Texas.

Find the best car insurance in Texas by entering your ZIP code into our comparison tool for instant quotes. Quickly compare rates from top providers and choose the perfect coverage for your needs.

#1 – Geico: Top Overall Pick

Pros

• Online Management: Texas drivers can handle policies, claims, and payments 100% online—no agent needed.
• Low Rates + Discounts: Starts at $23 monthly. Save 25% for bundling and 22% for five accident-free years.
• Fast Quotes: Get accurate Texas rates using your ZIP, vehicle, and driving history. Find out more by reading our “Geico Car Insurance Review.”

Cons

• No Local Agents: No in-person support in Texas; all service is online or by phone.
• Limited Add-Ons: This policy lacks accident forgiveness and custom equipment coverage, which sets it apart from Progressive and State Farm.

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#2 – State Farm: Best for Local Agent Support

Pros

• Local Agent Support: Over 900 State Farm agents across Texas offer in-person help for claims and policy changes.
• Fast Claims Process: Local adjusters resolve most Texas auto claims in 3–5 business days. Explore further details in our “State Farm Car Insurance Review.”
• Multi-Policy Savings: Texas drivers can save up to 20% by bundling auto with homeowners, renters, or life insurance.

Cons

• Higher Premiums: Rates in Texas are typically 10–15% higher than Geico or Progressive for similar coverage.
• Strict Discount Rules: Drive Safe & Save requires telematics and consistent driving to qualify for the savings

#3 – Progressive: Best for Competitive Rates

Pros

• High-Risk Driver Discounts: Progressive offers lower Texas premiums for drivers with past violations, accident forgiveness, and savings of 20% or more.
• Snapshot Savings: Texas drivers using Snapshot can earn up to 30% off for safe habits like low mileage and gentle braking.
• Digital Policy Management: Claims, payments, and updates are handled entirely online or via app—no agent contact required.

Cons

• Significant Post-Claim Increases: Texas premiums can jump over 40% after an at-fault accident. Our article “Progressive Car Insurance Review” explores this further.
• No In-Person Support: Progressive has no local agents in Texas; all service is digital or phone-based.

#4 – Allstate: Best for Safe Drivers

Pros

• Up to 40% Safe Driving Discount: Texas drivers using Allstate’s Drivewise program can save up to 40% for maintaining safe driving habits.
• Fast Claims Turnaround: Most claims in Texas are processed and paid within 5–7 days via mobile tools and local adjusters.
• Valuable Add-Ons: Optional coverages include accident forgiveness and new car replacement for vehicles under two years old.

Cons

• Higher Rates After Violations: Drivers with tickets or at-fault accidents may pay up to 30% more than the Texas average. Find out more by reading our “Allstate Car Insurance Review.”
• Admin Fees for Changes: Policy updates, such as adding a driver, will incur administrative fees ranging from $50 to $75.

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#5 – USAA: Best for Military Members

Pros

• Military Discounts: USAA offers military personnel parking their cars on base up to 15% of the total in Texas. Our article “USAA Car Insurance and Review” delves into the details.
• Highest-Rated Claims Service: USAA is one of the top-rated for Texas claims satisfaction, with quick processing and military-trained adjusters
• Lower Full Coverage Rates: USDA’s full coverage auto insurance in Texas averages 20-25% lower than the major competitors for eligible members.

Cons

• Limited Eligibility: USAA is only open to active military veterans and their families.
• Limited Physical Locations: USAA services in Texas are broadly online, with few local branches offering in-person assistance.

#6 – Liberty Mutual: Best for Customizable Coverage

Pros

• Flexible Policies: Customized coverage is provided by Liberty Mutual’s Texas insurance.
• A Few Insurance Discounts: Texas insurance from Liberty Mutual offers bundling and hybrid car discounts.
• Easy Insurance Online Claims: Texas insurance under Liberty Mutual is processed quickly online.

Cons

• Unpredictable Insurance Rates: Liberty Mutual’s insurance costs in Texas can unexpectedly change. Explore further details in our “Liberty Mutual Car Insurance Review.“
• Varied Insurance Service Reviews: Liberty Mutual’s insurance service in Texas is different for each region.

#7 – Farmers: Best for Comprehensive Coverage Options

Pros

• Variety of Insurance Coverage: Farmers’ insurance in Texas offers unique add-ons such as rideshare coverage.
• Loyalty-Based Discounts: Farmers’ insurance in Texas gives discounts to long-term clients. For additional insights, refer to our “Farmers Car Insurance and Review.”
• Financially Secure Insurance Company: Farmers’ insurance in Texas provides safe claim payments.

Cons

• Expensive Insurance for New Clients: Farmers’ insurance in Texas is more costly for new policyholders.
• Fewer Digital Insurance Features: Farmers’ insurance in Texas does not have sophisticated online management features.

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#8 – Nationwide: Best for Simple Claims Process

Pros

• Fast Claims: Most Texas auto insurance claims Nationwide are approved within 48 hours and paid within five business days.
• Financial Strength: Nationwide, with an A+ rating from A.M. Best, has served Texas drivers reliably for over 60 years.
• Explore further details in our “Nationwide Car Insurance and Review.”
• Bundling Discount: Texas policyholders save up to 20% on auto insurance by bundling with homeowners coverage.

Cons

• Few Walk-In Locations: Texas customers must use phone or online channels, as Nationwide has fewer than 10 local agents statewide.
• High Initial Premiums: New drivers in Texas with Nationwide pay premiums 18–28% higher than the state average before applying any discounts.

#9 – American Family: Best for Discount Variety

Pros

• Targeted Discounts: Texas drivers can save up to 20% with teen driver, generational, and defensive driving discounts from American Family.
• Dedicated Local Agents: Over 150 licensed agents in Texas provide personalized insurance reviews and policy customization.
• Strong Financial Ratings: American Family holds an A rating from A.M. Best, with a consistent claims payout record for Texas auto claims.

Cons

• Uncompetitive Rates: Texas drivers who do not have home or renter insurance bundles pay a staggering 15–22% more than the average.
  Coverage Gaps: American Family doesn’t offer auto insurance in parts of West Texas and the Panhandle. Explore further details in our “American Family Car Insurance Review.”

#10 – Travelers: Best for High-Risk Drivers

Pros

• Coverage of High-Risk Drivers: Travelers provides auto insurance in Texas to drivers with a driving history of traffic tickets or crashes.
• Financial Strength: Boasting an A++ rating by A.M. Best, Travelers has solid financial support for Texas clients, providing stable claims support.
• Specialized Add-Ons: Texas drivers can benefit from additional coverage options like accident forgiveness, which removes one at-fault accident from their record.

Cons

• Higher Rates for Low-Risk Drivers: Travelers charges 15–20% more for clean-record drivers in Texas than other insurers.
• Complex Policy Structure: Travelers’ extensive options can be complicated for new Texas customers to navigate. Read our “Travelers Car Insurance Review” to find out more.

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Understanding Texas Car Insurance Costs

Texas law requires minimum liability coverage, but many drivers opt for full coverage due to risks like hail damage, highway collisions, and theft. Rates vary by driver type, location, and insurer.

Car Insurance Monthly Rates in Texas by Coverage Level

The average monthly cost of car insurance in Texas is $92. Rates depend on driving history, vehicle type, and coverage level. Comparing quotes is the best way to find savings.

Car Insurance Rates in Texas by Age and Gender

Young drivers pay significantly more for coverage in Texas, especially teens. For instance, a 17-year-old male could pay $556/month with Geico, while a 35-year-old female might pay just $104. Here’s a sample breakdown across key age groups:

Full Coverage Car Insurance Monthly Rates in Texas by Age & Gender

As you see from the table, in some cases, car insurance for teenagers in Texas costs thousands more than for older drivers. Unfortunately, for parents, those insurance rates are thousands of dollars higher than what they pay. However, in some instances, married folks pay less than their single counterparts.

Cheapest Car Insurance Rates by City in TX

We’ve also collected data on car insurance rates by city. Below is a list of the least expensive and most expensive cities for car insurance.

Texas Car Insurance Rates by City

Besides USAA, which is only for military-affiliated families, State Farm is a great option, occupying 18 of the top 25 slots for the least expensive car insurance in Texas. The table below reflects the top 25 cities in Texas with the most expensive rates on car insurance.

Texas Report Card: Auto Insurance Premiums

In addition to gender and age, where you live can affect your car insurance rates. We’ve collected data on the least and most expensive ZIP codes, so search to see where your ZIP code lands on the list. The table below reflects Texas’s top 25 ZIP codes with the lowest car insurance rates:

Full Coverage Car Insurance Monthly Rates in Texas by ZIP Code

State Farm customers in San Angelo pay the lowest rates in Texas, averaging $2,428 annually. USAA offers competitive rates, but only to military members and their families.

Here’s a list of the largest and best car insurance companies in Texas. Take a look at this list of auto insurance companies in Texas and their market shares.

Largest Insurance in Texas by Provider

State Farm is the largest provider in Texas, where 16.83% of Texans purchase their insurance. Gain more insights about the factors that affect the price of car insurance rates in Texas.

Commuter Car Insurance Rates by Company

Driving longer distances each day doesn’t always mean higher insurance costs—except in select cases. The tables below compare such factors based on each carrier.

Full Coverage Car Insurance Monthly Rates in Texas by Annual Mileage

Most company rates don’t change when the drive shortens to a 10-mile commute, except for Allstate, which offers rate reductions of over $260.

Credit History Ratings by Auto Insurance Firms

Texas’s average credit score is 656, compared to the national average of 675. Drivers with poor credit typically pay higher car insurance rates.

Full Coverage Car Insurance Monthly Rates in Texas by Credit Score

If you have coverage through Geico and have poor credit, you can expect to pay nearly $4,000 more for car insurance than someone with good credit.

How Your Driving Record Affects Rates by Car Insurance Companies

Clean driving records help you save the most. Just one speeding ticket or accident can significantly increase your premium. For example, at Nationwide, a single speeding violation may raise your rate by over $400.

Full Coverage Car Insurance Monthly Rates in Texas by Driving Record

By understanding how factors like age, location, driving record, and coverage level affect your premium, you can make smarter decisions and potentially save hundreds of dollars per year. Always compare quotes from multiple providers and adjust your coverage to fit your needs and budget.

Car Insurance Discounts in Texas

Many top Texas car insurance companies offer generous discounts that can significantly reduce your rates. Here’s a breakdown of common discounts available:

Car Insurance Discounts in Texas

Companies like Nationwide, Liberty Mutual, Geico, and American Family stand out for offering some of the most generous discount programs in the state. Nationwide provides up to 40% savings for good drivers and usage-based insurance, while Liberty Mutual offers up to 35% off for anti-theft features and 30% through telematics programs (Read more: Car Insurance with Telematics).

Geico also delivers strong savings, including up to 25% for bundling and anti-theft, and 26% for good driving habits. American Family matches those savings with up to 25% discounts across bundling, good driver, and anti-theft categories.

By stacking multiple discounts—such as for bundling policies, maintaining a clean driving record, using telematics, or being a good student—drivers can reduce their premiums while maintaining quality coverage.

Texas Minimum Car Insurance Coverage Requirements

If you own a vehicle and plan on driving it anywhere in the state of Texas, you are required by law to purchase insurance in case you are in an accident. Let’s take a look at Texas minimum liability insurance requirements:

• $30,000 for bodily injury liability per person injured in an accident you cause
• $60,000 for total bodily injury liability when two or more people are injured in an accident you cause
• $25,000 for property damage per accident you cause

While these limits satisfy state law, they may not be enough to cover all damages in a serious crash. Many drivers add collision, comprehensive, and personal injury protection (PIP) to ensure broader financial protection.

The importance of additional coverage becomes even clearer when you consider the frequency of accidents in major Texas cities. Below is a snapshot of how major cities in Texas compare in terms of annual auto accidents and insurance claims:

Accidents & Claims per Year in Texas by City

Areas with higher accident volumes often lead to increased claims and repair costs, putting drivers at greater financial risk.

Penalties for Driving Without Insurance in Texas

Texas drivers are legally required to carry proof of insurance and must present it in several situations: when requested by a police officer, after being involved in an accident, when registering or renewing a vehicle, applying for or renewing a driver’s license, and during vehicle inspections.

Penalties for Driving Without Insurance in Texas

Failing to maintain active insurance coverage can lead to serious financial and legal penalties.

Teen Driver Laws

Teen drivers in Texas must complete a state-approved driver education course to receive a learner’s permit, which is available starting at age 15. To qualify for a provisional license at age 16, teens must meet specific training and driving requirements. Those who haven’t completed driver education must wait until age 18 to obtain a license.

Requirements For Getting A License In Texas

For drivers with certain offenses or qualifying hardships, Texas offers restricted licenses that allow limited driving privileges—usually for essential activities like work, school, or medical appointments.

Restricted License Laws In Texas

These licenses are granted by the Department of Public Safety and come with specific eligibility and documentation requirements.

DUI Laws

Driving under the influence is a serious offense in Texas. In 2017 alone, 1,468 deaths were attributed to drunk driving. Penalties increase with each offense and can lead to criminal charges, license suspension, and mandatory interlock devices.

DUI Laws in Texas

Distracted driving is just as dangerous as impaired driving, and Texas has implemented strict cell phone laws to minimize distractions behind the wheel. Texting while driving is banned for all drivers, and additional restrictions apply to young and school zone drivers.

Cell Phone Laws in Texas

By understanding and following Texas insurance and driving laws, you’ll stay compliant, avoid steep penalties, and position yourself for the best possible car insurance rates. Being informed not only protects your wallet—it protects everyone on the road.

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Texas Car Insurance Coverage Options Beyond the Minimum

Given Texas’s high accident rates, frequent severe weather (like hailstorms), and rising repair costs, many drivers choose to expand beyond the minimum. These additional coverages offer stronger protection:

• Collision Coverage: Pays for damage to your car after a crash, regardless of fault.
• Comprehensive Coverage: Covers non-collision damage like theft, vandalism, hail, or flood.
• Uninsured/Underinsured Motorist Coverage: Covers injuries and property damage caused by uninsured drivers—important since 14.1% of Texas drivers are uninsured.
• Personal Injury Protection (PIP): Pays for your medical bills and lost wages, regardless of fault.

To tailor your coverage to specific needs, Texas insurers offer a range of optional add-ons that provide valuable protection in unexpected situations.

These include Guaranteed Auto Protection (GAP) to cover your remaining loan balance if your vehicle is totaled, a Personal Umbrella Policy (PUP) for extended liability coverage, and Rental Reimbursement to pay for a rental car while yours is being repaired.

Emergency Roadside Assistance covers services like towing and flat tire changes, while Mechanical Breakdown Insurance helps pay for major system failures not related to accidents.

Drivers with modified or classic cars can opt for specialized coverage, and those with safe or low-mileage driving habits can benefit from Usage-Based or Pay-As-You-Go Insurance programs that offer potential discounts.

Read more: Collision vs. Comprehensive Car Insurance

Car Insurance Companies With Best Ratings in TX

Texas drivers looking for reliable service and strong customer satisfaction can turn to J.D. Power’s annual U.S. Auto Insurance Study, which evaluates insurers based on real consumer feedback.

The study scores companies across five key areas: interaction, policy offerings, price, billing process and policy information, and claims handling. Each insurer is also assigned a Power Circle Rating to help simplify comparisons.

In the Mid-Atlantic region, which includes Texas, Allstate received the highest customer satisfaction score of 857 out of 1,000 and earned a perfect 5/5 rating. Other strong performers include Farm Bureau, Farmers, Liberty Mutual, and Nationwide, all scoring in the mid-830s with average customer satisfaction ratings.

State Farm and Geico follow closely, while Progressive and USAA scored lower, with USAA not officially ranked due to its military-only eligibility.

J.D. Power Ratings in Texas

Beyond satisfaction scores, it’s important to consider complaint ratios. The National Association of Insurance Commissioners (NAIC) tracks consumer complaints to evaluate how well insurers serve their policyholders. A complaint index of 1.00 represents the national average, with lower scores indicating fewer complaints relative to company size (Read more: Filing a Car Insurance Claim After an Accident).

5 Most Common Auto Insurance Claims in Texas

According to the latest data, Travelers, Farm Bureau, Geico, and Progressive had the fewest complaints, with indexes well below the national average. USAA and Farmers also performed reasonably well.

However, State Farm’s complaint index was significantly higher at 5.95, indicating a higher-than-average volume of customer grievances. Allstate had the most total complaints, though its index remained relatively low due to its large market share.

Texas Car Insurance Companies With the Highest Complaint Rates

Customer complaints are another important metric, but they should be interpreted with context. Below is the NAIC complaint index, where 1.00 represents the national average. Lower scores indicate fewer complaints relative to company size.

Car Insurance Complaint Ratio in Texas

A high complaint index may not automatically mean poor service—it’s essential to balance this with satisfaction scores and the company’s market size.

How to Choose the Best Car Insurance Policy in Texas

Choosing the right car insurance policy in Texas means balancing price, protection, and provider reliability. Here are five key steps to help you make the best choice:

1. Know Texas Minimum Requirements: Texas requires 30/60/25 liability coverage, but adding comprehensive, collision, PIP, and uninsured motorist coverage can offer much better protection, especially in high-risk areas.
2. Compare Multiple Quotes: Rates in Texas vary by ZIP code, age, vehicle, and driving record, so compare at least three quotes from top providers like Geico, State Farm, and Progressive to find the best price for your situation.
3. Evaluate Coverage Levels: Consider how much you can afford to pay out-of-pocket if you have an accident. Higher deductibles can lower monthly premiums, but make sure your coverage limits are high enough to protect your finances.
4. Look for Discounts: Take advantage of Texas-specific discounts for safe driving, bundling, low mileage, anti-theft features, and good student performance. Some companies offer up to 40% in savings.
5. Check Customer Reviews and Ratings: Review J.D. Power scores, complaint ratios, and customer feedback to choose a provider known for fair pricing, fast claims handling, and strong customer service.

By following these steps, you can confidently select a policy that fits both your budget and protection needs, giving you peace of mind every time you hit the road in Texas. Read our guide on the different types of car insurance coverage to help you choose the right policy.

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Finding the Best Car Insurance in Texas

Finding the right car insurance in Texas doesn’t have to be complicated. While rates vary widely by driver profile, some of the most trusted providers—like USAA, State Farm, and Geico—offer monthly premiums starting as low as $23 to $39 for minimum coverage.

However, factors like your age, location, driving history, credit score, and vehicle type can all impact your final rate. That’s why it’s essential to compare policies not only by price, but also by coverage features, discounts, and customer satisfaction.

This comprehensive guide was created to help you navigate everything from Texas’ insurance requirements to provider rankings and city-by-city rate trends. Whether you’re a new driver, a parent insuring a teen, or just shopping for a better deal, you now have the insights needed about buying car insurance in Texas.

Stop overpaying for car insurance. Our free quote comparison tool allows you to shop for quotes from the top providers near you by entering your ZIP code.