Updated
Fact Checked
Ashley Maready
Few things are riskier in Texas than driving without vehicle coverage, yet coverage can be expensive. Here, we'll tell you about the cheapest car insurance available across a variety of demographics.
If you see a rate you like, check out the company in question to ensure you're buying a policy that will be there when you need it.
Cheapest car insurance in Texas:
- Cheapest overall: Redpoint
- Cheapest with a clean driving record: Texas Farm Bureau
- Cheapest for teens: Redpoint
- Cheapest for seniors: Texas Farm Bureau
- Cheapest for military members: Texas Farm Bureau
- Cheapest for minimum coverage: Texas Farm Bureau
- Cheapest with a DUI: Redpoint
- Cheapest with excellent credit: Texas Farm Bureau
- Cheapest with poor credit: Redpoint
- Cheapest with a speeding ticket: Texas Farm Bureau
- Cheapest for commuting: Redpoint
- Cheapest with a prior accident: Redpoint
How we chose the cheapest car insurance in Texas
The data found on this page is insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
Cheapest car insurance in Texas overall: Redpoint
As you may notice, the names of the five companies offering the cheapest car insurance rates in Texas pop up in a number of categories. Including them here means no other insurance companies we investigated could beat their overall prices.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Redpoint | $1,494 | $124.50 |
| Texas Farm Bureau | $1,635 | $136.25 |
| USAA | $2,111 | $175.92 |
| Geico | $2,296 | $191.33 |
| AAA | $2,391 | $199.25 |
Source: Quadrant Data
Check out our full list of best car insurance companies in Texas.
Cheapest car insurance in Texas with a clean driving record: Texas Farm Bureau
Drivers with a clean driving record are rewarded with lower rates. For example, the average monthly rate for Texas Farm Bureau policyholders is $136.25. For drivers with a clean record, it's $116.83, a savings of 14%.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Texas Farm Bureau | $1,402 | $116.83 |
| Redpoint | $1,446 | $120.50 |
| USAA | $1,842 | $153.50 |
| Geico | $2,067 | $172.25 |
| AAA | $2,208 | $184.00 |
Source: Quadrant Data
Cheapest car insurance in Texas for teens: Redpoint
It's a good thing we love our kids because insuring them to drive is not cheap. That said, these five companies offer manageable premiums. If your teen earns good grades, don't forget to check if your insurer offers a good student discount.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Redpoint | $1,590 | $132.50 |
| Texas Farm Bureau | $2,343 | $195.25 |
| USAA | $3,338 | $278.16 |
| Geico | $4,045 | $337.08 |
| Germania Insurance | $4,621 | $385.08 |
Source: Quadrant Data
Cheapest car insurance in Texas for seniors: Texas Farm Bureau
Simply put, seniors have spent more years behind the wheel, learning the rules of the road. That's why insurance companies offer older drivers premium discounts -- here are five of the cheapest companies for senior drivers.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Texas Farm Bureau | $1,217 | $101.42 |
| Redpoint | $1,590 | $132.50 |
| Colonial Insurance | $1,685 | $140.42 |
| Geico | $1,753 | $146.08 |
| USAA | $1,758 | $146.50 |
Source: Quadrant Data
Cheapest car insurance in Texas for military members: Texas Farm Bureau
Although USAA -- insurance created for members of the military -- is among the cheapest, it's not as cheap as two others. Here are the five companies offering the biggest price break to military members.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Texas Farm Bureau | $1,519 | $126.58 |
| Redpoint | $1,590 | $132.50 |
| USAA | $1,641 | $136.75 |
| Geico | $1,882 | $156.83 |
| AAA | $1,910 | $159.16 |
Source: Quadrant Data
Cheapest car insurance in Texas for minimum coverage: Texas Farm Bureau
If you have minimum coverage (sometimes called "liability insurance") and get into an accident, your insurer will pay to repair damage caused by your vehicle. However, it will not pay for repairs your car sustained. These companies charge the least for minimum coverage in Texas.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Texas Farm Bureau | $497 | $41.42 |
| USAA | $577 | $48.08 |
| Allstate | $649 | $54.08 |
| AAA | $664 | $55.33 |
| Mercury Insurance | $698 | $58.16 |
Source: Quadrant Data
Cheapest car insurance in Texas with a DUI: Redpoint
Drive drunk, and you may be arrested and have your license revoked. You may also find yourself paying more (sometimes much more) for auto insurance. These are the cheaper insurers for drivers who've had DUIs.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Redpoint | $1,590 | $132.50 |
| Texas Farm Bureau | $2,683 | $223.58 |
| Southern Insurance | $2,714 | $226.16 |
| Dairyland Insurance | $2,817 | $234.75 |
| USAA | $2,947 | $245.58 |
Source: Quadrant Data
Cheapest car insurance in Texas with excellent credit: Texas Farm Bureau
According to Allstate, statistical analysis shows that drivers with strong credit scores tend to get into fewer accidents. If your credit score is great, your rate will reflect that fact.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Texas Farm Bureau | $661 | $55.08 |
| Geico | $935 | $77.92 |
| State Farm | $958 | $79.83 |
| USAA | $1,447 | $120,58 |
| Germania Insurance | $1,482 | $123.50 |
Source: Quadrant Data
Cheapest car insurance in Texas with poor credit: Redpoint
Unfortunately, statistical analysis also shows that drivers with low credit scores are more likely to file a claim. For that reason, insurers charge those drivers a higher rate.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Redpoint | $1,494 | $124.50 |
| Texas Farm Bureau | $2,609 | $217.42 |
| USAA | $2,776 | $231.33 |
| AAA | $3,185 | $265.42 |
| Southern Insurance | $3,223 | $268.58 |
Source: Quadrant Data
Cheapest car insurance in Texas with a speeding ticket: Texas Farm Bureau
Speeding not only leads to tickets, it also causes car accidents. To protect their bottom line, insurers charge a higher annual premium to those who've been caught speeding.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Texas Farm Bureau | $1,519 | $126.58 |
| Redpoint | $1,590 | $132.50 |
| USAA | $2,178 | $181.50 |
| Germania Insurance | $2,341 | $195.08 |
| Geico | $2,343 | $195.25 |
Source: Quadrant Data
Cheapest car insurance in Texas for commuting: Redpoint
If you commute to work, you're on the road more than a driver who works from home or is retired. And because you're on the road more, you're more likely to be involved in an accident. Auto insurance companies hedge their bets by charging commuters a slightly higher rate.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Redpoint | $1,494 | $124.50 |
| Texas Farm Bureau | $1,638 | $136.50 |
| USAA | $2,111 | $175.92 |
| Geico | $2,276 | $189.67 |
| AAA | $2,413 | $201.08 |
Source: Quadrant Data
Cheapest car insurance in Texas with a prior accident: Redpoint
Auto insurance is there to protect your assets when you're involved in an accident, but that doesn't mean insurers do it for free. If an accident occurs, a driver can expect rates to jump.
| Company | Average Annual Rate | Average Monthly Rate |
|---|---|---|
| Redpoint | $1,590 | $132.50 |
| Texas Farm Bureau | $2,102 | $175.17 |
| Geico | $2,598 | $216.50 |
| Southern Insurance | $2,690 | $224.17 |
| USAA | $2,822 | $235.17 |
Source: Quadrant Data
Texas costs versus the national average
The national average rate for car insurance is $3,017. In Texas, the average rate is 3% lower at $2,926.
| Type of Coverage | Average Texas Rate | Average National Rate |
|---|---|---|
| For drivers who commute | $2,937 | $3,036 |
| For drivers with one speeding ticket | $2,809 | $3,032 |
| For senior citizens | $2,148 | $2,140 |
| For members of the military | $2.372 | $2,375 |
Source: Quadrant Data
Car insurance discounts available in Texas
The number of discounts offered varies by insurance company, with some far more generous than others. While this list is in no way comprehensive, it gives you an idea of the kinds of insurance discounts available in Texas:
- Safe driver discount
- Multiple vehicle discount
- Driver training discount
- New car discount
- Bundling discount
- Paying in full discount
- Loyalty discount
- Autopay discount
- Federal employee discount
- Organizational discount
- Paperless discount
- Claims-free discount
Minimum auto insurance requirements in Texas
To legally operate a motor vehicle in Texas, you must carry -- at a minimum -- this coverage:
- $30,000 for injuries per person, up to a total of $60,000 per accident
- $25,000 for property damage
This is referred to as "30/60/25" coverage. While it may fulfill legal requirements, it does nothing to help you get back on the road if your car is totaled. Consider shopping around for a full-coverage policy you can afford.
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Our auto insurance methodology
Our insurance products are then rated on a scale of one to five stars, primarily focusing on:
Pricing
With so many options for insurance across the board these days, it's easiest, and quite effective, to first look at the bottom line. Do single out competitive prices across insurance categories it's important to focus on:
- Deductibles
- Terms
- Coverage
- The fine print
Discounts
Insurance provides coverage for unexpected financial burdens and piece of mind. But it's important to check your policies and see how you can lower your premium. Insurance companies offer discounts for all sorts of things now from safe driving to good grades to automatic bill pay. Pay attention to:
- Discounts offered
- Variety of discounts
- Discount qualifications
Perks/Benefits
The benefits of insurance these days have gone far beyond just what your policy covers. Most companies and policies come with perks -- some of which may be completely unrelated to your insurance policy. Take a look at:
- Non-pricing related perks offered
- Benefits unrelated to your coverage
- Perks that stand out in the industry
- Will you actually use the benefit?
Customer Service/Claims Process
Policy research and coverage options are great, but how is the process when you have to actually use your insurance policy? The best coverage doesn't hold much value if it's a hassle to get paid out. Pay special attention to:
- How hard it is to file a claim
- If your provider has a history of resisting payouts
- The customer satisfaction scores for your provider
FAQs
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Overall, the cheapest car insurance company in Texas is Redpoint Insurance, according to rates provided by Quadrant Data.
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According to Quadrant Data, the average cost of auto insurance in Texas is only 3% lower than the national average. It's more than you'd pay in some states but much higher than you'd pay in others.
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Per Quadrant Data, the average monthly rate for car insurance in Texas is $243.83, or $2,926 per year.
Our Insurance Experts
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
Fact Checked
Ashley Maready
Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.
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