Updated
Fact Checked
Ashley Maready
Texas car insurance laws require drivers to carry at least some liability coverage, but finding a great deal isn't always easy. The secret to scoring the best car insurance in Texas is to focus on the right providers and compare quotes from several of them to see which can offer you the best deal.
Here are a few of the best car insurance companies in Texas that drivers may want to consider in their search:
Best auto insurance in Texas:
- Best overall: Texas Farm Bureau Insurance
- Best budget pick: Redpoint County Mutual Insurance
- Best for typical drivers: AAA
- Best for customer satisfaction: AAA
- Best for minimum coverage: Texas Farm Bureau Insurance
- Best for military veterans: USAA
- Best for teen drivers: Redpoint County Mutual Insurance
- Best for drivers with one speeding ticket: Texas Farm Bureau Insurance
Best overall: Texas Farm Bureau Insurance
Texas Farm Bureau Insurance is our top auto insurance choice for the state thanks to its flexible policies, strong customer service, and affordable rates. Its average annual premium is just $1,635 for Texas drivers. That's well under the state average of $2,926 per year.
Best budget pick: Redpoint County Mutual Insurance
Redpoint County Mutual Insurance consistently offers some of the lowest rates in the state. Its average annual premium is just $1,494, and this includes drivers with less than perfect driving histories. Those with clean records could pay even less.
Best for typical drivers: AAA
AAA is a strong contender for those with clean driving records. Its premiums are reasonable at just $1,911 per year on average. The company also offers flexible policies and high customer satisfaction.
Best for customer satisfaction: AAA
AAA scored the highest in customer satisfaction in the Texas region of J.D. Power's latest U.S. Auto Insurance Study. J.D. Power has also rated the company above average for its claims satisfaction.
Best for minimum coverage: Texas Farm Bureau Insurance
Texas Farm Bureau Insurance is also a strong choice for those interested in state minimum coverage. Price is often a top priority for these drivers, and the company's average annual premium came in at just $497.
Best for military veterans: USAA
Active-duty military members, veterans, and their family members can find affordable rates and top-notch customer service with USAA. It was the only company to beat out AAA in J.D. Power's study, and it also offers comprehensive auto insurance policies.
Best for teen drivers: Redpoint County Mutual Insurance
Redpoint County Mutual Insurance is a great option for teen drivers because it offers comprehensive policies as well as some of the most affordable premiums for younger drivers. While the typical Texas teen pays about $6,315 per year, Redpoint's customers only pay $1,590 per year.
Best for drivers with one speeding ticket: Texas Farm Bureau Insurance
A single speeding ticket bumps the average Texan's auto insurance rates up from $2,404 per year to $2,809 per year. But Texas Farm Bureau customers with one accident on their record only pay $1,519 per year. This is a great deal, especially since the company also provides excellent customer service.
How much does car insurance cost in Texas?
The average Texas car insurance premium is $2,926 per year. That's just slightly under the national average of $3,017. But rates for individual drivers vary greatly depending on their driving record, location within the state, vehicle make and model, and more.
Related: Cheapest Car Insurance Quotes in Texas
Average Texas auto insurance cost
Here's a closer look at how much various types of drivers pay for auto insurance in Texas:
| Driver Persona | Monthly Premium | Annual Premium |
|---|---|---|
| Overall | $243.83 | $2,926 |
| Typical Drivers | $200.33 | $2,404 |
| Teen Drivers | $526.25 | $6,315 |
| Senior Drivers | $179.00 | $2,148 |
| Military Veterans | $197.67 | $2,372 |
| Drivers with 1 Accident | $288.58 | $3,463 |
| Drivers with 1 Speeding Ticket | $234.08 | $2,809 |
| Drivers with 1 DUI | $301.58 | $3,619 |
| Drivers Seeking Minimum Coverage | $66.83 | $802 |
Source: The Ascent's analysis of standardized personas.
Texas auto insurance laws
Here are a few key Texas auto insurance laws all drivers need to know.
Texas is an at-fault state
Texas is an at-fault state, like most of the rest of the U.S. This means that in the event of an accident, the driver found to be at fault must pay for the medical bills and repair costs for all parties involved. In severe accidents, damages can exceed the state's minimum insurance coverage, so it's always best to purchase higher limits whenever possible.
Consequences for driving without insurance in Texas
Driving without at least state minimum car insurance in Texas could result in the following consequences:
- Fines of $260 for a first offense and $470 for subsequent offenses
- Driver's license suspension
- Vehicle registration suspension
What is the minimum car insurance required in Texas?
All Texas drivers must have at least the following insurance to drive legally:
- $30,000 of bodily injury liability coverage per person
- $60,000 of bodily injury liability coverage per accident
- $25,000 of property damage liability coverage
These limits are slightly higher than what many other states require their drivers to carry. But they also offer greater protection in the event of an accident.
Other things to consider when looking for car insurance in Texas
Here are a few other things Texas drivers need to know when shopping for car insurance.
Texas sees a high number of vehicle thefts
Texas saw the second-most vehicle thefts in the nation in 2022, experiencing a 10% jump from 2021. State minimum insurance doesn't protect drivers if their vehicle gets stolen. Those who don't want to pay out of pocket to replace a stolen vehicle will need to invest in comprehensive coverage.
Texas drivers need to watch out for hail damage
Texas also sees the largest number of hail events of any state in the country. Hail can cause serious damage to vehicles, so it's best to keep them in a garage or under a carport whenever possible. Investing in comprehensive coverage is also helpful, because it assists drivers with damages caused by hail and other severe weather.
How to find the best car insurance in Texas
Texas drivers seeking the most coverage at the lowest possible price should try the following:
- Shop around: All car insurers evaluate risk differently, which leads them to offer different rates. Comparing quotes from several providers is the best way for drivers to ensure they're getting the best value.
- Watch for discounts: Many insurers apply car insurance discounts automatically to a driver's premium and they tend to offer savings for similar things. But some may offer unique discounts -- for example, for owners of hybrid or electric vehicles. Drivers who fall into this category may want to seek out insurers who offer these savings.
- Raise the deductible: Raising deductibles lowers monthly premiums. However, drivers who do this may want to save for their deductibles in an emergency fund so they're prepared in the event of a claim.
-
Article Sources
- https://www.jdpower.com/business/press-releases/2023-us-auto-insurance-study
- https://www.houstontx.gov/courts/pdf/fineschedule_0110.pdf
- https://www.tdi.texas.gov/tips/car-insurance.html
- https://www.iii.org/fact-statistic/facts-statistics-auto-theft
- https://www.iii.org/fact-statistic/facts-statistics-hail
FAQs
-
The best car insurance in Texas for most drivers is AAA. It offers competitive rates as well as flexible policies and top-notch customer service.
-
The average cost of car insurance per month in Texas is about $244. But a lot depends on the driver in question, their accident history, their vehicle make and model, and their location within the state.
-
Car insurance in Texas is actually slightly below the national average. However, location in the state matters a lot. Areas prone to auto theft or hail damage will likely see higher average auto insurance premiums.
-
All Texas drivers need car insurance to legally get behind the wheel within the state. There is no time where drivers aren't required to have insurance.
-
Drivers who don't carry at least state minimum car insurance could face fines as well as suspension of their driver's license and vehicle registration.
Our Insurance Experts
Kailey Hagen has been writing about small businesses and finance for almost 10 years, with her work appearing on USA Today, CNN Money, Fox Business, and MSN Money. She specializes in personal and business bank accounts and software for small to medium-size businesses. She lives on what's almost a farm in northern Wisconsin with her husband and three dogs.
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.
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as 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.
Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.