Cheapest Car Insurance in Texas for 2022 - Tutorapik

Cheapest Car Insurance in Texas for 2022

Cheapest Car Insurance In Texas For 2022

While Farmers has the cheapest car insurance costs in Texas, factors including coverage amounts, driving history, age and credit score also determine your policy premiums.

For instance, Esurance is the cheapest provider for drivers with a DUI on their record. Overall, USAA is the cheapest policy, but it’s only available to military personnel and eligible family members.

For those looking for an even more local solution, we also broke down the cheapest companies by city, as well as the best car insurance companies in Texas for those looking to balance quality service and cost.

Cheapest Minimum Liability Car Insurance in Texas

Generally, the cheapest car insurance in Texas is a policy that meets the state’s minimum liability coverage requirement. It’s the most affordable insurance, but we recommend getting higher levels of coverage for better and broader protection.

Tutorapik found that the cheapest car insurance options for minimum coverage in Texas are from the following insurance providers:

  • Farmers: $420 per year
  • State Farm: $495 per year

If you or a family member are in the military, USAA also has an affordable offer averaging $424 annually. At an average rate of $1,317 per year, The General is the most expensive company in Texas for minimum liability car insurance.

Cheapest Minimum Car Insurance In Texas

Rank
Company Annually Monthly
   1. Farmers     $420       $35
   2. USAA      $424       $35
   3. State Farm     $495       $41
   4. GEICO     $528       $44
   5. AAA     $563       $47
   6. Allstate     $573       $48
   7. Esurance     $656       $55
   8. Nationwide     $678       $57
   9. MetLife     $703       $59
  10. Mercury     $722       $60

These prices are only estimates based on rates for an average Texas driver and should not be used to compare insurance prices.

Cheapest Full Coverage Car Insurance in Texas

Some drivers prefer to have more protection and opt for a full coverage policy with comprehensive and collision insurance that covers most road and off-road accidents in Texas. While this policy has higher liability limits, it does cost more than a minimum coverage policy. It also covers expenses related to damages to the policyholder’s vehicle.

Based on average comprehensive and collision rates, the cheapest auto insurers in Texas are:

  • Farmers: $821 per year
  • State Farm: $924 per year

For current and former military members, USAA also has an affordable average annual rate of $885. The most expensive insurance company in Texas is The General, with an average annual rate of $2,718.

Cheapest Full Coverage Car Insurance In Texas

Rank
Company Annually Monthly
   1. Farmers     $821       $68
   2. USAA      $885       $74
   3. State Farm     $924       $77
   4. GEICO     $952       $79
   5. AAA  $1,118       $93
   6. Esurance  $1,149       $96
   7. Allstate  $1,168       $97
   8. Nationwide  $1,284     $107
   9. Mercury  $1,441     $120
   10. MetLife  $1,525     $127

The prices stated above are estimated rates for the average driver in Texas and may differ from the rates you are able to get. These estimates are based on a policy with comprehensive and collision insurance with $100,000 for bodily injury liability per person, $300,000 for bodily injury liability per accident and $100,000 for property damage per accident.

Cheapest Car Insurance for Drivers With a DUI in Texas

Drivers with a DUI in Texas may have higher premiums than those who maintain a clean record. These drivers are often also required to file an SR-22. The average rate for a driver with a clean driving record in Texas is $1,316 annually. A DUI can increase this rate to $1,987.

The cheapest options for drivers with a DUI in Texas and full coverage policy are:

  • Esurance: $1,149 per year
  • Farmers: $1,207 per year

By contrast, MetLife has the most costly average annual rate for Texas drivers with a DUI, at $3,601.

Average Car Insurance Rates With a DUI

Rank
Company Annually Monthly
   1. Esurance  $1,149       $96
   2. Farmers   $1,207     $101
   3. USAA  $1,310     $109
   4. State Farm  $1,550     $129
   5. GEICO  $1,649     $137
   6. AAA  $1,682     $140
   7. Allstate  $1,836     $153
   8. Mercury  $1,871     $156
   9. Nationwide  $2,226     $186
  10. The General  $3,101     $258

According to the Centers for Disease Control and Prevention, 13,592 people were killed in alcohol-related car crashes in Texas from 2009-2018. 2.2% of drivers in Texas say they have driven after drinking too much in the last 30 days.

Those convicted of a DUI in Texas face jail terms of 3 days to six months and a mandatory license suspension of 90 days to a year. There are also direct fines and fees of up to $2,000. If it's your second offense, that fine could go as high as $4,000. And if it's your third offense, or if there is a minor child in the car, your fine in Texas could run as high as $10,000.

Not only can having a DUI in Texas increase your car insurance rates, but you may also face jail time and fines. The real costs of a DUI can last for years in terms of insurance premiums, legal fees and education expenses and more.

Cheapest Car Insurance in Texas for Drivers With an At-Fault Accident

You’ll pay more if you have an at-fault accident on your driving record in Texas. On average, car insurance premiums for drivers with an at-fault accident run $1,988 per year.

The cheapest car insurance for at-fault drivers in Texas are:

  • State Farm: $1,113 per year
  • Farmers: $1,165

If you’re eligible, USAA is among the cheapest insurance options at an annual average cost of $1,387.

Cheapest Car Insurance With an At-Fault Accident

Rank
Company Annually Monthly
   1. State Farm  $1,113       $93
   2. Farmers   $1,165       $97
   3. GEICO  $1,337     $111
   4. USAA  $1,387     $116
   5. AAA  $1,599     $133
   6. Allstate  $1,756     $146
   7. Nationwide  $1,848     $154
   8. Mercury  $2,379     $198
   9. Esurance  $2,552     $213
  10. MetLife  $3,221     $268

Moving violations can negatively impact your auto insurance premiums. Distracted driving is dangerous and increases your odds of getting in an accident, making this infraction a major concern for insurers.

On average, annual car insurance premiums in Texas with a single conviction for speeding or distracted driving increase by $274.10.

Cheapest Car Insurance Companies in Texas for Drivers With Bad Credit

Drivers with bad credit scores in Texas will likely pay higher car insurance rates. The average cost for drivers with good credit in Texas is $1,316 per year. Those who have poor credit may pay almost double the price, with the average rate at $2,360 per year.

The list of the cheapest car insurance companies in Texas for drivers with poor credit are:

  • Farmers: $1,269 per year
  • Nationwide: $1,784 per year

For military personnel and their families, USAA's $1,441 average annual rate for drivers with bad credit would rank second behind only Farmers.

Average Car Insurance Rates For Drivers With Bad Credit

Rank
Company Annually Monthly
   1. Farmers  $1,269     $106
   2. USAA   $1,441     $120
   3. Nationwide  $1,784     $149
   4. AAA  $1,789     $149
   5. State Farm  $1,811     $151
   6. Allstate  $1,827     $152
   7. Esurance  $1,993     $166
   8. Mercury  $1,998     $167
   9. GEICO  $2,539     $212
  10. MetLife  $4,068     $339

Many insurance companies note an increase in claims among people with poor credit scores. In fact, it was a 2003 University of Texas study commissioned by then-Lieutenant Governor Bill Ratliff that established a significant inverse correlation between credit scores and claims for the insurance industry.

Texas is among the states that allow insurers to use credit scores as one factor to set premiums. With an average credit score of 680 according to Experian, Texans rank 48th in the nation for good credit, which means that many may be paying more for auto insurance.

If your credit score has been negatively affected because of identity theft or a specific life event beyond your ordinary control, you may qualify for an exception to credit underwriting. Examples include job loss, divorce, the death of an immediate family member and the like. To request an exemption, simply submit the request to the insurance company in writing, along with documentation.

Once the carrier has your request, documentation and the request meets state requirements, the carrier can only consider credit information not related to the negative life event, or they must assign a neutral credit score.

If you believe your request for a credit underwriting exception was improperly denied, you can visit the Texas Department of Insurance Complaint Process web page to file a complaint.

Cheapest Car Insurance in Texas for Seniors

Senior drivers in Texas will likely pay slightly more for their car insurance. The average cost of auto insurance in Texas for senior drivers is $1,455 per year. That is higher than the annual average rate of $1,316 for the average driver.

The cheapest options for senior drivers in Texas are:

  • Farmers: $834 per year
  • State Farm: $891 per year

These two companies are also the most affordable widely available options to insure a 40-year-old Texas driver.

Average Car Insurance Ratets For Seniors

Rank
Company Annually Monthly
   1. Farmers     $834       $70
   2. State Farm      $891       $74
   3. USAA     $972       $81
   4.GEICO  $1,017       $84
   5. AAA  $1,186       $99
   6. Allstate  $1,196     $100
   7. Nationwide  $1,341     $112
   8. MetLife  $1,404     $117
   9. GEICO  $1,441     $120
  10. Mercury  $1,696     $141

In Texas, older drivers are subject to increased safety laws and regulations. In 2017, 9.9% of fatal car crashes in Texas were caused by drivers over the age of 65.

According to the Texas Department of Public Safety, drivers between the ages of 79 and 84 must renew their license in person every six years, while drivers aged 85 and older are required to renew every two years.

Senior drivers are not only required to participate in more regular license renewals and screenings, but they often pay higher insurance rates in Texas. But not all companies start increasing premiums at the same age. Some hike rates at age 65, while others wait until age 70 or even later. As you age, it pays to shop around every few years for affordable car insurance for seniors.

If you're an older driver, you may be able to offset some or all of the higher premiums in several ways, including taking a defensive driving course. You may be able to get discounts if you take a defensive driving course. Details vary depending on your carrier. Approved courses include Defensive Driving by the National Safety Council, American Safety Council or IMPROV.

Cheapest Car Insurance in Texas for Young Drivers

Insurers charge younger drivers more for car insurance due to their inexperience on the roads. A 16-year-old driver in Texas pays an average of $3,509 per year, while a 25-year-old pays $1,197 per year for car insurance.

In Texas, the cheapest car insurance coverage for young drivers aged between 16-25 years is from State Farm and GEICO. Tutorapik analysis was based on sample drivers for every age within that range.

Annual Car Insurance In Texas For Young Drivers

Age Cheapest Company Average Cost Company Cost
16 State Farm$3,509 $2,780
17 State Farm $3,140 $2,505
18 State Farm$2,998 $2.250
19GEICO$2,422 $1,834
20 GEICO$2,108 $1,619
21 GEICO$1,631 $1,348
22 GEICO$1,529 $1,222
23 GEICO$1,437 $1,163
24 GEICO$1,357 $1,102
25 State Farm$1,197 $1,023

Younger drivers, including high school and college-aged drivers, are considered a higher-risk group. Teen drivers are particularly accident-prone and insurance rates reflect this.

However, some carriers are friendlier than others when it comes to setting rates for drivers in their teens and early 20s. Rates for this group vary substantially. It pays to shop around, especially right before a teen driver goes to college or owns his or her first car.

Insurance Rate Information for Military Drivers and Veterans

Texas has more than 110,913 active duty personnel, more than 53,321 reservists and Guardsmen, and more than 1,460,000 veterans, according to Governing and the Texas Workforce Investment Council. Vets living in the Lone Star State may be eligible for military discounts on regular auto insurance. They may also be eligible for a USAA membership. Shop around for the best rates available to veterans, bearing in mind that a military discount also requires a good driving record.

Active-duty servicemen and women leaving Texas temporarily should check with their insurance company before they depart. Some companies allow veterans to suspend their auto insurance coverage while a vehicle is not in use.

Average Rates For Texas Service Members

Male

  • 25 years: $1,608
  • 50 years: $1,203

Female

  • 25 years: $1,539
  • 50 years: $1,200

Car Insurance in Texas: What You Need to Know

If you own or operate a motor vehicle in Texas, you need to show that you are financially capable of covering any damage you may cause. State law requires that insurance must be carried for all vehicles (except semi-trailers and trailers) registered for on-road use.

The Texas Transportation Code outlines one exception to the rule: You can avoid the requirement for insurance if you deposit at least $55,000 in cash or eligible securities with the Texas Comptroller or a cashier’s check with the county judge.

Proof of Insurance in Texas

Drivers in the state must provide proof of insurance or alternative documentation. According to the Texas Department of Motor Vehicles, you need to show proof of insurance in several circumstances:

  • When asked for it by a police officer
  • When involved in a car accident
  • When registering and renewing a vehicle registration
  • When applying for and renewing a driver's license

Auto insurers are required to send policyholders an insurance card. Individuals relying on insurance alternatives will receive certificates in lieu of an insurance card. You can carry your card on your smartphone.

Minimum Liability Insurance Requirements in Texas

Drivers in Texas are required to post a $55,000 bond or purchase liability insurance. Collision and comprehensive coverage are optional unless you financed the car, in which case the lender will probably require such coverage as a condition of the loan. But even if you own the car outright, liability coverage is a must. The minimum mandatory coverage limits outlined by the Texas Department of Insurance are:

  • $30,000 for each injured person
  • $60,000 for injuries per accident
  • $25,000 for property damage per accident

A policy with this minimum level of insurance is called 30/60/25 coverage.

Note that these are just the state minimums. When cars and medical care are both getting more expensive, the minimum amount may not be enough to cover the entire cost of the accident. Most insurance and consumer groups recommend drivers carry 100/300/100 coverage instead of the state's minimum liability coverage.

High-Risk Auto Insurance Program in Texas

Individuals who don't qualify for liability insurance through traditional channels may obtain coverage through the Texas Automobile Insurance Plan Association. To qualify, applicants must meet these requirements:

  • Have a valid driver's license
  • Be a resident of Texas or have a vehicle registered in Texas
  • Certify that two or more companies have denied insurance coverage within the past 60 days

Alternatives to Insurance in Texas

Under Texas law, uninsured residents may legally drive if they can present proof of financial responsibility. According to the Texas Transportation Code, approved alternatives to car insurance in Texas include:

  • $55,000 cash or securities deposit with the state comptroller
  • $55,000 cash or cashier's check deposit with the county judge
  • Surety bond filed with the Texas Department of Public Safety

In each instance, drivers who opt for this alternative must carry a certificate of deposit or a surety bond deposit instead of an insurance card.

What Happens If You Don't Have Car Insurance in Texas?

Research presented by the National Association of Insurance Commissioners shows that most uninsured motorists do not have car insurance because they cannot afford it (or, in the case of illegal immigrants, are not allowed to buy it). Texas assesses stiff penalties on uninsured motorists. Drivers caught without insurance or a valid alternative can face the following consequences:

  • First offense: $175–$350 fine
  • Second offense: $350–$1,000 fine, a two-year suspension of driver's license and car impoundment
  • Driving without a license: Up to $2,000 fine and/or 180 days in jail

Texas has also launched TexasSure, an automated database that identifies drivers who do not have mandatory insurance coverage. This program notifies drivers who allow their coverage to lapse.

How Much Coverage Do You Need in Texas?

While Texas only requires 30/60/25 minimum liability coverage, many drivers should consider buying insurance that goes beyond the minimum levels of protection. A 100/300 liability policy, one that covers $100,000 for a single person in an accident and $300,000 for all individuals in an accident, is much more likely to protect you if you cause an accident with severe injuries or damages to the other driver or vehicle. If you have a newer vehicle or your car is not yet paid for, it’s also a good idea to carry comprehensive and collision coverage to cover damage to your vehicle.

Insurance companies in the state offer a Texas Personal Automobile Policy, a standardized policy that offers eight types of insurance in one policy. But because exclusions vary from policy to policy, the Texas Office of Public Insurance Counsel recommends drivers know exactly who and what is covered.

Cheapest Car Insurance in Texas by City

Your home address in Texas can significantly influence your car insurance costs. The cheapest city in Texas is Wichita Falls, with an annual average price of $1,052. The most expensive is Houston, with an average cost of $1,560. Both figures represent the cost of a full coverage policy.

Click on your city to know more about car insurance costs in your area.

Average Insurance Ratet by City In Texas

 No   City Annually Monthly
 1. Alibene  $1,065        $89
 2. Allen   $1,228      $102
 3. Amarillo  $1,277      $106
 4.Arlington  $1,295      $108
 5. Austin  $1,218      $102
 6. Beaumont  $1,305      $109
 7. Brownsville  $1,390      $116
 8. Carrolton  $1,324      $110
 9. Collage Station  $1,078        $90
10. Corpus Christi  $1,321      $101
11. Dallas  $1,461      $122
12. Denton   $1,151        $96
13. EL Paso  $1,151        $96
14.Fort Worth  $1,233      $103
15. Frisco  $1,219      $112
16. Garland  $1,375      $115
17. Grand Prairie  $1,373      $114
18. Houston  $1,560      $130
19. Irving  $1,382      $115
20. Killeen  $1,064        $89
21. Laredo  $1,266      $106
22. League City   $1,247      $104
23. Lewisville  $1,212      $101
24.Lubbock  $1,096        $91
25. McAllen  $1,505      $125
26. McKinney  $1,210      $101
27. Mesquite  $1,406      $117
28. Midland  $1,054        $88
29. Odessa  $1,146        $96
30. Pasadena  $1,448      $121
31. Pearland  $1,287      $107
32. Plano   $1,242      $104
33. Richardson  $1,349      $112
34.Round Rock  $1,138        $95
35. San Antonio  $1,289      $107
36. Sugar Land  $1,328      $111
37. Tyler  $1,118        $99
38. Waco  $1,065        $89
39. Wichita Falls  $1,052        $88

FAQs About Car Insurance in Texas

For many Texas drivers, price and which insurance company is the best are the most pressing questions they consider when looking for auto insurance.

Who has the cheapest car insurance in Texas?

The cheapest car insurance in Texas will depend on individual circumstances. However, based on average rates for the average driver in the state, Farmers offers the most affordable premiums.

How much is car insurance in Texas per month?

An average Texas driver with a clean record pays around $1,316 per year or approximately $110 per month.

Who has the best auto insurance in Texas?

After evaluating Texas auto insurance companies based on affordability, claims experience, customer satisfaction and financial strength, MoneyGeek found State Farm and GEICO to be the best carriers in the state.

How can I lower car insurance rates in Texas?

Driving defensively and not getting any moving violations can help keep your car insurance rates low in Texas. Additionally, if you have a bad credit score, improving it can get you a lower car insurance rate.

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