There are more miles of roadway in Texas than in any other state in the US. And it’s also one of the most expensive states for car insurance, having the 10th highest average premiums in the nation. So it’s important to balance the price and adequacy of coverage when shopping for a plan.
We created this best car insurance in Texas guide to help you do just that. There are more than two dozen car insurance companies operating in Texas, but that doesn’t mean you should get quotes from every one of them to find the right policy for you. We’ve helped you in your search, by narrowing the list down to what we believe to be the best car insurance companies in the state.
A note about our top pick: We can’t say enough good things about USAA, since it tops the list in nearly every category. And it’s certainly our recommendation for anyone with a military affiliation. But unfortunately, it isn’t available for the majority of drivers, who aren’t either active duty military or eligible veterans.
Table of Contents
Personally, I’m a fan of Progressive and have had my coverage through them in two different states over the past several years. The only way to find the best car insurance for you is by getting quotes from several of the best providers. Use the quote tool below from our car insurance partner:
The Most Important Factors When Comparing Car Insurance in Texas
Shop, shop, shop!
We can’t emphasize this enough. There is no one best car insurance company for every driver. The only way to find the company that will offer the best combination of benefits and low premiums is to shop between several companies. We recommend you solicit offers from at least a half-dozen companies.
When shopping, make sure you’re “comparing apples to apples”.
To keep it simple, make sure you’re requesting the same coverage options from each company. If one company is cheaper than the rest, you’ll need to know if they really are less expensive, or if they omitted an important coverage option.
Bundle and save.
Most companies will give you a substantial discount if you have other types of policies with them. Most common are types of home-related policies, like homeowner’s, renter’s, or condo insurance.
Go for every discount you can qualify for.
The lowest-cost policy doesn’t always come from the company with the lowest published premiums. It often comes from the company with the most and the best discounts. Every company offers them, but some have more than others. Request a list of discounts from each company, and carefully look for any you may qualify for.
The 11 Best Car Insurance Companies in Texas
While attempting to determine the best car insurance companies in Texas, we discovered that many have niches – areas of coverage where they stand out from the competition, so be sure to take a look at the policy options. To help you find the best company for you, we’ve identified the best companies in Texas.
Author’s Pick: I’ve got my coverage with Progressive and I’ve had it for several years. I’ve found them to be consistently lower than the competition on premiums and at the top of the customer service food chain. But I don’t live in Texas, so my personal opinion should be taken with a very large grain of salt!
Below is our list of what we believe to be the best car insurance providers in Texas. Our ranking is based on objective factors. We’ve indicated why each company made our list and highlighted any apparent weaknesses in their product offering.
Note on Policy Options: We’re not going to include minimum required coverages in Texas, nor collision and comprehensive, since all three are typical options offered by all insurance companies.
1. USAA
The Basics
| Policy Options | Rental Reimbursement Roadside Assistance Rideshare Coverage Accident forgiveness (free if you have had no at-fault accidents within five years) |
| Discounts | Safe Driver (min. 5 years) Defensive Driving Course Driver Training (for drivers under 21) Good Student New Vehicle (under 3 years) Multi-vehicle Multi-policy (bundle) Annual Mileage (the fewer, the bigger the discount) Vehicle Storage (discount up to 60%) Family Discount (multiple drivers) Length of Membership Military Installation (save up to 15% when vehicle is garaged on base) No Payment Plan Fees |
Premiums: $1,361
Customer satisfaction rating: 890
Financial strength rating: A++ (highest rating issued by A.M. Best)
Why It Made the List
Overall, USAA tops the list in all major categories. They not only have the lowest average auto insurance premiums in Texas, but they also have the highest customer satisfaction rating in the J.D. Power Survey. And on the financial strength front, they get a top-of-the-class rating of A++ from A.M. Best.
They also offer a longer list of discounts than most other insurance carriers in the state. Fortunately, for Texas drivers, USAA does offer its accident forgiveness option in the state. It’s an excellent option to have, since it’s free after five years without an at-fault accident, as well as the fact that it’s not available in some other states.
What Holds It Back
USAA offers auto insurance only to active US military personnel, eligible veterans, and their families. Unfortunately, despite all the benefits it provides, its coverage is not available to the general public. In addition, policy options are more limited than they are with other providers.
2. Texas Farm Bureau
The Basics
| Policy Options | Medical payments Roadside assistance Rental car Towing and labor Auto indemnity Personal injury protection |
| Discounts | Safe driving/claims free Car safety equipment Multi-vehicle Multi-policy (bundling) Low mileage use Driver training Good student |
Premiums: $1,013
Customer satisfaction rating: 873
Financial strength rating: A
Why It Made the List
Texas Farm Bureau made the list because it has the highest customer service rating and the lowest average premium of any statewide insurance carrier not restricted to members of the US military (like USAA). Though not well known outside Texas, the company insures more than 1 million drivers in the state.
What Holds It Back
The biggest single drawback of the Texas Farm Bureau is that it is not available outside Texas. If you leave the state, you’ll need to change insurance carriers. However, the company is also very light on both policy options and discounts.
3. State Farm
The Basics
| Policy Options | Car rental Travel expenses for an accident more than 50 miles from home Medical payments Emergency roadside assistance Rideshare Sports cars Antique classic cars Small business vehicle |
| Discounts | Anti-theft equipment Defensive driving course Drive Safe & Save – driving monitoring app Good driving Good student Multi-car Multi-policy Vehicle safety equipment Student away at school Steer Clear Safe Driver (complete education requirements and no at-fault accidents or moving violations in the previous three years – both met before turning 25) |
Premiums: $1,481
Customer satisfaction rating: 835
Financial strength rating: A++
Why It Made the List
Not only does State Farm have the third lowest average premium in Texas on our list, but they also qualify for some important “best for” categories. These include best for older drivers, good drivers, ridesharing, and drivers with a single moving violation.
State Farm also scores well in customer satisfaction, with a rating of 834, ranking fifth on the J.D. Power Customer Satisfaction survey. The company also offers plenty of discounts to help keep your premium at a minimum.
What Holds It Back
There’s no indication State Farm provides gap coverage. This is a critical missing part since many drivers owe more to their vehicles than those vehicles are worth. Gap coverage is designed specifically to pay off excess debt. If it’s not offered, you’ll be on the hook to pay the difference. It also appears State Farm doesn’t offer its accident-free feature in Texas.
4. Nationwide
The Basics
| Policy Options | Medical payments Towing and labor Rental car expense (loss of use) Personal injury protection (PIP) Gap coverage Roadside assistance Vanishing Deductible (earn $100 off your deductible for each year of safe driving, up to $500) Total loss deductible waiver (deductible is waived in the event of a total loss) |
| Discounts | Multi-policy Multi-vehicle SmartRide monitoring app Accident forgiveness Automatic payment Paperless documents Good student Defensive driving (complete a state approved course for drivers 55 and over) Anti-theft Safe Driver (free of major violations or at-fault accidents for at least five years) Affinity member (extends to hundreds of alumni associations, professional groups, sports groups, and special interest groups) |
Premiums: $895
Customer satisfaction rating: 831
Financial strength rating: A+
Why It Made the List
Nationwide has one of the lowest average premium rates in Texas, with an average annual premium that’s more than $200 below the statewide average. Nationwide is a bit light on policy options, but their Vanishing Deductible allows you to reduce your deductible by $100 for each year of safe driving, up to $500. It may be possible to completely eliminate your deductible with this provision.
What Holds It Back
Nationwide ranks #8 in the J.D. Power Survey for customer satisfaction in Texas, rating even a few points below the midpoint for the state. We also weren’t able to identify any categories in which Nationwide qualifies as a “best for” provider. However, the company is solid on all fronts and could be the best choice for car insurance in Texas for your particular situation.
5. Allstate
The Basics
| Policy Options | Rideshare coverage New car replacement Accident forgiveness Sound systems Personal injury protection (PlP) Roadside assistance Personal umbrella Rental reimbursement Classic cars Car insurance for travel to Mexico |
| Discounts | New car Multi-policy Smart student Vehicle safety equipment Early signing Responsible payer New car Paperless Pay by automatic withdrawal and/or full payment Drivewise monitoring app Deductible Rewards ($100 reduction in your deductible for each year you are accident-free) |
Premiums: $1,850
Customer satisfaction rating: 822
Financial strength rating: A+
Why It Made the List
Allstate ranks third in Texas for customer satisfaction, and while its premiums aren’t the lowest in the state, they do come in below the statewide average. Part of that may be the fact that they offer a wide range of valuable policy discounts that keep their premiums lower than they might otherwise be.
What Holds It Back
Like Nationwide, Allstate doesn’t make the cut for any of the “best for” categories we’ve identified (except rideshare coverage). But it may still be the best option for you depending on your specific circumstances.
6. Progressive
The Basics
| Policy Options | Gap coverage Medical payments Rental car reimbursement Roadside assistance Custom parts and equipment value Rideshare coverage |
| Discounts | Snapshot app ($145 average discount) Bundle auto and property Name Your Price Tool (enter your desired premium, and Progressive will design a policy) Multi-policy (5% average discount) Multi-car (12% average discount) Continuous coverage Good student Distant students (more than 100 miles from home) Homeowner (average discount nearly 10%) Online quote (4% average discount) Sign online (8.5% average discount) Paperless Pay in full Automatic payment Small accident forgiveness – premium won’t be increased for a claim of less than $500 Large accident forgiveness – no rate increase in an accident if you have been a customer for at least 5 years, and no accidents for the past 3 years |
Premiums: $687
Customer satisfaction rating: 822
Financial strength rating: A+
Why It Made the List
Progressive has more discounts on their car insurance policies than just about any company operating in Texas. They assign at least a small discount to nearly every aspect of your existence, including your payment arrangements, document signings, document receipts, as well as large and small accident forgiveness. It’s also one of the few car insurance companies in Texas that offers coverage for ridesharing.
Perhaps what Progressive is best known for is the Name Your Price tool. It enables you to choose a premium amount and build your policy around it. That will give you more control over the cost of your policy than the competition typically provides.
What Holds It Back
Progressive has a below-average rating on customer satisfaction, coming in at number nine on the J.D. Power customer satisfaction survey. And while the company typically rates one of the three or four least expensive in most other states, it comes in at #5 on our list of car insurance companies in Texas, at less than $100 below the statewide average.
7. Geico
The Basics
| Policy Options | Safety equipment New Vehicle Good driver (five years accident-free) Drivers over 50 Seatbelt use Defensive driving Driver’s education Good student Federal employees Membership & Employee (in up to 500 groups) Emergency deployment Military Multi-vehicle Multi-policy |
| Discounts | Safety equipment New vehicle Good driver (five years accident-free) Drivers over 50 Seatbelt use Defensive driving Driver’s education Good student Federal employees Membership & Employee (in up to 500 groups) Emergency deployment Military Multi-vehicle Multi-policy |
Premiums: $1,353
Customer satisfaction rating: 824
Financial strength rating: A++
Why It Made the List
GEICO has a very strong customer service rating in Texas, coming in at #3 on the J.D. Power customer satisfaction survey. And even though it’s on the higher end of the premium scale, the company offers a multitude of discounts that could make it a lowest-cost provider based on your personal driving profile.
It’s also a strong contributor to our “best for” list, coming in as the top choice for teen drivers, ridesharing, drivers over 50, and drivers with a DUI/DWI. We also like that it offers auto insurance in Mexico since Texas has a very extensive border with that country.
What Holds It Back
GEICO is the only company on our list with a statewide average premium that’s higher than the Texas average. In addition, the company doesn’t offer gap coverage, which will be a problem for anyone who owes more on their loan or lease than their vehicle is worth.
8. Branch
The Basics:
| Policy Options | Liability coverage: Uninsured/Underinsured motorist protection personal injury protection (PIP) Coverage for physical damage Comprehensive auto insurance coverage Coverage if you drive for Uber or Lyft |
| Discounts | Refer-a-friend program |
Premiums: Premiums Not Available
Customer satisfaction rating: BBB 5-star rating
Financial strength rating: A+
Why It Made the List
Texas drivers can also consider Branch. This newer insurance provider just launched in 2017, and it helps drivers save money thanks to its direct sales approach. You can get a free quote from Branch in about 30 seconds, and can even bundle auto coverage with homeowners insurance or renter’s insurance.
Since Branch uses newer technology, it has an updated online claims process that saves you time and stress. Branch also offers a mobile app, which allows customers to manage their policies, payments, and claims on the go.
What Holds It Back
The Branch website is lean on information, so potential customers might have to reach out to a customer service agent to get more information on their policies. This insurer is also relatively new and little information exists about its customer service or claims satisfaction.
How We Found the Best Car Insurance in Texas
To come up with our list of the best car insurance in Texas, we’ve used five independent criteria to make that determination.
Policy Options
Policy options are what an insurance company provides over and above the minimum requirements in a state. In Texas, the only required coverages are a liability for bodily injury and property damage. But other coverages commonly available – and strongly recommended – include collision, comprehensive, medical payments, and personal injury protection.
Over and above these, however, you may be particularly interested in a company that provides more specialized options, like ridesharing protection or auto insurance while driving in Mexico. We’ve considered the options offered by each company to be a significant factor contributing to the appearance of each on our list.
Discounts
Despite the average premiums charged by each company in Texas, we also gave considerable weight to discounts. Though not all discounts will apply to all drivers, there may be one or more offered by a particular company that provides a significant premium reduction in your situation.
For that reason, we closely considered the number of discounts offered, and where available, the percentage discounts they provided. Companies with a better discount menu have been given stronger consideration.
Premiums
It’s often tempting to come up with a list of the best car insurance companies based mainly on premium levels. That’s certainly the primary consideration for most consumers. But while we did give heavy consideration to each company’s average premium in Texas, we didn’t want to rely too heavily on premium averages.
The problem with premium averages is that they’re just that, averages. The exact premium you will pay in Texas or any other state will depend on your own driver profile. That will include your specific geographic location (living in a big city will come with higher premiums than a rural area), the type of vehicle you drive, your driving history, your credit score, and many other criteria.
But when all these factors are taken into consideration, along with applicable discounts and any specific optional coverages you require, the final premium you will get can look very different than an insurance company’s statewide premium average.
We used average premiums only as a starting point. These were derived from The Zebra, which is determined to be a reliable source of pricing information.
Customer Satisfaction Rating
Customer satisfaction includes the all-important category of driver experience with filing claims. After all, paying claims for auto accidents is the whole reason for having car insurance in the first place. If an insurance company is slow or uncooperative – or it has a history of declining too many claims – it won’t be worth having a policy through them, no matter how low their premium is.
For example, according to our sources, the company with the lowest average annual premium in Texas is Travelers. But since the company isn’t rated by the survey below, we’ve excluded them from our list.
It’s very difficult to determine customer satisfaction or claims experience, as this will be different for so many people. But to make a reasonable assessment of this all-important category, we’ve used the J.D. Power U.S. Auto Insurance Study, released in June 2023. More specifically, we’ve relied on the Overall Customer Satisfaction Index Ranking – Texas Region. We included only the car insurance companies that were above or at least near the region-wide average score of 830.
Insurance Company Financial Strength
Financial strength indicates an insurance company’s ability to meet its financial obligations, which includes its ability to pay claims. Cheap car insurance will do little more than satisfy the minimum legal requirements in Texas but could leave you with unpaid claims.
For that reason, we’ve included only companies rated either “Superior” or “Excellent” for financial strength by the insurance industry rating service, A.M. Best.
Their ratings for companies with financial strength of “Good” or better are as follows:
Superior: A+, A++
Excellent, A, A-
Good, B, B+
We have not included any companies rated lower than “A”.
What You Need to Know About Car Insurance Laws in Texas
Car insurance laws and requirements vary from one state to another. Regulations in Texas are as follows:
State Minimum Insurance Requirements
The minimum Texas car insurance requirement is “30/60/25”, broken down as follows:
- Bodily Injury: $30,000 for injury or death to one person as a result of an auto accident.
- Bodily Injury: $60,000 for injury or death to more than one person as a result of an auto accident.
- Property Damage: $25,000 per accident.
Bodily injury, more commonly known as liability coverage, pays for both injury and loss of wages to another driver or their passengers, as a result of an accident caused by you. The same is true of property damage. It will cover damage to another driver’s vehicle in an accident where you are determined to be at fault. It’s important to understand that property damage does not extend to repairing your own vehicle in an at-fault accident. (Collision coverage pays for damage to your own vehicle when you are at fault in an accident.)
Optional car insurance coverage under Texas law includes:
- Collision – pays for damage to your vehicle if you are at fault in an accident.
- Comprehensive – pays for the damage to your vehicle from non-moving hazards, like falling trees, theft, or vandalism.
- Medical payments – pays medical expenses for you or your passengers.
- Personal injury protection (PIP) – pays for lost wages and non-medical costs, in addition to medical expenses to you and your passengers. The provision is automatic in Texas, but you can opt out of it.
- Uninsured/under-insured motorist coverage – covers damage to your vehicle caused by an identified, at-fault, uninsured, or under-insured driver. This is a requirement in some states, but not in Texas.
- Towing and labor coverage – pays to tow your vehicle if it can’t be driven, as well as labor to change a flat tire or jumpstart your car.
- Rental reimbursement – pays for a rental car while your vehicle is being repaired due to an accident.
If you have a loan or lease on your vehicle, the lender will require you to have both collision and comprehensive coverage, and possibly Gap coverage.
Penalties for Not Having Car Insurance in Texas
Drivers are required to have adequate car insurance in the state of Texas. If you are unable to provide proof of coverage, the fine can be up to $350 for a first offense, in addition to an uninsured motorist surcharge for three years at $250 per year. For subsequent offenses, fines can be as high as $1,000 and even result in having your vehicle impounded.
Summary: Best Car Insurance in Texas
