According to Bankrate’s 2021 study on quoted premiums, Texas car insurance costs $1,823 per year for full coverage. When premiums are compared with the average cost of full-coverage insurance which is $1674, Texas lives up to its slogan “everything’s bigger”, then the Lone Star State is truly a shining example of what it means to be a “everything is larger”. Texas is home to nearly 18,000,000 licensed drivers. Despite being one of the largest states in the nation, it still has many drivers. Insurance companies have increased premiums to compensate for the higher risk of accidents caused by road congestion.
Texas’ large insurance market means that there are many options for car insurance. Bankrate’s editorial team gathered current premium information from Quadrant Information Services to help us find the lowest auto insurance in Texas. We reviewed the market share of the largest insurance companies and evaluated their average premiums. However, we also considered coverages, discounts, and third-party rankings. These details might be helpful in finding the right policy for you.
Texas offers the cheapest car insurance with full coverage
Geico has the lowest full coverage rate in Texas. Based on our analysis of annual quotes premiums, coverage costs $1,339 annually on average. This premium covers bodily injury and bodily damage liability coverage, uninsured motorist coverage for bodily injuries, comprehensive coverage, and collision coverage.
Geico has the lowest full coverage premium, based upon our research. However, your premium may vary depending on your rating factors. We recommend getting quotes from multiple auto insurers to find the best coverage. Below are five examples.
Geico
Geico’s low average premiums could be due to the long list of discounts it offers, such as savings on daytime running lights and air bags. You can also get discounts for military personnel, students, and good drivers. The top spot in the 2021 J.D. was taken by the company. The company was named the top in the 2021 J.D.
USAA
USAA offers insurance only to veterans, active duty military personnel and their eligible families. A quote from USAA is possible if you are eligible. Although it is not eligible to be ranked by J.D., the company offers low average rates and does not have a ranking. Power was not eligible for the J.D. ranking due to eligibility restrictions. However, Power received the highest overall satisfaction score in Texas in the 2020 U.S. Auto Insurance Study.
All over the country
Nationwide is the best-selling car insurance company in Texas because of its innovative features like the Nationwide smartRide program. Telematics could help you drive safer and save you money. For every year that you avoid accidents, the company offers a vanishing-deductible program. This lowers your deductible up to $100 and can save you as much as $500.
State Farm
State Farm is a company that allows for face-to-face interaction. State Farm sells insurance through local agents who are more familiar with Texas drivers than online companies. This company might also be appealing to teens. The Steer Clear program is specifically for teens and could lower your premium, while teaching safer driving habits to your teen.
Allstate
While Allstate’s premium for full coverage is the highest, it is still less than the state’s. You might save money with Allstate’s telematics program Drivewise. There are also discounts available for new cars, smart students, and safety features. Allstate also offers a variety of optional endorsements that can be added to your policy to provide customized coverage.
Texas has the cheapest car insurance with minimum coverage
Geico has the lowest minimum coverage premium in Texas at $391 per year. This is a lot lower than the $524 annual average Texas minimum coverage premium. Texas, like other states requires that all drivers have at least the minimum amount of car insurance.
The minimum coverage requirements in Texas are:
- $30,000 bodily injury liability insurance per person
- $60,000 bodily injury liability coverage per incident
- $25,000 per accident property damage liability coverage
Texas is not considered to be a no fault state. However, all Texas car insurance policies automatically include personal injury protection (PIP). Drivers who wish to cancel their PIP coverage are allowed to do so by writing to their provider. The same applies to Texas. All insurance companies must offer coverage for uninsured or underinsured motorists. However, you can request waiver in writing.
Although you might pay a lower premium if you purchase the minimum coverage required in Texas, you could face stressful expenses if an accident occurs. You will be responsible for any excess you incur due to injuries or damages beyond your insurance coverage. Insurance professionals advise that you buy higher liability limits if possible. You will need full coverage if you require or desire coverage for vehicle damage.
The following companies might be able to provide you with quotes if you’re looking for affordable minimum coverage auto insurance in Texas:
Texas: The cheapest car insurance for an accident
Geico has the lowest annual premium for full coverage if you are convicted of speeding. It costs $1,505 per annum. Geico is also a good choice if you are involved in an accident. Their average annual premium is $1,865.
If you have a clean driving history, the companies listed above may be the most affordable. However, tickets and accidents can affect how insurance companies rate your policy. Your insurance premiums will increase if you are cited or have been in an accident. These incidents are charged differently by different companies so getting quotes from multiple companies is important. Your rating factors are also important. There may be Texas car insurance companies that offer lower rates for drivers who have been in an accident or speeding ticket.
Texas offers the lowest car insurance prices for young drivers
USAA offers coverage for drivers 18 years old and older. The average full coverage rate is $3,361. Young drivers pay more for coverage because of their inexperience behind a wheel. It is not surprising that young drivers are at the highest risk for car crashes between 16 and 19, according to the Centers for Disease Control (CDC).
It can be very helpful to get quotes from several companies if you have a teenager driver. Young drivers are rated differently by different companies, and some companies might offer discounts for them.
How to Get Cheap Texas Car Insurance
Your driving record and age are all factors that determine your auto insurance rate. Also, consider the company you choose, what coverages you buy, and which discounts you qualify for. There are many ways to lower your Texas full coverage premium, even though it is higher than the national average. These are some ways to lower your premium.
- Compare all options: Before you decide on an insurance provider, make sure to shop around. Get multiple quotes so that you can compare the rates and see which provider offers the best discounts. Compare coverage, policy features, and ratings from third parties for financial strength and customer service.
- Take into account your coverages. Insurance professionals often recommend purchasing liability limits that are higher than the state’s minimum. In many cases, full coverage is recommended. There are many optional coverages available, such as roadside assistance, car rental coverage and gap insurance, which are seldom (if ever!) required. These coverages are helpful, but they will increase your premium. Make sure you only purchase the coverages that are most useful to you.
- You may be eligible for discounts to reduce your premium. Your switching car insurance providers may allow you to qualify for a discount.
- Your deductible can be increased: Increasing your collision or comprehensive deductible could help you save money on your premium. You will be responsible for paying your deductible in the event of a claim for vehicle damage. Make sure you choose a amount you can afford.
- Consider how you pay. Many companies offer discounts for fully paying your premium. Sign up for paperless billing and use the auto-pay option.
Each insurance company offers a different set discount. These discounts may be available online. Or, you can call your insurance agent to find out if you are eligible for additional savings.
Questions frequently asked
Which Texas insurance policy is best?
There are many insurance companies in Texas that offer services to drivers. However, there are not a few that stand out as the best. The best Texas car insurance company is not the same for everyone. You may want to consider what factors are most important to you when choosing a company. This could include a low premium or certain coverages, discounts or customer service scores, or the availability of digital tools.
Which Texas state has the lowest car insurance?
Your individual rating factors will determine the cost of auto insurance in Texas. This includes your driving record, whether you have a teenager to insure, and what type of car you drive. These companies offer low average rates in a variety of situations. However, getting quotes from multiple providers can help you find the most affordable coverage for your particular situation. You can save money by choosing a company that offers discounts.
Is it worth buying cheap Texas car insurance?
Every person has different insurance requirements. While price is an important consideration when choosing coverage, it is not the only one. It is important to choose the right coverages that protect you against financial disaster. It is also a good idea to check out the company’s claims and customer service scores, as well as its financial strength. A licensed agent may be helpful. They can help you choose the right coverage for you and find ways to lower your premium.
Is Texas car insurance able to cover storm damage?
Texas is part “tornado alley” and severe storms are quite common. Texas drivers should be aware of hail, lightning, and flooding damage. You do not have coverage for vehicle damage if you have liability-only or state minimum coverage. Comprehensive coverage would cover storm damage. Comprehensive coverage can be purchased as either an endorsement to a policy that covers only liability or as part of a comprehensive policy.
