Most Affordable Car Insurance in Texas
Looking for the most affordable car insurance in Texas without sacrificing quality coverage? You’re in the right place. As Texas continues to rank among the most expensive states for auto insurance, finding budget-friendly options is more important than ever.
In this guide, we reveal the best cheap car insurance companies in Texas, tips to lower your premiums, and how to compare quotes like a pro.
Contents
Why Is Car Insurance in Texas So Expensive?
Texas has a large population, high traffic volume, and a high rate of uninsured drivers—all of which contribute to higher-than-average insurance premiums. In fact, the average annual cost for full coverage in Texas is around $1,800, but many drivers pay less by choosing the right provider.
Top 5 Most Affordable Car Insurance Companies in Texas
1. GEICO
Best For: Overall affordability and discounts
Average Monthly Premium: $60–$95
GEICO consistently offers some of the cheapest car insurance in Texas, especially for good drivers, students, and military members. With a strong mobile app and excellent customer service, it’s a top pick for budget-conscious Texans.
Notable Discounts:
- Defensive driving course
- Federal employee or military
- Good driver and multi-policy
2. State Farm
Best For: Families and teen drivers
Average Monthly Premium: $65–$105
State Farm is ideal for Texans looking for affordable rates plus great support. The “Drive Safe & Save” program can slash premiums based on your driving behavior.
Notable Discounts:
- Good student
- Bundling home and auto
- Safe driving app savings
3. Progressive
Best For: Drivers with past claims or violations
Average Monthly Premium: $70–$115
Progressive is often the most affordable option for high-risk drivers. Their Name Your Price® tool and Snapshot® app help you customize your rate and earn discounts based on how you drive.
Notable Discounts:
- Snapshot telematics
- Multi-car and multi-policy
- Online quote discount
4. Texas Farm Bureau Insurance
Best For: Local service and rural drivers
Average Monthly Premium: $55–$90
Texas Farm Bureau consistently ranks among the cheapest auto insurers in Texas. It’s available only to members, but the annual fee is low, and the savings often outweigh the cost.
Notable Discounts:
- Safe driving
- Low mileage
- Anti-theft and safety features
5. USAA (For Military Families Only)
Best For: Active and retired military
Average Monthly Premium: $50–$85
If you’re eligible, USAA offers exceptionally low rates and stellar customer service. It’s consistently ranked #1 for value and satisfaction.
Notable Discounts:
- Military garaging
- Safe driver
- Bundle savings
Minimum Car Insurance Requirements in Texas
To drive legally in Texas, you must carry at least:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $25,000 for property damage
This is often referred to as 30/60/25 coverage, but full coverage (which includes collision and comprehensive) is recommended for newer or financed vehicles.
Tips to Get the Cheapest Car Insurance in Texas
Here are practical strategies to lower your premiums:
- Compare Quotes from Multiple Providers
Use platforms like The Zebra, NerdWallet, or Compare.com to view side-by-side rates instantly. - Increase Your Deductible
Opting for a higher deductible can significantly reduce your monthly premium. - Bundle Your Policies
Combine car insurance with renters or homeowners insurance to unlock extra discounts. - Use a Telematics App
Programs like GEICO DriveEasy or State Farm’s Drive Safe & Save reward safe driving. - Ask About Local and Membership Discounts
Some insurers offer savings through alumni associations, employers, or professional groups.
Average Car Insurance Costs in Texas Cities
| City | Average Monthly Cost (Full Coverage) |
|---|---|
| Houston | $135 |
| Dallas | $130 |
| Austin | $110 |
| San Antonio | $115 |
| Fort Worth | $120 |
| El Paso | $100 |
Note: Rates vary depending on your age, driving record, ZIP code, and vehicle type.
Final Thoughts: Affordable Doesn’t Mean Bare Minimum
Finding the most affordable car insurance in Texas isn’t about choosing the cheapest possible plan — it’s about getting maximum value for the lowest cost. By comparing quotes, using discounts, and choosing the right insurer for your needs, you can drive with peace of mind and money in your pocket.
Steve George is Blogger, a marketer and content writer. He has B.A. in Economics from the University of Washington. Read more about Mzuri Mag.
