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Texas Car Insurance

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Here you will find out everything you need to know to buy car insurance in Texas. We explain Texas car insurance laws and provide average Texas auto insurance rates for your neighborhood. You’ll also learn how much car insurance you need for your particular situation. That means you’ll know what to expect when shopping for auto insurance in Texas – and you won’t overpay for it.

The average car insurance rate in Texas is $1,300 a year. Your age, your driving record, the model of car you have, the severity and frequency of claims in your neighborhood and other variables are used by insurance companies to figure out the cost of your policy. That’s why the price for the same coverage can vary significantly among insurance companies — and why you should compare rates. For example, in Dallas ZIP code 75242, the highest rate among six carriers is ($2,937) is nearly three times as much as the lowest ($1,072). If you want to compare car insurance quotes, use our tool. Enter a ZIP code to see the average premium for the location. You will also see the highest and lowest rates from the six major carriers surveyed. You can get a more customized rate by choosing from among six age groups and three coverage levels. This way you can tell if your quotes are too high and if you should keep shopping for a lower rate.

Cheap car insurance in Texas

Texas car insurance requirements

State law requires the following coverages:  
Minimum bodily injury liability $30,000/$60,000
Minimum property damage liability $25,000
Uninsured/underinsured motorist bodily injury $30,000/$60,000
Uninsured motorist property damage $25,000 ($100 deductible)

Texas car insurance laws mandate that drivers carry minimum liability coverage limits of 30/60/25 on their vehicle. Buying the state required limits to drive is definitely the cheapest way to go. But if you opt for the cheapest car insurance in Texas, you are only covered for damage you do to other drivers’ cars and for others’ injuries. That means your insurer won’t pay for damage to your car or for your injuries if you cause an accident. Still, buying just the minimum coverage required is a good idea if you have an old car or don’t drive much.

It does cost more to buy more protection, but as you’ll see in the chart below, additional coverage is typically affordable. Increasing your insurance from the state minimum to full coverage with a $500 deductible costs, on average, $835 more, or $70 a month. For higher liability limits, the extra cost is just $23 a year.

Coverage limits Average annual rate
Liability Only – state minimum $465
Liability Only - 50/100/50 BI/PD $488
Full Coverage - 100/300/100 BI/PD
$500 Comp/Collision deductible
$1,300

*The table shows the average annual rate of nearly every ZIP code in Texas from up to six major insurance companies. Rates are for a male driver, age 40, with a clean record and good credit for a 2016 Honda Accord. Data was provided for CarInsurance.com by Quadrant Information Services.

Recommended car insurance coverage

The cheapest car insurance may not provide sufficient protection, so how much insurance should you buy? Bare-bones coverage may be a good choice if you have few assets or have an old car and don’t drive much. But if you have a home and investments, consider buying more insurance. If you don’t, you’re at risk for having your money and house taken to cover the cost of an accident. If you financed your car you will be required to get additional comprehensive and collision coverage.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.

AGE
STATE
VEHICLE MODEL YEAR
OWN RENT
OWNED FINANCED LEASED

Liability

We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and for damages from vandalism, flooding, hail, fire and animal strikes. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

If you buy comp and collision, check our guide to choosing a deductible amount.

Uninsured/underinsured motorist

These are both optional coverages and should match the liability limits you choose. Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, up to $25,000. In most states, including Texas, it's an optional addition to your car insurance policy. MedPay does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.
  • Do have health insurance, it’s still a good idea to have medical coverage if you want the best protection in your policy, as it can pay out after your health benefits are maxed out.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Texas car insurance rates by company

Below you'll see average annual rates for Texas, ranked cheapest to most expensive, for three coverage levels:

  • State minimum liability requirements
  • Liability limits of $50,000 per person/$100,000 per accident and $50,000 property damage
  • Liability of $100,000 per person/$300,000 per accident and $100,000 property damage, with comprehensive and collision at $500 deductible

Company State minimum average annual rate
Geico $348
Farmers $370
State Farm $438
Allstate $475
Nationwide $527
Progressive $629
Company 50/100/50 average annual rate
Geico $346
Farmers $383
State Farm $489
Allstate $495
Nationwide $550
Progressive $667
Company 100/300/100 average annual rate
Farmers $905
Geico $1,027
Nationwide $1,247
Progressive $1,328
State Farm $1,348
Allstate $1,949

Best car insurance companies in Texas

Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.

 

Best customer service:

  1. USAA – 100
  2. State Farm – 92
  3. Allstate – 91.8
  4. Nationwide – 90.4
  5. Geico – 88.7

Best claims service:

  1. USAA – 100
  2. Liberty Mutual – 96
  3. Geico –93.9
  4. Progressive – 92.5
  5. State Farm – 91.8

 

Best value for the price:

  1. USAA – 91.3
  2. Progressive – 86.3
  3. State Farm – 84.6
  4. Nationwide – 83.2
  5. Geico – 81.1

 

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Largest car insurance companies in Texas

Rank Company Name Direct premiums written Market share % Overall Customer Review Ranking 
1 State Farm Group 3,168,382 18.7% 90.4
2 Allstate Insurance Group 2,039,446 11.7% 87
3 Geico 1,770,417 10.15% 88.1
4 Farmers Insurance Group 1,719,971 9.86% 81.1
5 Progressive Group 1,499,218 8.6% 89.6
6 USAA Group 1,338,844 7.68% 97.2
7 Home State Insurance Group 705,717 4.05% n/a
8 Texas Farm Bureau Group 631,629 4.8% n/a
9 Liberty Mutual Insurance Companies 510,297 2.93% 86.4
10 Nationwide Group 505,297 2.9% 89

Source: A.M. Best market share rankings are based on direct premiums written in 2015.

Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores out of 100.

Car insurance for cities in Texas 

Find out what the most expensive and the cheapest car insurance rates are by ZIP code, as well as how they compare statewide.

Houston car insurance

San Antonio car insurance

Texas car insurance laws and resources

Driving without insurance

You may be fined $350 and you may be required to file an SR-22 form.

Mandatory discount for drug and alcohol awareness

Texas requires a 5 percent discount when the principal driver on a policy completes a drug and alcohol awareness training class.

Driving without a license

A first-time offense will get you a fine of up to $200. Third-time offenses can bring the penalty to $500 plus jail time of 72 hours to six months. In addition, Texas' Driver Responsibility Program will charge you an additional $100 per year for three years.

No grace period

In Texas, there is no 30-day grace period after buying a car before you have to obtain insurance.

No age restriction for vehicle ownership

In Texas, there is no age restriction to own and register a car, but proof of financial responsibility (liability insurance) is required to obtain registration.

Motorcycle helmets

Texas' mandatory motorcycle helmet law was repealed in 1997, but exceptions remain for riders under 21 or those who lack health insurance.

Electronic proof of insurance

Texas is one of 48 states that allow drivers to show proof of insurance during a traffic stop on a smartphone.

Comprehensive coverage recommended due to hailstorms

Texas gets more hailstorms than any other state in the country, and only comprehensive coverage will handle hail damage claims.

STATE CAR INSURANCE REQUIREMENTS

To drive legally in Texas, you must have liability insurance with at least limits of:

30 / 60 / 25

Bodily injury liability limits of $30,000 per person you injure in an accident, up to $60,000 per accident, and property damage liability of $25,000. In addition, Texas requires uninsured/underinsured motorist coverage with:

30 / 60 / 25

Click here for an explanation of liability requirements numbers

HOW MUCH IS CAR INSURANCE IN TEXAS? The average car insurance rate in Texas is
$1,300 per year
26th most expensive state in the U.S.
"Tort" Insurance Law
Texas has a tort insurance system. After a car insurance claim, someone is found responsible for damages and their insurance company must step in. Responsibility for an accident can be evenly split between parties.
DRIVING IN TEXAS
In our independent study of the best and worst states for driving, Texas was the
28TH BEST STATE
$1.87 is the average price of a gallon of gasoline (10th cheapest in the U.S.)
38% percent of roads are in poor or mediocre condition (11th best in the U.S.)
13.3% of the drivers on the roads are uninsured
13.1 traffic-related deaths per 100,000 population
61 hours of commuter delay per year in the state's most congested city, Houston

Full report: Best and worst states for driving