For most Texas drivers, State Farm is the cheapest large insurer. It averages about $140 a month for full coverage and $56 a month for liability-only coverage, according to ValuePenguin’s October 2026 analysis. AAA, Geico and (for military families) USAA are close behind, but your own price depends on your ZIP code, record and credit, so use these averages as a shortlist and compare quotes.
Key takeaways
- Cheapest overall: State Farm, at an average of $140/month for full coverage and $56/month for minimum liability (ValuePenguin, Oct 2026).
- Cheapest in NerdWallet’s analysis: AAA (which NerdWallet lists as “Auto Club of SoCal”), at a median of $112/month ($1,349/year) for full coverage and $37/month for minimum coverage (NerdWallet, Oct 2026).
- Typical cost: Texas drivers pay an average of about $247/month for full coverage and $87/month for minimum coverage (ValuePenguin). NerdWallet’s estimate for full coverage is higher, at $304/month.
- Legal minimum: 30/60/25 liability coverage. All Texas policies include PIP and uninsured motorist coverage unless you turn them down in writing (Texas Department of Insurance).
- Shopping pays: Among the companies ValuePenguin compared, full coverage prices differed by $416 a month between the most and least expensive.
Cheapest car insurance companies in Texas
The table below lists ValuePenguin’s average Texas rates for its sample driver, a 30-year-old man with good credit and a clean record who drives a 2018 Honda Civic. “Full coverage” means 50/100/50 liability with collision and comprehensive coverage and a $500 deductible. “Minimum” means liability-only coverage. We calculated annual figures by multiplying ValuePenguin’s monthly averages by 12.
| Company | Full coverage (monthly) | Full coverage (annual, est.) | Minimum liability (monthly) | Minimum liability (annual, est.) |
|---|---|---|---|---|
| State Farm | $140 | $1,680 | $56 | $672 |
| Geico | $176 | $2,112 | $65 | $780 |
| AAA | $202 | $2,424 | $72 | $864 |
| Progressive | $283 | $3,396 | $102 | $1,224 |
| USAA* | $124 | $1,488 | $46 | $552 |
| Texas average | $247 | $2,964 | $87 | $1,044 |
Source: ValuePenguin, Cheapest Car Insurance in Texas (updated Oct. 13, 2026; Quadrant Information Services data). *USAA is available only to current and former military members and their families. These are averages; your quote will differ.
A second opinion: NerdWallet’s Texas rankings
Different studies use different sample drivers and coverage levels, so the rankings change. NerdWallet’s October 2026 analysis uses a 35-year-old driver with a 2023 Toyota Camry, 100/300/50 liability and $1,000 deductibles. It found these as the cheapest options:
| Company | Full coverage (median monthly) | Minimum coverage (median monthly) |
|---|---|---|
| AAA (Auto Club of SoCal) | $112 | $37 |
| State Farm | $150 | $43 |
| Germania | $190 | Not in top 5 |
| Geico | $210 | $58 |
| Allstate | $237 | $58 |
Source: NerdWallet, The Cheapest Car Insurance in Texas (rates refreshed Oct 2026; Quadrant Information Services data). Dairyland ($84/month) was fifth for minimum coverage.
The two studies agree on the main point. State Farm, AAA and Geico are consistently among the cheapest in Texas, and USAA is very competitive for drivers who qualify. Make sure your quote list includes all three, plus USAA if you’re eligible.
Cheapest car insurance in Texas by driver profile
Teen and young drivers
ValuePenguin found that Geico was the cheapest for 18-year-olds, at an average of $161 a month for liability-only coverage and $390 a month for full coverage. State Farm was close behind, at $187 and $397. NerdWallet’s analysis of 20-year-olds found AAA cheapest at $213 a month for full coverage, followed by Geico at $313. Adding a teen to a parent’s policy is usually cheaper than buying the teen a separate policy, according to the Texas Department of Insurance.
Senior drivers
Among 70-year-olds with good credit and clean records, NerdWallet found AAA cheapest for full coverage at a median of $98 a month. State Farm was next at $143, followed by Germania at $171. For minimum coverage, AAA ($39) and State Farm ($45) were cheapest. Rates usually keep falling into your 60s. Experian’s Texas marketplace data shows a small rise again for men in their 70s.
After a speeding ticket
State Farm has the cheapest full coverage after a ticket at $140 a month, according to ValuePenguin. That’s less than half the state average of $297 for drivers with a ticket. ValuePenguin found that one speeding ticket raises Texas rates by about 20% on average, but some insurers, including State Farm, may not raise your rate at all. NerdWallet also found State Farm cheapest after a ticket, at $172 a month for full coverage.
After an at-fault accident
State Farm was also cheapest after an accident in ValuePenguin’s data, at $163 a month for full coverage, about half of Geico’s $307. ValuePenguin found that one at-fault accident raises Texas rates by about 55% on average. In NerdWallet’s data, AAA ($191) and State Farm ($193) were almost tied. Your insurer generally won’t raise your rate until the policy renews, so start shopping when you receive the renewal offer.
After a DUI
ValuePenguin found State Farm cheapest after a DUI, at $142 a month for full coverage. NerdWallet’s figure for State Farm was $251. Drivers with a DUI may need an SR-22 certificate. ValuePenguin says insurers usually charge $15 to $50 to file one, on top of any rate increase.
Bad credit
Texas insurers can use a credit-based insurance score, but TDI rules say they can’t turn you down or charge you more only because of your credit score. Credit still makes a big difference in price. ValuePenguin found that Texas drivers with poor credit pay about twice as much as drivers with good credit. AAA was cheapest in that group at $337 a month for full coverage, followed by Progressive at $398. NerdWallet’s poor-credit numbers also put AAA first, at $188 a month, ahead of Allstate at $237. Here, State Farm moves from cheapest to one of the most expensive options: ValuePenguin’s poor-credit figure for State Farm is $1,035 a month.
Cheapest car insurance in major Texas cities
Where you park your car is one of the biggest factors in your rate. The table compares ValuePenguin’s average full coverage rates with the cheapest company it found in each city. For another view, it also shows NerdWallet’s cheapest clean-record full coverage rate.
| City | Avg. full coverage (ValuePenguin, monthly) | Cheapest (ValuePenguin) | Cheapest (NerdWallet, median annual) |
|---|---|---|---|
| Houston | $270 | State Farm, $168/mo | AAA, $1,990/yr |
| Dallas | $275 | State Farm, $171/mo | AAA, $1,764/yr |
| San Antonio | $242 | State Farm, $150/mo | AAA, $1,633/yr |
| Austin | $228 | State Farm, $144/mo | AAA, $1,539/yr |
| Fort Worth | $232 | State Farm, $148/mo | AAA, $1,593/yr |
| El Paso | $230 | State Farm, $142/mo | AAA, $1,586/yr |
Sources: ValuePenguin (Oct 2026); NerdWallet (Oct 2026). The two studies use different driver profiles, so compare rows within one column, not across columns.
Dallas and Houston are the most expensive of the six in both studies. ValuePenguin found the state’s highest average rate in North Houston, at $296 a month, and the lowest in the small West Texas city of Marfa, at $191. Experian’s September 2026 marketplace data shows the same order. Houston has the highest average premium of the large cities it tracks ($2,696 a year), and Austin has the lowest ($2,151).
Texas car insurance requirements
According to the Texas Department of Insurance (TDI), every driver must be able to pay for accidents they cause. Most drivers meet this requirement with liability insurance at or above the state minimum, called 30/60/25:
- $30,000 for bodily injury per person
- $60,000 for bodily injury per accident
- $25,000 for property damage per accident
Every Texas auto policy also includes personal injury protection (PIP), and insurers must offer uninsured/underinsured motorist coverage. To decline either one, you must tell the company in writing. If you have a car loan or lease, your lender will require collision and comprehensive coverage.
TDI warns that the minimum limits “might be too low” if you cause a crash involving several vehicles or total someone’s car. A new pickup can easily cost more than $25,000. If you can afford it, buy higher liability limits. Once you get past the state minimum, raising your limits often costs relatively little.
Driving without insurance has real penalties. ValuePenguin’s summary of Texas law lists a $175–$350 fine for a first offense. A second offense brings a $350–$1,000 fine and a two-year SR-22 requirement. Insurers report policies to TexasSure, the state’s insurance verification database, so police can check coverage during a traffic stop.
Why car insurance rates in Texas keep rising
Texas premiums rose sharply after the pandemic. TDI data reported by KVUE shows the average auto rate rose nearly 24% in 2022 and more than 25% in 2023. ValuePenguin estimates that the cost of Texas car insurance rose 45% between 2019 and 2024. The main reasons:
- Hail, flooding and storms. The Texas Coalition for Affordable Insurance Solutions, using TDI data, calls flooding and hail damage the biggest drivers of Texas auto claims. Comprehensive coverage pays for this damage.
- Repair and claim costs. High inflation, parts shortages and high-tech cars that cost more to fix pushed claim costs up. In 2022, insurers’ combined ratio in Texas was 112.4, which means they paid out more than they collected. It fell to 91.1 by 2024 (TCAIS/TDI data).
- Uninsured drivers. The Insurance Research Council estimates that 14.5% of Texas motorists were uninsured in 2023 (Triple-I). Insured drivers help pay for those crashes through uninsured motorist coverage.
- Theft and traffic. Experian, citing the National Insurance Crime Bureau, reports that Texas ranks second in the country for auto theft. Heavy traffic in Houston, Dallas–Fort Worth and Austin also raises accident risk.
There are signs the increases are slowing. ValuePenguin’s review of 2026 rate filings shows mixed changes at major Texas insurers. Geico had the largest increase (+5.4%), while Farmers (−3.8%), State Farm (−3.1%) and Progressive (−2.1%) filed decreases. Because a filing may apply only to some drivers, your renewal can still go up.
Legitimate car insurance discounts in Texas
Each insurer chooses its own discounts and how much they’re worth. TDI lists these common ones:
- Safety features: airbags, anti-lock brakes and anti-theft devices.
- Driver training: finishing a defensive driving or driver education course.
- Multi-car: insuring more than one vehicle on the same policy.
- Bundling: buying home, renters or other policies from the same company.
- Clean record: no claims and a good driving record.
There are also two big ones to ask about. Good student discounts usually require a B average or better. Usage-based (telematics) programs track your driving through an app or device. ValuePenguin reports that State Farm’s Drive Safe & Save offers up to 30% off and won’t raise your rate for a poor driving score. Other programs may work differently, so read the terms first. Be wary of any “discount” that removes PIP or uninsured motorist coverage to make a quote look cheaper. That cuts coverage. It isn’t a discount.
How to compare car insurance quotes in Texas
- Choose your coverage first. Pick your liability limits, deductibles, and whether you’ll keep PIP and uninsured motorist coverage. Then quote the same coverage with every company so the prices are comparable.
- Get at least three quotes. Include State Farm, Geico and AAA, plus USAA if you’re eligible. If your situation is unusual, add a regional insurer such as Germania or Texas Farm Bureau, or an independent agent who works with several companies.
- Check your records. Insurers use your driving record and your CLUE claims report. TDI says you can get one free CLUE report a year from LexisNexis (866-312-8076).
- Use the state’s tools. On HelpInsure.com, run by TDI and the Office of Public Insurance Counsel, you can compare insurers and see which ones use credit. TDI also has a complaint lookup.
- Think about a 12-month policy. NerdWallet notes that a 12-month term locks in your rate for longer than a six-month policy does.
- Re-shop every year and after any big change. Moving, adding a teen driver, or a ticket dropping off your record can all change which insurer is cheapest.
If two companies turn you down, TDI says you can get basic liability coverage through the Texas Automobile Insurance Plan Association (TAIPA). It costs more and doesn’t offer collision or comprehensive coverage.
Our methodology
Prime Capital Report doesn’t collect insurance quotes itself. For this guide, we gathered and compared current published rate studies. All rate figures are averages or medians from the source named next to them. Your own quote will differ.
- Main rate data: ValuePenguin (updated Oct. 13, 2026). It analyzed 465,696 quotes from six large Texas insurers across 2,040 ZIP codes, using Quadrant Information Services data from insurers’ rate filings.
- Second rate source: NerdWallet (rates refreshed Oct 2026). It covers 17 Texas insurers using Quadrant data, with median rates for a 35-year-old base driver. Seniors are modeled at age 70 and young drivers at age 20.
- Market and trend data: Experian (marketplace policies and quotes, Sept 2026), TDI, TCAIS, and the Insurance Research Council through Triple-I.
- Legal requirements: the Texas Department of Insurance auto insurance guide.
Annual figures marked “est.” are monthly averages multiplied by 12. We don’t mix sources within a single ranking, because each study uses a different driver profile. Companies with eligibility limits, such as USAA, are marked. We’ll update this page when the sources refresh their data.
Related guides
Frequently asked questions
What is the cheapest car insurance company in Texas?
For most drivers, State Farm is the cheapest large insurer in Texas. ValuePenguin’s October 2026 averages are $140 a month for full coverage and $56 for minimum liability. NerdWallet’s October 2026 analysis ranked AAA cheapest, at a median of $112 a month for full coverage. If you’re in a military family, USAA is often cheaper still.
How much is car insurance in Texas per month?
ValuePenguin puts the Texas average at about $247 a month for full coverage and $87 a month for minimum liability coverage. NerdWallet’s full coverage estimate, which uses higher liability limits, is $304 a month. Experian’s average for policies sold through its marketplace is $194 a month.
What is the minimum car insurance required in Texas?
Texas requires 30/60/25 liability coverage. That’s $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage. Policies include PIP and uninsured/underinsured motorist coverage unless you decline them in writing.
Which Texas city has the cheapest car insurance?
Among the six largest cities, Austin and El Paso have the lowest average full coverage rates in ValuePenguin’s data, at about $228 and $230 a month. Dallas ($275) and Houston ($270) are the most expensive. Statewide, ValuePenguin found the lowest average in Marfa ($191 a month).
Who has the cheapest car insurance in Texas after an accident?
ValuePenguin found State Farm cheapest after an at-fault accident, at $163 a month for full coverage. NerdWallet had AAA ($191) and State Farm ($193) almost tied. One at-fault accident raises Texas rates by about 55% on average, according to ValuePenguin.
Can Texas insurers use my credit score?
Yes. Insurers can use a credit-based insurance score to set prices, but they can’t turn you down or charge you more based only on your credit score. If you have poor credit, AAA was the cheapest option in both ValuePenguin’s and NerdWallet’s analyses.
Why is car insurance so expensive in Texas?
Hail and flood claims, higher repair costs, uninsured drivers (an estimated 14.5% in 2023), auto theft, and heavy traffic in big cities all raise Texas premiums. TDI data shows average auto rates rose about 24% in 2022 and 25% in 2023. Filings for 2026 are more mixed.
What if no insurance company will cover me in Texas?
If two companies have turned you down, you can get basic liability, PIP and uninsured motorist coverage through the Texas Automobile Insurance Plan Association (TAIPA) by contacting an agent. TAIPA coverage costs more and doesn’t include collision or comprehensive coverage.
Sources
- ValuePenguin, “Cheapest Car Insurance in Texas (Best Rates in 2026),” updated Oct. 13, 2026: https://www.valuepenguin.com/car-insurance-rates-texas-study
- NerdWallet, “The Cheapest Car Insurance in Texas,” rates refreshed Oct 2026: https://www.nerdwallet.com/insurance/auto/cheap-car-insurance-texas
- Experian, “Average Cost of Car Insurance in Texas for 2026,” Sept. 9, 2026: https://www.experian.com/blogs/ask-experian/average-cost-car-insurance-texas/
- Texas Department of Insurance, “Auto insurance guide,” last updated Dec. 11, 2025: https://www.tdi.texas.gov/pubs/consumer/cb020.html
- Texas Coalition for Affordable Insurance Solutions, “Auto Insurance Loss Data” (TDI data), May 2026: https://www.tcais.org/loss-ratios/auto-data-2026.pdf
- Insurance Information Institute (Triple-I), “Facts + Statistics: Uninsured motorists” (Insurance Research Council data): https://www.iii.org/fact-statistic/facts-statistics-uninsured-motorists
- KVUE, “Texas insurance rates soar as state lawmakers look for solutions” (TDI rate data), Nov. 21, 2024: https://www.kvue.com/article/money/texas-insurance-rates-increase/269-0ae265de-400b-4165-b8f4-5bb940d5b577
- HelpInsure.com (TDI and Office of Public Insurance Counsel): https://www.helpinsure.com/
Written by
Roberto Gomes, Founder and Editor
Roberto researches insurance and personal finance in the United States and Canada from insurers' policy documents, regulator data and public rate filings. He is not a licensed agent or adviser. How we research.