Texas drivers pay an average of $2,938 per year for full coverage car insurance—$650 per year for minimum coverage. Compared to other states, this isn’t too bad. However, there are more affordable options on the market.

If you’re looking for cheap car insurance in Texas, below are the most affordable options to consider. We’ll also share a few ways to lower your car insurance even more.

What Drives Up Car Insurance Prices in Texas

Across all 50 US states, Texas is the 8th most expensive for full coverage car insurance and 16th most expensive for minimum coverage. There are several factors landing Texas this high up on the leaderboard.

Weather

Drivers in states with severe weather will see higher auto insurance rates. This is due to the potential damage severe weather events can cause.

If you’re located on the Gulf, you’ll likely have higher auto insurance premiums because of the potential for hurricanes along the coast.

Car Theft Rates

When something happens to your vehicle and you file a claim, the insurance company has to pay up. In states where the risk of damage is higher, insurance companies charge higher premiums to cover these costs.

Unfortunately, Texas ranks #2 for the state with the highest number of vehicle thefts. This likely increases the car insurance premiums Texans see.

Where You Live

Drivers living in urban neighborhoods often pay more for car insurance. This is because densely-packed areas tend to have higher rates of vehicle theft and vandalism. In Texas, drivers in the major cities—Dallas, Houston, Austin—may see higher premiums.

Cheapest Car Insurance Providers in Texas

Below are five providers offering cheap auto insurance in Texas. To find the most affordable rate based on your unique driver profile, compare auto insurance rates across multiple providers at once.

Texas Farm Bureau

Founded in 1952, Texas Farm Bureau Insurance provides residents of the Lone Star State with  affordable auto, home, farm, commercial, and life insurance. Their auto insurance policies cost an average of $87 per month, or $1,041 per year.

Texas Farm Bureau Insurance has been rated #1 in customer satisfaction for auto insurers in Texas 12 of the last 13 years. However, their reviews on Yelp and the Better Business Bureau aren’t the best.

Geico

Among top auto insurance providers, Geico ranks as the most affordable for both full coverage and minimum coverage auto insurance. Geico customers pay an average of $2,447 per year ($203/month) for full coverage car insurance and $683 per year ($56 per month) for minimum coverage.

Because Geico is so affordable, it might leave you thinking—Is it good? Geico has mixed reviews just like any other insurance company. While some customers complain of poor customer service and little savings, others say they’re treated like VIPs and save hundreds per year on their policy.

USAA

USAA is the primary insurance provider for military members and their families, so they aren’t available to everyone. However, if you’re a military member or relative of one, you could see savings of around $725 by switching to USAA.

USAA charges an average of $2,563 per year for full coverage insurance, or $213 per month. For minimum coverage, the average is $635 per year, or $52 per month.

American Family

American Family is another affordable option, with full coverage insurance costing an average of $2,598 per year or $216 per month. For minimum coverage, their average rate is $984 per  year, or $82 per month.

Travelers

With a Consumer Affairs rating of 3.9 out of 5, Travelers is one of the higher-rated companies on the list we’ve shared. Combined with their affordable rates, they’re a good mix of cost and quality.

Travelers has an average annual rate of $3,287 per year, or $273 per month, for full coverage insurance. For minimum coverage, their average rate is $861 per year, or $71 per month.

How to Lower Your Car Insurance Premiums

Beyond picking an affordable insurance provider, there are a few additional ways to lower your premiums.

Opt for Less Coverage

There are four standard types of coverage, each adding to the overall cost:

• Bodily Injury Liability: Covers the cost of medical expenses and lost wages for people injured in an accident you caused
• Property Damage Liability: Covers the cost to repair property and vehicles damaged in an accident you caused
• Collision Coverage: Covers the cost to repair your vehicle after hitting another vehicle or object, regardless of who is at fault
• Comprehensive Coverage: Covers the cost to repair your vehicle after a non-collision event, like theft, vandalism, or weather-related accidents

The more coverage you have, the more expensive your premiums will be. If your premiums are breaking the bank, it’s worth considering which coverage is essential and which you could do without.

In Texas, you’re required to carry at least 30/60/25 liability coverage:

• At least $30,000 of coverage for injuries per person
• Up to a total of $60,000 per accident
• $25,000 of coverage for property damage

Keep in mind that this is the minimum required in Texas—it’s wise to have additional coverage beyond this. Before downgrading your plan, consider how much coverage aligns with your budget and doesn’t sacrifice your peace of mind on the road.

Bundle with Other Insurance Policies

If you have multiple insurance policies—home, auto, life—one of the easiest ways to save is to bundle them. Bundling is the process of opening different policies under the same insurance provider, as opposed to having each policy at a different provider.

This gives insurance companies more business. In exchange, they typically offer a bundling or multi-policy discount. Here’s what the insurance providers listed above offer:

• Texas Farm Bureau: Up to 15%
• Geico: Up to 25%
• USAA: Up to 10%
• American Family: Up to 25%
• Travelers: Up to 15%

Explore Discounts

Many insurance providers offer additional discounts, such as:

• Safe Driver Discount: Drivers with clean driving records may receive a 10% to 30% discount on their premiums.
• Multi-Car Discounts: If you insure multiple cars on the same policy, you may receive a 10% to 30% discount.
• Good Student Discount: While young drivers typically receive higher premiums, some auto insurance providers offer good student discounts. If the student driver earns a high GPA, they may receive a 10% to 25% discount.

Ask your insurance provider about any discounts they provide.

Frequently Asked Questions

Is Car Insurance Cheap in Texas?

Texas is the 8th most expensive state for full coverage auto insurance. This makes car insurance in Texas more expensive than 42 other states.

How Much is Car Insurance in Texas Per Month?

Full coverage car insurance in Texas costs an average of $2,938 per year, or $244 per month. Minimum coverage insurance costs an average of $650 per year, or $54 per month.

Is Car Insurance Cheaper in Texas Than California?

Full coverage car insurance is more expensive in Texas than in California, but it’s the opposite for minimum coverage insurance. For full coverage, Texas has an average rate of $2,938 per year while California has an average of just $2,462 per year. For minimum coverage, Texans pay an average of $650 per year while Californians pay an average of $764 per year.

Is Car Insurance Cheaper in Texas or Florida?

Car insurance is cheaper in Texas than in Florida. In fact, Floridians pay some of the highest rates across all states—$4,362 per year on average for full coverage and $1,286 per year for minimum coverage.