Texas Car Insurance: Cheap Deals in 2025

Here at ThinkSaveRetire, we've analyzed the latest data to bring you cheap car insurance in TX, 2025. We'll help you get great rates and save, on average, hundreds of dollars a year.

Texas drivers pay an average of $2,505 per year for full coverage car insurance, or $209 per year for minimum coverage. Compared to other states, this isn’t too bad. However, with ThinkSaveRetire, you can find the best deals on insurance and save money.

If you’re looking for cheap car insurance in Texas, below are the most affordable options to consider.

Legal Requirements for Car Insurance in TX

As of 2025, the legal requirements for car insurance in Texas are as follows:

• $30,000 bodily injury liability insurance per person
• $60,000 bodily injury liability insurance per accident (total for all people injured in one accident)
• $25,000 property damage liability per accident

This liability car insurance covers a range of factors, such as:

• Medical expenses, most wages, pain and suffering, and funeral costs if you're in an at-fault accident.
• Damage to other vehicles or property due to an at-fault accident.

Important note - This is the minimum insurance required in Texas. It’s wise to have additional coverage beyond this. This insurance does not cover vehicle damage or injuries to yourself unless you purchase optional insurance coverages such as collision insurance or comprehensive insurance.

By law, insurance companies in Texas must also offer:

• Uninsured/underinsured motorist (UM/UIM) coverage
• Personal injury protection (PIP) coverage of $2,500

If you refuse to drive without the minimum liability insurance in Texas, this can result in fines ranging from $175 to $1,000 (depending on the offense), driver’s license suspension, and more.

What Drives Up Car Insurance Prices in Texas

Based on the latest data for 2025, Texas is one of the most expensive areas for full coverage car insurance and minimum coverage across all 50 US states. There are several factors that drive up car insurance costs in Texas, and they are as follows:

Weather

Drivers in states with severe weather will see higher auto insurance rates. This is due to the potential damage severe weather events, like hailstorms, floods, and wildfires, can cause. If you live on the Gulf, you’ll likely pay more for car insurance because of the potential for hurricanes along the coast.

Car Theft Rates

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

According to 2024 - 2025 data, Texas ranks 7th to 9th nationally for 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, such as Dallas, Houston, and Austin, are more likely to see higher premiums.

That said, it's still possible to get cheap Texas car insurance.

Cheapest Car Insurance, Texas

It's still possible to get affordable car insurance in Texas. Below are the top providers offering cheap auto insurance in Texas. To find the most affordable rate based on your unique driver profile, we'll help you compare auto insurance rates across multiple providers at once.

1. 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 $358 for minimum ($30 monthly) and $1,101 maximum ($92 monthly).

Texas Farm Bureau Insurance has been rated #1 in customer satisfaction for auto insurers in Texas for 11 consecutive years, according to J.D. Power studies.

2. USAA

USAA is the primary insurance provider for military members and their families, so it isn’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 $1,674 per year for full cover, or $140 per month. For minimum coverage, the average is $489 per year, or $41 per month.

3. State Farm

State Farm is an insurance company known for its wide range of fantastic discounts, including safe driving, student performance, vehicle safety features, multi-policy bundling, and more. It also offers the cheapest rates for senior drivers over 70 in Texas. You're looking to pay $2,071 for maximum coverage ($173/month) and $547 for minimum ($46/month).

4. AmTrust Insurance

AmTrust is the third-largest writer of workers’ compensation insurance in the United States. If you choose this company, you'll pay an average of $766 for minimum coverage ($64 a month) or $2,044 ($170) for full cover.

5. Mercury Insurance

Mercury Insurance is known for putting all its focus on the customer. They offer competitive premiums and are especially attractive if you're a young driver. Premiums average out at $823 for minimum coverage ($69) and $2,539 ($211) for full.

6. National General

National General is a fantastic provider if you want to invest in multiple coverages (liability, collision, comprehensive, etc) or want unique add-ons such as roadside assistance, rental reimbursement, and lifetime repair guarantees. With a min coverage of $826 yearly and $69 a month, and a full coverage average of $2,426 yearly and $202 monthly, they're one of the most affordable options in Texas.

7. Progressive

Progressive offers minimum annual premiums at an average of $935 ($78 monthly) and maximum coverage at $2,577 ($215 monthly). They reward safe driving through their Deductible Savings Bank, which reduces the deductible by $50 for every six months a customer remains claim-free. They also have accident forgiveness programs that prevent premium hikes for small car accidents, which will put many drivers' minds at rest.

8. Geico

Among top auto insurance providers, Geico customers pay an average of $2,749 per year ($229/month) for full coverage car insurance and $939 per year ($78 per month) for minimum coverage.

Geico ranks among the top companies for the cheapest rates in multiple studies. Because Geico is so affordable, it might leave you thinking - is it good? Geico has mixed reviews, just like any other insurance company. Many customers say they’re treated like VIPs and save hundreds per year on their policy.

Check Out Our Full Review on Geico

Optional Coverages For Cheap Auto Insurance, Texas

As well as paying for the minimum liability car insurance according to Texas law, you can also choose to invest in optional coverages, depending on your needs. These additional coverages will offer you extra financial protection and better peace of mind. Optional coverages are as follows:

• Collision Coverage: This type of insurance is designed to repair or replace your car after a collision, regardless of who was at fault.
• Comprehensive Coverage: This covers non-collision damage, such as theft, fire, vandalism, hail, flood, or hitting an animal.
• Medical Payments Coverage (MedPay): If you or your passengers are injured in a car accident, this cover pays for your medical bills, regardless of fault.
• Uninsured/Underinsured Motorist Coverage: Pays if you’re hit by an uninsured driver or a driver who doesn’t have enough coverage. In Texas, you're automatically offered this insurance, but you can decline it in writing.
• Personal Injury Protection (PIP): This covers medical expenses, some lost wages, and certain non-medical costs. In Texas, insurers automatically include PIP, but you can decline it in writing.
• Roadside Assistance: This covers minor mechanical problems, flat tires, battery jumps, lockouts, and similar issues.
• Rental Reimbursement Coverage: This pays for a rental car while your car is being repaired after a covered claim.
• Gap Insurance: If your car is totaled but you owe more on your loan than what the car is worth, this insurance will pay the difference, or "gap."
• Rideshare Driver Coverage: If you drive for companies like Uber or Lyft, this may be available from some insurance companies.

How to Lower Your Car Insurance Premiums

Although you'll want to compare quotes and choose the most affordable insurance provider, there are a few additional ways to lower your premiums:

Choose Less Coverage

There are four standard types of coverage in Texas, and each contributes to the overall cost:

• Bodily Injury Liability: This type of insurance covers the cost of medical expenses and lost wages for people injured in an at-fault car accident.
• Property Damage Liability: If there is vehicle and property damage due to an accident you caused, this insurance will cover it.
• Collision Coverage: Covers the cost to repair your vehicle after hitting another vehicle or object, regardless of who is at fault.
• Comprehensive Coverage: This 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. By law, Texan insurers have to offer additional coverages, such as PIP, which you can refuse in writing.

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

You may have multiple insurance policies, such as home and life insurance, as well as auto insurance. One of the best ways to save on costs is by bundling them. This involves opening different policies under the same insurance provider, as opposed to having each policy at a different provider. Due to your loyalty and repeat business, insurance companies will typically offer a bundling or multi-policy discount.

Explore Discounts

Many insurance providers in Texas offer additional discounts, such as:

• Safe Driver Discount: Some companies reward good driving behavior. If you have a clean driving record, you may receive a 10% to 30% discount on your premiums.
• Multi-Car Discounts: If you insure multiple cars on the same policy, you may receive a 10% to 30% discount.
• Good Student Discount: Young drivers typically receive higher premiums. However, some auto insurance providers offer good student discounts. If you're a student driver and you earn a high GPA, you may receive a 10% to 25% discount.

Ask your insurance provider about any discounts they provide.

Frequently Asked Questions on Cheap Car Insurance, Texas

Is Car Insurance Cheap in Texas?

Texas ranks around 43rd in affordability in the US for full coverage auto insurance. This makes it one of the more expensive states.

How much should car insurance cost in Texas?

Based on Experian data, the average cost of car insurance in Texas in 2025 is approximately $2,505 per year or about $209 per month. This national average reflects a range of coverage types and driver profiles.

However, if you have a poor driving history or live in one of the largest cities in Texas, you may end up paying more.

Who provides the cheapest auto insurance, Texas?

We found that Texas Farm Bureau offered the cheapest average auto insurance in Texas, followed by USAA.

Is car insurance cheaper in Texas than California?

Full coverage car insurance is generally less expensive in Texas than in California, but it’s the opposite for minimum coverage insurance, where the rates are slightly higher in TX, but not by a large margin.

Keep in mind that insurance in Texas will also vary from place to place. Big cities (like San Antonio or Fort Worth) will deliver higher premiums, where car theft and accidents are higher, but in rural areas, costs may be lower.

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, at $4,362 per year on average for full coverage and $2,806 per year for minimum coverage, according to 2025 data.