Partner content: This content was created by a business partner of Dow Jones, independent of the MarketWatch newsroom. Links in this article may result in us earning a commission. Learn More
Texas Farm Bureau offers the cheapest car insurance in Texas at average monthly rates of $40 for minimum coverage and $119 for full coverage
With our comparison partner, 
Key Takeaways:
While many like to say everything’s bigger in Texas, that doesn’t have to apply to auto insurance premiums. We at the MarketWatch Guides team researched the cheapest car insurance companies nationwide and have compiled our top picks for the state of Texas. In this article, we’ll also discuss cost breakdowns for different driver profiles and Texas car insurance requirements and regulations in more detail.
With our comparison partner,
Overall, Texas Farm Bureau has the cheapest car insurance rates in Texas for minimum liability coverage at $483 a year on average and full-coverage auto insurance at $1,427 per year.
Below is a breakdown of the cheapest car insurance rates in Texas for different coverage levels and driver profiles:
| Cheapest Car Insurance in Texas (by category) | Company | Average Monthly Premium |
| Minimum Liability Coverage | Texas Farm Bureau | $40 |
| Full Coverage | Texas Farm Bureau | $119 |
| Young Drivers | Redpoint County Mutual*** | $146** |
| Seniors | Texas Farm Bureau | $103** |
| After a Speeding Ticket | Texas Farm Bureau | $119** |
| After an Accident | Redpoint County Mutual | $143** |
| After a DUI | Redpoint County Mutual | $143** |
| Bad Credit | Redpoint County Mutual | $143** |
While these options are some of the cheapest in Texas, your quotes will differ based on many factors. To put this in perspective, we’ll break down the cheap pricing available with different ages, driving history, credit history and location.
Read more: Cheapest Car Insurance
Through our study of insurance pricing, we found these are the cheapest car insurance companies in Texas:
While these are the cheapest overall, services and resources for customers are different for large and smaller companies. We’ve broken down the cheapest large and midsized providers below.
State Farm, Geico, USAA, Allstate and Nationwide are the cheapest large insurance companies in Texas. Below we’ve summarized each:
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Texas.
Note: While USAA is the cheapest large insurance company, they are only available for military members and their families.
Read more: Largest Auto Insurance Providers
J.D. Power defines midsize insurers as those that have written between $1 and $4.499 billion in direct premiums for personal auto. The cheapest midsize insurance companies in Texas are Texas Farm Bureau, Redpoint Mutual and AAA. Below we’ve summarized the pricing information for each:
*Our research team considers nationwide factors when scoring providers. The ranking of providers in this table is specific to car insurance in Texas.
State Farm has the cheapest liability-only auto insurance in Texas, while Texas Farm Bureau has the cheapest full-coverage car insurance in the state. In the sections below, we’ll detail the cheapest options for minimum liability and full-coverage car insurance in Texas.
At average rates of $40 per month or $483 per year, Texas Farm Bureau offers the cheapest minimum liability car insurance rates in Texas.
| Cheapest Liability Insurance in Texas | Average Monthly Cost | Average Annual Cost |
| Texas Farm Bureau | $40 | $483 |
| State Farm | $50 | $606 |
| Redpoint County Mutual | $59 | $708 |
| Geico | $63 | $757 |
| *USAA | $52 | $622 |
Read more: Cheapest Liability-Only Vehicle Insurance
Texas Farm Bureau offers the cheapest full-coverage car insurance in Texas, at average rates of $119 per month or $1,427 per year.
| Cheapest Car Insurance in Texas | Average Monthly Cost | Average Annual Cost |
| Texas Farm Bureau | $119 | $1,427 |
| Redpoint County Mutual | $143 | $1,720 |
| State Farm | $190 | $2,285 |
| AmTrust Financial | $191 | $2,295 |
| *USAA | $189 | $2,265 |
Read more: Cheapest Full-Coverage Vehicle Insurance
We found that Redpoint County Mutual has the cheapest car insurance for both teen drivers and those aged 21 to 25. Below we’ve broken down the cheapest providers for both these age groups.
Redpoint County Mutual has the cheapest full-coverage car insurance in Texas for 16-year-olds at an average annual rate of $1,749.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $146 | $1,749 |
| Texas Farm Bureau | $255 | $3,054 |
| Geico | $486 | $5,826 |
| State Farm | $576 | $6,916 |
| AmTrust Financial Serv Grp | $598 | $7,181 |
Read more: Cheap Car Insurance for 16-Year-Olds
Redpoint County Mutual also has the cheapest car insurance for 17-year-olds in Texas.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $146 | $1,749 |
| Texas Farm Bureau | $210 | $2,514 |
| Geico | $450 | $5,399 |
| State Farm | $535 | $6,421 |
| USAA* | $417 | $5,000 |
Read more: Cheap Car Insurance for 17-Year-Olds
Redpoint again checks in with the cheapest full coverage for 18-year-old drivers in Texas.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $146 | $1,749 |
| Texas Farm Bureau | $199 | $2,385 |
| Geico | $415 | $4,976 |
| State Farm | $489 | $5,864 |
| USAA* | $374 | $4,486 |
Read more: Cheap Car Insurance for 18-Year Olds
For 19-year-olds, Redpoint has the cheapest full-coverage auto insurance at $1,749 per year.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $146 | $1,749 |
| Texas Farm Bureau | $189 | $2,269 |
| Geico | $351 | $4,214 |
| State Farm | $434 | $5,210 |
| USAA* | $331 | $3,975 |
Read more: Cheap Car Insurance for 19-Year Olds
Redpoint also has the cheapest full coverage for 21-year-old Texas drivers.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $146 | $1,749 |
| Texas Farm Bureau | $172 | $2,068 |
| Geico | $276 | $3,308 |
| State Farm | $322 | $3,865 |
| USAA* | $275 | $3,295 |
Read more: Cheap Car Insurance for 21-Year-Olds
Redpoint offers the cheapest full coverage policies to 25-year-old Texas motorists as well.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $146 | $1,749 |
| Texas Farm Bureau | $149 | $1,789 |
| Geico | $217 | $2,604 |
| State Farm | $220 | $2,643 |
| USAA* | $222 | $2,662 |
Read more: Cheap Car Insurance for 25-Year Olds
With our comparison partner,
By a large margin, Texas Farm Bureau offers the cheapest car insurance in Texas for seniors. In the tables below, we’ve broken down the top five companies for those aged 65 to 75.
Read More: Cheapest Car Insurance For Seniors
At average rates of $1,200 per year, Texas Farm Bureau offers the cheapest car insurance in Texas for 65-year-olds.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Texas Farm Bureau | $100 | $1,200 |
| Redpoint County Mutual | $146 | $1,749 |
| AmTrust Financial | $164 | $1,972 |
| State Farm | $168 | $2,020 |
| USAA* | $173 | $2,071 |
Texas Farm Bureau has the cheapest car insurance in Texas for 75-year-olds at an average yearly rate of $1,270.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Texas Farm Bureau | $106 | $1,270 |
| Redpoint County Mutual | $146 | $1,749 |
| AmTrust Financial | $180 | $2,155 |
| State Farm | $188 | $2,256 |
| Geico | $197 | $2,368 |
State Farm has the cheapest car insurance in Texas for high-risk drivers overall. Texas Farm Bureau also has some of the lowest rates for those considered to be high-risk policyholders. Such drivers could include those with speeding tickets, recent accidents or poor credit.
Read More: Cheap Car Insurance for High-Risk Drivers
At an average rate of $1,427 per year, Texas Farm Bureau offers the cheapest car insurance in Texas for those with a speeding ticket.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Texas Farm Bureau Insurance | $119 | $1,427 |
| Redpoint Insurance Group | $143 | $1,720 |
| State Farm | $190 | $2,285 |
| AmTrust Financial Serv Grp | $203 | $2,431 |
| USAA* | $214 | $2,567 |
Read More: Best Speeding Ticket Car Insurance
Redpoint County Mutual has the cheapest Texas car insurance for drivers with a recent accident with rates of $1,720 per year on average.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $143 | $1,720 |
| Texas Farm Bureau | $185 | $2,224 |
| State Farm | $222 | $2,660 |
| AmTrust Financial | $271 | $3,255 |
| USAA* | $293 | $3,521 |
Read More: What Is Accident Forgiveness Coverage?
Redpoint County Mutual also offers the cheapest full-coverage car insurance for Texas drivers with a DUI.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $143 | $1,720 |
| Texas Farm Bureau | $210 | $2,519 |
| AmTrust Financial | $236 | $2,835 |
| Progressive | $263 | $3,156 |
| USAA* | $287 | $3,442 |
Redpoint County Mutual offers the cheapest auto insurance in Texas for drivers with bad credit with average rates of $1,720 a year.
| Cheapest Car Insurance in Texas | Average Monthly Rate | Average Annual Rate |
| Redpoint County Mutual | $143 | $1,720 |
| Texas Farm Bureau | $276 | $3,313 |
| AmTrust Financial | $342 | $4,104 |
| Auto Club Enterprises | $345 | $4,144 |
| USAA* | $336 | $4,037 |
Read More: Cheapest Car Insurance For Bad Credit
The best way to find cheap car insurance in the state of Texas, like in any state, is to compare multiple providers and look for deals in your area. We also suggest talking to an insurance agent to learn more about how to save on auto insurance in the state.
Auto insurance providers determine your rates based on a variety of set variables when they give you a quote.
Here are the most influential factors insurance providers to determine premiums in Texas:
Read More: Compare Car Insurance
Below you can get personalized cheap auto insurance quotes for your location in Texas.
With our comparison partner,
Below are the car insurance discounts available from our top picks for the cheapest car insurance in Texas:
| Texas Car Insurance Discounts | State Farm | Geico | Travelers | Progressive | Allstate |
| Multi-policy | ✓ | ✓ | ✓ | ✓ | ✓ |
| Multi-vehicle | ✓ | ✓ | ✓ | ✓ | ✓ |
| Safe driver | ✓ | ✓ | ✓ | ✓ | ✓ |
| Good student | ✓ | ✓ | ✓ | ✓ | ✓ |
| Defensive driving | ✓ | ✓ | |||
| Driver training | ✓ | ✓ | ✓ | ||
| New vehicle | ✓ | ✓ | ✓ | ||
| Car safety equipment | ✓ | ✓ | ✓ | ||
| Loyalty | ✓ | ✓ | ✓ | ||
| Military | ✓ |
Here’s more information on the standard types of discounts offered by car insurance companies:
The cheapest car insurance companies in Texas include State Farm, Texas Farm Bureau, Geico, Redpoint County Mutual and USAA. Below, we go into more detail about each company’s offerings, reputation, customer ratings and history.
With our comparison partner,
The average estimated rate for full-coverage car insurance in Texas is $184 per month or $2,205 per year. State minimum coverage for Texas averages around $57 per month or $683 per year.
Rates will vary depending on many factors such as driving record, credit history, coverage level and location in Texas.
Read More: Average Car Insurance Cost
According to our findings, teen drivers pay far more for car insurance coverage in Texas than most other drivers. Full-coverage costs average around $5,993 per year for a 16-year-old, while a 35-year-old typically pays $3,156 per year on average.
| Age | Average Monthly Cost | Average Annual Cost |
| 16 | $499 | $5,993 |
| 17 | $451 | $5,418 |
| 18 | $421 | $5,047 |
| 19 | $438 | $5,251 |
| 21 | $373 | $4,481 |
| 25 | $287 | $3,439 |
| 35 | $263 | $3,156 |
| 45 | $235 | $2,815 |
| 55 | $220 | $2,636 |
| 65 | $226 | $2,712 |
| 75 | $262 | $3,143 |
In general, drivers in cities like Dallas and Houston tend to pay significantly more for car insurance than those who live in more rural areas. The table below shows the average monthly and annual costs for cities throughout Texas.
| City in Texas | Average Monthly Cost | Average Annual Cost |
| Cedar Park | $234 | $2,809 |
| Cypress | $236 | $2,835 |
| San Marcos | $238 | $2,858 |
| Fort Worth | $240 | $2,881 |
| Pflugerville | $242 | $2,909 |
| Mansfield | $243 | $2,911 |
| El Paso | $245 | $2,934 |
| League City | $245 | $2,936 |
| Allen | $246 | $2,948 |
| McKinney | $247 | $2,963 |
| Katy | $249 | $2,985 |
| Lewisville | $252 | $3,025 |
| Pearland | $254 | $3,044 |
| San Antonio | $261 | $3,136 |
| Brownsville | $263 | $3,153 |
| Spring | $263 | $3,153 |
| Pharr | $271 | $3,254 |
| Grand Prairie | $273 | $3,276 |
| McAllen | $273 | $3,276 |
| Arlington | $273 | $3,279 |
| Edinburg | $274 | $3,292 |
| Garland | $275 | $3,300 |
| Houston | $276 | $3,316 |
| Mesquite | $282 | $3,381 |
| Dallas | $299 | $3,591 |
Texas car insurance is about 18% more expensive than the national average of $2,681 for a year of full coverage. Minimum coverage in the Lone Star State is about 10% more expensive than the national average of $869 per year. Below, you can compare Texas car insurance costs to other states.
| State | Average Annual Minimum-Liability Premium | Average Annual Full-Coverage Premium |
| Alabama | $572 | $2,048 |
| Alaska | $506 | $2,116 |
| Arizona | $589 | $2,398 |
| Arkansas | $956 | $3,127 |
| California | $736 | $3,040 |
| Colorado | $750 | $3,010 |
| Connecticut | $1,179 | $2,699 |
| Delaware | $1,288 | $3,364 |
| Florida | $1,605 | $3,795 |
| Georgia | $1,256 | $2,907 |
| Hawaii | $455 | $1,581 |
| Idaho | $463 | $1,588 |
| Illinois | $823 | $3,054 |
| Indiana | $557 | $1,949 |
| Iowa | $456 | $1,994 |
| Kansas | $683 | $2,421 |
| Kentucky | $1,072 | $2,545 |
| Louisiana | $1,497 | $4,357 |
| Maine | $456 | $1,460 |
| Maryland | $1,261 | $2,943 |
| Massachusetts | $759 | $2,620 |
| Michigan | $1,299 | $4,067 |
| Minnesota | $752 | $2,463 |
| Mississippi | $563 | $2,140 |
| Missouri | $752 | $2,613 |
| Montana | $517 | $2,368 |
| Nebraska | $545 | $2,252 |
| Nevada | $1,665 | $3,870 |
| New Hampshire | $594 | $1,766 |
| New Jersey | $1,408 | $3,034 |
| New Mexico | $608 | $2,335 |
| New York | $2,221 | $4,112 |
| North Carolina | $815 | $2,271 |
| North Dakota | $490 | $2,029 |
| Ohio | $511 | $1,660 |
| Oklahoma | $710 | $3,256 |
| Oregon | $1,161 | $2,408 |
| Pennsylvania | $893 | $3,909 |
| Rhode Island | $1,084 | $2,921 |
| South Carolina | $959 | $2,519 |
| South Dakota | $443 | $2,590 |
| Tennessee | $707 | $2,237 |
| Texas | $960 | $3,156 |
| Utah | $968 | $2,451 |
| Vermont | $366 | $1,539 |
| Virginia | $726 | $2,070 |
| Washington | $661 | $2,110 |
| West Virginia | $617 | $2,308 |
| Wisconsin | $561 | $2,003 |
| Wyoming | $303 | $1,794 |
Read More: Car Insurance Rates by State
Some reasons Texas is more expensive than other states are its high crash fatality rates and high rates of vehicle theft. According to the U.S. Department of Transportation, Texas had the most traffic fatalities of any state in 2023. The National Insurance Crime Bureau also ranks Texas second for vehicle thefts in the first half of 2023.
Read more: Factors That Affect Auto Insurance Rates
Like most states, Texas requires drivers to carry a minimum amount of coverage. Minimum coverage limits include:
The minimum required liability insurance only covers injuries and property damage you cause to other drivers, not damage to your own vehicle. Texas car insurers are required to offer uninsured motorist coverage (UM), underinsured motorist coverage (UIM) and personal injury protection (PIP), all of which you can decline in writing.
If you have a business vehicle, you’ll need to purchase commercial car insurance. Below are the business auto insurance requirements in Texas:
Under Texas law, it’s illegal to operate a motor vehicle without the minimum required insurance or certified self-coverage. Texas issues fines to drivers caught behind the wheel without the proper coverage.
On your first offense, you could be fined up to $350. If you’re caught a second time, you could be fined up to $1,000 and your license may be suspended. These may not be the only consequences of driving without insurance. You may also be required to carry SR-22 insurance and you’ll likely see your insurance rates go up.
Texas is one of a handful of states in which you can self-insure as an alternative to buying coverage from an insurance company. This means that you provide evidence to the state that you can cover costs related to an accident.
To self-insure, you’ll need to make a deposit with the state comptroller and apply for a certificate certifying your self-coverage with the Department of Public Safety. Once you receive this certificate, you can treat it as you would your insurance card, keeping it handy in case of an accident.
In this article, we explored the cheapest auto insurance companies by coverage option and driver profile in Texas. We also looked into the average costs of car insurance in the Lone Star State and detailed Texas state law regarding car insurance policies.
With our comparison partner,
Below are some frequently asked questions about cheap car insurance in Texas:
We found that State Farm, Texas Farm Bureau, Geico, Redpoint County Mutual and USAA offer the cheapest car insurance in Texas. However, the quotes you get may vary so we recommend getting quotes from multiple providers.
With an average rate of $119 per month, Texas Farm Bureau offers the cheapest full–coverage car insurance in the state of Texas, according to our research.
With average rates as low as $40 a month, we found drivers can get the cheapest minimum liability car insurance in Texas with Texas Farm Bureau.
There are a few ways to lower your car insurance premiums in Texas. In the short term, you can choose a higher deductible or try a telematics program that adjusts your rates based on your driving habits. In the long term, you can try to boost your credit score and avoid any accidents or moving violations.
Insurers are required to offer personal injury protection (PIP) coverage in Texas. However, drivers can choose to decline this coverage if they want.
You can carry both PIP and Medical payments (MedPay) coverage in Texas, but coverage may be redundant in some ways, meaning you could end up paying twice for similar coverage. Since PIP is more comprehensive — covering lost wages and other expenses in addition to medical bills — it may make more sense to increase your PIP coverage amounts.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
800 hours researched
45 companies reviewed
8,500+ consumers surveyed
*Data accurate at time of publication.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.
