Cheapest car insurance in Texas for 2024

In 2024, the average annual cost of car insurance in Texas is $724 for minimum coverage, which is higher than the national average of $678 per year. And while full coverage in Texas is slightly higher than national average at $2,492 per year versus $2,458 per year, Bankrate found several providers offering rates below these averages. We analyzed the top insurance carriers in Texas and compared rates from Quadrant Information Services for a variety of driver types to determine the cheapest auto insurance in Texas on average.

Key takeaways

• Cheapest company for minimum coverage: Geico
• Cheapest company for full coverage: Geico
• Cheapest company for drivers with prior incidents: Geico
• Cheapest company for young drivers: State Farm

Buying minimum coverage car insurance means you are purchasing only the state-required coverage types and limits. Minimum coverage, or liability only insurance, is often the most affordable car insurance option, but the coverage types are limited and coverage limits may be low, potentially leaving your finances exposed in the event of an accident. Our research found that Geico offers the cheapest minimum coverage policies in the Lone Star State, but several other options come close, costing only a few dollars more per month.

Minimum coverage requirements for Texas drivers

Although most insurance professionals recommend buying higher liability limits, you can legally drive in Texas if you meet the minimum required car insurance limits. In Texas, these are:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability per accident

Uninsured and underinsured motorist coverage and personal injury protection (PIP) must be offered by insurers but can be rejected in writing by policyholders.

Insurance professionals typically recommend that you buy higher liability limits for greater financial protection unless the value of your car is less than the cost of more coverage. Minimum coverage isn’t always enough to match the cost of damage, especially if you’re at fault for a severe accident. Minimum coverage will also not provide coverage for your own vehicle. If you have a loan or lease on your vehicle, your financial institution will probably require you to purchase comprehensive and collision coverage. If you aren’t sure how much car insurance you need, working with a licensed agent could help.

Drivers who do not want to purchase a car insurance policy may be able to satisfy the state’s financial responsibility law by depositing $55,000 of cash or securities with the comptroller. In all other circumstances, driving without insurance in Texas is illegal, and drivers who do so could face stiff penalties, including fines, jail time and potentially suspension of their license and registration.

Full coverage car insurance typically includes the addition of comprehensive and collision coverage, which could provide added coverage for your own vehicle, even if you're at fault in an accident. Although it typically costs more, full coverage gives you greater financial protection. If your car sustains damage from a collision, storm, fire, vandalism or theft, you have coverage for the repair costs up to your policy limits. Geico stands out as the cheapest insurance provider for full coverage policies in Texas.

Choosing a carrier with low average rates may help you save on car insurance, but be aware that your own rates will vary based on your personal rating factors. One of these personal factors is your driving record. Your insurance rate is calculated, in part, on how likely you are to file a claim, and your driving record plays an important role in determining your likelihood of doing so. Drivers who engage in risky driving behavior, like speeding or reckless driving, are statistically more likely to file a claim that costs their insurer money. To make up for its losses, insurers tend to charge drivers with imperfect driving records more for their coverage. 

That said, Texas drivers with prior driving incidents may still receive a cheap policy from these providers: 

• Cheapest car insurance for drivers with a ticket: Geico
• Cheapest car insurance for drivers with an at-fault accident: State Farm
• Cheapest car insurance for high-risk drivers: Geico

Cheapest car insurance companies in Texas for drivers with a speeding ticket: Geico

Insurance companies typically see speeding tickets as an indication of risky driving behavior. If you have a speeding ticket conviction, your insurance premium could increase for three to five years, depending on your carrier. The following companies offer some of the lowest average rates for drivers with a single speeding ticket conviction on their record, with Geico topping the list as the cheapest for a minimum coverage policy.

Cheapest car insurance companies for drivers with an at-fault accident: State Farm

If you cause an accident, one of your primary concerns may be how much your car insurance will increase. Like tickets, accidents typically increase your insurance premiums for three to five years, depending on the carrier. Some companies weigh accidents less heavily than others and may offer more affordable rates following an at-fault accident. According to our research, State Farm seems to be the most forgiving, offering the most affordable average rates for drivers who fall into this category.

Cheapest car insurance companies for high-risk drivers: Geico

A number of scenarios could lead to you being considered a high-risk driver. Several moving violations, at-fault accidents, a DUI conviction, a lapse in coverage or a combination of these might cause insurance companies to view you as high-risk. The rates below are for drivers with a single DUI conviction, one of the most severe driving infractions drivers can earn. Drivers with a DUI may want to consider getting quotes from Geico and Mercury, as they offer relatively low average rates on both minimum and full coverage policies.

In Texas, insurers are permitted to factor age into your rate calculation. Car insurance varies by age, with younger drivers and drivers in their 70s and over facing elevated rates. In particular, drivers younger than 25 tend to pay a good deal more for their coverage. But, there are still a variety of providers that offer cheap car insurance in Texas for young adults:

• Cheapest car insurance for insuring a teen driver: State Farm
• Cheapest car insurance for teens with a ticket: State Farm
• Cheapest car insurance for teens with an at-fault accident: State Farm
• Cheapest car insurance for young drivers with a DUI: National General

Cheapest Texas car insurance for insuring a teen driver: State Farm

Adding a teen driver to your policy will typically increase your rates, but a cheap car insurance policy can still be attainable. The following companies offer some of the lowest average rates when adding a teen driver to your policy, but you could also save by looking for teen-specific discounts like ones for good students.

Cheapest car insurance for teens with a ticket: State Farm

Teens not only have statistically higher accident rates, but they are more likely to speed than any other age group. If your teen has a speeding ticket conviction, you may want to get a quote from State Farm and Geico.

Cheapest car insurance for teens with an at-fault accident: State Farm

Teen accidents can increase car insurance rates, and an at-fault accident will likely lead insurers to consider you a high-risk driver. Teens with an accident on their record may need to be even more intentional about finding affordable rates. The following carriers offer the lowest average premiums for teens with a single at-fault accident.

Cheapest car insurance for young drivers with a DUI: National General

21-year-old drivers with DUI convictions will likely experience a premium surcharge for about two years. In Texas, drivers with DUI convictions are required to obtain an SR-22 certificate on top of their insurance. This certificate must be filed by your insurer with the Texas Department of Motor Vehicles. Not all carriers will issue SR-22s. If you are required to file one but your carrier won't comply, you may need to find another insurance company that is willing to work with you.

Auto insurance discounts may be one of the simplest ways to save on car insurance in Texas. Discounts are commonly available from many insurers, although not all drivers will be eligible. Here are some of the most common discounts you could ask your insurance agent about.

• Young driver discounts: Insurers might reduce rates for younger drivers, especially those who excel academically or attend college without a vehicle.
• Group-related discounts: Membership in certain organizations or companies, or past or current military service could qualify you for reduced premiums.
• Claims-free discounts: Many insurers will discount drivers who have gone a set period of time, usually three or more years, without filing a claim. This discount may sometimes be compoundable with other savings, like safe driver discounts.
• Telematics discounts: Telematics programs use an app or in-vehicle device to monitor your driving habits in real-time. Drivers who demonstrate safe driving habits or low mileage may earn a discount.
• Security discounts: Some insurers may reduce your premium if your car has security features that lower the risk of theft and vandalism, or if you park in a secure location to protect it from weather and potential hit-and-runs.

These are sample rates and should only be used for comparative purposes.