7 Cheapest car insurance in Texas (TX) 2023
Cheapest car insurance in Texas (TX) 2023
Everything’s bigger in Texas, including the average car insurance premium. Texas is the eighth most expensive state for carrying car insurance, beat only by New York, Florida and a handful of other high-cost states.
Texas drivers looking to cut costs should consider insurers like USAA, Geico and Nationwide. These are the cheapest car insurance companies in Texas — and the only three with average annual rates below $2,000 for good drivers.
|7 Cheapest car insurance in Texas (TX) 2023|
Cheapest car insurance companies in Texas USAA Geico Nationwide State Farm Texas Farm Bureau Compare the cheapest car insurance companies in Texas How much does car insurance cost in Texas?
Car insurance in Texas costs $2,938 a year on average for drivers with a clean record. That’s $245 a month to maintain full coverage insurance. It’s $650 a year, or about $54 a month, to carry only the state minimum.
In comparison, the average national cost of car insurance is $2,150 a year, nearly $800 less than what you’ll pay in Texas. If you’ve been in an at-fault accident, have racked up speeding tickets or have poor credit, expect to pay even more each year.
High-risk drivers in Texas pay an average of $4,486 a year for full coverage, about a 35% increase over what a good driver pays, though rates vary based on your infraction. Car insurance companies can also use other personal information to generate your rate, including your age, your gender, the car you drive and where you live within the Lone Star State.
Average cost of car insurance in Texas by driver profile Average car insurance rates in Texas by company Cheapest car insurance companies in Texas USAA is the cheapest car insurance company in Texas, with an average annual rate of just $1,853 for good drivers.
That’s nearly $300 less than the national average cost of car insurance and more than $1,000 less than the state average. USAA coverage may be unavailable for many Texas drivers, as its car insurance policies are only available to USAA members. Membership is limited to active or retired military members and their eligible family members.
A close second is Geico, with good drivers paying $1,861 a year, on average. Nationwide is also under $2,000 a year. Of the top four cheapest car insurance companies in Texas, three — USAA, Geico and Nationwide — earned top scores in our analysis of the best car insurance companies. Cheapest car insurance by driver profile
After a speeding ticket. After an accident. After a DUI. With poor credit. After a gap in coverage. High risk. 16-year-old driver added to parent policy. Senior drivers.
Cheapest car insurance after a speeding ticket If you just got a speeding ticket, check out Geico, Texas Farm Bureau and USAA. Geico offers an average rate that’s over $1,300 less than the national average. Texas Farm Bureau and USAA offers rates that are only slightly higher than Geico.
Cheapest car insurance after a speeding ticket in Texas Cheapest car insurance after an accident in Texas Texas Farm Bureau and Nationwide are top options for drivers who’ve made mistakes behind the wheel. If you caused a wreck involving injuries, then Texas Farm Bureau offers the cheapest average rate – $194 a month, which is over $160 less than the national average for drivers in this category.
If you’re at-fault for an accident that resulted in only property damage, consider Nationwide. Drivers in this category pay an average of $204 a month with Nationwide. Geico and State Farm are also solid contenders for either type of wreck.
Cheapest car insurance after an accident with injuries Cheapest car insurance after an accident with property damage Cheapest car insurance after a DUI in Texas Drivers will struggle to find cheap car insurance after a DUI, but there are insurers out there that are willing to give you a second chance.
If you’re a Texan with a DUI, your best bet is Esurance, with an average annual rate of $2,302, about 50% less than the state average for drivers with a DUI. National General and Geico are two other good options.
Cheapest car insurance after a DUI Cheapest car insurance with poor credit in Texas In Texas, insurance companies can factor in your credit score when setting rates — and many insurers don’t look too favorably on drivers with bad credit scores. If you have poor credit, consider getting quotes from Nationwide ($2,959) and Geico ($3,000).
Mercury also has competitive rates. Cheapest car insurance with poor credit Cheapest car insurance after a gap in coverage in Texas Drivers who let their coverage lapse may find they’re getting higher quotes when they go to re-enroll. If you’re frustrated by the high prices after a gap in coverage, check out Geico, which has an average annual rate of $2,057 for such drivers.
USAA is also more forgiving — and the only other insurer with an average annual rate below $2,500. Cheapest car insurance in after a gap in coverage Cheapest car insurance for high-risk drivers in Texas Insurance providers might consider you high risk for a number of reasons:
You have tickets, you’ve been at fault in accidents, you have a DUI, your credit score is in bad shape, etc. Some insurance providers may also consider teens and seniors high risk solely because of their age. The bad news? There’s not much you can do to shake the designation (not immediately, at least).
The good news? Quite a few insurers provide policies with manageable premiums. Geico is the cheapest car insurance company for high-risk Texas drivers at $2,671 a year, but Nationwide and National General also have lower-than-average rates.
Cheapest car insurance for high-risk drivers Cheapest car insurance for adding a teen driver in Texas Teens have some of the highest car insurance rates in Texas (and the nation), but if you have a teen driver in the house, adding them to your policy can lower their coverage costs.
Nationwide is the only insurer in our analysis that offers an average monthly rate under $100 a month, but Geico and Chubb also have competitive rates for this age group of new drivers.
Cheapest car insurance for adding a 16-year-old to a parent policy Cheapest car insurance for senior drivers in Texas Senior drivers in Texas may be able to unlock serious savings with State Farm. Its average rates are about $100 less than the national average of $225.
Geico and Nationwide also offer some of the most competitive average rates for Texans in their 60s, 70s and 80s. Cheapest car insurance for senior drivers Car insurance requirements in Texas Texas state law requires that all drivers carry at least a minimum amount of liability insurance.
Specifically, drivers need at least the following: $30,000 in bodily injury liability coverage per person. $60,000 in bodily injury liability coverage per accident. $25,000 in property damage liability coverage per accident. If you’re checking your state’s department of motor vehicles or getting quotes online, you may see this presented as a 30/60/25 liability insurance policy.
Insurance companies licensed in the state of Texas will know what minimum coverage you need. Insurance tips for car owners in Texas The cost of car insurance in Texas is steep, but we’ve got a few tips to help you find the best cheap car insurance while still maintaining the coverage you need. Switch policies Staying with your current insurance provider may earn you a loyalty discount or a vanishing deductible, but even then, you might be spending too much money on car insurance.
At the very least, it never hurts to shop around when your policy is up for renewal. Use our list of the cheapest car insurance companies in Texas to generate quotes for the same level of coverage (same limits, same deductibles) and see how much you could save.
You can also use an online insurance marketplace or work with an independent insurance agent to compare prices. Take advantage of discounts Your insurance provider likely offers a lot of discounts that are easy to qualify for. Talk with your agent or review your policy to see which you’re already getting — and which you might be able to add.
Discounts vary by insurer, but these are some of the most common: Multi-policy: Bunding your home and auto insurance can usually result in decent discounts for both policies. Not a homeowner? Many insurance companies offer the same deal for condo and renters insurance.
Multi-vehicle: Even if you and your partner like to keep your finances separate, you both might be able to save some cash by putting your cars on the same policy. Usage-based insurance: Taking part in an insurance company’s usage-based insurance policy means they’ll monitor your driving habits — and reward you for being a safe driver. Careful, though: Unsafe driving can actually result in a rate increase. Defensive driving course:
Want to lower your premium? Most insurers will offer a rate decrease for several years if you complete an approved defensive driving course.
Paying in full: Rather than pay your premium every month, write one big check (or arrange for one major ACH withdrawal) at the start of the policy. Insurers usually offer discounts when you pay in full upfront. Fine-tune your coverages You can get a lower car insurance rate by decreasing your limits, raising your deductible and dropping coverages you don’t need.
For instance, if you have an old car with a lot of miles on it, rethink the high limits you might have on comprehensive and collision. If the limit is higher than the vehicle is even worth, you’re paying for too much coverage.
Drop the limits, and watch your premium fall. On the flip side, raising your deductible — the amount of money that’s deducted from your claim payout — can significantly lower your monthly insurance costs. Look at the deductibles on your current plan. If you could afford to spend a little more in the event of an accident, raise your deductibles.
Doing so is one of the best ways to lower your car insurance premium. Finally, coverages like rental car reimbursement, mechanical breakdown insurance and emergency roadside assistance are nice. But if you’re struggling to afford car insurance and looking to trim costs, cut these out of your policy to lower your rates.
Methodology Our insurance experts evaluated the rates of 19 Texas car insurance companies to determine which ones offered the best rates to residents.
The data used for this analysis is from Quadrant Information Services and rates are based on a 40-year-old female driver shopping for coverage for a Toyota Rav4. Policy rates include the following types of coverage: Bodily injury and property damage liability insurance (100/300/100).
Uninsured motorist coverage (100/300). Collision and comprehensive coverage ($500 deductible). To determine the cheapest overall car insurance companies in Texas, we used the rates for a good driver, or someone who has a clean driving record.
We also analyzed average rates for various driver profiles and identified the cheapest insurer for each. Driver profiles include: Drivers with an accident, speeding ticket or DUI on their record. Drivers with a gap in coverage. Senior drivers. Teen drivers added to a parent’s policy. High-risk drivers.
Why some companies didn’t make the cut Car insurance companies in Texas with high good driver rates may have made our best auto insurance companies rating but not made the cut for our cheapest car insurance in Texas. This rating was determined by a company’s average rates in Texas for a good driver with a clean record.
In some cases, an insurer didn’t make the cut for our overall cheapest car insurance in Texas but offers the cheapest car insurance for a specific driver profile.
When applicable, these companies are included in the list of insurers for the relevant driver profile category. Why you can trust us Our insurance experts follow strict editorial guidelines to ensure fairness and unbiased reviews.
To help you find the best car insurance for you, our insurance experts evaluated each company’s car insurance rates and coverage options available in Texas. Frequently asked questions (FAQs) What company has the cheapest car insurance in TX? USAA has the cheapest car insurance in Texas for good drivers with an average annual rate of $1,853 . USAA’s rates for high-risk drivers, however, are less competitive.
Because USAA membership is only available to the military community and eligible family members, the next cheapest car insurance option in Texas is Geico, with an average annual cost of $1,861 , just $8 more than USAA. How much is basic car insurance in TX?
If you’re shopping for a basic policy that meets the minimum car insurance requirements in Texas, you can expect an average rate of $650 a year. That includes the following levels of state-mandated liability coverage: 30,000 in bodily injury/death coverage for per person. 60,000 in bodily injury/death coverage for per accident. 25,000 in property damage coverage per accident.
This policy, also known as a 30/60/25 liability policy, will allow you to legally drive on Texas roads, but it will only cover injuries and property damage to others if you’re at fault for an accident. It won’t cover medical bills for you or your passengers or repairs to your vehicle after a collision or other type of incident, such as a tree falling on your car or theft.
For stronger financial protection, it’s wise to consider a 100/300/100 liability policy, which costs $941 a year . Full coverage in Texas — which includes liability insurance, uninsured motorist insurance and collision and comprehensive coverage — will cost around $1,853 a year, or $154 a month. Basic car insurance in Texas costs $941 a year .
That’s based on $544 for bodily injury liability and $397 for property damage liability. At a minimum, Texas state law requires drivers to carry these coverages, though we always recommend getting a full-coverage plan with comprehensive and collision, medical coverage and uninsured motorist coverage.
How much do plates and registration cost in TX? Vehicle registration in Texas costs between $50.75 and $840 . Most drivers will pay either $50.75 (vehicles 6,000 pounds or less) or $54 (vehicles between 6,001 and 10,000 pounds), plus applicable fees including local county fees.
Rates go up from there, depending on vehicle weight. It costs $6.50 to get a replacement license plate in Texas. That includes a $6 plate fee and a $0.50 automation fee .
Non-Standard Auto Insurance: What Is It & How Does It Work?
Perhaps you’ve gotten a few tickets, have been in an accident, or have some other “dings” on your driving record. Maybe you're just a young driver without much experience behind the wheel.
Or perhaps you live in an area experiencing a high rate of car theft. If any of the above applies to you, you may need to get nonstandard car insurance.
Nonstandard is a term insurance companies use to label the riskiest category of drivers — those most likely to be in an auto accident and file an expensive claim at some point while the policy is in effect.
The full term “nonstandard car insurance” is a bit of a misnomer, as it’s typically very similar to the insurance most other drivers can get — you can usually get the same coverages and expect claims to be handled in the same way. It’s more accurate to say that the insurance company considers you a “nonstandard risk.” What really differs when you’re a nonstandard risk is the cost of a policy.
Because the insurance company considers you more likely to file a claim at some point, you can expect to pay a much higher car insurance premium than drivers considered a standard risk.
You might also find that some insurance companies refuse to provide you with a policy because of the level of risk you present. But rest assured that many companies do offer nonstandard car insurance.
The state even offers a program to help those who have a hard time getting coverage. How does nonstandard auto insurance work? The process of buying a car insurance policy in New Jersey is typically the same, regardless of whether an insurer considers you a nonstandard risk. You’ll call or visit an agent or check insurance company websites to get started.
You’ll get a quote, select coverages, limits, deductibles, and a payment plan, and purchase the policy. There are a variety of coverage options available. You’ll need to purchase at least the minimum amount required by your state and then weigh up whether to add additional protection.
The state of New Jersey requires all drivers to have liability coverage, personal injury protection (PIP), and uninsured motorist. So you'll need your policy to include those coverages with at least the state minimum limits. Then, depending on your needs, you can choose coverages such as comprehensive and collision.
These are optional under the law in New Jersey but may be required by your lender if you loan or lease your car. Finally, you can round out your policy with additional options such as rental reimbursement or roadside assistance. As a nonstandard risk, you should note that your policy may include minor restrictions, such as not being able to loan your car to another driver.
Your agent or insurance company representative can help you understand what your policy does and doesn’t cover. The SR-22 process An SR-22 is a form your insurance company files with the state to prove that you have insurance. It's often a requirement to get your driver’s license reinstated following a serious traffic violation, which is a common reason to be considered a nonstandard risk.
New Jersey does not use SR-22s. But if your violation took place in a state that does, and your reinstatement requirements include having an SR-22, you’ll need to let the insurance company know you need the filing (the question “Do you require an SR-22” is usually part of the quoting process). And while the insurance company will handle most of the legwork, you can expect to pay the cost of the filing fee.
The fee ranges from $15 to $50, depending on the state. Nonstandard car insurance vs. standard car insurance As explained above, nonstandard means the insurance company considers you a greater risk to file a claim at some point while the policy is in effect. This risk is based on a prediction. When you get a quote, the insurance company collects a lot of information.
This typically includes your driving record, address and ZIP code, the make and model of your car, and even things like your education level and credit history, which the company can access when you provide your Social Security number.
Every driver must provide this information when buying insurance. After analyzing all of this information, the insurance company can make its prediction and place you in one of three categories based on the level of risk you present. Nonstandard risk:
These drivers may have a record with many moving violations, a history of accidents, lack experience, be very young or elderly, have a gap in their insurance coverage, or drive a high-powered car or a car with a salvage title. Standard risk: These drivers tend to have cleaner driving and accident records, are mature adults, have continuous insurance history, and drive modest cars. Preferred risk:
These drivers have the most experience behind the wheel and the cleanest driving histories. Again, the same coverage options are usually available to all three categories. What differs is that you can expect to pay much more as a nonstandard risk.
How much does nonstandard car insurance cost? Insurance premiums vary, often significantly, between companies. So it's difficult to say precisely how much more you'll pay as a nonstandard risk.
The key to getting the lowest possible premium is to shop around with several companies. An agent or broker can assist with this process, or you can do it yourself by going to company websites.
Where to get nonstandard car insurance in New Jersey To get nonstandard car insurance, check with the state’s leading insurance companies, including GEICO, NJM, and Progressive. Many companies offer coverage for nonstandard risks. If you struggle to get coverage from traditional insurance companies, you may be a candidate for the New Jersey Personal Automobile Insurance
Plan (NJ PAIP). This state-sponsored program helps drivers get car insurance if they meet certain requirements, including having been turned down for a policy by multiple companies. Essentially, the program matches the highest-risk drivers with insurance companies that agree to provide a policy for at least three years. To get started, locate an insurance provider through the program’s website.
Then contact that agent or broker to discuss your coverage options and get a quote. How to move on from nonstandard auto insurance You can move on from nonstandard auto insurance. Many of the reasons why you may be categorized as a nonstandard risk — your driving record, age, or type of car you drive, etc. — can be controlled or will sort themselves out over time.
If you’re unsure why you're paying so much for car insurance, contact your agent, broker, or insurance company directly. They might shed some light on why you're considered a nonstandard risk and offer advice on how you can move on from nonstandard to standard auto insurance.
Finally, if you believe you’ve improved enough to be recategorized as standard, contact your agent or insurance company. They may not recategorize you unless you request them to do so. Frequently asked questions (FAQs)Why do I need nonstandard auto insurance? There are a variety of reasons you might need nonstandard auto insurance. Common reasons include the following: Your age (teenager or senior).
Your driving record. Your car (high-performance and luxury cars are often targets for nonstandard insurance). The rate of car theft where you live. Your history of accidents or insurance claims. You have gaps in your insurance history, meaning you let your car insurance policy lapse at some point. Why does nonstandard car insurance cost so much in New Jersey?
If the insurance company considers you a nonstandard risk, it means they predict your likelihood of filing a claim is well above that of most drivers. In other words, they think you’ll be a costlier customer and will charge you more to reflect that. What if I can’t get car insurance coverage in New Jersey?
Check with the New Jersey Personal Automobile Insurance Plan (NJ PAIP). It's a state-sponsored program that helps drivers get coverage, provided they meet specific requirements. Visit the program’s website to find a PAIP provider near you. This story was written by NJ Personal Finance, a partner of NJ.com.
The information presented here is created independently from the NJ.com editorial staff, and purchases made through links in this article may result in NJ.com earning a commission.
5 Cheapest Car Insurance Companies (April 2023)
How much you pay for car insurance will depend on a number of factors, including your age, claims history and driving record. The company that offers the cheapest car insurance for you can vary depending on the class of driver you fall into.
The cheapest car insurance for good drivers These rates are based on good drivers with a clean driving record, meaning no at-fault accidents or traffic violations. USAA offers the lowest average rates for good drivers, but it is open to only military members, veterans and their families.
The cheapest car insurance after a speeding ticket A speeding ticket will mean an insurance increase of about 21%, based on nationwide averages. Our analysis found the cheapest car insurance from Westfield, Geico and Auto-Owners, with USAA a top choice for people who qualify for USAA auto insurance.
The cheapest car insurance after an accident causing injury Expect your car insurance rates to go up at renewal time if you have caused an accident, especially one that injured someone else.
Nationally, the average rate goes up 40%, which translates to paying about $830 more per year compared to a driver with a clean record. USAA offers good rates to military members and veterans. For other drivers, Auto-Owners and Westfield had the cheapest car insurance in our analysis.
Westfield is a regional insurer that serves 10 states in the Midwest. The cheapest car insurance after a DUI Among the likely consequences after a DUI conviction is a higher auto insurance bill. Car insurance companies usually pull motor vehicle records before your policy renewal time to check for tickets and convictions, and then apply increases based on your record.
A DUI conviction leads to an average increase of 72% that translates into nearly $1,400 a year. Progressive and American Family had the cheapest rates in our analysis, with USAA a possible good option for military members and veterans who qualify.
The cheapest car insurance for people with bad credit Having poor credit can be one of the biggest hurdles to getting cheap car insurance quotes—even if you have an excellent driving record. Poor credit can cause higher auto insurance rates than having a DUI or at-fault accident on your record.
Average auto insurance costs go up 79% for drivers with poor credit compared to those with good credit. That comes out to over $1,500 more per year, on average. With potentially exorbitant rates, it’s vital to shop around.
Geico and Nationwide had relatively cheap car insurance for drivers with poor credit among the companies we analyzed. USAA is a good bet for military members and veterans. The cheapest car insurance for seniors USAA has the cheapest car insurance for senior drivers ages 70 and 80, according to our analysis.
Auto-Owners is the cheapest for senior drivers without a military affiliation, which USAA requires. However, the best car insurance for seniors will vary based on where you live and your personal details, such as your driving record.
Our analysis found that senior drivers experience, on average, a 10% increase in their car insurance costs from age 60 to 70. By age 80, your rates may have increased 23% above the rate you were paying at age 70 and 34% more than your car insurance cost at age 60. The cheapest car insurance for teens & young drivers
It’s not cheap to buy car insurance for a teen because young new drivers pose a large risk to insurers. We found that adding a teenage driver to a parent’s policy will result in an average increase of $1,951 a year.
This amount typically doubles the parent’s auto insurance bill. But it is still usually less expensive to add a young driver to a parent policy rather than for the teen driver to get their own.