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By Sandra Cruz | Updated March 5, 2021

If you're looking for the best Texas car insurance rates, you'll have to compare the quotes from one insurance company to another. Compared with rates all over the United States, Texas car insurance costs $1,458 per year on average, which is 9% less than the national average. Although Texas auto insurance regulations determine insurance premiums, other factors, such as age, marital status, driving history, credit score, and even gender, can influence pricing. Insurance Online compares different car insurance rates in Texas based on these factors to make your decision much easier.

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Texas Minimum Car Insurance Requirements

The minimum liability car insurance coverage required in Texas is as follows:

  • $30,000 for the injury or death of a single person
  • $60,000 for the injury or death of multiple persons
  • $25,000 for property damage per accident

Texas Car Insurance Rates for 2021

Choosing the best Texas car insurance company to cover your liability can be a challenge. Most, if not all, insurance companies highlight their low premiums when advertising their services. However, you shouldn't base your decision entirely on insurance costs. It's essential to perform proper research to determine which insurance policy offers the best cheap auto insurance coverage for your vehicle.

Below, we've listed reliable car insurance companies with cheap car insurance rates in Texas and good-standing in the official ratings of financial super-houses like Standard & Poor's, A.M. Best, and Moody's and Fitch.

Texas Car Insurance Rates by Company

Company Average Monthly Rate
American Family $224
GEICO $127
Allstate $96
Nationwide $175
Mercury $153
Liberty Mutual $ 224
Progressive $54

Cheapest Car Insurance Rates in Texas

If you're looking for the most affordable auto insurance rates in Texas, here's a list of the best you can find:

Auto Insurance Companies in Texas with Cheapest Rates

Company Average Annual Rate
Travelers $1,031
USAA $1,461
Esurance $1,478
Mercury $1,491
State Farm $1,574
Texas Farm Bureau $1,679
Allstate $2,516
Dairyland $3,012
21st Century $4,006

Cheapest Car Insurance for Drivers with Good Records in Texas

If you have a good driving record - free of at-fault accidents, speeding tickets, and bad credit - you save an average of 18% on your auto insurance in Texas. You could also earn a safe-driving bonus from your insurance firm. Safe driving bonuses could get you discounts as high as 10% on Texas car insurance.

Using different rating factors, here's what you're likely to save in insurance costs for good driving:

  • No Speeding Tickets - $247 (17.47%)
  • Accident-free - $253 (17.87%)
  • Good credit - $946 (51.82%)

Texas Car Insurance Rates for Good Drivers

Company Average Annual Premium
Progressive $648
Allstate $1,152
State Farm $1,356
GEICO $1,524
Direct Auto $1,725

Cheapest Auto Insurance for Drivers with Bad Driving Records in Texas

Texas Car Insurance Rates for Drivers At-Fault Accidents or Tickets

Company Name Drivers with an At-Fault Crash Drivers with Tickets
Texas Farm Bureau $1,210 $1,041
Republic Group $1,351 $1,410
Geico $1,917 $1,917
State Farm $2,140 $1,878

Average Car Insurance Rates in Texas by Age Group

Age influences how much drivers pay for their car insurance in Texas. Teenage drivers in Texas usually pay the highest premiums because they pose a higher risk due to their inexperience on the road. Below are the averages by age brackets:

Texas Car Insurance Premiums by Age Group

Age Annual Premium
16 $4,049
17 $3,433
18 $3,035
19 $2,681
20s $1,757
30s $1,345
40s $1,339
50s $1,219
60s $1,248
70s $$1,509

Average Car Insurance Premiums by Gender in Texas

Texas car insurance companies consider gender when calculating insurance costs. Females generally have lower costs than males, on average, for car insurance in Texas.

Texas Auto Insurance Rates by Gender

Male Female
$1,415 $1,396

Texas Car Insurance Rates by Marital Status

Like gender, marital status doesn't come across as an important pricing factor for car insurance in Texas. However, married folks tend to get discounts on their car insurance costs. Married drivers in Texas save an average of $99 annually on auto insurance.

Texas Car Insurance Premiums by Marital Status

Marital Status Annual Average
Single $1,415
Married $1,316
Divorced $1,415
Widowed $1,286

Texas Car Insurance Premiums by Credit Rating

Motorists with good credit scores are likely to get better deals on their car insurance premiums in Texas. The reason is simple: drivers with a higher credit rating in Texas are statistically less likely to file insurance claims. On average, drivers with good credit history save $1,529 per year on Texas car insurance.

Drivers Credit Ratings vs Annual Car Insurance Premiums in Texas

Credting Rating Annual Average
Very Poor $2,771
Fair $2,214
Good $1,825
Very Good $1,508
Exceptional $1,242

Texans with poor credit history need to look around for insurers with the best rates for poor credit drivers. Here's a list of the best rates for people in that category:

Cheap Car Insurance Rates in Texas for Drivers with Poor Credit

Company Annual Premium
Farmers $1,976
Geico $2,392
AAA $2,405
Republic Group $2,410
Nationwide $2,647

Texas Driving Laws for 2021

By law, all vehicles on Texas roads must be insured. Drivers are required to carry proof of insurance and must present it if a law enforcement officer requests it, during vehicle registration renewal, or if the vehicle gets into an accident. However, around 20% of cars in Texas have no insurance. Violations of Texas car insurance laws can result in fines ranging from $175 to $350 on first conviction and $350 - $1,000 on subsequent convictions, alongside possible impoundment of your vehicle and suspension of the offender's driver's license.

How much does car insurance cost in Texas by city?

Car insurance companies calculate your rate based on several factors, the location of the vehicle being an important one. The cheapest car insurance is found in McKinney, Texas, and the most expensive in Dallas, Texas.

City Average Annual Premium
Dallas $1,675
Houston $1,642
Mesquite $1,663
Garland $1,591
McAllen $1,567
Grand Prairie $1,545
Pasadena $1,542
Beaumont $1,522
Brownsville $1,518
Irving $1,510
Amarillo $1,508
Arlington $1,502
Laredo $1,504
San Antonio $1,503
Carrollton $1,498
Lubbock $1,462
Fort Worth $1,453
El Paso $1,439
Plano $1,412
Austin $1,411
Corpus Christi $1,405
McKinney $1,398
Sandra Cruz

Sandra Cruz | Linkedin

Based in Newport Beach, CA, Sandra has been a licensed insurance agent in California and Texas for 5 years and is an editor and writer specializing in all types of insurance matters. Sandra is Insurance Online's authority on auto, home, and business insurance and has been featured in publications such as Forbes, Yahoo! Finance, and US World News Report.