Everything might be bigger in Texas — but your auto insurance bill doesn’t have to be. Use our guide to scout for the best and most affordable coverages in Texas before you head out on your next great adventure. Here’s a rundown of what’s in store for you in the Lone Star State:
- Texas averages 2 vehicles per household.
- Minimum car insurance coverages are as follows:
- Bodily injury liability coverage: $30,000 per person and $60,000 per accident
- Property damage liability coverage: $25,000
- Drivers with clean records can expect to pay between $716 and $1,094 annually for state minimum coverage, depending on their provider.
The Best Car Insurance in Texas:
- Best Overall in Texas: Texas Farm Bureau
- Best Coverage for Multiple Cars: State Farm
- Best for Military Personnel: USAA
Texas Car Insurance Law Explained
You must have car insurance to drive in Texas. You’ll need at least the following minimum coverage to stay within the law:
- Bodily injury liability coverage: Bodily injury liability coverage compensates anyone you physically injure during a collision. You must have at least $30,000 worth of this coverage per person and $60,000 per accident.
- Property damage liability coverage: Property damage liability coverage compensates anyone whose property you damage during a collision. You must have at least $25,000 worth of property damage liability coverage.
Keep in mind that these coverages are only the minimum protection you need in order to drive in Texas. They offer you no protection as the policyholder. You might want to consider adding on a couple of optional policies if you want to protect yourself, including collision and comprehensive coverage.
- Collision coverage: Collision coverage pays you for damage done to your vehicle after an accident.
- Comprehensive coverage: Comprehensive coverage pays you if your vehicle is damaged during a covered event that’s not a collision. Some common examples include damage from animals, riots or natural disasters.
Caught driving without insurance? You’ll need to pay a fine of no less than $350 and no more than $1,000 on your first offense. You’ll also face a $250 surcharge on your license every year for 3 years.
Car Insurance Rates by Credit Score
It’s legal for auto insurance companies to use your credit score in their premium calculations. This means that if you have a lower score, you’ll pay more for your coverage. You’re more likely to file a claim, inflate any claim you do make and even commit fraud if you have a low credit score. Insurance companies offset these risks by charging you more for your premium if your score is low. You may want to focus on taking some time to raise your credit score before you apply for insurance if your score is very low.
Let’s take a closer look at how your credit can affect your insurance rate.
|Credit Score||Cheapest Provider||Rate for State Minimum Coverage|
|Good 670–739||Direct Auto||$1,460|
|Excellent 740+||Elephant Insurance||$1,067|
Insurance for Drivers with a Clean Record
The best way to get access to cheap car insurance is to keep your driving record free of accidents and infractions. You’re less likely to file a claim if you stay safe on the road, drive defensively and avoid distractions. This gives you access to the lowest rates available.
In this section, we’ll look at how much drivers with clean records might pay for 3 different types of coverage:
- State minimum coverage: This is the absolute minimum amount of insurance you need to drive as a Texas resident.
- Standard coverage: Standard coverage involves the state minimum insurance plus collision coverage.
- Full coverage: This is state minimum insurance plus comprehensive coverage.
|Insurance Company||State Minimum Insurance||Standard Coverage||Full Coverage|
Insurance Rates with Driving Infractions
You’ll pay more for insurance if you have infractions on your driving record. An accident or infraction on your record makes you more likely to be involved in another incident in the future. This makes you a riskier party to insure and can also raise your rates.
Not every driving infraction is viewed as equally serious by insurance companies. Some infractions will significantly raise your rates for a long time. Others slightly increase your rate and expire over time. Here’s how 3 common driving infractions might affect how much you’ll pay for coverage.
- At-fault accident: An at-fault accident is one that you partially or fully caused.
- Speed violation: A speed violation occurs when you drive too far above the posted speed limit. The faster you’re going before you’re pulled over, the more serious your speed infraction will be. In some rare instances, a speed violation can also include driving too far below the posted speed limit.
- DUI: DUI stands for “driving under the influence” of drugs or alcohol and is sometimes referred to as a DWI (driving while intoxicated) in Texas. A DUI is a criminal offense and one of the most serious offenses you can have on your driving record.
|Insurance Company||At-Fault Accident||Speed Violation||DUI|
Best Car Insurance Providers in Texas
Now that you know what kind of car insurance you need and what you might pay, it’s time to look at the best providers in Texas. Consider our top choices when you shop for coverage.
1. Best Overall: Texas Farm Bureau
Texas Farm Bureau is well known for its representatives and customer service. The auto, property and ranch insurance provider consistently scored top marks in J.D. Power’s Auto Insurance Satisfaction Survey, which ranks providers based on their claims processes and customer service.
Texas Farm Bureau’s quotes were also some of the most affordable in our search and produced the lowest quotes in Houston, Austin and El Paso. Texas Farm Bureau combines quality service with affordable prices and it’s our top choice for insurance in the Lone Star State.
2. Best Coverage for Multiple Cars: State Farm
Do you have more than 1 car to insure? You’ll want to apply as many discounts as you can to your policy. You can save by getting a quote online, taking a driver education course and even just staying accident free for a few months after your policy goes into effect.
State Farm offers over 10 different discounts, so you can find one that fits your fleet. You’ll also be able to find a multi-car policy discount when you insure more than 1 car on your account.
3. Best for Military Personnel: USAA
USAA offers home, auto and life insurance to members of the armed forces, veterans and their family members. USAA also returned very low coverage rates in our search, and you can save even more when you combine policies.
USAA also consistently maintains strong financial standing and scores highly in J.D. Power’s Auto Insurance Satisfaction Survey. Be sure to get a quote from USAA if you qualify for coverage.
The Lone Star State’s Best Coverage
Thinking about how to lower your car insurance? It might be time to get another quote! Even if you’re satisfied with your current auto insurance provider, it never hurts to see what else is out there.
Every car insurance company uses its own individual formula to calculate what you’ll pay for insurance. This means that it’s possible to get 10 totally different quotes from 10 different companies. Collect at least 5 quotes and compare them to your current insurance. You can use any of these lower rate offers to negotiate a lower rate with your current provider.