Texas has some of the highest car insurance rates in the U.S., with full coverage averaging $2,346 annually (or $196 monthly) and minimum liability (30/60/25) at $910/year ($76/month). This is about 20% above the national average due to factors like urban congestion in Houston and Dallas, severe weather, and high theft rates. Rates vary by company, driver profile (age, credit, record), and location—shop around for quotes to save up to $1,000/year.
Based on 2025 analyses from U.S. News, MoneyGeek, NerdWallet, Bankrate, and Insurify, we ranked the top 10 by a composite score weighing affordability (40%), customer satisfaction (J.D. Power regional scores out of 1,000), complaint ratios (NAIC index; lower is better), coverage options, and discounts. USAA tops the list for eligible drivers (military/veterans/families), but we included alternatives. Full coverage assumes a 40-year-old with good credit, clean record, and $100K/$300K liability with $500 deductibles.
Top 10 Auto Insurance Companies in Texas
| Rank | Company | Avg. Annual Full Coverage Rate | Monthly Equivalent | J.D. Power Score (TX Region) | NAIC Complaint Index | Key Pros | Key Cons |
|---|---|---|---|---|---|---|---|
| 1 | USAA | $1,764 | $147 | 862 | 0.45 | Lowest rates for military; excellent app & claims (top in satisfaction); bundling saves 15% | Military-only eligibility |
| 2 | Texas Farm Bureau | $1,301 | $108 | 849 | 0.32 | Cheapest overall; strong local service; Drive’n Save app for 10–30% off safe driving | Membership fee ($35/year); TX-only |
| 3 | State Farm | $1,590 | $133 | 842 | 0.68 | Widespread agents (19K+); Drive Safe & Save up to 30%; top for families/teens | Fewer add-ons like gap coverage |
| 4 | GEICO | $1,344 | $112 | 835 | 0.72 | Fast online quotes; defensive driving discount (15%); easy claims app | Below-average claims satisfaction |
| 5 | Travelers | $1,920 | $160 | 809 | 0.55 | Top national pick; rate lock after claims; generous rental coverage | Higher rates for poor credit |
| 6 | Progressive | $2,040 | $170 | 819 | 0.89 | Snapshot telematics (30% off); accident forgiveness; rideshare add-on | More expensive for high-risk drivers |
| 7 | AAA (Texas) | $1,512 | $126 | 806 | 0.61 | Roadside assistance included; multi-policy discounts (20%); good for seniors | Limited digital tools; higher for young drivers |
| 8 | Mercury | $1,596 | $133 | N/A (below avg.) | 0.78 | Affordable for urban drivers; anti-theft discounts; quick approvals | Below-average J.D. Power scores; fewer nationwide perks |
| 9 | Farmers | $2,100 | $175 | 815 | 0.94 | Bundling (25% off); signal app for habits-based savings; strong for trucks | Higher premiums; mixed claims reviews |
| 10 | Allstate | $2,280 | $190 | 821 | 1.02 | Milewise pay-per-mile (up to 40% off); accident forgiveness; robust add-ons | Among the priciest; frequent rate hikes reported |
*Rates from Quadrant Information Services (Nov 2025) via U.S. News, NerdWallet, and MoneyGeek; actual quotes vary 20–40% by ZIP (e.g., cheaper in El Paso vs. Houston). J.D. Power from 2025 U.S. Auto Insurance Study (TX Southwest region); NAIC index (1.0 = average complaints).
Rates by Coverage Type (State Averages, 2025)
| Coverage Type | Avg. Annual Cost | Cheapest Company (Rate) | Notes |
|---|---|---|---|
| Minimum Liability | $910 | Texas Farm Bureau ($660) | Meets 30/60/25 req.; risks personal assets |
| Liability-Only | $1,200 | USAA ($900) | Adds uninsured motorist; good for low-mileage |
| Full Coverage | $2,346 | GEICO ($1,344) | Includes comp/collision; ideal for financed cars |
Why These Rankings?
- Affordability: Texas Farm Bureau and USAA lead with rates 40–50% below average. High-risk drivers (DUI/accident) see hikes of 50–80%, but State Farm forgives after 3 years.
- Customer Satisfaction: USAA and Texas Farm Bureau excel in J.D. Power (above 840) for claims and service; GEICO lags slightly but wins on ease.
- Complaints & Strength: Low NAIC scores indicate fewer issues; all have A.M. Best ratings of A- or better for claim-paying ability.
- Discounts & Features: Expect 10–30% off for bundling (home/auto), safe driving apps, good students, or defensive courses (valid 3 years in TX). Texas-specific: PIP coverage is optional but recommended.
Tips to Save on Texas Auto Insurance
- Compare Quotes: Use sites like The Zebra or Insurify for 3–5 free quotes—saves average $500/year.
- Boost Your Profile: Maintain good credit (saves 20–40%); complete a TDI-approved defensive driving course ($25 online).
- Choose Wisely: Minimum coverage for old cars; full for new ones. Add uninsured motorist (TX has 14% uninsured drivers).
- State Notes: Rates spike in Houston (up 25% due to flooding/theft); rural areas like Lubbock are cheaper. No-fault state, but PIP rejection must be in writing.
For personalized rates, input your details on provider sites or call agents. Safe driving can drop premiums 20% in 3 years.