Best Car Insurance in Texas for 2023

The best car insurance in Texas varies based on individual needs and preferences. While we at the MarketWatch Guides Team rank State Farm as the top choice in Texas, other commendable alternatives exist. We’ve assessed various insurance providers and will present our top five selections for Texas in this discussion.

Best car insurance companies in Texas

For the finest car insurance in Texas, we advise reviewing quotes from the following providers.

State Farm: Editor’s Choice

  • J.D. Power score: 851/1,000
  • AM Best financial strength rating: A++
  • BBB rating: A+
State Farm: Editor’s Choice

According to the National Association of Insurance Commissioners (NAIC), State Farm ranks second in Texas, following Progressive. The company boasts a solid reputation, reflected in its high BBB and AM Best ratings. Moreover, State Farm secured an above-average position in Texas in the J.D. Power 2022 U.S. Auto Insurance Study℠.

Pros

  • Up to 25% discount for good students
  • Impressive industry ratings
  • Competitive average rates for responsible drivers

Cons

  • Varied customer feedback

State Farm Car Insurance Coverage

State Farm provides standard coverage options such as:

  • Bodily injury and property damage liability
  • Collision
  • Comprehensive
  • Underinsured/uninsured motorist
  • Medical payments (MedPay)
  • Personal injury protection (PIP)

Additionally, they offer unique options like:

  • Classic car insurance
  • Rideshare coverage
  • Roadside assistance
  • Rental car and travel expense coverage

State Farm’s Drive Safe & Save™ program allows responsible drivers to save up to 30% on premiums. They also have the Steer Clear® program, a young driver education initiative that provides discounts.

State Farm Reputation

Geico ranks as Texas’s third-largest car insurance company, as per the NAIC. It holds a commendable customer service reputation, with a 4.1 overall satisfaction score and a 4.2 claims service rating from our survey participants. However, in J.D. Power’s Auto Insurance Study, Geico’s performance was slightly below average for Texas. We sought Geico’s perspective on its J.D. Power rating and mixed BBB reviews but received no response.

On the other hand, State Farm generally offers a positive customer experience. From our survey, approximately 19% of respondents were State Farm clients, granting a 4.2 overall satisfaction rating. Claims service and agent-based customer service received scores of 4.2 and 4.1, respectively. Yet, State Farm’s BBB customer rating stands at a lower 1.2 out of 5.0. We reached out to State Farm regarding this disparity but did not get a reply.

USAA: Low Rates for Military

  • J.D. Power score: 885/1,000
  • AM Best financial strength rating: A++
  • BBB rating: Not rated
USAA: Low Rates for Military

USAA is a top choice for current or former military members. They offer competitive rates for drivers with clean records in Texas. Additionally, USAA has earned high scores from both J.D. Power and our consumer survey. Importantly, only military members, veterans, and their immediate families are eligible.

Pros

  • Competitive average rates
  • Military-specific discounts including for deployment and base vehicle storage
  • Stellar customer service ratings

Cons

  • Limited to military and their families.

USAA Car Insurance Coverage

USAA provides a comprehensive range of standard insurance options. In addition to the basic liability and full coverage options available in Texas, USAA offers:

  • Roadside assistance
  • Rental car coverage
  • Rideshare insurance
  • Classic car coverage
  • Car replacement assistance.

USAA Reputation

USAA consistently excels in customer service within the industry. It secured the top spot in the J.D. Power Auto Insurance Study for Texas and achieved the second-highest national score in the J.D. Power 2022 U.S. Auto Claims Satisfaction Study℠. Moreover, in our consumer survey, USAA received a rating of 4.3 out of 5.0 from its customers.

Texas Farm Bureau

  • J.D. Power score: 873/1,000
  • AM Best financial strength rating: A
  • BBB rating: A+

Texas Farm Bureau has been providing cost-effective car insurance since 1952. Becoming a member is open to everyone, not just those in agriculture. Membership also brings a host of discounts, from new cars to health products. Notably, the Bureau’s insurance rates are significantly lower than the state average: 42% less for full coverage and 46% less for minimum coverage.

Pros

  • Competitive rates for both minimum and full coverage.
  • Local agents available in every county.
  • Provides roadside assistance and rideshare insurance.

Cons

  • Limited coverage options compared to larger companies.

Texas Farm Bureau Car Insurance Coverage

Texas Farm Bureau may be a smaller insurer, but it covers essential needs. They offer basics like liability, collision, and personal injury coverage. They also provide:

  • Rideshare protection
  • Rental insurance
  • Help on the road
  • Coverage in case of death But, for unique needs like pay-as-you-drive or old car coverage, you might need to check other providers.

Texas Farm Bureau Reputation

Texas Farm Bureau works with local agents and is known for great customer care. This quality service helped it top other major brands in Texas according to the J.D. Power Auto Insurance Study.

Geico: Affordable for Most Drivers

  • J.D. Power score: 843/1,000
  • AM Best financial strength rating: A++
  • BBB rating: A+
Geico: Affordable for Most Drivers - Best car insurance in Texas

If you’re looking for a wide selection of coverage options, extras and discounts, Geico can be a This company provides competitive rates close to the Texas average. They present numerous discounts and a telematics program for Texas drivers to enjoy savings. Key discounts include:

  • 25% for military deployment
  • 15% for top-performing students
  • 22% for safe drivers

Pros

  • Features mechanical breakdown insurance and additional coverages.
  • Boasts 16 car insurance discounts.
  • Has an A++ rating from AM Best and an A+ from the BBB.

Cons

  • Customer reviews are varied.

Geico Car Insurance Coverage

Geico offers a comprehensive range of coverage options, ensuring that customers can select from basic liability to full coverage with high limits for complete protection. Additionally, Geico provides valuable add-ons such as:

  • Roadside assistance
  • Trip interruption coverage
  • Classic car insurance
  • Rideshare insurance
  • Mechanical breakdown insurance

Notably, Geico’s Mechanical Breakdown Insurance (MBI) functions similarly to an extended warranty. It covers specific repairs once your factory warranty concludes, making it especially beneficial for cars with above-average repair costs or those without an existing warranty.

Geico Reputation

According to the NAIC, Geico ranks as the third-largest car insurance provider in Texas and boasts a commendable reputation in customer service. A survey of Geico customers yielded a 4.1 out of 5.0 rating for overall satisfaction and 4.2 out of 5.0 for claims service. Yet, Geico’s performance in J.D. Power’s Auto Insurance Study for the Texas region was slightly below average. Despite reaching out to Geico for insights regarding its J.D. Power rating and the contrasting reviews on the BBB, our team did not receive any feedback.

Progressive: Low Rates for High-Risk Drivers

  • J.D. Power score: 831/1,000
  • AM Best financial strength rating: A+
  • BBB rating: F
Progressive: Low Rates for High-Risk Drivers

Progressive stands out as our top recommendation for car insurance in Texas. This sentiment is echoed by many, given that the NAIC recognizes Progressive as the state’s most preferred car insurance provider. Particularly for those with a teen driver or blemishes such as DUIs on their driving record, obtaining a quote from Progressive might be prudent. Our analysis suggests that Progressive offers competitive rates for high-risk drivers.

Pros

  • Features the usage-based program, Snapshot®.
  • Offers a wide array of discounts catering to diverse situations.
  • Provides value-added services like accident forgiveness and roadside assistance.

Cons

  • Holds an “F” rating from the BBB.

Progressive Car Insurance Coverage

Progressive, a leading insurance provider, presents a diverse array of coverage choices. They offer an accident forgiveness feature, available in both minor and major forms based on your tenure with the company. Furthermore, customers have the option to directly buy the major accident forgiveness.

Additionally, Progressive introduces its usage-based initiative, Snapshot. This program rewards safe drivers with savings. Those who drive prudently, refrain from late-night journeys, and maintain a low average mileage stand to benefit the most.

Progressive Reputation

In the J.D. Power Auto Insurance Study for Texas, Progressive secured a score of 831 out of 1,000, marginally below the state average of 844. In our consumer feedback, Progressive earned a commendable 4.1 out of 5.0 for overall satisfaction, although it slightly trailed the survey’s average of 4.2.

Furthermore, Progressive holds an “F” rating with the BBB due to its lack of response to 155 complaints and the unresolved status of five complaints. Despite our team’s efforts to solicit comments from Progressive regarding its BBB rating and its performance in the J.D. Power study, we didn’t receive any feedback.

What Other Types of Car Insurance Should I Have in Texas?

There are numerous scenarios where added coverage is beneficial. In Texas, flooding is a major concern. For instance, Hurricanes Harvey and Irma damaged over 637,000 vehicles in 2017, as reported by the National Insurance Crime Bureau. Comprehensive coverage compensates for flood damage. Additionally, it covers theft, hail, fire, falling objects, vandalism, and accidents with animals. If you have a car loan or lease, collision and comprehensive coverage are typically mandatory.

Personal Injury Protection

Texas car insurance policies include $2,500 in PIP by default, but it can be declined in writing. PIP covers medical expenses for you and passengers, regardless of the accident’s cause. If you have strong health insurance, you might think about declining PIP. However, remember that PIP covers 80% of lost wages and services like childcare, which health insurance might not. Given that medical bills and lost wages can exceed $2,500, you could consider raising PIP to $10,000 or higher.

Medical Payments Coverage

In Texas, Medical payments (MedPay) insurance is an option. Similar to PIP, it covers medical expenses for you and passengers regardless of who’s at fault in an accident. It also extends to injuries in another’s car or even when walking or biking. However, unlike PIP, MedPay doesn’t cover lost wages or replacement services.

Uninsured/Underinsured Motorist Coverage

Several drivers lack adequate insurance. For protection, it’s wise to think about uninsured and underinsured motorist coverage. This policy handles your medical and vehicle repair costs, including in hit-and-run situations. While Texas insurers are obligated to provide this coverage, you have the option to decline in writing.

How much is car insurance in Texas?

In Texas, drivers pay an average of $565 annually for minimum coverage and $2,019 for full coverage. Nationally, the averages stand at $622 for minimum and $2,014 for full coverage. This means Texas’s rates align closely with the national average. Interestingly, Texans pay less for full coverage than drivers in neighboring Louisiana and Colorado, with rates at $2,909 and $2,121 respectively. Notably, Louisiana ranks among the priciest states for car insurance in the U.S.

How to find the best car insurance in Texas

Texas mandates that all drivers have car insurance. Driving uninsured can lead to fines and severe consequences. But beyond legal requirements, good car insurance provides financial security and peace of mind while driving. To guide your decision, Insurancetoplist has compiled factors to ponder before buying a policy.

Consider minimum insurance requirements in Texas

The Texas Department of Insurance requires drivers to have set liability coverage. Texas insurers also need to offer uninsured, underinsured, and personal injury protection (PIP) coverages. However, these can be declined in writing. State minimums may not fully cover accident costs. For better protection, consider higher liability or full coverage insurance.

Consider lender requirements

Texas law sets basic insurance requirements. However, if you’ve leased or financed your car, lenders might require more coverage. They often ask for comprehensive and collision insurance. This is because they have a financial stake in your vehicle. Comprehensive and collision insurance broadens the protection against potential losses.

Consider your individual needs

When shopping for insurance, consider financial ratings, customer reviews, rates, and discounts. However, start by assessing your own needs. The ideal insurer varies based on personal situations. For instance, a DUI might necessitate an SR-22 filing. Multiple speeding tickets could mean seeking a high-risk insurer. For a new car, especially with a loan or lease, look for offerings like new car replacement and gap coverage.

FAQs

What is the cheapest car insurance company in Texas?

The most affordable car insurance in Texas varies for each driver. This is because every Texas insurance company has its own formula to calculate premiums. Not all factors are given the same weight by different insurers. For example, a speeding ticket might increase a Geico full coverage premium from $1,494 to $1,657 annually. Meanwhile, Dairyland’s premium could jump from $2,802 to $3,339 with the same violation.

For the best rates in Texas, consider shortlisting several insurers. Request quotes with identical coverage types and levels from each for a fair comparison.

What happens if I get caught driving without car insurance in Texas?

Driving uninsured in Texas can lead to fines or even a license suspension. A first offense might cost up to $350 in fines. Subsequent offenses can result in fines up to $1,000 and potential license suspension. Texas drivers must have the state’s minimum required car insurance to avoid these penalties.

Why did my car insurance go up in 2023?

Between 2022 and 2023, the average national car insurance cost rose by 14%, jumping from $1,771 to $2,014 for full coverage. Bankrate pinpointed several causes for this increase. Firstly, inflation played a role. Secondly, there were premium give-backs. Thirdly, there was an increase in claims. Lastly, labor shortages also impacted the rates. Car insurance rates are tailored to individuals, so the exact change in cost differs for everyone. In some cases, rates might have even decreased, especially if a major violation recently cleared from one’s record.

Is Texas a no-fault car insurance state?

Texas operates under an at-fault system. This implies that the driver responsible for the accident bears the costs for the other party’s damages, be it property or medical. Interestingly, Texas also mandates offering personal injury protection coverage (PIP) – a feature typically seen in no-fault states. PIP covers injuries and lost wages for all involved, regardless of fault. However, Texans can decline this coverage.

Like many states, Texas mandates a minimum liability insurance for drivers, covering injuries and property damage they might cause. Additionally, insurers must offer uninsured and underinsured motorist coverage, though it’s optional.

Lastly, even if you opt out of some coverages in Texas, consider getting higher liability limits. This can offer better financial protection if you’re at fault in an accident.

Bottom Line

 In Texas, selecting the best car insurance requires considering factors like coverage options, cost, and customer feedback. While Progressive is a popular choice, it’s essential to evaluate its offerings in relation to specific consumer reviews and regional surveys.

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