Insurance

The Cheapest Car Insurance in Texas for 2022 |

· Overall, the cheapest companies in Texas are Farmers, USAA and State Farm. You can start searching for the best auto insurance by getting a 
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While Farmers has the cheapest car insurance costs in Texas, factors including coverage amounts, driving history, age and credit score also determine your policy premiums.

For instance, Esurance is the cheapest provider for drivers with a DUI on their record. Overall, USAA is the cheapest policy, but it’s only available to military personnel and eligible family members.

For those looking for an even more local solution, we also broke down the cheapest companies by city, as well as the best car insurance companies in Texas for those looking to balance quality service and cost.

To find out how MoneyGeek calculated the cheapest car insurance in Texas, read our methodology.

Generally, the cheapest car insurance in Texas is a policy that meets the state’s minimum liability coverage requirement. It’s the most affordable insurance, but we recommend getting higher levels of coverage for better and broader protection.

MoneyGeek found that the cheapest car insurance options for minimum coverage in Texas are from the following insurance providers:

  • Farmers: $420 per year
  • State Farm: $495 per year

If you or a family member are in the military, USAA also has an affordable offer averaging $424 annually. At an average rate of $1,317 per year, The General is the most expensive company in Texas for minimum liability car insurance.

Cheapest Minimum Car Insurance in Texas

These prices are only estimates based on rates for an average Texas driver and should not be used to compare insurance prices.

Some drivers prefer to have more protection and opt for a full coverage policy with comprehensive and collision insurance that covers most road and off-road accidents in Texas. While this policy has higher liability limits, it does cost more than a minimum coverage policy. It also covers expenses related to damages to the policyholder’s vehicle.

Based on average comprehensive and collision rates, the cheapest full coverage auto insurers in Texas are:

  • Farmers: $821 per year
  • State Farm: $924 per year

For current and former military members, USAA also has an affordable average annual rate of $885. The most expensive insurance company in Texas is The General, with an average annual rate of $2,718.

Cheapest Full Coverage Car Insurance in Texas

The prices stated above are estimated rates for the average driver in Texas and may differ from the rates you are able to get. These estimates are based on a policy with comprehensive and collision insurance with $100,000 for bodily injury liability per person, $300,000 for bodily injury liability per accident and $100,000 for property damage per accident.

To find the best auto insurance in Texas, you need to get personalized quotes from multiple providers. Most insurance companies have tools on their websites that let drivers get a reasonably accurate quote online.

  • Make sure you use the same limits when shopping for quotes. For instance, if you get a quote for $50,000 in bodily liability insurance from one insurer, use the same limits when you get quotes from other insurers.
  • For easier access to an auto insurance quotes comparison, use MoneyGeek’s calculator to get an insurance cost estimate for an average driver in Texas. If you want a personalized quote, you’ll have to enter more information. You can also use MoneyGeek’s price data to help choose which company websites to visit.
  • Overall, the cheapest companies in Texas are Farmers, USAA and State Farm. You can start searching for the best auto insurance by getting a personalized quote from these carriers.

Shopping around for car insurance companies can provide drivers in Texas with a real opportunity to save. For example, opting for Esurance instead of The General saved our sample driver almost $2,000 per year, and the difference could be significant for you.

Not only can having a DUI in Texas increase your car insurance rates, but you may also face jail time and fines for the violation. The costs of a DUI can last for years in terms of insurance premiums, legal fees, education expenses and more.

Average Car Insurance Rates With a DUI

According to the Centers for Disease Control and Prevention, 13,592 people were killed in alcohol-related car crashes in Texas from 2009-2018. 2.2% of drivers in Texas say they have driven after drinking too much in the last 30 days.

Those convicted of a DUI in Texas face jail terms of 3 days to six months and a mandatory license suspension of 90 days to a year. There are also direct fines and fees of up to $2,000. If it’s your second offense, that fine could go as high as $4,000. And if it’s your third offense, or if there is a minor child in the car, your fine in Texas could run as high as $10,000.

Read more: The Cheapest Car Insurance in California for 2022 |

Not only can having a DUI in Texas increase your car insurance rates, but you may also face jail time and fines. The real costs of a DUI can last for years in terms of insurance premiums, legal fees and education expenses and more.

You’ll pay more if you have an at-fault accident on your driving record in Texas. On average, car insurance premiums for drivers with an at-fault accident run $1,988 per year.

The cheapest car insurance for at-fault drivers in Texas are:

  • State Farm: $1,113 per year
  • Farmers: $1,165

If you’re eligible, USAA is among the cheapest insurance options at an annual average cost of $1,387.

Cheapest Car Insurance With an At-Fault Accident

Speeding tickets raise the average rate of auto insurance in Texas to $1,451 per year. That is $135 more than the annual average rate for the average Texas driver who has a clean record, which is $1,316.

Drivers with a speeding ticket may find the cheapest auto insurance from:

  • State Farm: $924 per year
  • Farmers: $1,079 per year

If you’re a member of a military family, USAA’s $995 annual average rate is also quite competitive.

Average Car Insurance Rates With a Ticket

Moving violations can negatively impact your auto insurance premiums. Distracted driving is dangerous and increases your odds of getting in an accident, making this infraction a major concern for insurers.

On average, annual car insurance premiums in Texas with a single conviction for speeding or distracted driving increase by $274.10.

Rates for drivers with poor credit range from $1,297 to $4,608 annually in Texas on average. Insurance companies often associate lower credit scores with an increased risk of claims. Texas is among the states that allow insurers to use credit scores as one factor to set premiums.

You may qualify for an exception to credit underwriting because of identity theft or a specific life event beyond your control. Some examples include:

  • Identity theft
  • Job loss
  • Divorce
  • The death of an immediate family member

If your request for an exemption is approved, your insurer can only consider credit information not related to the adverse life event, or they must assign a neutral credit score.

Cheapest Car Insurance Rates for Drivers With Bad Credit

Many insurance companies note an increase in claims among people with poor credit scores. In fact, it was a 2003 University of Texas study commissioned by then-Lieutenant Governor Bill Ratliff that established a significant inverse correlation between credit scores and claims for the insurance industry.

Texas is among the states that allow insurers to use credit scores as one factor to set premiums. With an average credit score of 680 according to Experian, Texans rank 48th in the nation for good credit, which means that many may be paying more for auto insurance.

If your credit score has been negatively affected because of identity theft or a specific life event beyond your ordinary control, you may qualify for an exception to credit underwriting. Examples include job loss, divorce, the death of an immediate family member and the like. To request an exemption, simply submit the request to the insurance company in writing, along with documentation.

Once the carrier has your request, documentation and the request meets state requirements, the carrier can only consider credit information not related to the negative life event, or they must assign a neutral credit score.

If you believe your request for a credit underwriting exception was improperly denied, you can visit the Texas Department of Insurance Complaint Process web page to file a complaint.

Read more: The Income Annuity: Pros And Cons (2022)

Rates for senior drivers in Texas range from $858 to $3,623 per year on average. In Texas, drivers between the ages of 79 and 84 must renew their license in person every six years, while drivers ages 85 and older are required to renew every two years.

Senior drivers are not only required to participate in more regular license renewals and screenings, but they often pay higher insurance rates in Texas. But not all companies start increasing premiums at the same age. Some hike rates at age 65, while others wait until age 70 or later. As you age, it pays to shop for affordable car insurance for seniors every few years.

Cheapest Car Insurance Rates for Seniors

In Texas, older drivers are subject to increased safety laws and regulations. In 2017, 9.9% of fatal car crashes in Texas were caused by drivers over the age of 65.

According to the Texas Department of Public Safety, drivers between the ages of 79 and 84 must renew their license in person every six years, while drivers aged 85 and older are required to renew every two years.

Senior drivers are not only required to participate in more regular license renewals and screenings, but they often pay higher insurance rates in Texas. But not all companies start increasing premiums at the same age. Some hike rates at age 65, while others wait until age 70 or even later. As you age, it pays to shop around every few years for affordable car insurance for seniors.

If you’re an older driver, you may be able to offset some or all of the higher premiums in several ways, including taking a defensive driving course. You may be able to get discounts if you take a defensive driving course. Details vary depending on your carrier. Approved courses include Defensive Driving by the National Safety Council, American Safety Council or IMPROV.

Insurers charge younger drivers more for car insurance due to their inexperience on the roads. A 16-year-old driver in Texas pays an average of $3,509 per year, while a 25-year-old pays $1,197 per year for car insurance.

In Texas, the cheapest car insurance coverage for young drivers aged between 16-25 years is from State Farm and GEICO. MoneyGeek’s analysis was based on sample drivers for every age within that range.

Annual Car Insurance In Texas for Young Drivers

Younger drivers, including high school and college-aged drivers, are considered a higher-risk group. Teen drivers are particularly accident-prone and insurance rates reflect this.

However, some carriers are friendlier than others when it comes to setting rates for drivers in their teens and early 20s. Rates for this group vary substantially. It pays to shop around, especially right before a teen driver goes to college or owns his or her first car.

USAA is one of Texas’s cheapest car insurance providers for veterans and military members. While Farmers is slightly more affordable, USAA’s offerings are tailored exclusively to drivers with a military background and their families.

If you own or operate a motor vehicle in Texas, you’re required to purchase insurance coverage for all vehicles (except for semi-trailers and trailers) registered for on-road use. However, there is one exception to this rule: you can avoid the requirement for insurance if you deposit at least $55,000 in cash or eligible securities with the Texas Comptroller, or a cashier’s check with the county judge.

Proof of Insurance in Texas

Drivers in the state must provide proof of insurance or alternative documentation. According to the Texas Department of Motor Vehicles, you need to show proof of insurance in several circumstances:

  • When asked for it by a police officer
  • When involved in a car accident
  • When registering and renewing a vehicle registration
  • When applying for and renewing a driver’s license

Auto insurers are required to send policyholders an insurance card. Individuals relying on insurance alternatives will receive certificates in lieu of an insurance card. You can carry your card on your smartphone.

Texas Insurance Requirements

Texas drivers must provide proof of insurance or alternative documentation. The state requires drivers to purchase minimum liability insurance coverage or post a $55,000 bond. Minimum liability coverage requirements are $30,000 for each injured person, a total of $60,000 for injuries per accident, and $25,000 for property damage per accident, also known as a 30/65/25 policy.

We recommend drivers carry 100/300/100 coverage instead of the state’s minimum liability coverage. This means purchasing $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and $100,000 property damage coverage per accident. While collision and comprehensive coverage are usually optional, they are often a good idea.

High-Risk Auto Insurance Program in Texas

If you’re having trouble finding a policy that meets your needs, there are a few options available. Individuals who don’t qualify for liability insurance through traditional channels may obtain coverage through the Texas Automobile Insurance Plan Association. Uninsured residents may also legally drive if they can present proof of financial responsibility in the form of a $55,000 deposit.

Alternatives to Insurance in Texas

Read more: Democrats dominate fierce fight in California insurance commissioner&x27s race – Los Angeles Times

Under Texas law, uninsured residents may legally drive if they can present proof of financial responsibility. According to the Texas Transportation Code, approved alternatives to car insurance in Texas include:

  • $55,000 cash or securities deposit with the state comptroller
  • $55,000 cash or cashier’s check deposit with the county judge
  • Surety bond filed with the Texas Department of Public Safety

In each instance, drivers who opt for this alternative must carry a certificate of deposit or a surety bond deposit instead of an insurance card.

What Happens If You Don’t Have Car Insurance in Texas?

Texas drivers caught without insurance or a valid alternative can face the following consequences:

  • First offense: $175-$350 fine
  • Second offense: $350-$1,000 fine, a two-year suspension of driver’s license and car impoundment
  • Driving without a license: Up to a $2,000 fine and/or 180 days in jail

How Much Coverage Do You Need in Texas?

While Texas only requires 30/60/25 minimum liability coverage, many drivers should consider buying insurance that goes beyond the minimum levels of protection. A 100/300 liability policy, one that covers $100,000 for a single person in an accident and $300,000 for all individuals in an accident, is much more likely to protect you if you cause an accident with severe injuries or damages to the other driver or vehicle. If you have a newer vehicle or your car is not yet paid for, it’s also a good idea to carry comprehensive and collision coverage to cover damage to your vehicle.

Insurance companies in the state offer a Texas Personal Automobile Policy, a standardized policy that offers eight types of insurance in one policy. But because exclusions vary from policy to policy, the Texas Office of Public Insurance Counsel recommends drivers know exactly who and what is covered.

For many Texas drivers, price and which insurance company is the best are the most pressing questions they consider when looking for auto insurance.

Texas car insurance quotes in this study come from MoneyGeek’s evaluation of data and information from the Texas Department of Insurance and Quadrant Information Services.

Drivers and Cars in Texas

MoneyGeek’s sample driver in this guide has the following background, unless otherwise stated:

  • 40-year-old male
  • Clean driving record
  • 2010 Toyota Camry LE
  • 12K miles driven annually

To find the most affordable provider for various driver profiles, we also collected quotes for drivers with various violations (such as speeding tickets, at-fault accidents, or DUI), credit histories and ages.

Moreover, we followed Texas’s minimum car insurance limits when evaluating minimum liability policies.

Coverage Levels in Texas

MoneyGeek studied the cheapest insurers for two types of policies: Texas’s state minimum and full coverage policies with increased liability limits.

In Texas, drivers are required to have the following coverages for a minimum coverage policy:

  • $30,000 per person for bodily injury
  • $60,000 per accident for bodily injury
  • $25,000 per accident for property damage
  • $2,500 per personal injury protection (unless waived in writing)

On the other hand, the limits for full coverage insurance are:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $100,000 property damage liability
  • Comprehensive and collision coverage with a $1,000 deductible

Data Depth

MoneyGeek assessed 11,264 quotes from 11 companies across 64 ZIP codes to determine the most affordable car insurance companies in Texas.

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