In Texas, car insurance costs tends to hover around the US national average. In 2016, the average Texan paid $1,008 per year for car insurance coverage, while the average American paid about $935, according to the Insurance Information Institute.
That said, when it comes to car insurance, every person is different. Each insurance company looks at people and their characteristics differently. They'll price the amount that each person will pay for coverage, also called a premium, differently as well.
Even though car insurance is relatively affordable in Texas, there's still plenty to be saved if you're willing to shop around and look for the best deals. Here are a few of the best companies offering cheap car insurance in Texas to start your search.
Most popular car insurance companies in Texas
The following are the top 10 most popular car insurance companies in Texas, based on the percentage of insured Texas drivers who use them:
| Company | Market Share (%) |
| Allstate | 13.93 |
| State Farm | 13.81 |
| Progressive | 13.31 |
| GEICO | 13.17 |
| USAA | 9.45 |
| Farmers Insurance | 7.88 |
| Liberty Mutual | 4.8 |
| Texas Farm Bureau Insurance | 3.74 |
| Consumers County Mutual | 2.28 |
| Auto Club Exchange | 1.74 |
Best car insurance in Texas based on customer satisfaction
Customer satisfaction with car insurance providers may factor into your decision. According to a J.D. Power survey, these are the top eight based on customer rankings:
- Texas Farm Bureau
- Allstate
- GEICO
- State Farm
- Texas Average
- Farmers
- Auto Club of Southern California Insurance
- Nationwide
Best cheap car insurance in Texas based on credit score
Consumer Reports gathered the pricing formulas used by each insurance company in each state, and calculated rates based on the average single adult driver with three different credit types. For insurance in Texas, it found that these three companies offered the best car insurance at the lowest prices for each credit tier.
Drivers with excellent credit scores, FICO scores 800-850, will see the lowest premiums on car insurance, on average.
- USAA car insurance: $650 per year
- State Farm car insurance: $1,084 per year
- Amica car insurance: $1,109 per year
Here are Consumer Reports' picks for those with good credit, FICO scores 670-739, along with the average premium for a single adult driver.
- USAA car insurance: $860 per year
- State Farm car insurance: $1,304 per year
- Amica car insurance: $1,383 per year
Drivers with poor credit, FICO scores 300-579, will pay the most for coverage. Here are the average premiums for Texas drivers with bad credit:
- GEICO car insurance: $2,162 per year
- State Farm car insurance: $2,368 per year
- USAA car insurance: $2,537 per year
Texas car insurance rates by city
Below is the estimated average annual premium of auto insurance policies per household in Texas' most populous cities.
| City | Average Annual Insurance Premium |
Houston | $1,333 |
San Antonio | $1,353 |
Dallas | $1,353 |
Austin | $1,454 |
Fort Worth | $1,407 |
El Paso | $1,322 |
Arlington | $1,399 |
Corpus Christi | $1,375 |
Plano | $1,571 |
Laredo | $1,273 |
Lubbock | $1,340 |
Garland | $1,398 |
Irving | $1,399 |
Grand Prairie | $1,438 |
Amarillo | $1,383 |
McKinney | $1,606 |
Brownsville | $1,269 |
Frisco | $1,729 |
Pasadena | $1,343 |
Mesquite | $1,395 |
Killeen | $1,349 |
McAllen | $1,328 |
Denton | $1,375 |
Midland | $1,437 |
Carrollton | $1,513 |
Waco | $1,298 |
Pearland | $1,618 |
Round Rock | $1,560 |
Abilene | $1,300 |
Beaumont | $1,317 |
The Woodlands CDP | $1,572 |
Odessa | $1,343 |
Richardson | $1,486 |
Lewisville | $1,437 |
College Station | $1,327 |
Allen | $1,694 |
Tyler | $1,300 |
League City | $1,615 |
Wichita Falls | $1,268 |
Above data is from S&P Global Market Intelligence.
Who gets the best car insurance rates in Texas?
There are a lot of factors that go into the price for coverage you see reflected on your quote. When it comes to who sees the cheapest rate, drivers who live in rural areas with less traffic and those with the least expensive cars will often see lower rates.
There are a lot of other factors that go into your price as well, including your gender, age, and even whether or not you're married or own a home. But perhaps one of the most important factors is credit score, as Consumer Reports' calculations show above.
There are a couple of things you can do to avoid overpaying for car insurance. First, it might be worth checking your credit score before shopping for car insurance, and working to raise your score if it's not where you'd like it to be.
Another key to cutting your car insurance costs is shopping around. Since all insurance companies price your policy differently, you'll want to see what a few have to offer. Getting quotes is the easiest way to do this. Once you have your quotes, you'll want to compare them, looking at the coverage types and limits to find the most coverage for your money. Also look to see what the deductible is, or the amount you'll have to pay out-of-pocket if you get into an accident.
If you're willing to do your homework and shop around for car insurance, you'll be in a better position to get the most car insurance coverage for your money.
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