5 Best Car Insurance Companies in Texas for 2022
There are nearly 16 million licensed drivers in the state of Texas. That’s the second most in the U.S., trailing only California. Texas also ranked toward the top of another list, but it’s not a welcome distinction. The Lone Star State tied for seventh (with South Carolina) in a 2020 study of the states with the worst drivers.
That makes car insurance expensive in Texas. The average car insurance premium in Texas is $1,810 per year — 26.8% more than the U.S. average. The good news is you can still find good rates by comparing car insurance companies and getting quotes.
We’ve narrowed down the best car insurance companies in Texas. Keep reading to learn more about these top five car insurance options for Texas drivers.
Where to Get the Best Car Insurance in Texas
Best for Customer Service: Allstate
Best for Customization: Progressive
Best for Good Drivers: Root
Best for Discounts: State Farm
Best for Comparing Rates: Insurify
Compare Car Insurance Companies in Texas
Best for Customer Service: Allstate
One of the biggest indicators of a good car insurance company is its customer service. Allstate is known as a leader in providing help to its customer base. First, customers have 24/7 access to phone support. Yes, you’d rather not have to use it, but it’s nice to know there’s help when you need it.
Support is also available through local agents and digitally through your online account portal and Allstate’s mobile app.
Again, no one wants to file an insurance claim, but Allstate makes it as painless as possible with the ability to start a claim online or through the app. You can take photos of your vehicle damage and upload them directly into the app. There’s also a tracking function online and through the app, so you always know where your claim stands.
Statewide Average Premium in Texas:
The average premium for Texas drivers through Allstate is $96 per month. This is significantly lower than the statewide average across all insurers. The average car insurance rate in Texas is $1,810 per year, or roughly $151 per month.
Keep in mind the amount will vary based on the city you live in and your driver profile.
Coverage Options:
- Collision
- Comprehensive
- Liability
- Medical payments
- Uninsured motorists
- Underinsured motorists
- Sound system
- Roadside assistance
- Personal injury protection
- Personal umbrella
- Rental reimbursement
Discounts:
- Antilock brake discount
- Antitheft device discount
- Multiple policy discount
- Early signing discount
- Responsible payer discount
- Smart student discount
- New-car discount
- EZ pay plan discount
- Allstate eSmart discount
- Pay-in-full discount
- Safe driving club discount
Customer Satisfaction Rating: 832
Each year, J.D. Power releases an auto insurance study that ranks insurers based on customer satisfaction based on regions of the U.S. Some states are large enough to count as their own region, including Texas.
In 2020, Allstate ranked seventh (a score of 832 out of 1,000) in customer satisfaction in Texas in the J.D. Power 2020 U.S. Auto Insurance Study, slightly below the regional average.
Financial Strength Rating: A+
Allstate received an A+ (superior) financial strength rating from AM Best, a trusted credit rating agency. Financial strength ratings measure an insurance company’s ability to meet contractual obligations.
Best for Customization: Progressive
Everyone has different car insurance needs, which is why so many people trust Progressive and its customizable insurance coverage. Progressive’s Name Your Price Tool lets customers choose the coverage that fits their budget. You tell Progressive how much you want to pay, and the tool shows you options you can afford.
Besides customizing insurance coverage, Progressive gives customers another way to save money through a host of driver discounts. There are discounts available for almost every driver. Progressive’s Snapshot program personalizes your insurance rates based on your driving performance.
Statewide Average Premium in Texas:
The average premium for Texas drivers through Progressive is $54 per month. This is significantly lower than the statewide average across all insurers.
Coverage Options:
- Liability coverage
- Comprehensive
- Collision
- Uninsured motorist
- Underinsured motorist
- Medical payments
- Loan/lease payoff
- Rental car reimbursement
- Custom parts and equipment value
- Ride-hailing coverage
- Roadside assistance
- Deductible savings bank
Discounts:
- Multipolicy discount
- Multicar discount
- Continuous insurance discount
- Safe driver discount
- Teen driver discount
- Good student discount
- Distant student discount
- Homeowner discount
- Online quote discount
- Sign online discount
- Paperless discount
- Pay-in-full discount
- Automatic payment discount
Customer Satisfaction Rating: 848
Progressive ranked second (a score of 848 out of 1,000) in customer satisfaction in the Texas region of the J.D. Power 2020 U.S. Auto Insurance Study.
Financial Strength Rating: A+
Progressive received an A+ (superior) financial strength rating from credit rating agency AM Best. A+ (superior) is one of the highest ratings possible from AM Best and shows that Progressive is known for meeting contractual obligations with its customers.
Best for Good Drivers: Root
Most car insurance companies base insurance rates on factors like where you live, your age, marital status and even your credit. Root’s insurance premiums are based primarily on your driving record. There’s also an option to use your phone app to take a driving test to save money. If you have a clean driving record, you could keep more of your money in your pocket by choosing Root.
Root also excels because of its roadside assistance coverage, included in every car insurance policy. You can use Root’s mobile app to request assistance no matter where you are.
Statewide Average Premium in Texas:
The average premium for Texas drivers through Root is $96 per month. This is significantly lower than the statewide average across all insurers.
Coverage Options:
- Liability
- Collision
- Comprehensive
- Personal injury protection
- Medical payments
- Rental car
- Roadside assistance (included with all policies)
Discounts: Root doesn’t offer any extra discounts. Instead, the company says its discounts are built into your final quote.
Customer Satisfaction Rating: A+
Root is not ranked in the Texas region of the J.D. Power 2020 U.S. Auto Insurance Study.
The insurance company has an A+ rating from the Better Business Bureau.
Financial Strength Rating: Not rated
Root Insurance is not rated by AM Best.
Best for Discounts: State Farm
With State Farm’s discounts, there are many ways to lower the cost of your monthly premiums. There are discounts for safe driving, students, adding safety devices to your vehicle and being a loyal State Farm customer.
Although State Farm is almost 100 years old, one of its best features is a modern twist on insurance coverage. State Farm is one of the few insurance companies to feature ride-hailing coverage. If you use your personal vehicle to drive for a ride-hailing company like Lyft or Uber, you may need extra coverage. With State Farm’s ride-hailing insurance, you’re covered beyond what ride-hailing companies offer.
Statewide Average Premium in Texas:
The average premium for Texas drivers through State Farm is $113 per month. This is significantly lower than the statewide average across all insurers.
Coverage Options:
- Collision
- Comprehensive
- Liability
- Car rental and travel expenses
- Uninsured motorist
- Underinsured motorist
- Medical payments
- Roadside assistance
- Ride-hailing
Discounts:
- Drive-safe-and-save discount
- Steer clear discount
- Accident-free discount
- Defensive driving course discount
- Good student discount
- Good driving discount
- Driver training discount
- Student-away-at-school discount
- Vehicle safety discount
- Passive restraint discount
- Antitheft discount
- Multiple auto discount
- Multiple line discount
Customer Satisfaction Rating: 844
State Farm ranked fourth (a score of 844 out of 1,000) in customer satisfaction in the Texas region of the J.D. Power 2020 U.S. Auto Insurance Study.
Financial strength rating: A++
State Farm received an A++ (superior) financial strength rating from AM Best, the highest possible rating through the credit rating agency.
Best for Comparing Rates: Insurify
Insurify is not a car insurance company, but it can help you find the cheapest rates. The insurance comparison platform uses the latest artificial intelligence technology to provide users with dozens of car insurance rate quotes at one time. Quotes are customized to your profile and driver history. In some cases, you can even see what discounts you qualify for with insurers.
Comparing multiple insurers at once not only saves time, but it gives you a chance to find the cheapest rates. According to Insurify, its customers save an average of $585 annually by going through its site for car insurance.
Statewide Average Premium in Texas:
Average insurance premiums through Insufiy depend on specific insurance companies.
Coverage Options:
As a car insurance comparison site, coverage availability depends on the specific car insurance company.
Discounts:
Specific car insurance discounts through Insurify depend on the car insurance company.
Customer Satisfaction Rating: 4.8 Out of Five Stars
Because it’s a car insurance comparison platform, it is not included in the J.D. Power 2020 U.S. Auto Insurance Study.
Insurify has 4.8 stars out of a five-star customer satisfaction rating on ShopperApproved (2,900+ reviews).
Financial Strength Rating: N/A
Insurify isn’t an insurance company and is not rated by AM Best for its financial strength.
How We Chose the Best Car Insurance Options in Texas
We considered several factors when rating the best car insurance companies in Texas.
Average Texas insurance rates are notably higher than the national average, so it was important to include companies that offer competitive pricing.
We compared the average insurance premiums of individual insurers against the state average. We also weighed important items like coverage, features, discounts, customer satisfaction and financial stability to determine the state’s best insurance companies.
What You Need to Know About Texas Coverage
The state of Texas requires all motor vehicle owners to carry at least the following minimum amounts of auto liability insurance coverage:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Your auto lender may also require you to carry physical damage insurance coverage.
What If I Can’t Afford Insurance in Texas?
There are no state-sponsored car insurance programs for low-income drivers in Texas who can’t afford the minimum auto insurance requirements. You need minimum car insurance coverage to legally drive a vehicle in Texas, regardless of your situation.
Texas drivers can lower insurance costs by maintaining a good driving record, building up their credit, comparing insurance companies for the best rates and choosing a vehicle that costs less to insure.
What If You’re a High-Risk Driver in Texas?
If you are a high-risk driver, there’s a chance that you won’t qualify for insurance coverage with insurance companies because of your driving record. If that’s the case, you may be eligible for minimum coverage through the Texas Automobile Insurance Plan Association.
To qualify for TAIPA insurance, drivers must:
- Possess a valid driver license or request an SR-22 to obtain a valid license
- Be a resident of Texas or have a vehicle registered in Texas
- Certify that they have been rejected for insurance by two companies within the last 60 days
Select military members and college students may also qualify for coverage through TAIPA.
Note that state-sponsored program insurance premiums may be higher than other insurers. You may qualify for traditional car insurance through other carriers as you improve your driving record.
What Are Texas’ Laws Regarding Noninsurance?
If you are caught driving without insurance in Texas, you could face:
- Fines between $175 and $350 for first offenses
- Fines up to $1,000 for subsequent offenses
- Impoundment of your car
- Suspension of your car’s registration
There’s also the possibility that your driver’s license will be suspended if you aren’t adequately insured.
Final Thoughts
Shopping for car insurance isn’t fun, but it’s a necessity if you are a Texas driver. To find the right car insurance company, take time to shop around, comparing quotes from several insurers to find the best option.
Several factors go into car insurance rates, like where you live, the vehicle you drive and your driving history. Look at details like deductibles, available discounts, customer service and digital tools before choosing an insurance company.
