Cheapest Car Insurance in Texas (2025)

So, although auto insurance is an essential payment for every Texas driver, it doesn’t have to be very expensive. Here, we explain everything based on you.

With insurance rates rising in recent years, choosing affordable car insurance that provides good protection is more important than ever.

Unfortunately, several carriers consistently offer low-cost car insurance in Texas, whether you’re looking for no-fault or full coverage. This article explores the cheapest car insurance options in Texas for 2025 and gives some helpful tips on how to save money.

Why Car Insurance Costs Vary in Texas

Texas is a very large and diverse state that has very different road conditions, different weather patterns, and different population density, all of which affect your insurance premium.

Other important factors include your age, your driving history, your location, your credit score, and your choice of coverage.

As mentioned above, city drivers (like Houston and Dallas ) generally pay more because of the increased risk of accidents and theft, while rural drivers typically pay less.

Knowing how factors like these factor into the price is the first step in finding the best rate.

Top 4 Cheapest Car Insurance Providers in Texas

1. Texas Farm Bureau

Texas Farm Bureau is consistently rated by Consumer Reports as the cheapest car insurance company in the state. Monthly premiums for minimum liability coverage are as low as $30, and full coverage is also very cheap (costing generally $107/month).

This one is probably more popular among families and rural drivers. There is a catch though: coverage is only available to members, which requires an annual membership fee. In the end, many Texans find the savings well worth it.

2. State Farm

Another popular option for low-price car insurance in Texas is State Farm. A regional agency with a large footprint in the state, it offers policies starting at generally only $39 per month for minimum coverage.

Clean driving records also generally lend to significant discounts, and State Farm’s “Drive Safe & Save” program, which uses telematics to track driver behavior, also offers further discounts.

It’s also a good provider if your driving record is bad ( as State Farm will be very competitive even if you have any previous violations or accidents on your driving record ).

3. Geico

Geico is a well-known insurance company in the U. S. with competitive rates. This really holds true here in Texas as well. Minimum coverage can start at about $40 per month and full coverage policies can be cheaper than many of the larger companies.

It’s also one of the few insurers that’s digital first, with an app and online accounts for claims processing, quotes, and customer service, which make it a nice fit if you like being able to do the majority of your checking and email using your phone

4. USAA

The only insurance option available to active military personnel, veterans, and their families is USAA, but we believe it is worth mentioning for those who qualify. USAA has some of the lowest rates in the state—starting at averagely $44 per month for minimum coverage—and has been rated highly in customer service.

Generally, for Texas’ military families, USAA remains a popular choice because of the coverage and services offered.

Tips to Lower Your Car Insurance Premium in Texas 

If you’re one of the insured with those affordable companies, we’re able to suggest methods to further lower your premium:

• Keep a Good Driving History: Having no crashes or infractions for a set period usually qualifies one for better rates.
• Change Your Deductible: Opting for a higher deductible is one way to reduce premium costs.
• Bundle Policies: Discounts are offered when auto insurance is bundled with home or renters insurance.
• Discounts: Ask about safe driving, good student, low mileage, and multi-vehicle discounts.
• Telematics: If you’re a good driver, enrolling in your insurer’s usage-based insurance program is beneficial.

Annual Shopping: Check quotes annually, as rates may change over time—this is important even for those satisfied with their current provider.

Choosing the Right Coverage

You may be lured into picking the option with the lowest premium, but check if it has enough coverage for your protection.

All drivers in Texas are required by law to have, at the very least, liability automobile insurance.

That is, however, likely insufficient coverage in the event of a serious accident. If you operate a newer vehicle, have a loan against your car, or want protection for vandalism or weather-related incidents, consider switching to full coverage.

Final Thoughts

If you have the right know-how, looking for cheap car insurance in Texas is a walk in the park. While the Texas Farm Bureau has the most affordable rates, State Farm, Geico, and USAA also come in handy with great customer service alongside their vast array of services.

No matter if you are a new driver, a long-time resident, or someone with a few dings on their record, it never hurts to do some elbow grease by getting tailored quotes and inquiring about available discounts.

With some effort, you can discover the right balance of costs and coverage that protects you on the road, without unnecessary expenses.