In terms of affordable auto insurance in Texas, Texas Farm Bureau tends to top the list for most drivers. It is a popular choice for savings due to its competitive rates and wide availability.
By August 2025, Texas Farm Bureau provides full coverage at only $112 per month—approximately half the state average!
However, it’s not the only option. GEICO, State Farm, and USAA also offer competitive rates, depending on your car, location, and driving history.
Why Is Auto Insurance In Texas Costly?
Texas is a large state, and auto insurance premiums depend on several key factors. Where you live matters a lot!
Cities like Houston or Dallas tend to have higher premiums due to heavy traffic and a higher number of accidents. On the other hand, rural areas usually offer lower rates since there’s less traffic and fewer accidents.
Your driving record, the type of car you drive, and the coverage you need will also affect your rates. For instance, if you have a clean driving record, you’ll likely pay a lower premium. However, if you drive a luxury car, expect higher rates due to the more expensive repair costs.
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The Importance of Comparing Insurance Providers
Although State Farm or Texas Farm Bureau may seem like obvious choices, it’s always beneficial to compare quotes from multiple providers. Insurance companies offer different discounts based on your situation. You could receive discounts for having a clean driving record, bundling car and home insurance, or excelling in school. So, it’s always worth shopping around!
Additionally, factors like your deductible and the type of coverage (liability or full coverage) also play a significant role in pricing. Never settle for the first quote—make sure you get the best deal by comparing options.
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Top Cheapest Auto Insurance Providers in Texas
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Texas Farm Bureau: With rates as low as $112 per month for full coverage, it’s the go-to choice for many Texans looking to save money.
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State Farm: Known for excellent customer service and reliable coverage, State Farm averages $93 per month for full coverage.
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USAA: Although slightly more expensive at $143 per month, USAA is a great option for military members and their families.
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GEICO: A strong contender for affordable insurance in Texas, GEICO offers full coverage at $144 per month.
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Progressive: Progressive’s full coverage averages $157 per month, which tends to be higher than the rest.
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Factors That Impact Your Auto Insurance Rate in Texas
Several factors contribute to how much you’ll pay for auto insurance in Texas, and understanding these factors can help you make a more informed decision:
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Driving History: The cleaner your driving record, the cheaper your insurance will be. If you’ve had past accidents or violations, you may face higher premiums.
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Credit Score: Insurers often use your credit score to set premiums. Generally, the higher your credit score, the lower your insurance premiums.
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Location: Living in a busy city like Houston or Dallas typically means higher premiums due to more traffic and accidents. On the other hand, premiums in rural areas are usually lower.
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Car Type: The type of car you drive matters. Luxury and sports cars tend to be more expensive to insure because of higher repair costs.
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Coverage Level: Full coverage (which includes comprehensive and collision coverage) will cost more than minimum liability coverage, which is required by law.
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How to Reduce Your Auto Insurance Expenses
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Obtain Numerous Quotes: Never accept the first quote you get. Comparing rates from various providers can help you identify the best deal.
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Package Policies: Many insurance companies offer discounts when you bundle your auto insurance with home or renters insurance.
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Raise Your Deductible: Increasing your deductible can lower your monthly premium. Just make sure you can afford the higher deductible if you need to make a claim.
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Maintain a Clean Driving Record: Avoid accidents and traffic violations to keep your premiums low.
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Capitalize on Discounts: Many insurance providers offer discounts for things like having anti-theft devices on your car, being a good student, or driving fewer miles.
Final Thoughts
Although Texas Farm Bureau is generally the cheapest option for most drivers, it never hurts to compare quotes from other insurers like State Farm, USAA, and GEICO. Rates can vary based on your unique circumstances, so it’s important to look at all available options.
Remember, the cheapest insurance isn’t always the best. It’s about finding coverage that suits your needs.
Whether you’re a first-time driver or an experienced road warrior, be sure to shop around, consider all factors, and choose the insurance that will give you peace of mind and financial security.
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