Who are the Major Car Insurance Providers in Texas?

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When you purchase a car or lease one, it is important that you protect that investment. You can do that by getting car insurance, as it offers reassurance in case you are involved in an accident or the vehicle is stolen, vandalized, or damaged by natural disasters. Instead of paying out of your hard-earned money for unforeseen circumstances, you can pay annual premiums to a car insurance company. The company then pays all or most of the costs that are associated with a car accident or other damage to the vehicle. 

Essentially, car insurance is a contract between you and an insurance company wherein you agree to pay premiums in exchange for protection against financial losses in case an accident occurs or other damage to the vehicle arises. This type of insurance can cover vehicle damages, including your car or another driver’s car, property damage or bodily injuries caused by accident, as well as medical bills or funeral expenses associated with injuries that are sustained in an accident. However, the exact details of what is covered depend on the coverage requirements for your state and any additional coverage that you wish to include. 

If you are from Texas and searching for the best car insurance provider, we are here to help you. In this post, we are giving you more information about the major car insurance providers in Texas.

The Major Car Insurance Providers in Texas

a car insurance policy

The Lone Star State has open roads and large highways, and driving around Texas will make you want to be covered by the best car insurance. However, finding the best one can be challenging as there are many companies that offer auto insurance. Always remember that the best insurers should balance customer service, affordability, and financial stability. Finding the best car insurance depends on your needs and other factors. Below are the major car insurance providers in Texas:

1. State Farm

State Farm is among the largest car insurance providers in Texas and also one of the best. It offers strong customer service and satisfaction. In a 2021 J.D. Power U.S. Insurance Shopping Study for overall customer satisfaction, State Farm tied for the highest ranking. Aside from that, it also has fewer complaints than expected for a company of its size. 

It offers its customers various coverage options and ways to save. For instance, it offers rental car and travel expenses coverage. Also, Texans can take advantage of discounts for taking a defensive driving course or insuring multiple cars. And if you practice good driving habits, you can also save by allowing State Farm to track your driving behavior as it offers a Drive Safe & Save program.

2. GEICO

GEICO is among the most affordable insurance providers in Texas and also one of the best. It is also a big company with only a few customer complaints compared to other companies of its size. In a 2020 ranking by the J.D. Power U.S. Insurance Shopping Study, it was ranked highest. The company offers its customers many discounts that can help them save. It has a robust website and mobile app that helps Texans manage their insurance policies. In addition, it also offers unique coverage, such as mechanical breakdown coverage for repairs to a new car. It can also provide car insurance coverage for trips to Mexico.

3. Allstate

Allstate is a car insurance provider in Texas that offers various discounts and features, making it one of the best in the state. It has strong customer satisfaction, and it ranked above average in a 2020 J.D. Power U.S. Auto Claims Satisfaction Study. It also received fewer than the expected number of complaints to state regulators for a company of its size. This company offers two usage-based driving programs. Texans are given the option to either pay per mile with the Milewise program or earn cash back for safe driving through the Drivewise app.

4. Nationwide

Nationwide is popular in Texas due to its innovative programs and wide coverage options for different needs, budgets, and goals. It offers multiple discounts and digital resources that help customers manage their policies. It has free annual insurance consultation with a licensed agent to be proactive about adapting your insurance to your life. It also offers discounts that will help you save by lowering your monthly premiums. It offers multi-policy, defensive driving, good student, safe driving, and anti-theft discounts. 

5. USAA

The policies of USAA are only available to the military, veterans, and their families. But it has high customer satisfaction and coverage offerings, which make it among the best companies in Texas. It offers extra coverage, such as rideshare insurance and accident forgiveness. Texans are also eligible for discounts for logging low annual mileage or bundling car insurance with a homeowners or renters policy. It also has an app where you can manage your policy anytime.

6. Texas Farm Bureau

Texas Farm Bureau is located in the city of Waco in Texas. It is among the best companies in the state and topped in the Texas region in a 2021 J.D. Power U.S. Auto Insurance Study for overall customer satisfaction. In this company, Texans can save on their policy with many discounts, including one for insuring multiple cars and practicing good driving habits. It also allows its customers to easily access their policies and ID cards online.

7. Amica

Amica is another great car insurance provider in Texas. It has high customer satisfaction ratings and good coverage offerings, making it one of the best in the state. It allows its customers to take advantage of the various car insurance discounts offered. It also has a mobile app where you can manage your policy.

8. Farmers

One of the largest car insurance providers in Texas is Farmers. It has strong customer satisfaction, making it score better than average in a 2020 J.D. Power U.S. Auto Claims Satisfaction Study. It offers a variety of policy savings to Texans. These include multi-vehicle and multi-policy discounts. Also, if you have good driving habits, you can earn a discount when you let them track your driving behavior with their Signal mobile app.

9. Liberty Mutual

Liberty Mutual is among the best car insurance providers in Texas due to its ease of use and available coverage. It helps Texan drivers save by taking advantage of different discounts, such as a discount for buying a policy online and bundling it. In addition to standard car insurance coverage, the company also offers unique coverage and features, such as new car replacement coverage and original parts replacement. It also offers trips to Mexico.

10. Progressive

The discounts and coverage offerings of Progressive make it among the top car insurance options in Texas. Aside from standard auto coverage, it also has features like pet injury protection and deductible savings back, which lowers the collision and comprehensive deductible by $50 for each policy period you go without a driving violation or filed claim. Progressive also provides Texans a discount for paying their policies in full, insuring multiple cars, or getting a quote online.

11. Travelers

Travelers is also a good insurance provider in Texas. It offers extras in addition to its standard auto coverage, which includes accident forgiveness, and Premier New Car Replacement, which will swap a new car in case it’s totaled within the first five years of ownership. It also offers discounts for safe driving, paying the policy in full, or driving a hybrid or electric car. 

Car Insurance Costs of Major Providers in Texas

a highway in Texas

Each car insurance company uses various factors in order to calculate your rate, which includes the type of car that you drive, your age, your ZIP code, your driving history, and your credit history. Two different car insurance providers could offer different rates for the same person and coverage. The tables below present the car insurance costs from each provider in Texas based on different factors:

Average Annual Premium of the Top Car Insurance Providers in Texas

The data below shows the average annual full coverage car insurance premium of the top 5 providers in Texas. These are based on a 40-year-old driver with a clean driving record and good credit.

Car Insurance Provider Average Annual Premium
GEICO $1,339
USAA $1,344
Nationwide $1,362
State Farm $1,411
Allstate $1,705

Car Insurance Rates for Teen Drivers

Company 17-Year-Old Female 17-Year-Old Male
Allstate $4,990 $6,013
Farmers $5,081 $5,464
GEICO $2,801 $2,991
Nationwide $5,596 $7,218
State Farm $2,558 $3,204
USAA $2,356 $2,557
Statewide Average $3,897 $4,575

It is quite expensive to insure teenagers. The numbers on the table above may seem high, but teens in Texas are actually getting off easy. It’s because the national average cost of car insurance for teens is $4,515 for females and $5,140 for males. In Texas, Nationwide has the highest average rates, and USAA has the lowest. 

Car Insurance Rates for Young Adults in Texas

Company 25-Year-Old Female 25-Year-Old Male
Allstate $2,503 $2,620
Farmers $1,489 $1,609
GEICO $1,317 $1,327
Nationwide $1,946 $2,126
State Farm $1,019 $1,242
USAA $1,230 $1,314
Statewide Average $1,584 $1,706

In Texas, the least expensive insurance for young adults is from State Farm. It charges $565 less compared to the state average for young women and $464 less for young men. On the other hand, Allstate has the highest car insurance rate for young adults in Texas.

Car Insurance Rates for Seniors in Texas

Company 60-Year-Old Female 60-Year-Old Male
Allstate $2,015 $2,015
Farmers $850 $960
GEICO $1,098 $1,259
Nationwide $1,307 $1,407
State Farm $882 $882
USAA $901 $897
Statewide Average $1,175 $1,237

In this category, men pay about $62 more per month than women on average. The least expensive car insurance provider for seniors in Texas is State Farm, offering the same average rate for both genders. The most expensive is Allstate, offering $2,015 for both senior men and women. 

Car Insurance Rates for Drivers with Poor Credit in Texas

Company Average Annual Rate
Allstate $3,313
Farmers $1,771
GEICO $3,244
Nationwide $2,400
State Farm $2,091
USAA $1,746

In Texas, the average car insurance rate is $1,382. However, if you have a poor credit score, you could pay $2,428 on average, which is around 76% more. Allstate has the highest average rate in this category, while USAA has the lowest.

Car Insurance Rates for Good Drivers in Texas

Company Average Annual Rate
Allstate $2,210
Farmers $1,156
GEICO $1,251
Nationwide $1,636
State Farm $994
USAA $1,045

It pays off to obey rules when driving when it comes to how much you will spend on car insurance. In Texas, when you are a good driver, State Farm may cost you 28% less than the average. On the other hand, the most expensive insurer for good drivers in Texas is Allstate.

Conclusion

Insurance is indeed very important to have when you are driving, no matter where you are. In Texas, if you drive without being properly insured, you will be breaking the law. In this state, insurance is legally required, and you will likely get a ticket if you are pulled over if you don’t have one. Having car insurance is not just for adhering to the requirements of the state, but it is also beneficial for drivers as it covers you in case of an accident and helps you pay for damages due to unforeseen circumstances. In short, it is something that can give you complete peace of mind as a driver and car owner. 

When choosing car insurance, you also have to make sure that you are looking at important factors, such as the level of coverage you need, the reliability of the provider, your budget, and more. There are lots of options for car insurance providers in Texas, but we hope that this post helped you in learning more about the major ones that you can find in the state and help you in choosing the best one that will fit your needs.

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