Car Insurance Discounts for Texas Drivers
Texas drivers can unlock discounts for everything from being a safe driver to having a newer vehicle, enrolling in a defensive driving course, or being a member of certain organizations.
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Written byStephanie Colestock
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Founder of personal finance site TomorrowsDollar.com
Candidate for CFP® certification
Stephanie is a DC-based freelance writer specializing in personal finance. Her work covers insurance, loans, real estate investing, retirement, and more.
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Edited bySarah Archambault
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Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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Updated September 1, 2024
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Table of contents
If you’ve ever been to Texas, you know that the Lone Star State isn’t just big — it’s also expensive. Without a strong public transportation infrastructure, its residents rely heavily on their cars, making auto insurance coverage a must-have.
Texas car insurance costs $245 monthly for full coverage and $119 for liability insurance, on average. Thankfully, whether you’re a cattle rancher, military service member, or AAA customer, insurers offer many discounts for all types of Texas drivers.
Here’s a look at some of the best Texas car insurance discounts and how to qualify.
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Car insurance discounts for Texas drivers
Drivers in Texas can save hundreds or even thousands of dollars per year on their auto insurance premiums when they shop around for discounts.
Depending on the insurance company, these discounts may be available to drivers nationwide, while others might only be available to Texas drivers.
Membership discounts
Active members of certain organizations may qualify for a discount, though discounts may vary depending on the membership group’s eligibility requirements.
For example, AAA offers discounts nationally, but other organizations may require Texas residency. Check with your insurer or membership group to see what discounts are available.
AAA members: In addition to enjoying roadside benefits, AAA members may save on auto insurance premiums.
AARP: Eligible drivers get discounted premiums and added car insurance policy benefits for being an AARP member.
National Education Association (NEA): Teachers and other educators can enjoy discounts on auto insurance (and more) through NEA partner insurers.
TSCRA members: Members of the Texas and Southwestern Cattle Raisers Association can get assistance with buying insurance policies while also being eligible for discounts through partner car insurance companies.
Alumni discounts
Texas college or university graduates may be eligible for alumni association discounts. Here’s a look at what’s available through some of the state’s largest schools:
Association of Former Students of Texas A&M: Members of the Aggie Network may qualify for auto insurance discounts from insurers like Farmers.
Texas Exes: Graduates of the University of Texas, including satellite schools like the University of Texas at San Antonio, can qualify for discounts from companies like Liberty Mutual.
Texas Tech Alumni Association: Former Red Raiders can also qualify for lower auto insurance premiums through Liberty Mutual in addition to savings on other insurance products.
University of Houston Alumni Association: UH alumni get special discounted pricing on their auto insurance coverage through Liberty Mutual.
University of North Texas Alumni: Former UNT students can save money by getting their coverage through Liberty Mutual.
Occupational discounts
Lastly, you may be able to unlock discounts based on what you do and where you work. These discounts are often available to:
First responders: Paramedics/EMTs, police officers, and nurses may qualify for insurance discounts.
Lawyers: In Texas, the State Bar Association offers discounts through partner insurers. Car insurance discounts are available to all drivers.
Military: Many insurance companies offer military discounts for active-duty service members, veterans, and people in the guard reserves.
Teachers: Depending on the insurer, you may get discounts just for showing proof of your job, or you may need to be a member of organizations like the NEA or Texas State Teachers Association.
Car insurance discounts available to all drivers
Each insurance company offers its own specific combination of discounts. Some of these are available to all eligible drivers, while others may vary from one type of policy to the next or be based on specific driver factors.
Be sure to ask which discounts are available and how you can qualify when shopping for or renewing your auto coverage.[1]
Driver-specific discounts
Some insurers offer auto insurance discounts to drivers who meet specific criteria. These discounts are typically available to consumers who pose less risk. For example, people with a safe driving record, who have taken a recent safe driving course, or who drive very little may qualify for savings.
Here are some common types of driver-specific discounts and the savings they typically offer.
Discount ▲▼ | Savings ▲▼ | Who’s Eligible? ▲▼ |
|---|---|---|
| Active-duty military or veteran | 15%–25% | Active-duty military members, people in the guard reserves, and veterans |
| Safe driver | 22% | Drivers without a history of recent accidents or moving violations |
| Good student | 10%–15% | High school or college-enrolled drivers who are full-time students and make good grades, maintaining a B average or higher |
| Defensive driving | 5% | Drivers who complete an optional defensive driving course |
| Student away-from-home | Varies | College students who live at least 100 miles from home and don’t typically have access to a vehicle |
| Homeowners | Varies | Drivers who also own a home |
| Low mileage | Varies | Drivers who spend less time on the road and maintain low mileage over the course of the auto policy |
| Mature driver | 10% | Available to older drivers, usually 55 years or older, who typically aren’t considered high risk |
Vehicle-specific discounts
Some auto insurance discounts are tied to the vehicle you drive, especially if it has features that may keep you safer or help you avoid accidents. Here are some common auto insurance discounts specific to your car.
Discount ▲▼ | Savings ▲▼ | Who’s Eligible? ▲▼ |
|---|---|---|
| Passive restraint | 30% | Drivers with vehicles that have built-in safety features, such as a factory-installed air bag |
| Anti-theft features | 23% | Vehicles with an aftermarket or factory-installed qualifying anti-theft device, like an alarm, LoJack system, or OnStar |
| New vehicle | 10%–15% | Vehicles three model years-old or newer |
| Anti-lock brakes | 5% | Cars with anti-lock brakes |
| EV/fuel-efficient vehicle | Varies | Electric vehicles, green fuel vehicles, or fuel-efficient vehicles |
Policy and insurer-specific discounts
Lastly, some auto insurance discounts are specific to the insurance company and car insurance policy. Many of these are based on how you manage your coverage and the type of coverage you buy.
Discount ▲▼ | Savings ▲▼ | Who’s Eligible? ▲▼ |
|---|---|---|
| Telematics | 10%–30% | Drivers who use apps or plug-in vehicle data collectors who demonstrate safe driving habits through these programs |
| Multi-car | 7%–25% | Drivers with more than one vehicle insured on the same policy |
| Bundling | 7%–25% | Drivers who also purchase other coverage (like life or home insurance) from the same company |
| Loyalty | Varies | Policyholders who keep an active policy with the same insurer for a prolonged period of time |
| Paid-in-full | Varies | Drives who pay their full policy premium up front |
| Paperless | Varies | Drivers who forgo paper statements to receive digital communication |
| Early shopper | Varies | Drivers who begin the insurance search before they need coverage |
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Cheapest insurers for Texas drivers
Texas auto insurance premiums vary widely depending on the type of policy you buy and the insurance company you choose. The average cost of car insurance in Texas is $119 per month for liability coverage and $245 per month for full coverage.
To compare, the nationwide liability average is $104 per month, and full coverage averages $211 per month.
These auto insurance rates are going higher each year, too, with the Texas Department of Insurance reporting a 25.5% increase in premiums in 2023. And, unfortunately, Texas isn’t alone. Climbing rates across the country show no signs of slowing.
Check out the cheapest car insurance companies for Texas drivers in the table below.
The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT.
Insurance Company ▲▼ | Average Quote: Liability Only ▲▼ | Average Quote: Full Coverage ▲▼ |
|---|---|---|
| State Farm | $37 | $67 |
| GEICO | $40 | $73 |
| Allstate | $52 | $94 |
| Mile Auto | $55 | $115 |
| USAA | $66 | $119 |
| Nationwide | $83 | $165 |
| Mercury | $86 | $146 |
| Safeco | $95 | $179 |
| Progressive | $99 | $174 |
| Dairyland | $105 | $274 |
| Chubb | $112 | $203 |
| Clearcover | $113 | $158 |
| National General | $121 | $254 |
| 21st Century | $129 | $234 |
| Direct Auto | $132 | $258 |
| The General | $133 | $293 |
| Commonwealth Casualty | $136 | $372 |
| Elephant | $137 | $232 |
| Bristol West | $140 | $301 |
| GAINSCO | $163 | $351 |
| Liberty Mutual | $167 | $309 |
| AssuranceAmerica | $170 | $229 |
| Infinity | $190 | $308 |
| State Auto | $196 | $350 |
| Foremost | $224 | $473 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
How to find cheap car insurance in Texas
Finding cheap car insurance in Texas can be challenging with premiums increasing each year. But you still have ways to lower your auto insurance costs:
Shop around
Compare car insurance quotes to see what options (and prices) are available to you. Consider repeating this process every time your policy is set to renew.
Raise your deductible
Plans with lower deductibles usually cost more, so if you’re able to choose a higher deductible you may be able to save on your rate.
Ask about discounts
Take advantage of any discounts available through your workplace, alumni association, or other organizations.
Get minimum coverage
Opt for liability-only coverage, which provides you with state-minimum insurance protection. Keep in mind that a liability policy won’t cover damage to your vehicle, and if you finance your car, your lender will probably require full-coverage insurance.[2]
Drive safely
Accidents and traffic violations can make your rate go up. Practice safe driving habits to keep your driving record clean.[3]
How much car insurance do you need in Texas?
Texas requires drivers to maintain the following minimum liability limits:[4]
At least $30,000 per person in bodily injury liability coverage toward eligible medical expenses, and $60,000 or more per accident
At least $25,000 in property damage liability
You’ll need to buy at least the state’s minimum amount of liability insurance, but a higher limit might be a good idea. Texas is an at-fault state. This means the driver responsible for the accident is liable for any property damage or personal injury expenses incurred.
And, if you lease or finance your vehicle, your leasing company or auto lender will probably require you to buy full-coverage car insurance to better protect its investment in your car.
Car insurance discounts in Texas FAQs
If you want to know more about Texas auto insurance discounts, check out the additional information below.
Which company has the cheapest full-coverage rates in Texas?
Currently, the cheapest auto insurance company for full coverage in Texas is State Farm, with a monthly price of $67 for full coverage.
What’s the minimum required coverage in Texas?
Texas requires drivers to carry at least $30,000 in personal injury liability coverage per person and $60,000 per accident, as well as $25,000 in property damage liability coverage. You can always purchase more insurance coverage, but these are the minimum-coverage limits you’ll need to be a legal driver in Texas.
How can you lower your car insurance rates in Texas?
You can get the lowest rates on auto insurance coverage by increasing your deductible, lowering your coverage limits, bundling your Texas auto insurance with another policy, shopping for car insurance discounts, and qualifying for a safe driver discount. Ask your agent or insurer about ways to save.
Why is Texas car insurance so expensive?
Texas is one of the fastest-growing states, according to the U.S. Census Bureau, leading to an influx of new drivers on the state’s roads and, in turn, more accidents and insurance claims. Rates are also increasing nationwide due to factors like more expensive vehicles and a higher incidence of accidents.
Sources
- Insurance Information Institute. "How to save money on car insurance."
- Insurance Information Institute. "What is covered by a basic auto insurance policy?."
- Insurance Information Institute. "What determines the price of an auto insurance policy?."
- Texas Department of Insurance. "Auto insurance guide."
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Stephanie Colestock
Stephanie is a DC-based freelance writer and Certified Financial Education Instructor (CFEI). She primarily covers personal finance topics such as insurance, loans, real estate investing, and retirement. Her work can be found on CBS, FOX Business, MSN, Yahoo! Finance, Business Insider, and more. When she isn't helping people plan for their financial futures, she is traveling, hiking with her kids, or writing for her own website, TomorrowsDollar.com. She can be reached on Twitter @stephcolestock
Edited bySarah Archambault
Experienced personal finance writer
Background working with banks and insurance companies
Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.
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