The best low cost auto insurance companies in Austin, Texas include USAA, State Farm and Geico, according to Bankrate’s 2022 study of quoted annual premiums. The average insurance cost in Austin is $1,758 per year for full coverage, or $147 per month, and $533 per year for minimum coverage. Auto insurance rates in Austin are slightly below the annual Texas average of $1,868 for full coverage and $551 for minimum coverage. However, drivers still have plenty of options with some of the top providers for even cheaper rates.
Best Cheap Auto Insurance Companies in Austin
Nationwide, Geico, USAA, State Farm and Allstate ranked as the cheapest auto insurance companies in Austin while earning strong Bankrate Scores. Bankrate analyzed Quadrant Information Services rates across multiple providers, taking into account financial strength ratings, customer service rankings, coverage options and available discounts to select the best companies. A scale of up to five points was used for the Bankrate Score and provides a snapshot of how the top auto insurance companies in Austin compare based on these attributes.
*Not officially ranked at JD Power due to eligibility restrictions
According to our research, Nationwide is one of the cheapest car insurance companies in Austin for full and minimum coverage. While rates are generally competitive, Nationwide offers a wide range of driver discounts for additional savings. Drivers who participate in an approved driver safety program or enroll in paperless billing are generally eligible for a premium discount. However, Nationwide received no score in the 2022 JD Power Auto Customer Satisfaction Study (Texas region), indicating that there may be room for improvement with respect to customer interactions.
Learn more: National insurance assessment
Geico offers some of the cheapest rates on the auto insurance company list; however, the company performs slightly below average in the JD Power customer satisfaction study. While Geico doesn’t offer the cheapest full coverage rates in Austin, discounted drivers can find additional ways to save on premiums. These discounts range from paperless billing and new vehicle discounts to savings for having safety equipment, such as airbags and anti-lock brakes.
Learn more: Geico insurance review
USAA also offers some of the cheapest rates in Austin but stands out for its superior customer experience. However, membership is limited to current or former members of the United States military and their immediate families. Eligible drivers can take advantage of the high customer service ratings and available digital tools. USAA also earns an A++ (Superior) AM Best rating for financial strength.
Learn more: Review of USAA insurance
State Farm has one of the cheapest rates in Austin among insurers on our list, and it performs extremely well in the 2022 JD Power Customer Satisfaction Study. In addition, Austin drivers may be able to take advantage of multiple discounts and coverage options offered by State Farm. Policyholders can add options such as rental car reimbursement and rideshare coverage for greater flexibility or take advantage of the service and expertise of one of more than 19,000 local State Farm agents.
Learn more: Review of state farm insurance
Allstate ranks as one of the cheapest car insurance companies in Austin, but offers many additional benefits for drivers. It earns an A+ (Superior) AM Best rating for financial stability. Allstate also offers tools for added convenience, including getting a quote and buying a policy online or managing insurance through the mobile app. Discounts can help drivers save, including savings on multiple policies, safety equipment, and discounts on new cars. While it earns a below-average JD Power score, Allstate’s mobile app is highly rated and allows customers to manage insurance needs from a smartphone, such as submitting claims and updating policy coverages.
Learn more: Allstate Insurance Rating
How to get and keep the cheapest car insurance in Austin
It may take research to find the cheapest car insurance in Austin for you, and once you do, keeping rates low may mean reviewing your policy annually. This will help ensure you get affordable rates for your circumstances. Here are a few other ways to get and keep the cheapest car insurance in Austin:
- Compare multiple health insurers. Sniffing around and collecting quotes from different insurers will give you a true picture of the cheapest car insurance companies for you. Rates vary from company to company, so whether you’re taking out a new policy or revising your existing one, shopping around can help you find the best rates.
- Shop around after life events. When you move into a home, move for a job, get married, or add a teenage driver to your policy, it presents an excellent opportunity to compare providers and find cheaper insurance companies. You may be able to adjust your coverage or take advantage of new or additional discounts for greater savings based on your changed living conditions.
Frequently Asked Questions
Bankrate uses Quadrant Information Services to analyze 2022 rates for all zip codes and carriers in all 50 states and Washington, D.C. Rates quoted are based on a 40-year-old male and female driver with clean driving records, good credit, and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 accidental bodily injury liability
- Property damage liability of $50,000 per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our basic profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample percentages and should be used for comparison purposes only.
Bank Rate Score
Bankrate Scores primarily reflect a weighted ranking of industry-standard ratings for financial strength and customer experience, in addition to analysis of quoted annual premiums from Quadrant Information Services across all 50 states and Washington, DC. We know it’s important for drivers to feel confident their financial protection covers the most likely risks, is priced competitively and is provided by a financially sound company with a history of positive customer support.
To determine how well the top auto insurance companies meet these priorities, external agency ratings from JD Power, AM Best, S&P, NAIC, and Moodys had the most influence on the companies’ Bankrate Scores. Since price is a common consideration for drivers, we analyzed the quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across nearly 35,000 ZIP codes in the US, provided a basis upon which drivers each provider to compare.
While coverage options, insurer availability, affordability and customer experience are often top priorities, Bankrate also analyzed each insurer’s online and mobile resources for policy management and claims handling. Insurance is evolving rapidly to keep pace with our digital world, so these aspects have also played a part in determining Bankrate Scores.