The best companies for cheap auto insurance in Austin, TX include USAA, State Farm, and Geico, among others, according to Bankrate’s 2022 Annual Premium Listing Study. The average cost of insurance 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 lower than Texas annual averages of $1,868 for full coverage and $551 for minimum coverage. However, drivers still have plenty of options with some of the best providers for even more affordable rates.
Best Cheap Auto Insurance Companies in Austin
Nationwide, Geico, USAA, State Farm and Allstate rated as the cheapest car insurance companies in Austin while achieving strong exchange rate scores. Bankrate analyzed Quadrant Information Services pricing for several vendors, considering 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 insight into how the best car insurance companies in Austin compare based on these attributes.
|At national scale||4.4||N / A||$1,492||$567|
*Not officially ranked with JD Power due to eligibility restrictions
At national scale
According to our research, Nationwide is one of the cheapest car insurance companies in Austin for full and minimum coverage. Although rates are competitive throughout the region, Nationwide offers a wide range of driver discounts for additional savings. Drivers who participate in an approved driver safety program or sign up for paperless billing can usually qualify for a discounted premium. However, Nationwide did not earn a score in the JD Power Auto 2022 Customer Satisfaction Study (Texas region), indicating that there may be room for improvement in customer interactions.
Learn more: National Insurance Review
Geico offers some of the cheapest rates among the list of car insurance companies; however, the company performs slightly below average in the JD Power study for customer satisfaction. Although Geico doesn’t offer the cheapest full-coverage rates in Austin, drivers can find other ways to save on premiums with discounts. These discounts range from paperless billing and new vehicle discounts to savings on safety equipment, such as airbags and anti-lock brakes.
Learn more: Geico Insurance Review
USAA also offers some of the cheapest fares in Austin, but it 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. Drivers who qualify can benefit from its high customer service ratings and available digital tools. USAA also earns an AM Best A++ (Superior) rating for financial strength.
Learn more: USAA Insurance Review
State Farm has some of the cheapest rates in Austin among the insurers on our list, and it scores highly in the 2022 JD Power Customer Satisfaction Study. Plus, Austin drivers can take advantage of several discounts and coverage options offered by State Farm. Policyholders can add options such as rental car reimbursement and ride-sharing coverage for greater flexibility or benefit from the service and expertise of one of State Farm’s more than 19,000 local agents.
Learn more: State Farm Insurance Review
Allstate is one of the cheapest car insurance companies in Austin, but it 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 purchasing a policy online or managing insurance through its mobile app. Discounts can help drivers save, including savings on multiple policies, safety equipment and new car discounts. Although it gets a below-average JD Power score, Allstate’s mobile app is highly rated and offers customers the ability to manage insurance needs from a smartphone, like filing claims and updating policy covers.
Learn more: Allstate Insurance Review
How to Get and Keep the Cheapest Auto Insurance in Austin
It may take some research to find the cheapest car insurance in Austin for you, and once you’ve done that, keeping rates low may mean revisiting your policy every year. This will help ensure that you are getting affordable rates for your situation. Here are some other ways to get and keep the cheapest car insurance in Austin:
- Compare several insurers. Shopping around and collecting quotes from multiple insurers gives you a true picture of the cheapest car insurance companies for you. Rates differ from company to company, so whether you’re getting a new policy or reviewing your existing policy, shopping around can help you find the best rates.
- Shop after life’s events. When you move into a house, move for a job, get married, or add a teenage driver to your policy, it provides a great opportunity to compare providers and find cheaper insurance companies. You may be able to change your coverage or take advantage of new or additional discounts for greater savings as your life circumstances change.
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 shown are based on a 40-year-old male and female with a clean driving record, good credit and the following complete information coverage limits:
- Civil liability of $100,000 in bodily injury per person
- Civil liability of $300,000 in bodily injury per accident
- Civil liability of $50,000 in property damage per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 aggregate deductible
To determine minimum coverage limits, Bankrate has used a 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 a year.
These are sampling rates and should only be used for comparison purposes.
Discount rate score
Exchange rate scores primarily reflect a weighted ranking of industry standard ratings for financial strength and customer experience, in addition to analysis of annual premiums quoted by Quadrant Information Services, covering all 50 states and Washington, D.C. DC We know it’s important for drivers to feel confident that their financial protection covers the most likely risks, is priced competitively and is provided by a financially strong company with a track record of positive customer support.
To determine how well the best auto insurance companies meet these priorities, third-party agency ratings of J.D. Power, AM Best, S&P, NAIC and Moodys had the most impact on companies’ FX scores. Since price is a common driver consideration, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, evaluated on nearly 35,000 U.S. zip codes, provided a basis on which drivers can compare each supplier.
While coverage options, insurer availability, affordability and customer experience are often top priorities, Bankrate also analyzed each insurer’s online and mobile resources for managing policies and handling claims. Insurance is changing rapidly to keep pace with our digital world, so these aspects have also weighed in determining the exchange rate scores.