Ranking the Worst Car Insurance Companies in Texas

When you boil it down, every auto insurance company on the market is selling essentially the same thing: financial protection in the event you are involved in an accident or incident that causes an injury or damages your car. The policy you purchase determines how much of this financial protection you receive.

However, you’re also purchasing a policyholder experience. How will this company treat you? How will they treat claimants who file against your policy? In this regard, not all insurance companies are created equal, and the differences between them can mean a lot more than just an extra phone call or two when things get complicated.

Insurance is also a highly regulated industry, and it has a number of public records and watchdog groups that are constantly evaluating insurance company behavior. This shows up both in complaint history with state agencies and in consumer surveys compiled by large consumer advocacy and industry research groups.

We wanted to answer the question: who really are the best and worst insurance companies in Texas? We work with insurance companies a lot, and while we certainly have opinions based on our experiences, consumer perception also has a lot to do with who falls into what category.

How We Ranked Texas Auto Insurers

We wanted to make this evaluation as objective as possible, so the heaviest ranking factor comes from Texas regulatory data, not opinion polls. Four inputs feed it: state complaint records, state disciplinary orders, a Texas-region satisfaction study, and financial strength ratings.

The heaviest input is the complaint index from the Texas Department of Insurance (TDI). The state’s published complaint data compares a company’s share of confirmed complaints to its share of policies in force. A score of 1.00 is the market average, and anything higher tells you the company draws more complaints than its size predicts.

The second input is TDI disciplinary orders from 2022 forward. TDI does not post older orders online, so a clean record here means an insurer has a clean record since 2022.

Third is the J.D. Power auto insurance study score for the Texas region, built on 48,121 consumer survey responses. A sample that large makes the gaps between carriers real rather than random.

Finally, AM Best financial strength ratings tell you whether an insurer can pay a claim, not whether it will. While every situation is unique, a company in a weak financial position may fight back against claims harder than one in a more advantageous position.

To make the comparison fair, only insurers writing at least 50,000 Texas auto policies qualified, and related companies were combined into their parent group. Carriers that fell short of this minimum number of policies, restrict who can buy a policy, or could not be tied to a group were left out.

The Worst Car Insurer in Texas

This table runs worst to best, with customer satisfaction (the J.D. Power survey) scored against a 640 regional average.

El Paso-based Loya Insurance Company, which is more commonly known for their Fred Loya name, sits alone at the top as the worst insurance company in Texas. Their 2025 complaint index of 7.77 is by far the worst of the state’s major insurance carriers.

The state complaint dataset recorded 2,480 confirmed complaints in 2025, and Loya accounted for 209 of them. That’s over eight percent of the entire statewide total despite writing only around one percent of all policies. Knowing this, it should come as no surprise that Loya Insurance customers file complaints with regulators at a rate nearly eight times higher than the state average.

Fred Loya is known for being a low-cost insurance carrier, and that sometimes comes with some sacrifices. Much the same way a low-cost airline might not deliver the best experience, Fred Loya’s processes clearly leave policyholders and claimants with something to be desired. Loya Insurance finished last among the carriers on our list in J.D. Power’s customer satisfaction index, nearly 60 points below the regional average.

One interesting tidbit: Loya is also the only carrier on our list without a current AM Best financial strength rating. That absence is not a finding about their finances, but it does mean there is no independent read on their claim-paying ability the way there is for every other company here.

Some other highlights of our findings include:

• Farmers, ranked second-worst, draws complaints at a below-average rate but scores twenty points under the regional average and carries three TDI compliance orders.
• Liberty Mutual, ranked just ahead at third-worst, has no compliance orders on file, but its complaint rate runs well above market.
• Progressive earns a mention on size rather than score. It writes 3,306,121 Texas auto policies, more than any other single company, but scores around middle of our study.

Of the insurance providers studied, State Farm ranks the best. With a 0.33 complaint index and a 645 satisfaction score, their recent record with policyholders is excellent when compared to their peers. However, that State Farm recently had their A++ financial strength rating downgraded to an A+ in November 2025.

Why Satisfaction Scores Can Mislead

A high satisfaction score and a clean regulatory record are not the same thing. In fact, they sometimes point in opposite directions.

Satisfaction surveys ask policyholders about price, billing, and service. They do not measure what happens to your claim after you file it. A company can bill you smoothly for years and still fight you hard over an injury or mishandle their obligations as a policy writer.

For example, GEICO posts the best customer satisfaction score on our list at 651. However, in February 2025, TDI issued an order against GEICO requiring more than $18 million in restitution plus interest to over 80,000 policyholders. That order concerned rating and premium practices, not the handling of injury claims.

Special Case Insurers

Our study uncovered some unique situations that are worth discussing when comparing insurance companies head to head.

United Services Automobile Association, or USAA as they are almost exclusively known, is different from every other insurer on our list in that their customer base is deliberately limited: only current and former military servicemembers and their families are eligible to purchase one of their policies. Despite this, they still boast an A++ Superior financial strength rating with AM Best.

Despite serving a narrower slice of the market by design, the San Antonio-based company is one of the largest auto insurers in the country, and has a strong reputation for excellent customer service. The numbers back that up: they posted the highest customer satisfaction rating in the state with a sparkling score of 732, though their complaint index came in a little above the market at 1.44.

Smaller, Texas-exclusive insurance companies Germania and Texas Farm Bureau also score fairly well in our study, with both drawing complaints at roughly half the market rate or less. In fact, Germania’s 0.11 complaint index is the best of any major insurance carrier in the state. Germania scores just above the regional average, while Texas Farm Bureau lands twelve points under it, and both have great records with the state, with only Germania having one order from the state on their record.

Both companies also have B++ financial strength scores, but that could be attributed as a byproduct of the fact that both are Texas-exclusive. AM Best weighs balance sheet strength, operating performance, and business profile, and a single-state footprint gives a carrier less geographic spread than a national competitor. Nonetheless, AM Best still classifies B++ as “Good.”

Finally, Nationwide also deserves a special mention. The Ohio-based carrier outscored every ranked carrier here, but it writes only 16,218 Texas auto policies. They drew just one TDI complaint in 2025, but a single complaint against a book that small can swing a complaint index wildly. For this reason, Nationwide sits outside the ranking rather than at the top of it.

What Complaint Data Doesn’t Show

Everything we have discussed here is intended to provide a picture of the policyholder experience at some of the largest insurance companies in Texas. Complaints and customer satisfaction ratings can only provide part of the picture—your actual experience may vary.

Likewise, all of the data here offers a high-level projection of how insurers treat their own customers. If another driver insured by one of these companies hit you, you are not one of those customers. When filing a car accident claim, your experience could be dramatically different.

Your own insurer owes you duties under the policy you pay for. They also want you to continue to pay for your policy, so they’re motivated to handle your claim quickly and treat you well. The other driver’s insurer owes you nothing comparable. Their adjuster works for the company writing the check, and they’re motivated to do so for as little as possible.

Something else to note: our study’s disciplinary record metric involves matters like premium overcharges, rating errors, or filing problems. It does not include complaints over claim denials. In fact, only one order on record for our entire study (dating back to 2022) cites Texas Insurance Code § 542.003(b)(4) for failing to attempt a fair settlement in good faith (and that was against a different company not even on our list).

If an Insurer Is Fighting Your Claim

Angel Reyes & Associates has spent over 30 years representing Texans against auto insurers of every size. Our record includes more than $1 billion recovered for clients across a wide range of cases across the state. We work on contingency, so you owe no fee unless we win.

If an adjuster is stalling your claim or pushing a number that does not fit your injuries, contact us for a free consultation. Our attorneys are available to help in both English and Spanish.

Past results do not guarantee future outcomes.