Texas Farm Bureau Car Insurance Review: Rates, Coverage & Pros/Cons [2026]

Texas Farm Bureau consistently ranks as the cheapest car insurance in Texas, averaging around $86 per month for full coverage. But the lowest price doesn't always mean the best value — especially after the company's recent financial strength downgrade. This honest review breaks down what you need to know about Texas Farm Bureau car insurance, from rates and coverage to customer satisfaction and that AM Best rating change.

What Is Texas Farm Bureau Insurance?

Texas Farm Bureau Insurance was founded in 1952 in Waco, Texas, and has remained a Texas-only insurance company for over 70 years. While it's affiliated with the American Farm Bureau Federation, Texas Farm Bureau operates independently as a mutual company — meaning it's owned by its policyholders rather than shareholders.

Despite the name, you don't need to be a farmer to get coverage. Texas Farm Bureau is open to all Texas residents, though you do need to purchase a county Farm Bureau membership (typically $50-$75 per year, depending on your county).

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The company operates through a network of 850+ local agents spread across 300+ offices statewide. Because Texas has 205 independent county Farm Bureaus, rates and membership fees can vary slightly depending on where you live. This hyper-local structure is part of what keeps costs low — but it also means the experience can differ from county to county.

How Much Does Texas Farm Bureau Car Insurance Cost?

Texas Farm Bureau consistently beats nearly every major competitor on price. According to ValuePenguin data, here's how the rates stack up for full coverage:

Texas Farm Bureau vs Competitors: Full Coverage Rates

That's roughly 43% cheaper than the Texas state average for full coverage. Even when you factor in the $50-$75 annual membership fee, you're still saving hundreds — often over $1,000 per year compared to national carriers.

For drivers who only need minimum liability coverage in Texas, rates drop to around $35 per month. Texas Farm Bureau also tends to be the cheapest option for driver profiles that typically face higher rates, including young drivers, drivers with poor credit, and those with less-than-perfect records.

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The membership fee pays for itself within the first month of premium savings for most policyholders.

Coverage Options

Texas Farm Bureau offers all the standard coverage types you'd expect:

• Liability coverage (bodily injury and property damage)
• Collision coverage
• Comprehensive coverage
• Personal injury protection (PIP)
• Uninsured/underinsured motorist (UM/UIM) coverage
• Medical payments (MedPay)

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If you're looking for full coverage auto insurance in Texas, Texas Farm Bureau checks all the boxes for the essentials.

Available add-ons include:

• Roadside assistance ($120 limit per incident)
• Rental reimbursement
• Death indemnity coverage
• Rideshare coverage (for Uber/Lyft drivers)

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What's Missing

Compared to national carriers like Progressive or GEICO, Texas Farm Bureau offers fewer bells and whistles. Coverage options they don't offer include:

• Gap insurance (if you're financing a car, check out our guide to gap insurance in Texas)
• Accident forgiveness
• New car replacement coverage

If you want extensive customization or niche add-ons, you may find Texas Farm Bureau's offerings a bit limited. But for most drivers, the standard coverage paired with massive savings is more than enough.

Available Discounts

Texas Farm Bureau offers a solid lineup of discounts, though not quite as many as national carriers:

• Multi-policy bundling — Up to 20% off when you combine auto with home or other policies
• Multi-car discount — Up to 20% off when you insure multiple vehicles
• Good driver discount — For drivers with a clean record
• Good student discount — For drivers under 25 with a B average or top 20% class rank
• Driver training discount — For young drivers (under 25) who complete an accredited course
• Claims-free discount — For 3+ years without filing a claim
• Vehicle safety features — Discounts for anti-theft devices, airbags, anti-lock brakes, etc.
• Drive'n Save — A usage-based telematics program that monitors mileage, driving behavior, and phone usage

The Drive'n Save program is worth considering if you're a safe driver with low annual mileage. It tracks your driving habits through a mobile app and can lower your premium based on real-world behavior.

That said, Texas Farm Bureau offers fewer total discounts than competitors like Progressive or State Farm. But when your base rates are already 40%+ cheaper, the discount gap matters less.

Customer Satisfaction & Ratings

Here's where Texas Farm Bureau truly shines: customer satisfaction.

J.D. Power Rankings

Texas Farm Bureau has been ranked #1 in Texas for customer satisfaction for 11 consecutive years by J.D. Power, scoring 824 out of 1,000 in the 2023 study. That's a rare feat — especially for a regional carrier competing against national giants.

Complaint Data

According to the National Association of Insurance Commissioners (NAIC), Texas Farm Bureau receives 81% fewer complaints than the average insurer of its size. That's a strong signal that most customers are happy with their claims experience and service.

Third-Party Reviews

• NerdWallet: 4.2/5 stars
• Policygenius: 4.4/5 stars
• Better Business Bureau: Not accredited, but has relatively few complaints

What Customers Say

Common praise:

• Unbeatable rates
• Personal, local service from agents who know your name
• Long-term customer loyalty (many families stay with Farm Bureau for decades)

Common complaints:

• Rate increases over time (though still cheaper than competitors)
• Slow claims adjuster response in some cases
• Occasional policy cancellations without clear explanation

Overall, the customer satisfaction data is impressive. The local agent model seems to work well for people who value face-to-face service over digital-first experiences.

The AM Best Downgrade — What It Means for You

In September 2024, AM Best downgraded Texas Farm Bureau's financial strength rating from A- (Excellent) to B++ (Good). The rating is currently under review with "negative implications," meaning another downgrade is possible.

Why the Downgrade?

The downgrade was driven by a decrease in the company's surplus — essentially, Texas Farm Bureau has less cash reserves relative to its obligations than it did in prior years. This raised concerns about its long-term financial stability.

What Does B++ Mean?

A B++ rating is still considered "Good" by AM Best standards. It means the company is financially capable of paying claims under normal circumstances. It's not a disaster, but it's a step down from the A- rating the company held for years.

Should You Be Worried?

If you're a current policyholder: No immediate action is needed. Texas Farm Bureau is still paying claims, and B++ is far from a failing grade. That said, it's worth keeping an eye on future rating updates.

If you're a new customer: For most drivers, the significant savings likely outweigh the financial strength concern. However, if you drive an expensive vehicle or have high-value assets you're protecting, you might prefer an insurer with an A or A+ rating for added peace of mind.

The AM Best downgrade is a yellow flag, not a red one. It's worth factoring into your decision, especially if financial stability is a top priority.

Claims Process

Filing a claim with Texas Farm Bureau is straightforward:

• Online: File at txfb-ins.com/claims
• Phone: Call 1-800-266-5458
• Local agent: Contact your agent directly (often the fastest route)
• Mobile app: File through the Farm Bureau app

The company employs 300+ claims personnel across Texas, and the local agent model means your agent is often your primary point of contact throughout the claims process.

Pros:

• Personal service from local agents who know you and your history
• Local knowledge of Texas roads, weather patterns, and repair shops

Cons:

• Some customer reviews mention slower adjuster response times compared to national carriers with larger claims teams

The claims process gets mixed reviews. Most customers appreciate the personal touch, but a few report delays in getting an adjuster assigned or receiving settlement offers.

Pros and Cons

Pros:

• Cheapest rates in Texas — often by a wide margin (40%+ savings vs national carriers)
• #1 J.D. Power customer satisfaction for 11 consecutive years in Texas
• 81% fewer complaints than the average insurer its size
• 850+ local agents for in-person, personalized service
• Membership savings outweigh the fee — $50-$75/year membership pays for itself immediately
• Drive'n Save telematics program for safe drivers who want usage-based discounts

Cons:

• Texas only — you can't keep your policy if you move out of state
• Requires paid membership ($50-$75/year) to join your county Farm Bureau
• AM Best downgrade to B++ (down from A-), with negative outlook
• No gap insurance, accident forgiveness, or new car replacement — fewer add-ons than national carriers
• Limited online tools — heavily dependent on working with a local agent
• No online quote tool — you must call or visit an agent to get a quote
• Fewer total coverage options and add-ons compared to Progressive, GEICO, or State Farm

Is Texas Farm Bureau Worth It?

Best for:

• Texas residents who prioritize low rates above all else
• Drivers who prefer working with a local agent over managing everything online
• People who don't need niche add-ons like gap insurance or accident forgiveness
• Safe drivers who can maximize discounts like Drive'n Save, multi-policy, and claims-free

Not ideal for:

• People who might move out of Texas in the next few years (you'll lose your policy)
• Drivers who want 100% online self-service without agent interaction
• Owners of expensive or high-value vehicles who want maximum financial backing from an A+ rated insurer
• Those who need specific coverage options like gap insurance or new car replacement

The Bottom Line

If you live in Texas and price is your top priority, Texas Farm Bureau is hard to beat. The membership fee ($50-$75) pays for itself within the first month of premium savings, and the combination of rock-bottom rates and strong customer satisfaction is rare in the insurance world.

The AM Best downgrade is something to monitor, but for most drivers, the financial strength concern is outweighed by the savings. If you're on a tight budget or just want the cheapest full coverage option in Texas, Farm Bureau delivers.

That said, if you value cutting-edge digital tools, extensive coverage options, or the ability to keep your policy if you move out of state, you may be better served by a national carrier — even if it costs more.

Ready to see how Texas Farm Bureau stacks up for your specific situation? Compare quotes from multiple carriers to find the best rate and coverage for your needs. You can also explore our Texas car insurance guide for more state-specific tips, or check out our guide to SR-22 insurance in Texas if you need high-risk coverage.