Updated: December 1, 2025
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State Farm offers the cheapest car insurance in Houston. GEICO, AAA, Germania Insurance and Mercury Insurance also provide coverage in the city.
Car insurance in Houston costs an average of $1,036 per year for minimum coverage and $2,378 per year for full coverage.
State Farm also offers the cheapest car insurance in Texas at $497 per year for minimum coverage and $1,118 per year for full coverage.
Adult drivers with State Farm pay Houston's cheapest rates at $607 annually for minimum coverage. Young drivers with the same company pay $1,367 per year, 125% more than adults.
Senior drivers from State Farm pay $703 annually, 16% more than adults. Drivers with a DWI from State Farm pay $982 per year, 62% more than clean-record adults. Â
Pricing patterns in Houston match other major Texas markets. State Farm wins across driver segments.
| Adult Drivers | State Farm | $51 |
| Young Drivers | State Farm | $114 |
| Senior Drivers | State Farm | $59 |
| Drivers With a Speeding Ticket | State Farm | $51 |
| Drivers With an Accident | State Farm | $60 |
| Drivers With a DUI | State Farm | $82 |
| Drivers With Newer Cars | State Farm | $70 |
| Drivers With Bad Credit | GEICO | $109 |
| Drivers With Old Cars | State Farm | $46 |
Annual minimum coverage through State Farm costs $607, full coverage runs $1,401 (41% below Houston's average). GEICO's $901 minimum rate and Mercury Insurance's $902 minimum rate are almost the same.
AAA balances affordability with service quality in Houston. Major carrier competition results in ways to save. Multiple quality carriers beyond the cheapest option are available in Houston.
| State Farm | $51 | $117 | -45% |
| GEICO | $75 | $153 | -24% |
| Mercury | $75 | $172 | -18% |
| AAA | $77 | $160 | -22% |
| Germania | $89 | $182 | -10% |
State Farm charges young drivers $1,367 annually for minimum coverage based on elevated risk assessments. Adult drivers secure $607 annual rates through State Farm, cutting costs over 50% below young driver premiums.
Senior drivers from State Farm pay $703 annually, about 16% more than adults. State Farm maintains its position as the most affordable choice across all three age categories. Â
The predictable pricing pattern from State Farm simplifies shopping for Houston drivers of all ages.
| State Farm | $51 | $607 |
| Geico | $75 | $901 |
| Mercury Insurance | $75 | $902 |
| AAA | $77 | $923 |
| Germania Insurance | $89 | $1,065 |
Speeding tickets produce no rate increase with State Farm, maintaining rates at $607. At-fault accidents result in moderate penalties at $715 annually with State Farm.
DWIs carry the highest insurance costs at $982 per year with State Farm, a 62% jump. Comparing multiple insurers helps identify which companies offer the most favorableÂ
treatment of your specific infraction.
State Farm's lenient approach to speeding tickets provides particular value for drivers with minor violations.
| State Farm | $60 | $715 |
| Germania Insurance | $90 | $1,080 |
| Geico | $103 | $1,239 |
| Farmers | $105 | $1,258 |
| AAA | $113 | $1,353 |
A MoneyGeek score of 95 out of 100 places State Farm top in Houston. Competitive premiums span most driver categories alongside strong satisfaction ratings and broad coverage selections.
Mercury Insurance earned an 89 out of 100 MoneyGeek score through great value delivery. Excellence in claims handling makes Mercury ideal for Houston drivers prioritizing reliable coverage with responsive local service.
Claims processing strength and customer support quality define both carriers' performance in Houston.
| State Farm | 95 | 1 | 3 | 6 |
| Mercury | 90 | 4 | 5 | 4 |
| GEICO | 89 | 2 | 6 | 6 |
| AAA | 89 | 3 | 4 | 6 |
| Progressive | 88 | 6 | 2 | 2 |
Lowest rates in Houston
Great customer service reputation
Largest discount selection
Not many add-on coverage selections
Much less affordable for those with bad credit
State Farm is the most affordable provider overall for most drivers. It has one of the best customer experiences in Houston, earning it the top spot in our study. In Texas, it earned the third-best customer satisfaction rating and sixth overall for claims satisfaction nationwide, according to J.D. Power. Its only downsides are less extensive add-on coverages with only three options, and much more expensive rates for those with bad credit scores.
Best add-on coverage selection
Very affordable for those with bad credit scores
Highest customer ratings overall in Houston
More expensive rates on average overall
While not the most affordable provider, Progressive has the best customer experience overall, with a rating of 4.3 out of 5.0 from over 60,000 customers compared to others in Houston. It also has a great selection of add-on coverages, including unique options like a diminishing deductible, accident forgiveness, pet coverage, vehicle service contracts and custom parts replacement. The company has the most affordable full coverage rates for those with bad credit in the city.
Car insurance in Houston costs an average of $1,036 per year for minimum coverage and $2,378 per year for full coverage. These rates exceed the Texas state average of $807 for minimum coverage.
State Farm offers rates well below the city average at $607 for minimum coverage. Houston drivers should expect moderate to high premiums with opportunities to find affordable coverage through major carriers.
| Full Coverage | $198 | $2,378 |
| Minimum Coverage | $86 | $1,036 |
In Tacoma, car insurance rates by ZIP code range from $62 to $162 per month. ZIP code 98404 is the most expensive, while 98403 is the cheapest. Check the average rates for your ZIP code below.
| 77002 | $81 | $189 |
Houston's high rates complicate your search for affordable coverage, but strategic approaches cut costs without sacrificing protection. Your step-by-step guide to cheaper coverage:
Baseline coverage requirements inform optimal carrier selection. Budget parameters, local accident frequency, vehicle crime patterns and personal risk factors shape coverage decisions. Our car insurance coverage needs calculator and independent agent consultations help inform your choices.
Nonstandard coverage types deliver the same benefits at reduced costs. Pay-per-mile policies, non-owner coverage and automaker programs satisfy requirements while cutting expenses.
Average vehicle insurance costs establish savings benchmarks against current rates. Market comparisons reveal genuine value versus inflated pricing.
Driving profiles determine discount options available to you. Young driver programs, military benefits, policy bundling, multi-car coverage and telematics monitoring reduce premiums. Full payment terms and electronic quote delivery let you save more. Strategic discount combinations cut insurance costs up to 40%.
Cost analysis means you research reputations: purchase experience, policy administration and claims resolution within your market. To meet your your protection needs, verify that prospective carriers offer relevant add-on coverage.
Multi-carrier quote comparison produces the lowest available rates. Pricing variation across carriers demands diverse sourcing through comparison platforms, independent agents and direct provider channels.
Review your policy annually to make sure pricing is the same. Regularly reassess evolving coverage requirements and shifting carrier rates..
Car insurance rates depend on your driving record, credit and vehicle type. American Family and Travelers offer the lowest average premiums in Tacoma, but compare quotes from multiple providers to find your best rate.
MoneyGeek answers frequently asked questions about the cheapest car insurance in Houston, helping you find the best coverage for your needs.
The cheapest car insurance company in Houston is State Farm, with average annual rates of $607 for minimum coverage and $1,401 for full coverage. Rates vary based on age, driving history and coverage needs, so it's best to compare quotes.
State Farm is the city's best and cheapest car insurance company, with a MoneyGeek score of 95 out of 100. It ranks five points above the next best provider, Mercury. The company has a great mix of affordability and customer service.
The average cost of car insurance in Houston is around $2,378 per year for full coverage, while minimum coverage averages $1,036 per year. These rates vary depending on your circumstances.
Car insurance in Houston is much more expensive on average, and the city ranks 1,441st for minimum coverage affordability and 1,335th for full coverage compared to all other Texas cities.
To help Houston drivers find the most affordable auto insurance companies, MoneyGeek analyzed auto insurance rates based on data and information from the Texas Department of Insurance and Quadrant Information Services. We studied all ZIP codes in the city and hundreds of thousands of quotes for 12 companies offering auto insurance in Texas to tailor options as closely as possible to you.
Houston Driver Profile
MoneyGeek created a sample driver profile to calculate car insurance quote averages with the following characteristics:
We adjusted certain factors, such as age, driving record, credit score and military affiliation, to find the most suitable insurance companies for specific driver profiles.
Coverage Levels in Houston
MoneyGeek compared the most affordable insurance providers for minimum and full coverage auto insurance policies.
The minimum coverage requirements in Texas are:
For a full coverage policy, we used the following coverage limits:
Our Best Company Rating Methodology
We rated all companies based on the following rating scale:
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
