The average cost of car insurance in Houston is $1,560 per year, higher than the average rate in Texas. Farmers, the cheapest company for average drivers, has an average rate of $887. MoneyGeek also evaluated the cheapest by coverage amount and driving history. For drivers who are looking at quality and affordability, MoneyGeek recommended the best carriers.
Compare the Cheapest Car Insurance Quotes in Houston, TX
The Cheapest and Best Car Insurance in Houston
The Cheapest Car Insurance Companies in Houston
Based on average rates, the cheapest auto insurance policies in the city for a full coverage policy are from:
- Farmer: $887 per year
- USAA: $967 per year (only available to current and former military members)
The company-by-company differences in car insurance rates in Houston can be significant, so it’s vital for you to compare car insurance quotes carefully. On average, the most affordable car insurance company in Houston is State Farm, while the most expensive car insurance company is The General. For many drivers, a car insurance policy from The General is approximately four times more expensive than similar coverage with State Farm.
These prices are based on a 40-year-old male driver with a full coverage policy including liability insurance as well as comprehensive and collision insurance.
Scroll for more
Average Cost of Car Insurance in Houston
The average annual cost of car insurance in Houston is $1,560, which is higher than the Texas state average and the national average cost of car insurance. Drivers in Houston pay 18.5% more than the average annual cost of car insurance in Texas and 9.5% more than the national average.
The Best Car Insurance Companies in Houston
Based on MoneyGeek’s rating system, the best companies for Houston drivers who value both affordability and quality service are:
- GEICO: MoneyGeek score of 85 out of 100
- State Farm: MoneyGeek score of 85 out of 100
USAA received the highest score in Houston by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
MoneyGeek calculated scores based on a unique rating system based on J.D. Power user satisfaction, affordability and financial stability.
Personalized Quotes to Get You the Cheapest Car Insurance in Houston
There are several factors that need to be considered when determining car insurance quotes in Houston. These factors include the driver's age, gender, ZIP code, driving record and the make and model of the vehicle.
For example, in Houston, a Farmers policy for an 18-year-old driver is approximately four times more expensive than a policy for a 40-year-old driver. Also consider that in Houston, a Farmers policy for a driver with DUI record is nearly twice as expensive as a policy for a driver with a clear record.
Car insurance companies in Houston assess the risk associated with the driver to determine the best car insurance rates for them. The factors used in the calculation can change over time, so it’s important for you to request a personalized quote regularly to make sure that you are getting the cheapest car insurance quote that is best suited for you.
Shopping around for car insurance in Houston could save you $673, which is enough to buy:
Cheapest Car Insurance in Houston by Coverage Amount
When calculating auto insurance rates, companies in Houston and elsewhere consider the amount of coverage you buy. A policy that only meets the state minimum coverage costs $806 on average in Houston, while a full coverage policy typically costs $1,560. That is a difference of $754 per year.
Texas Minimum Liability Requirements
- Bodily Injury and Property Damage$30,000 per person, $60,000 per accident and $25,000 for property damage. A more protective level is 100/300/100.
Different types of car insurance policies in Houston have varying degrees of coverage. For example, Farmers offers both 50/100/50 liability plans and 50/100/50 full-coverage plans which can cover up to $50,000 for injury liability for one person, $100,000 for all injuries and $50,000 for property damage in an accident.
The full-coverage policy, which also adds collision coverage and comprehensive insurance, costs $340 more than a liability-only policy for most drivers. You’ll want to request a personalized quote so you can figure out how much you need to spend for a full-coverage plan.
Average Car Insurance Premiums: Liability-Only vs. Full Coverage
- CompanyState Minimumper year50 / 100 / 50per year
- Company50 / 100 / 50per year100 / 300 / 100per year
Cheapest Car Insurance in Houston if You Have Driving Violations
Your driving record also affects your car insurance premium cost in Houston. The more violations you have, the higher your car insurance rates may be. For example, in Houston, a Farmers car insurance policy for a driver with a clean record costs $887, but if the driver has a speeding ticket, then they need to pay an extra $277 for the same policy with similar coverage.
Another example is for State Farm policyholders in Houston, drivers with a DUI on their record pay an average of $664 more than drivers with a clear record.
- CompanySpeeding Ticketper yearAt-Fault Accidentper yearDUIper year
Average Cost of Car Insurance by Postal Code
Different cities have different car insurance rates. Car insurance companies take your specific residential address into consideration when calculating your car insurance quotes. Different locations have different statistics for car accidents and this difference is reflected in the varying prices of car insurance policies. For example, drivers who live in the 77036 ZIP code in Houston pay an average of $304 more in annual car insurance premiums than drivers who live in ZIP code 77095, the city’s most affordable neighborhood for car insurance.
- Zip CodeState Minimumper year
Top Agents Offering Affordable Car Insurance in Houston
Factors That Impact Insurance Costs in Houston
In addition to individual driver needs and history, location-specific factors like the percentage of uninsured motorists and the rate of fatal accidents also contribute to car insurance rates in Houston. How Houston ranks compared to the 300 most populous cities in the United States can have a significant impact on premium costs.
Methodology and Assumptions
MoneyGeek’s average premium rates for Houston are based on 100/300/100 comprehensive collision coverage with a $1,000 deductible for a 40-year-old male driver. The average driver profiled drives a 2010 Toyota Camry LE and has no tickets or accidents on their record. Additional premiums are added based on coverage type, location and driving record. Learn more about MoneyGeek’s data and methodology here.
About the Author