Cheapest Car Insurance Companies in Houston, TX (2023 Rates)
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By, Director, Corporate Communications, Insurance Information Institute
Various factors affect the cost of car insurance, including driver profile and needs.
The cheapest for full and minimum coverage in Houston is State Farm. It’s also the most affordable for teens, young adults, military-affiliated drivers, and with a violation. Texas Farm Bureau is the cheapest for seniors, while Allstate is the lowest with poor credit.
For individuals looking for a balance of affordability and quality service, MoneyGeek found the best car insurance in Houston.
Cheapest Car Insurance in Houston, TX
Cheapest Minimum Coverage Car Insurance in Houston
On average, the most affordable car insurance providers for a minimum coverage policy in Houston are:
- State Farm: $414 per year
- Texas Farm Bureau: $424 per year
Dairyland is the most expensive car insurance company for a minimum coverage policy in Houston, costing an average of $1,590 per year.
State Farm is also the cheapest auto insurance company in Texas as of October 2022, with an average premium of $300 per year. In Houston, the company charges more, displaying how location can affect costs.
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Texas law states that car insurance policies must meet at least the minimum coverage limits for bodily injury liability and property damage liability.
The limits are:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
An auto insurance policy provides financial protection against expenses incurred due to an accident. Liability coverage pays for damages or injuries the policyholder causes to others in an at-fault accident.
For example, you have a policy with $50,000 in bodily injury liability per person. If you cause an accident wherein a party gets injured, your insurance company will only cover up to $50,000, so if the injured incurs costs above $50,000, they are your responsibility.
If you require SR-22 insurance in Houston — a certificate of financial responsibility that demonstrates you are maintaining the required liability insurance to drive legally — the above limits are the minimum you must carry.
Cheapest Full Coverage Car Insurance in Houston
On average, the cheapest auto insurance companies for a full coverage policy in Houston are:
- State Farm: $840 per year
- Texas Farm Bureau: $904 per year
Dairyland, which has an average annual rate of $2,636, is the priciest option for a full coverage policy in the city.
As of October 2022, State Farm also offers the cheapest full coverage auto insurance in Texas. Its average annual premium across the Lone Star State is $711, lower than the cost in Houston.
A full coverage policy helps minimize potential financial losses to your vehicle as it adds comprehensive and collision insurance to liability.
- Collision insurance: helps pay for damages due to an at-fault collision with another vehicle or an object like a tree, fence or light pole. Collision also covers rollover accidents and pothole damage.
- Comprehensive insurance: covers the cost to repair or replace your vehicle if it gets damaged due to non-collision incidents, such as theft, vandalism, fire and severe weather events, including floods and hail.
Although a full coverage policy offers more financial protection, it may not always be ideal. For instance, if you have an older vehicle with a low value, getting full coverage may not be worth the cost.
Compare minimum and full coverage policies.
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Cheaper insurers could pocket you hundreds of dollars per year.
Cheapest Car Insurance in Houston After a Driving Offense
On average, the cheapest car insurance providers of full coverage in Houston after a driving violation are the following:
- Speeding ticket: State Farm ($840 per year)
- At-fault accident: State Farm ($1,041 per year)
- DUI: State Farm ($1,525 per year)
The companies with the most expensive average premium after a driving violation are Dairyland, costing $3,268 per year for a speeding ticket; Foremost at $4,545 per year for an at-fault accident; and Chubb, at $3,173 per year for DWI (Texas does not use DUI).
A violation on your record can affect your car insurance rate. Even the cheapest insurer’s rate for a driver with a bad record won’t be as affordable as what a safe driver pays.
Insurance providers consider risk when calculating a car insurance premium. One way of doing this is to evaluate driving records.
A speeding ticket, an at-fault accident or a DUI/DWI will likely cause a higher rate, with more severe violations resulting in a further hike. For example, in Houston, a speeding ticket causes a $295 annual increase on average. Meanwhile, a DWI can lead to around $653 more per year.
It’s possible to find cheap car insurance with a bad driving record. Compare quotes from multiple companies to find the proper coverage at a fair price.
Getting into an at-fault accident will make the cost of insurance go up unless you have accident forgiveness coverage on your policy. This optional coverage stops the premium increase after your first at-fault accident. Check with insurers in Houston to see if they offer it and whether maintaining a clean motor vehicle record prior to the accident means you get the coverage at no cost. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Car Insurance in Houston for Teens and Their Families
For Houston teen drivers on a family policy with full coverage, the cheapest car insurance companies, on average, are:
- State Farm: $2,216 per year for female teens and Nationwide at $2,672 per year for male teens,
- Nationwide: $2,327 per year for female teens and State Farm at $2,673 per year for male teens,
The most expensive company for teen drivers on a family policy in Houston is Allstate. It has an average rate of $9,262 per year for male teens and $7,861 per year for female teens.
Teen males tend to have higher rates since they’re seen as riskier to insure due to higher accident frequency and more distracted driving habits than teen girls. For instance, the cheapest option for male teens in Houston is around $458 more than the most affordable rate for female teen drivers. The difference in insurance premiums drops off in early adulthood.
Adding a teen driver to a family policy will significantly increase the premium. However, it’s much more expensive for teens to purchase a policy themselves, and in most cases, they require a parent or guardian as a co-signer to do so legally under the age of 18.
For example, in Houston, the average cost of a full coverage family policy with a 16-year-old male driver is $3,810 per year. An individual policy costs an average of $7,077 per year. That’s around a $3,267 difference annually.
When searching for cheap auto insurance for teens, make sure you consider the different factors affecting the cost of the premium and compare all available options.
Cheapest Car Insurance in Houston for Military Drivers
The average cheapest full coverage car insurance for military-affiliated drivers in Houston is with the following:
- State Farm: $840 per year
- Texas Farm Bureau: $904 per year
Although not the most affordable option in Houston, USAA is one of the best insurance providers for active-duty military, veterans and their qualifying family members. The company specifically caters to drivers with a military background. On average, a USAA full coverage policy in Houston costs $1,028 per year.
For a minimum coverage policy in Houston, the most affordable options for military members are State Farm (around $414 per year) and Texas Farm Bureau (roughly $424 per year).
If you are an active-duty military member, veteran or member of a military-related organization, you could save a great deal on insurance with GEICO (up to 15%). It has coverages and discounts available that may meet your unique needs. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
How to Compare Cheap Houston Car Insurance Quotes Online
The best way to find the most affordable and suitable car insurance policy in Houston is to compare quotes. You can get personalized quotes online. However, the process can take 15 minutes or more per company. You also need to enter a lot of personal information.
If you’re looking for a more convenient method, you can start your search with MoneyGeek’s car insurance calculator. By providing your age, vehicle type, coverage level and driving record, you can get a ballpark estimate immediately from multiple companies.
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Cheapest Car Insurance in Houston for Young Adults
The top providers, on average, for cheap car insurance for young drivers with full coverage in Houston are:
- State Farm: $1,078 per year
- Texas Farm Bureau: $1,113 per year
Dairyland has the highest average rate for young adults in Houston, costing $3,215 per year.
In comparison, the average cost of a full coverage policy in Houston for a 40-year-old is $1,436 per year. A 25-year-old pays around $1,860 annually, approximately $424 more per year.
Cheapest Car Insurance in Houston for Seniors
On average, the cheapest car insurance for seniors with full coverage in Houston is from the following:
- Texas Farm Bureau: $749 per year
- State Farm: $763 per year
Based on average rates, the priciest car insurance provider for seniors in the city is Dairyland at $2,394 per year.
Age is one of the important factors car insurance providers consider when calculating premiums. In Houston, senior drivers tend to have less expensive rates. A 40-year-old adult pays around $1,436 per year, while a senior (age 65) typically spends roughly $1,376 per year. That’s $60 less.
Cheapest Car Insurance in Houston for Poor Credit
The top two options, on average, for cheap car insurance for drivers with bad credit that need full coverage in Houston are:
- Allstate: $1,655 per year
- Mercury: $1,705 per year
State Farm is the most expensive company for people with poor credit in Houston. It has an average annual rate of $4,565.
A bad credit score may increase your car insurance premium. The average adult driver with good credit in Houston pays roughly $1,436 annually. Drivers with poor credit typically pay around 81% more per year, an increase of $1,157.
Car insurance companies tend to charge more to people with poor credit histories. That’s because they see individuals with bad credit as more likely to submit claims.
If you have poor credit, you may lower your insurance costs by utilizing common discounts, bundling different insurance policies and comparing personalized quotes from multiple companies. Taking extra steps to improve your credit over time can also help you get a lower rate.
Cheapest Car Insurance in Houston for Sports Cars
The average cheapest car insurance for a sports car with full coverage in Houston is from:
- State Farm: $1,026 per year
- Allstate: $1,365 per year
Based on average annual rates, Dairyland is the priciest company. A full coverage sports car policy in Houston costs $2,676 per year.
In Houston, a sports car is more expensive to insure than a standard Toyota Camry. On average, a driver with a Ford Mustang spends $1,813 per year for a full coverage policy. The cost for a standard Toyota Camry is $1,436 per year — $377 or 26.25% less annually.
Auto insurance rates vary by city. Sports car rates may not always be more expensive everywhere.
MoneyGeek gathered rates for a Ford Mustang to represent a sports car in Houston. Actual prices may vary depending on the make and car model. Typically, luxury, electric and sports cars are the most expensive to insure.
Average Cost of Car Insurance in Houston
The average cost of full coverage car insurance in Houston is $1,436 per year. The policy includes $100,000 bodily injury liability per person, $300,000 bodily injury liability per accident and $100,000 property damage liability per accident.
Overall, Houston has the highest average car insurance rate in Texas.
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