State Farm offers the lowest car insurance rates in Houston, with average annual rates of $607 for minimum coverage and $1,401 for full coverage. GEICO, AAA, Mercury and Germania also offer affordable coverage in the city.
Car Insurance in Houston
State Farm has the cheapest car insurance in Houston, Texas, with average monthly rates of $117 for full coverage and $51 for minimum coverage.
Find out if you're overpaying for car insurance in Houston below.

Updated: July 10, 2025
Advertising & Editorial Disclosure
Key Takeaways
Houston's cheapest car insurance companies are State Farm, GEICO and AAA, with savings up to 45% compared to the city average.
On average Houston car insurance costs $198 per month for full coverage and $86 for minimum coverage.
To get the best cheap auto insurance in Houston, decide on coverage beforehand, do plenty of research and compare quotes from multiple sources.
Who Has the Cheapest Car Insurance in Houston?
State Farm | $51 | $117 | -45% |
GEICO | $75 | $153 | -24% |
AAA | $77 | $160 | -22% |
Mercury | $75 | $172 | -18% |
Germania | $89 | $182 | -10% |
Cheapest Houston Car Insurance by Category
State Farm wins nine of the 10 driver categories MoneyGeek studied for car insurance affordability in Houston. GEICO offers the cheapest rates for drivers with bad credit. Below are the winners for all categories and their lowest rates.
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 |
Compare the Cheapest Houston Car Insurance for You
Every driver pays different rates based on their situation. Use this table to see which companies offer the best deals for someone with your specific profile.
State Farm | $51 | $607 | -44% |
Geico | $75 | $901 | -17% |
AAA | $77 | $923 | -15% |
Allstate | $105 | $1,257 | 16% |
Farmers | $100 | $1,196 | 10% |
Best Car Insurance Companies in Houston
Our picks for Houston's best car insurance companies are State Farm, Mercury, GEICO, AAA and Progressive. Each company offers a great balance of affordable rates, good customer service and wide coverage options.
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 |

State Farm: Best Cheap Overall
pros
Lowest rates in Houston
Great customer service reputation
Largest discount selection
cons
Not many add-on coverage selections
Much less affordable for those with bad credit
COMPANY HIGHLIGHTS
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.

Progressive: Best Customer Experience
pros
Best add-on coverage selection
Very affordable for those with bad credit scores
Highest customer ratings overall in Houston
cons
More expensive rates on average overall
COMPANY HIGHLIGHTS
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.
How Much Is Car Insurance in Houston?
Houston car insurance costs for most drivers are around $86 per month or $1,036 per year for minimum coverage, ranking it 1,441st out of all Texas cities for affordability. For full coverage, rates are around $198 monthly or $2,378 yearly, making it rank 1,335th for affordability for this policy type.
Full Coverage | $198 | $2,378 |
Minimum Coverage | $86 | $1,036 |
Houston Car Insurance Cost by Category
Coverage rates range from $79 to $460 per month based on general driving categories. Below, you can review average rates in your category.
Adult Drivers | $86 | $198 |
Young Drivers | $201 | $430 |
Drivers With an Accident | $122 | $274 |
Senior Drivers | $112 | $232 |
Drivers With a DUI | $134 | $290 |
Drivers With Newer Cars | $106 | $245 |
Drivers With a Speeding Ticket | $102 | $236 |
Drivers With Bad Credit | $193 | $455 |
Drivers With Old Cars | $79 | $180 |
Houston Car Insurance Costs by ZIP Code
For most drivers in Houston, rates by ZIP code vary from $71 to $259 per month, with the most expensive ZIP code being 70071 and the least expensive being 77345. Below, you can review average rates for your Houston ZIP code.
77002 | $81 | $189 |
Compare Personalized Houston Car Insurance Costs
While we've provided many breakdowns for average rates, your personal profile may not be fully represented. Below are the average rates by major factor combinations that you can filter for your profile.
$90 | $1,083 | 33% |
How to Get the Best Cheap Houston Car Insurance
Finding good, cheap car insurance in Houston can be challenging due to the expensive average rates in the state and the difficulty of determining the right coverage for your area. Below is a step-by-step guide to help you get the best coverage and lower your auto insurance rates.
- 1
Decide on coverage needs beforehand
To know the best and cheapest option, you need a baseline for the coverage you want. Determine your budget for spending on insurance, the risk of accidents and car-related crime in your area, and your own personal driving behaviors and risk factors. Use our car insurance coverage needs calculator and speak to an independent agent to support your decision.
- 2
Consider nonstandard coverages
Considering nonstandard types of car insurance coverage will ensure you're making the most cost-effective decision with the same benefits. Policies like pay-per-mile, non-owner and automaker-provided insurance can meet your needs at a lower cost.
- 3
Research average costs for your profile
Research average vehicle insurance costs to get a clearer picture of how much you're saving compared to your current rate. This will give you a measuring stick to determine what a good deal is and isn't.
- 4
Look into discounts you can qualify for
Your car insurance discount options depend on your driving profile. Look for young driver programs, military discounts, bundling multiple policies, multi-car discounts and telematics programs. Payment discounts include paying in full or getting electronic quotes. You can save up to 40% on car insurance with the right combination of discounts.
- 5
Analyze company reputations and coverage options thoroughly
Aside from costs, look into a company's reputation for buying, policy management and claims process in your area. If you want additional protection past normal policies, ensure a company you'd like to get quotes from has add-ons that serve your needs.
- 6
Compare multiple quotes through different means
The most tried-and-true way to get the cheapest rates is to compare quotes from multiple companies. Since pricing will vary, use different mediums to get your quotes, such as comparison sites, agents and provider websites.
- 7
Reassess annually
Review your car insurance annually to ensure you get the best rates. Your needs change, and so do insurance companies' prices.
Cheapest Car Insurance in Houston: Bottom Line
Finding the cheapest car insurance in Houston depends on your age, driving record, vehicle type and credit score. State Farm and GEICO consistently offer low rates across different driver profiles, but compare quotes from multiple providers to ensure you get the best deal.
Cheap Houston Car Insurance: FAQ
MoneyGeek answers frequently asked questions about the cheapest car insurance in Houston, helping you find the best coverage for your needs.
What is the cheapest car insurance company in Houston, Texas?
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.
Who offers the best car insurance in Houston?
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.
What is the average cost of car insurance in Houston?
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.
Is car insurance in Houston expensive?
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.
How We Chose the Best and Cheapest Car Insurance in Houston, TX
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:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
- Good credit
- Valid license
- Currently insured
- No claims history
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:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
For a full coverage policy, we used the following coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
- Comprehensive and collision insurance, each with a $1,000 deductible
Our Best Company Rating Methodology
We rated all companies based on the following rating scale:
- Affordability (60% of score): To get this score, we evaluated quotes for various common driver profiles and compared rates to the competition within the city.
- Customer experience (30% of score): We used sources such as agency reviews on Google, J.D. Power, AM Best and forums like Reddit to gauge customer sentiment and experiences across the board.
- Coverage options (10% of score): This score considers the number of coverage options a provider offers and the uniqueness of the offering and benefits.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
sources
- Progressive. "Progressive Insurance Reviews." Accessed July 9, 2025.