Houston, TX Car Insurance

Houston is the largest city in Texas, and for this reason, it is one of the Texas cities with the most cars. According to census data, there are over 1.4 million vehicles in Houston that are either owned or rented by its residents. Houston is called the Space City because of NASA’s presence, but aside from spaceships, the city also has a reasonably high number of cars on the road. About 720,262 of these cars are being driven by their owners, while car renters drive approximately 693,243 cars. The Space City has an average commute time of 26.6 minutes but an average car ownership rate of 2 cars per household. As a result of these numbers, auto insurance is typical in Houston, Texas.

Texas law mandates every driver in Houston for good reasons. Firstly, it will serve as a financial cushion if you ever damage another vehicle or injure someone else in an auto accident. It can also protect your vehicle from accidents and other unforeseen events such as fire, falling objects, vandalism, hail damage, and theft. Moreover, auto insurance won’t just protect your car, it also protects you from financial liabilities.

However, it can be a little challenging to find cheap auto insurance in Houston, Texas. In light of this, we have prepared a well-detailed coverage and cost analysis of auto insurance in Houston, Texas. This article will tell you what to expect to pay for your car insurance and hence, save money.

What's The Average Cost Of Car Insurance In Houston?

The average cost of car insurance in Houston per year is $2,004. That makes the average cost of car insurance in Houston higher than both the state and national average, which are $1,815 and $1,490, respectively.

Houston Average Car Insurance Rates

Houston Annual Average Car Insurance RateTexas Annual Average Car Insurance RateUnited States Annual Average Car Insurance Rate
$2,004$1,815$1,490

Houston Car Insurance Rates By Insurer

The insurer with the cheapest car insurance rate in Houston is USAA. USAA offers insurance rates as low as $1,434 per year. However, only present and former military personnel and members of their families can use USAA. The second cheapest auto insurance rate in Houston is $1,440, and it is offered by GEICO. You should check the table below for information on the most affordable car insurance rates by insurers in Houston, starting with the cheapest to the most expensive.

Houston Auto Insurance Average Rates By Insurer

CompanyAverage Annual Car Insurance Rate
USAA$1,434
Geico$1,442
State Farm$1,496
Allstate$2,804

Houston Car Insurance Premiums By Age Bracket

On average, drivers in their 50s tend to pay the lowest car insurance premiums in Houston, priced at just $1,462 per year. Drivers in their 60s are next in line as they pay slightly higher insurance rates of 1,514 per year.

Of all drivers in Houston, teenagers tend to pay the highest auto insurance premiums. Teenager drivers pay at least $2,000 more than drivers in their 20s. So, if you are looking to save on your auto insurance premium in Houston, you might have to wait until you are in your twenties.

Houston Car Insurance Rates By Age

Age BracketAverage Annual Car Insurance Rate
Teenagers$4,268
20s$2,163
30s$1,652
40s$1,608
50s$1,462
60s$1,514
70s$1,857

Houston Minimum Coverage Car Insurance Rates

On average, the cheapest minimum coverage car insurance rate in Houston is $783 per year, and it is offered by Loya. After Loya, the next company offering cheap insurance is State Farm. The average cost of minimum coverage at State Farm $799 per year, only $16 more costly than Loya.

Since auto insurance in Houston is quite expensive, a minimum liability policy can be an economical choice. However, you should note that this insurance won’t cover any damage to your vehicle. So, should your car ever become damaged in an accident, you will have to cover the cost of its repair yourself.

In conclusion, a minimum liability policy is not suitable for you if you own an expensive or new vehicle.

Houston Minimum Coverage Car Insurance Premiums

CompanyAverage Annual Car Insurance Rate
Loya$783
State Farm$799
Chubb$962
Geico$1,118
Nationwide$1,316
Allstate$1,765
USAA*$531
*USAA offers the overall cheapest minimum liability policy, but it is only available to military personnel and their immediate families.

Full Coverage Car Insurance Rates in Houston

If you are searching for the cheapest full coverage car insurance policy in Houston, Loya is the right insurer for you. Drivers in Houston get full coverage insurance policies from the company at an average annual fee of $1,225. Other companies offering cheap complete coverage insurance policies include State Farm and Geico.

In some cases, a full coverage insurance policy may be up to three times more expensive than a minimum coverage insurance policy. However, it will give you adequate protection such as comprehensive and collision coverage. You will also be satisfying the state insurance requirement when you opt for a full coverage policy.

Houston Full Coverage Car Insurance Rates

CompanyAverage Annual Car Insurance Rate
Loya$1,225
State Farm$1,735
Geico$2,629
Chubb$2,712
Nationwide$2,845
Dairyland$5,018
USAA*$1,502
*USAA offers one of the cheapest full coverage insurance policies in the city, but it is only available to military personnel and their immediate families.

Get Houston car insurance now!

Houston Car Insurance Rates By Zip Codes and Neighborhood

The neighborhood with the cheapest auto insurance rate in Houston is Clear Lake (77059), with an average annual rate of $1,176 per annum. On the other hand, Sharpstown (77036) is the most expensive neighborhood, with an average yearly rate of $1,419.

Several factors affect the cost of auto insurance in a neighborhood, and for this reason, insurance rates vary by zip code in Houston. These factors include the number of insured motorists, crime, and theft. What this means is that, for instance, staying in a neighborhood with a high crime rate will attract higher insurance premiums.

Houston Car Insurance Rates By Zip Codes and Neighborhood

ZIP CodeNeighborhoodAverage Annual Car Insurance Rate
77059Clear Lake$1,157
77345Humble$1,176
77070Kohrville$1,235
77005West University Place $1,251
77071Founder Western$1,325
77010Downtown$1,340
77026Kashmere Gardens$1,384
77033South Park$1,392
77099Alief$1,395
77036Sharpstown$1,419

Houston Car Insurance Rates By Credit Tier

In Houston, drivers in the “very poor” credit tier pay an average insurance rate of $3,541 per year, while drivers from the “exceptional” credit tier pay about $1,377 per year. In other words, the difference between both tiers is over sixty percent.

The lower your credit score, the higher your auto insurance premium will be. So, you can save a lot of money by improving your credit score. By simply improving your credit score from the “very poor” tier to the “fair” tier, you could save up $1,449 on your annual insurance premium.

Houston Car Insurance Rates by Credit Score

Credit TierAverage Annual Car Insurance Rate
Very Poor (300-579)$3,541
Fair (580-669)$2,042
Good (670-739)$1,676
Very Good (740-799)$1,555
Exceptional (800-850)$1,377

Auto Insurance Costs in Houston by Citation and Accident History

Drivers in Houston with DWI/DUI records pay an average annual rate of $2,608. Also, drivers that have been convicted of reckless driving pay up to $925 higher than the city’s average. Additionally, a speeding ticket can increase your annual insurance rate by $139.

To prevent your auto insurance rate from becoming too expensive, you should avoid citations and accidents. A speeding ticket, DWI/DUI, reckless driving charge, or an at-fault accident will increase your auto insurance rate.

Average Houston Car Insurance Rates after a Violation or Accident

IncidentAverage Annual Rate
DWI/DUI $2,608
Reckless Driving$2,929
Speeding Ticket (16 to 20 mph over speed limit)$2,143
At-fault Accident (damages < $1,000)$2,137
At-fault Accident (damages > $2,000)$2,552

The Best Car Insurance Companies In Houston

The best auto insurance company in Houston is Farmers Insurance. Although the company doesn’t offer the cheapest insurance premiums, getting the best insurance policy isn’t all about affordability.

We have chosen Farmers Insurance as the best auto insurer in Houston due to their reliable customer service, fast processing times, transparency, and few customer complaints. Other insurance companies offering excellent services include Chubb and Travelers. The table below ranks the best auto insurers in Houston according to their market shares and customer complaints index.

Best Auto Insurance Company In Houston

CompanyMarket ShareComplaint Index
Farmers Insurance6.9%0.15
Chubb0.6%0.29
Travelers1.8%0.33
Nationwide1.6%0.38
Progressive13.7%0.39
Geico11.8%0.40
Texas Farm Bureau Insurance2.9%0.41
Allstate Corporation10.5%0.62
State Farm12.4%0.67
USAA6.9%0.67
MetLife0.7%0.92
Liberty Mutual4.3%0.94
Dairyland0.6%1.05
Loyal Insurance1.0%2.03

Get Cheapest Insurance Quote

Houston Car Insurance FAQs

  • Is it illegal to drive without car insurance in Houston, Texas?

    Yes, it is illegal to drive any vehicle in Houston without insurance in Houston, Texas. As a driver in Texas, you must show proof that you can cover the cost of the damage you may cause. Hence, you need auto liability insurance.

  • Who is covered by my auto insurance policy?

    Your auto insurance should cover you, your family, and anyone that drives your car with your permission. However, you should read your policy or speak to your agent to know your auto insurance policy’s specifics.

  • Will my auto insurance cover a new car?

    Your existing insurance will automatically cover a newly purchased vehicle for about 20 days. The coverage the car gets will depend on if it is a replacement or an additional vehicle.

  • Why is auto insurance so expensive in Houston?

    There are several reasons why drivers in Houston pay higher insurance rates than anywhere else in Texas. These include a high rate of road accidents, weather, and a large number of uninsured drivers. In 2019, there were 22,188 road accidents in Houston. Also, 14.2% of drivers in Houston are uninsured.

  • What happens if I am involved in a car accident without insurance?

    If you are involved in a car accident without auto insurance, you will be given a ticket by the police. You may also have to get an insured driver to remove your car from the scene or get it towed.

  • Get Cheapest Insurance Quote

    Call an Agent

    Whether you just prefer a friendly voice or need more information, our licensed agents are ready to help you save.