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Through extensive analysis, Bankrate found the cheapest car insurance companies in Houston to be major insurers Geico, Nationwide, USAA, State Farm and Allstate. Each company’s average annual full coverage premium comes in hundreds of dollars cheaper than the average cost of car insurance in Houston, Texas.
The average cost of car insurance in Houston is $2,146 per year for full coverage, or $179 per month, according to Bankrate’s study of 2021 quoted annual premiums.
Best cheap car insurance companies in Houston
According to Bankrate’s study of premiums from Quadrant Information Services, Geico, Nationwide, USAA, State Farm and Allstate are the cheapest car insurance providers in Houston.
If you’re looking for the best car insurance in Texas, you likely care about more than just your average annual premium. To present a holistic view of each company, we also factored in third-party financial strength ratings from major bureaus like AM Best and S&P, customer satisfaction scores from J.D. Power, policy discounts and available coverage options. We calculated a Bankrate Score out of 5.0 points for each provider by taking into account each of these aspects.
|Insurance company||Bankrate Score||J.D. Power score (Texas)||Average annual premium for full coverage||Average annual premium for min coverage|
*Not officially ranked by J.D. Power due to eligibility restrictions
In Houston and across the country, Geico is known for selling affordable car insurance coverage. If price is your primary concern, you may want to get a quote from Geico. However, Geico does not offer a wide selection of coverage options. Its policies are fairly basic, but the company does have a wide variety of discount opportunities that could help drivers save even more money on their premiums. Geico also has a user-friendly mobile app that allows you to pay bills, make policy changes, call for roadside assistance and file claims. However, if you’re considering choosing Geico, keep in mind that the company does not offer gap insurance like many of its competitors which may be important if you lease your vehicle. Geico has a strong balance sheet and carries the highest financial strength rating from AM Best: A++ (Superior).
Learn more: Geico Insurance review
Nationwide has the second-cheapest average full coverage rate on our list. Although unrated by J.D. Power in Texas for its level of customer service, the company scores a rating of A+ (Superior) for financial strength from AM Best. The company also has fewer than average policyholder complaints according to the National Association of Insurance Commissioners (NAIC). Nationwide offers a wide range or policy options, but keep in mind that it offers fewer discounts than several of its competitors.
Learn more: Nationwide Insurance review
USAA may be a good choice for policyholders who are active-duty military members or veterans. The company exclusively sells insurance to the military community and their eligible family members. If you meet the criteria, USAA may be able to provide you with auto insurance that is well below Greater Houston’s average premiums. The company consistently receives high customer satisfaction scores from J.D Power, although it is not eligible for official ranking due to its eligibility restrictions. USAA is financially strong and rated A++ (Superior) by AM Best. Unfortunately, if you don’t meet its membership requirements, you can’t purchase auto insurance or any other type of insurance product from USAA.
Learn more: USAA Insurance review
Customers looking for a digital insurance experience may want to consider getting a quote from State Farm. The company has a highly-rated mobile app and offers several online resources. State Farm also offers two safe driver usage-based insurance programs, Drive Safe and Save for adults and Steer Clear for drivers under 25. Additionally, State Farm received an above-industry-average J.D. Power score for claims service. This indicates that customers are generally pleased with the claims process with State Farm. However, State Farm has a below-average customer satisfaction rating for overall experience in the Texas region and has the second-highest average full coverage premium on our list. Like our other best car insurance choices in Houston, State Farm boasts a strong balance sheet and is rated A++ (Superior) by AM Best.
Learn more: State Farm Insurance review
Allstate offers numerous coverage endorsements to help you to personalize your auto insurance policy, including custom equipment coverage and coverage options for classic cars. Additionally, Allstate offers a long list of discounts for drivers who are looking to lower their rates. Allstate customers may be able to save money on their car insurance by insuring a new vehicle, being a smart student and paying their premiums on time. However, Allstate has the highest average annual premiums on our list and scores below average for customer satisfaction. Its strong balance sheet garners an A+ (Superior) financial strength rating from AM Best.
Learn more: Allstate Insurance review
How to get and keep the cheapest car insurance in Houston
When looking for cheap car insurance, Houston drivers may feel overwhelmed, especially considering the dozens of competitive insurance companies in Houston. Below are a list of tips to help you find the cheapest car insurance in Houston.
To find cheap car insurance in Houston:
- Shop around: The Insurance Information Institute (Triple-I) recommends you get a minimum of three quotes when shopping your auto coverage to compare costs and coverages. You may also want to analyze which companies’ discounts apply to you.
- Pick the best coverage limits for you: Texas law requires drivers to purchase at least minimum liability insurance. Most insurance experts recommend purchasing full coverage car insurance to provide you and your family with financial peace of mind in the event of an accident, but you may want to carefully analyze which coverage options are necessary, according to your financial circumstances. Talking with a local insurance agent may be helpful during this step.
- Choose a safe vehicle: Driving a vehicle equipped with safety features such as an anti-theft device, side airbags and antilock brakes can help reduce your auto insurance costs.
To keep cheap car insurance in Houston:
- Maintain a clean driving record: Collecting marks on your motor vehicle record can greatly increase insurance premiums. To keep cheap insurance rates, you’ll want to stay alert and practice defensive driving. If you already have a series of violations on your record, you may be able to save money by completing an online driver safety course or enrolling in a telematics program.
- Be mindful of where you live: If you’re considering moving to another area of Texas, be mindful that insurance rates can vary significantly between cities. For instance, the average annual cost of full coverage car insurance is $1,771 in Lubbock and $2,146 in Houston.
- Reduce your claims risk: Adding a claim can increase your insurance rates. To reduce your risk of filing a claim, you may want to practice safe driving and invest in a reliable and safe vehicle with technology such as brake assist and electronic stability control.
- Reevaluate your provider: You may want to get new car insurance quotes from the top insurance companies in your area at least annually. If you have a life change such as moving or adding a teen to your car insurance policy, switching auto insurance providers could save you hundreds of dollars.
- Adjust vehicle coverage: As your vehicle ages, you may not need certain coverage options, such as gap insurance. You should reevaluate your car insurance coverage every few years and discuss potential changes with your insurance professional.
Frequently asked questions
What is the best car insurance company?
The best car insurance companies in Houston will vary by driver according to more than a dozen individual rating factors, such as age, gender, vehicle make and model, claims history, your credit-based insurance score, and policy preferences, according to the Triple-I. To find the best car insurance company for you, you may find it helpful to get online quotes from multiple providers and analyze their policy offerings. You can also usually find a list of each company’s discounts on its website to see which deals apply to you. Speaking with an insurance agent about your needs may also help you assess discount opportunities.
How much car insurance do I need in Houston?
Texas requires its drivers to carry at least 30/60/25 coverage, which means $30,000 in bodily injury liability per person up to $60,000 per accident and $25,000 in property damage liability per accident. However, most insurance experts recommend purchasing full coverage insurance, which provides you with a much higher level of financial protection in the event of a car accident.
How can I lower my car insurance rates in Houston?
You can often lower your car insurance to more affordable rates by seeing what discounts are eligible for. Several insurers offer usage-based telematics programs, which track your driving in real-time and offer discounts for safe driving. Geico, one of the cheapest car insurance companies on our Houston list, offers discounts to more than 800 professional and alumni groups. Several companies offer discounts to students and claims-free drivers. Your insurance agent may be able to help you find any discounts you missed that would apply to you.
How much does car insurance in Houston cost?
The average cost of car insurance in Houston is $2,146 per year for full coverage, or about $179 per month, according to Bankrate’s study of quoted annual premiums. However, several cheap car insurance companies in Texas offer full coverage policies for less than Houston’s average.
Will my car insurance cover hurricane and flood damage to my vehicle?
A minimum coverage auto insurance policy does not cover damage from severe weather events. The Triple-I recommends you add optional comprehensive coverage, which protects you from all non-collision damage incidents, such as falling tree branches, hail, flooded roads and even if your vehicle sustains damage inside your home’s garage during a storm.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.
Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for drivers to be confident their financial protection covers the likeliest risks, is priced competitively and is provided by a financially-sound company with a history of positive customer support.
To determine how well the best car insurance companies satisfy these priorities, third-party agency ratings from J.D. Power, AM Best, S&P, NAIC, and Moodys had the most impact on the companies’ Bankrate Scores. As price is a common consideration for drivers, we analyzed quoted premiums based on 40-year-old male and female drivers with a 2019 Toyota Camry. This profile, assessed across more than 35,000 ZIP codes in the U.S., provided a basis on which drivers may compare each provider.
While coverage options, insurer availability, affordability and customer experience are often the top priorities, Bankrate also analyzed each insurer’s online and mobile app resources for policy management and claims handling. Insurance is rapidly evolving to keep pace with our digital world, so these aspects also carried weight in determining Bankrate Scores.