Best cheap car insurance in Houston
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As inflation continues to rise, saving money in any aspect can be a priority for many. Finding affordable rates for car insurance is just one way consumers can get their budgets in check. To give you an idea of what you might pay, the average cost of car insurance in Houston is $2,106 per year for full coverage and $652 per year for minimum coverage, or about $175 and $54 monthly, respectively.
The insurance companies in Houston with the cheapest rates are State Farm, Geico, Esurance, Mercury and USAA, according to Bankrate’s research. Your rate may vary, as Houston car insurance rates are based on several factors, including personal characteristics, such as your age, gender, driving history and claims record.
Best cheap car insurance companies in Houston
The top three best car insurance companies in Houston with the cheapest rates are State Farm, Geico and Esurance, according to data provided by Quadrant Information Services. Besides average annual premiums, we compared and analyzed dozens of companies’ discounts, coverage options, policy features, accessibility and third-party rankings for customer satisfaction and financial strength.
These factors also help to make up the Bankrate Score, which is our proprietary five-point scale scoring system. The Bankrate Score, along with average annual car insurance price and customer satisfaction scores, can help car insurance shoppers make an informed decision on the best cheapest car insurance in Houston, potentially shortening the time it takes to compare quotes to find the most affordable rates for the coverage you need.
|Insurance company||Bankrate Score||J.D. Power score (Texas)||Average annual premium for full coverage||Average annual premium for minimum coverage|
Not only is State Farm one of the cheapest car insurance companies in Houston on average for full coverage on our list, it also has a near perfect Bankrate Score of 4.7. In Texas, the company ranks second place for overall customer satisfaction in the 2022 J.D. Power U.S. Auto Insurance Study. The carrier may be a great option for teen drivers, as it offers teen driving discounts with savings up to 25% and an additional savings up to 15% with its Steer Clear program. However, State Farm does not offer gap insurance, which could be a drawback for drivers with new vehicles.
Learn more: State Farm Insurance review
Geico ties with State Farm with a 4.7 Bankrate Score and also offers some of the cheapest rates for minimum coverage and full coverage. The carrier also has a long list of available discounts, which can help drivers maintain affordable rates even if they need more coverage. Geico falls short, however, with a below-average ranking in Texas for overall customer satisfaction, as surveyed by J.D. Power.
Learn more: Geico Insurance review
Esurance, an Allstate company, has average rates for full and minimum coverage that still fall below the citywide average in Houston and statewide average for car insurance in Texas. The carrier only offers car, home, motorcycle and renters insurance, but still offers the common coverage types you might expect from carriers for car insurance, including extras like gap insurance and rental car coverage. Esurance earns a respectable 4.2 Bankrate Score, but did not place in the J.D. Power study in Texas for customer satisfaction.
Learn more: Esurance Insurance review
Even though Mercury is one of the less popular car insurers, it still offers Houston drivers optional add-ons, such as rental car, roadside assistance and ride-hailing coverage. This carrier earns the lowest Bankrate Score on our list of 4.1 and did not place for customer satisfaction in Texas in the 2022 J.D. Power Auto Insurance Study. However, its minimum and full coverage rates are still below the average for Houston.
Learn more: Mercury Insurance review
With a perfect Bankrate Score of 5 and the highest J.D. Power score in Texas for customer satisfaction, USAA may be the best car insurance in Houston for some drivers. Unfortunately, it is not eligible for official ranking with J.D. Power due to its eligibility restrictions, which is limited to current and past service members and their eligible immediate families. USAA also has one of the highest average rates for cheap car insurance companies on our Houston list, although it still comes in below the citywide average.
Learn more: USAA Insurance review
How to get and keep the cheapest car insurance in Houston
To get the most competitive rates for car insurance, Houston drivers may have to put in some work. Here are some ways to get and keep the cheapest car insurance in Houston:
- Shop and compare quotes. Just because a carrier offers affordable rates, it does not mean it is the best option for your needs. Shopping around by comparing several quotes from different companies can help you ensure you are getting the cheapest rates on the best car insurance in Houston without having to limit coverage to make it affordable.
- Maintain a clean driving record. Keeping a clean driving record is one of the best ways to keep cheap car insurance rates. It also often opens you up to eligibility for accident forgiveness, which protects your rates if you cause your first at-fault accident, and discounts for safe driving, which those with blemishes on their driving record may not qualify for.
Frequently asked questions
The company with the best car insurance in Houston can differ for everyone, since each person has different criteria for an insurance company. For instance, you may want a company with strong financial scores and high third-party ratings for customer satisfaction. Or, the company’s mobile accessibility and claims track record may be more important. Determine what you want most out of a company and research carriers in your area to find the best car insurance company.
Car insurance rates in Houston are higher on average than rates in other states likely due to population density, crime statistics and damaging weather events. Motor vehicle thefts, including parts and accessories, are common in Houston, which can lead to higher comprehensive claims. Houston also sees major rainfall events each year, which can lead to flooding and more claims for damage, driving up insurance costs.
The average cost of car insurance in Houston, TX, is $652 for minimum coverage and $2,106 for full coverage. This is higher than the national average, which is $545 for minimum coverage and $1,771 for full coverage.
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 2020 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 are calculated on a five-point scale and 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 Moody’s 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 nearly 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 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.