Car insurance in Houston is legally required, but unfortunately, most Texans pay a high premium for their insurance. In Houston, the average driver pays $2,836 for full coverage insurance and $861 for minimum coverage insurance annually.
Factors like weather, a high rate of accidents and a high number of uninsured drivers contribute to the high cost of insurance. About 640 people die each year on Houston-area roads, and 2,850 more are seriously injured. Additionally, about 14.1% of Texans drive uninsured.
Having a good car insurance policy will protect you and your vehicle against potential risks. But not all car insurance providers are created equal. To simplify your shopping experience, we put together a list of the best Houston car insurance companies.
Best Car Insurance Companies in Houston
To find the best car insurance companies in Houston, we looked at the biggest providers and carefully evaluated each one based on average rates, third party ratings, coverage options, discounts and customer service reviews. Here are the car insurance companies we recommend for Houston drivers.
|Insurance Company||J.D. Power Score||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
|USAA||878 / 1,000||$496||$1,596|
|Geico||846 / 1,000||$465||$1,460|
|State Farm||844 / 1,000||$613||$1,623|
|Allstate||832 / 1,000||$630||$2,138|
USAA is our top recommendation for Houston residents who are active-duty military members or veterans. The company exclusively sells insurance to military families, but if you meet the criteria, USAA is likely your best and most affordable choice for car insurance.
On average, Houston drivers pay $1,596 per year for full coverage insurance from USAA, and $496 for minimum coverage insurance. In terms of rankings, USAA consistently scores high in J.D. Power studies and has an A++ financial strength rating from AM Best.
In Houston, and around the country, Geico is known for selling affordable car insurance policies. The average Houston driver pays $1,460 for full coverage insurance and $465 for minimum coverage insurance per year with Geico. For that reason, we recommend Geico to any driver looking for the lowest rate.
In terms of coverage, Geico offers the bare minimum, with only several endorsement options. However, the company does have a wide variety of discount opportunities that can help drivers save even more money on their premiums.
State Farm is one of the largest car insurance providers in Texas and its premiums are pretty affordable. The average Houston driver pays an annual $1,623 for full coverage insurance and $613 for minimum coverage insurance with State Farm. The company also offers a variety of discounts and good online tools.
Based on our evaluation, State Farm is the best car insurance company for safe drivers. State Farm offers two safe driver discount programs, Drive Safe & Save for adults and Steer Clear for drivers under 25. If you practice safe on-road behaviors, State Farm will reward you with a discounted premium.
Allstate is rated below average in J.D. Power’s 2020 U.S. Car Insurance Study, but the company has a few redeeming qualities. For one, the average Houston driver pays just $630 for minimum coverage insurance. In addition, Allstate offers a long list of discounts for drivers who are looking to lower their rates.
Allstate customers can save money on their insurance by insuring a new vehicle, being a smart student, signing a policy before their old one ends, having certain safety features in their car, paying their premiums on time and much more.
Cheapest car insurance in Houston
In Houston, the top three cheapest insurance carriers for full coverage and minimum coverage car insurance are Geico and USAA. These companies have lower than average rates compared to Texas’ statewide average premium, which is $1,800 for full coverage insurance and $496 for minimum coverage insurance annually.
|Insurance Company||Average Annual Premium for Minimum Coverage||Average Annual Premium for Full Coverage|
The table above compares the cheapest car insurance rates from the most popular carriers based on market share. This information is beneficial to keep in mind when researching car insurance carriers. However, remember that not all car insurance companies are created equal.
For example, Geico, Mercury and State Farm offer great discounts, but they offer very limited coverage options. Drivers who want to customize their coverage are better off with Allstate. If you’re a military service member, choosing USAA for your car insurance company is a no-brainer.
Houston insurance requirements
Drivers in Houston are legally required to carry a minimum amount of car insurance coverage, as determined by state law. In Texas, every driver must carry at least 30/60/25 coverage, which includes:
- $30,000 in bodily injury liability coverage per person
- $60,000 in bodily injury liability coverage per accident
- $25,000 in property damage liability coverage
Purchasing minimum coverage insurance means you will pay the lowest rate. However, most drivers will benefit from getting full coverage insurance, despite the higher price.
The cost in the aftermath of car accidents can be high, and there is no guarantee that Houston’s minimum insurance coverage requirement will be enough to cover the full cost of an at-fault crash. Any damages above your policy’s limit will come directly out of your pocket.
Additionally, most lenders and dealerships require you to carry full coverage insurance if your vehicle is financed or leased. In that case, you would not have the option to drop your coverage until the car was paid off in full.
Car insurance discounts in Houston
Most Houston car insurance companies offer discounts to help drivers save money on their premiums. You might even qualify for multiple discounts. Here are some of the different discounts offered in Houston and how drivers may qualify for them:
- Policy bundling: Houston drivers who bundle an auto and home insurance policy from the same company can save money on their premiums. Most insurance companies that offer auto and property insurance offer this discount.
- Defensive driver discounts: If you take an approved defensive driver course, you might be able to save money on your car insurance. Contact your insurance company to see which Texas organizations offer a qualifying driving training course.
- Good student discounts: All the insurance companies on our list offer a discount for students that get good grades or maintain a certain GPA. The requirements are different for every insurance company, so check to see if you or your student qualifies.
- Car safety feature discounts: Another popular car insurance discount in Houston is the car safety feature discount. If your vehicle has certain features, like anti-lock brakes, airbags, daytime running lights or an anti-theft system, you can probably get a lower premium.
Frequently asked questions
What is the best car insurance company?
Car insurance is highly personalized, so the best car insurance company is different for every driver. It depends on the amount of coverage you need, the type of coverage you want, your budget and what you value in a car insurance company. When you are shopping for car insurance in Houston, it is a good idea to compare providers and get sample quotes to see which company can offer you the lowest rate.
What factors can affect the cost of my car insurance in Houston?
There are a ton of different factors that can raise or lower your car insurance rates if you live in the city of Houston. Everything from the make and model of your car to the type of coverage and your driving record can affect your rates, which is why it is so important to get personalized car insurance quotes. Even your ZIP code can affect how much your car insurance policy will cost you, as can your marital status and what you use your car for.
What will happen if I drive uninsured in the city of Houston?
Well, quite a bit can happen if you drive in Houston — or in Texas in general — without an car insurance policy (or with a policy that does not meet the minimum requirements for the state). If you are an uninsured driver in Houston, you may be looking at a ticket and a hefty fine, which can range from $350 for a first offense to $1,000 for subsequent offenses. If those hefty fines are not enough deterrent, you should also know that driving uninsured in Houston may cause you to have your driver’s license suspended. You could also end up having your car impounded for 180 days, so do not risk it. It is much cheaper (and safer) to drive insured than it is to deal with the repercussions of driving without coverage.
Bankrate utilizes Quadrant Information Services to analyze 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 cleaning 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 coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.