The Cheapest Car Insurance in Houston

As the fourth-largest city in the country, Houston is a thriving area with its busy roads and highways full of drivers coming and going. It’s a lively junction found near the Gulf of Mexico and Galveston Bay with more than 2 million residents who call the Magnolia City home. 

With so much ground to cover, the price of auto insurance can vary significantly from place to place, so the cheap auto insurance companies in Houston may not be the same elsewhere. Still, locals have a few options when it comes to the cheapest auto insurance Houston has to offer. 

Cheapest Car Insurance in Houston, TX

The average cost of auto insurance in Houston is priced at $1,076 for a policy with the state minimum coverage. If you opt to purchase a full coverage policy, the average cost is $2,451 for the year. However, Houston auto insurance could be a lot more affordable, depending on which provider you choose.

For example, while a minimum coverage policy from Dairyland Insurance can top $2,000, you could pay just $791 with Loya Insurance. Other affordable options for Houston, Texas auto insurance include USAA for $892, Garrison for $907, Allstate for $918, and GEICO for $921 each year.

Cheap Car Insurance in Houston, TX by County and Zip Code

Some of the cheapest areas for car insurance are in areas like Austin, Montgomery, Brazoria, Waller, Chambers and Fort Bend. If you live in these areas, insurance ranges between $1,441 and $1,604 per year. Our research shows that the cheapest zip codes are 77418 and 77474 for an average insurance premium of under $1,500.

As is the case with most states, car insurance tends to be cheapest in the suburbs and more rural areas of Texas, with large metropolitan areas such as Houston being hotbeds of crime and therefore at a higher risk for companies to insure.

Cheapest Car Insurance Rates in Houston With a Prior Accident

Having an accident on your driving record can severely impact your insurance rates. We analyzed rates from the leading Houston auto insurance companies, and we have found that you could pay up to 52% more on your insurance premium with just one accident on your record. That could mean an insurance policy premium that costs as much as $2,565 per year. That’s almost $1,500 more per year than the average minimum coverage policy.

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Average Auto Insurance Premiums in Houston, TX by Credit Score

Your credit score is another factor that affects how much you pay for your Houston car insurance. For example, the difference between poor credit and good credit with a GEICO car insurance policy is a staggering difference of 45% between the two. While good credit will cost you $2,028 with a full coverage policy from USAA, you will pay $2,944 for the same policy if you have bad credit. 

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Car Insurance in Houston, TX

From its southern perch, Houston is a city that experiences regular inclement weather each year, including the occasional hurricane or tropical storm. There is a lot of rain, so between weather-related issues and the sheer number of drivers on the road, car insurance in Houston can bring higher risk than other cities with fewer residents and fewer road hazards.

Houston minimum insurance requirements

There is a minimum amount of car insurance that you must maintain in order to drive in Houston, Texas. 

You must include the following minimum coverage for your Houston auto insurance policy.

• $30,000 bodily injury liability limit per person
• $60,000 bodily injury liability limit per accident
• $25,000 property damage liability

There is additional, optional coverage that you may add or reject.

• $2,500 personal injury protection (PIP)
• $30,000 uninsured motorist bodily injury liability limit per person
• $60,000 uninsured motorist bodily injury liability limit per accident
• $25,000 uninsured motorist property damage liability with a $250 deductible

In Texas, you are not required to carry uninsured and underinsured motorist, collision or comprehensive coverage. However, this is always a good idea because it will protect you in the event that you are in an accident.

Houston’s at-fault law

Texas is an at-fault state. This means that if someone causes you to be involved in an accident, the party responsible for the accident is also the party that pays for the damages they incurred, such as damage to your property or personal injuries. These are expenses typically paid out through one’s insurance company.

Houston Car Insurance FAQs

Car Insurance Profile

To select the cheapest car insurance in Texas, we used Coverage.com’s data, based on the profiles of a 30-year male and female. For full coverage, the details used were the following:

• $100k bodily injury liability per person
• $300k bodily injury liability coverage per crash
• $100k property damage liability coverage per crash
• $500 collision coverage deductible
• $500 comprehensive coverage deductible

Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting five days a week and driving 12,000 miles per year. Since auto insurance rates vary widely among different profiles, we encourage you to compare options that fit your specific needs.