For drivers in Houston, one of the largest criteria that help determine the cost of insurance is the neighborhood you call home. Larger areas are more likely to have higher rates, whereas areas with lower crime rates and fewer weather claims receive better rates.
The information below sorts the most expensive places in Texas to buy auto insurance in. Houston ranks #3 with a yearly cost of $1,853 on average, which is approximately $154 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Dallas | $1,911 |
| 3 | Houston | $1,853 |
| 4 | Brownsville | $1,851 |
| 5 | Laredo | $1,851 |
| 6 | Mesquite | $1,825 |
| 7 | Amarillo | $1,804 |
| 8 | Garland | $1,796 |
| 9 | Grand Prairie | $1,793 |
| 10 | Irving | $1,789 |
| 11 | Pasadena | $1,758 |
| 12 | San Antonio | $1,722 |
| 13 | Beaumont | $1,702 |
| 14 | Arlington | $1,692 |
| 15 | Austin | $1,676 |
| 16 | Lubbock | $1,665 |
| 17 | Fort Worth | $1,653 |
| 18 | El Paso | $1,632 |
| 19 | Corpus Christi | $1,620 |
| 20 | Carrollton | $1,615 |
| 21 | McKinney | $1,609 |
| 22 | Plano | $1,560 |
| 23 | Abilene | $1,545 |
| 24 | Waco | $1,537 |
| 25 | Killeen | $1,473 |
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Price information shown is comparative as the specific garaging location can revise coverage prices significantly.
Now that we understand where Houston ranks compared to other cities, establishing which companies have the lowest-priced auto insurance rates in Houston will require a little more effort in order to find the best policy. Every insurance provider has a different process for establishing rates, so we’ll take a look at the auto insurance companies with the overall best prices in Houston, TX.
Find Cheaper Auto Insurance in Houston
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,010 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,235 |
| 4 | Germania Mutual | $1,294 |
| 5 | Esurance | $1,365 |
| 6 | California Casualty | $1,382 |
| 7 | State Farm | $1,495 |
| 8 | Mercury | $1,521 |
| 9 | Safe Auto | $1,565 |
| 10 | Nationwide | $1,600 |
| 11 | Progressive | $1,664 |
| 12 | Allstate | $1,718 |
| 13 | Amica | $1,775 |
| 14 | GEICO | $2,135 |
| 15 | Home State | $2,155 |
| 16 | MetLife | $2,249 |
| 17 | Unitrin | $2,264 |
| 18 | Encompass | $2,324 |
| 19 | 21st Century | $2,469 |
| 20 | Titan | $2,672 |
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Travelers normally has some of the cheapest car insurance rates in Houston at around $1,010 per year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the more affordable Houston, TX auto insurance companies.
As shown above, if you currently have coverage with Esurance and switched to USAA, you could see yearly savings of approximately $281. Insureds with California Casualty may save as much as $298 a year, and State Farm insureds might reduce rates by $411 a year.
Bear in mind that those rates are averages across all insureds and vehicles and do not factor in a specific location in Houston. So the company that is most affordable for your situation may not even be in the list above. That points out the importance of why you need to compare rates from as many companies as possible using your own driver data and vehicle information.
The benefits of price comparisons
Houston, TX auto insurance rates are determined by lots of factors which can substantially change the price you pay. Improving your credit score, moving to a different location, or getting a ticket for running a stop sign may prompt premium changes that can make some companies cheaper than competitors.
Additionally, car insurance companies modify rates every year or even multiple times each year in order to offset underwriting gains or losses. Higher than usual claims can cause rate hikes, while a better loss history may cause lower-priced Houston car insurance rates.
The graph below shows the cheapest car insurance in Houston, TX for a 35-year-old female driver with no prior accidents, a clean driving record, and solid credit. If we estimate rates based on her personal risk profile, Travelers may offer the lowest car insurance rates in Houston at $1,259 annually. This is $645 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the most affordable Houston, TX auto insurance companies.
In the next rate comparison, we’ll give the driver from the above example an accident claim, a little lower credit rating, and a speeding ticket. Since each company has a unique formula for filing rates in each state, comparing prices could now result in a different ranking of affordable companies as shown below.
State Farm now has the lowest price in Houston, TX with Mercury, USAA, Nationwide, and Safe Auto also being competitive. This example illustrates why it is important to compare lots of rates when trying to get the most budget-friendly auto insurance quotes in Houston. Car insurance prices are influenced by many risk factors and can change substantially, so the most economical company the last time you compared rates may now be wasting a lot of money.
The type of vehicle to be insured is probably the biggest factor that determines whether or not you find cheaper car insurance in Houston. Vehicles with lots of speed or power, poor passenger safety features, or a track record of large liability claims will cost much more to insure than more modest models.
The next list illustrates insurance costs for a number of the most affordable automobiles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Toyota Prius | $1,305 |
| Hyundai Elantra GLS Touring Station Wagon | $1,352 |
| Honda CR-V EX 2WD | $1,362 |
| Ford Edge SE AWD | $1,371 |
| Ford Escape Limited 2WD | $1,381 |
| Toyota RAV4 2WD | $1,398 |
| Honda Civic VP 4-Dr Sedan | $1,445 |
| Honda Accord EX-L 4-Dr Sedan | $1,465 |
| Chevrolet Equinox LTZ 2WD | $1,497 |
| Volkswagen Jetta 2.0T 4-Dr Sedan | $1,507 |
| Ford F-350 XLT Crew Cab Lariat 2WD | $1,551 |
| GMC Sierra SLT Crew Cab 4WD | $1,596 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,598 |
| Ford F-150 XL Crew Cab 2WD | $1,620 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $1,633 |
| Ford Explorer Eddie Bauer AWD | $1,639 |
| GMC Sierra 2500HD SLE Crew Cab 2WD | $1,670 |
| Nissan Altima 3.5 SR 2-Dr Coupe | $1,678 |
| Ford Focus S 4-Dr Sedan | $1,677 |
| Honda Odyssey EX-L | $1,685 |
| Toyota Corolla XLE | $1,693 |
| Chevrolet Impala LT | $1,712 |
| Dodge Grand Caravan Hero | $1,719 |
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Data based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include multi-policy, homeowner, claim-free, safe-driver, and multi-vehicle. Table data does not factor in specific garaging location which can influence premiums considerably.
By looking at the data, vehicles like the Toyota Prius, Hyundai Elantra, Honda CR-V, Ford Edge, and Ford Escape are most likely to be the most budget-friendly vehicles to insure for drivers in Houston.
Careless driving habits raise Houston insurance rates
The recommended way to get affordable insurance rates in Houston for drivers in Houston is to be a good driver and avoid accidents and keep your driving record clean. The example below demonstrates how traffic citations and accidents can impact insurance premiums for different age categories. The information is based on a single male driver, comprehensive and collision coverage, $1,000 deductibles, and no discounts are applied.
The data in the chart shows the average cost of an auto insurance policy in Texas per year with a clean driving record and no accidents is $1,730. Get written up for two speeding tickets and the average cost increases to $2,283, an increase of $553 each year. Now add two accidents along with the two speeding tickets and the yearly cost of insurance in Houston increases to an average of $4,494. That’s an increase of $2,764, or $230 per month, just for not maintaining a clean driving record!
Full coverage versus liability only rates
Reducing the cost of insurance should be important to the majority of people, and one good way to lower the cost of insurance in Houston is to not insure for full coverage. The information below illustrates the comparison of car insurance rates when comparing full coverage to liability only. The premiums assume no claims or driving citations, $1,000 deductibles, marital status is single, and no other discounts are factored in.
As an average, full coverage costs an additional $2,131 per year more than buying just liability insurance. That touches on the question if it’s worth it to buy full coverage. There is no definitive formula for dropping comp and collision coverage, but there is a general school of thought. If the yearly cost of full coverage is 10% or more of replacement cost minus your deductible, then you might want to think about dropping full coverage.
For example, let’s assume your vehicle’s replacement cost is $7,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $6,000 after paying the physical damage deductible. If premiums are more than $600 a year for full coverage, then you might consider buying liability only.