I’m sure you’ve seen the captivating ads from companies like Nationwide, GEICO, and The General guaranteeing big savings, so drivers should just pick the company with the cutest commercial, right?
It’s not that simple, unfortunately, as there are a whole slew of unknowns like the amount of coverage you want, if you are currently insured, how experienced of a driver you are, and your gender, that all impact the cost of your policy. Car insurance is kind of a dry topic, but this article will explain these topics and will give you a good beginning to your search for cheaper coverage.
The vehicle on the policy is a large factor when looking for the cheapest car insurance for first-time drivers. Vehicles with more horsepower, poor safety ratings, or a track record of large liability claims will cost much more to insure than safer, lower-performance models. The information below ranks coverage prices for some of the most affordable automobiles to insure in Texas.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $5,652 |
| Honda CR-V EX-L 4WD | $5,708 |
| Volkswagen Jetta S 2.5 Station Wagon | $6,054 |
| Toyota Prius | $6,108 |
| Ford Explorer XLT 2WD | $6,362 |
| Toyota Tacoma 2WD | $6,653 |
| Chevrolet Equinox LS AWD | $6,709 |
| Toyota RAV4 Limited 2WD | $6,715 |
| GMC Sierra SLE Regular Cab 2WD | $6,709 |
| Dodge Grand Caravan Crew | $6,762 |
| Chevrolet Malibu LT | $6,771 |
| Ford F-150 Lariat Super Cab 4WD | $6,762 |
| Hyundai Elantra Blue 4-Dr Sedan | $6,999 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $7,048 |
| Chevrolet Impala LTZ | $7,055 |
| Ford Edge Sport AWD | $7,064 |
| Honda Odyssey EX-L | $7,055 |
| Toyota Corolla XLE | $7,062 |
| Toyota Camry XLE | $7,055 |
| Jeep Grand Cherokee Limited 2WD | $7,109 |
| Nissan Altima Hybrid 4-Dr Sedan | $7,118 |
| Ford Fusion SEL 4-Dr Sedan | $7,109 |
| GMC Sierra 3500HD SLE Crew Cab 2WD | $7,162 |
| Find Cheaper Rates Go | |
Table data represents single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include safe-driver, and claim-free. Premium amounts do not factor in vehicle location which can revise coverage rates noticeably.
Looking at the numbers, you can see that vehicles like the Ford Escape, Honda CR-V, Volkswagen Jetta, and Toyota Prius should be the cheaper vehicles to insure for new drivers. The price for car insurance will trend higher just due to the fact that there is more claim exposure for first-time drivers, but overall those vehicles will probably have the best rates available.
Figuring out which company has the most affordable insurance rates for first-time drivers takes more work in order to find the lowest price quote. Every car insurance company uses a slightly different approach to determine premium rates, so let’s take a look at the insurance companies with the most affordable rates in Houston, TX.
It’s important to know that Houston insurance rates are determined by lots of factors which can significantly increase or decrease the cost of coverage. Simply having another birthday, buying a new vehicle, or getting a driving violation can trigger price changes that can make some companies cheaper than before.
Best Cheap Insurance Rates for Inexperienced Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,041 |
| 2 | USAA | $1,095 |
| 3 | Texas Farm Bureau | $1,211 |
| 4 | Germania Mutual | $1,294 |
| 5 | California Casualty | $1,382 |
| 6 | Esurance | $1,421 |
| 7 | State Farm | $1,450 |
| 8 | Mercury | $1,461 |
| 9 | Nationwide | $1,585 |
| 10 | Safe Auto | $1,597 |
| 11 | Progressive | $1,664 |
| 12 | Allstate | $1,667 |
| 13 | Amica | $1,705 |
| 14 | Home State | $2,134 |
| 15 | GEICO | $2,135 |
| 16 | MetLife | $2,249 |
| 17 | Encompass | $2,324 |
| 18 | Unitrin | $2,333 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,568 |
| Quote Your Rates Go | ||
Travelers offers some of the lowest car insurance rates in Houston at around $1,041 each year. USAA, Texas Farm Bureau, Germania Mutual, and California Casualty would also be considered some of the more affordable Houston, TX car insurance companies.
As shown above, if you are currently insured with Texas Farm Bureau and switched to Travelers, you might achieve yearly savings of in the neighborhood of $170. Policyholders with Germania Mutual might save as much as $253 a year, and California Casualty insureds might lower prices by up to $341 a year.
To find the cheapest rates for your vehicle, click here to start a quote or click through to the companies below.
Bear in mind that those premiums are averaged across all drivers and vehicles and and are not calculated with an exact vehicle garaging location for first-time drivers. So the insurer that is best suited for you may not even be in the top 23 companies shown above. That point stresses why you need to get auto insurance quotes using your own driver data and vehicle information.
For new drivers, one of the more important factors that are used to help calculate car insurance rates is where you choose to live in Houston. Regions with more people or even just more weather-related claims tend to have more expensive auto insurance rates, whereas more rural areas profit from lower rates.
The following table rates the most costly cities in Texas for first-time drivers to buy auto insurance in. Houston is ranked #3 with an annual rate of $1,909 for the average insurance policy, which is about $159 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,927 |
| 3 | Houston | $1,909 |
| 4 | Dallas | $1,855 |
| 5 | Laredo | $1,851 |
| 6 | Garland | $1,832 |
| 7 | Irving | $1,789 |
| 8 | Amarillo | $1,786 |
| 9 | Mesquite | $1,771 |
| 10 | Pasadena | $1,758 |
| 11 | Grand Prairie | $1,757 |
| 12 | San Antonio | $1,722 |
| 13 | Beaumont | $1,720 |
| 14 | Lubbock | $1,665 |
| 15 | Austin | $1,659 |
| 16 | Arlington | $1,658 |
| 17 | Plano | $1,624 |
| 18 | Fort Worth | $1,604 |
| 19 | Carrollton | $1,598 |
| 20 | El Paso | $1,584 |
| 21 | McKinney | $1,577 |
| 22 | Corpus Christi | $1,572 |
| 23 | Waco | $1,537 |
| 24 | Killeen | $1,533 |
| 25 | Abilene | $1,499 |
| Find Cheaper Insurance Go | ||
Price information shown is estimated as the specific Houston residence address can lower or raise coverage rates significantly.
Types of discounts on Houston auto insurance
Insurers that offer quotes for first-time drivers may also give you rate discounts that can lower rates by as much as 35% or more if you meet specific criteria. The best insurance companies and some of their more popular discounts can be read below.
- Progressive may have discounts that include multi-policy, online quote discount, online signing, continuous coverage, homeowner, multi-vehicle, and good student.
- The Hartford discounts include bundle, defensive driver, air bag, vehicle fuel type, anti-theft, good student, and driver training.
- Mercury Insurance has savings for good driver, anti-theft, type of vehicle, professional/association, annual mileage, and multi-car.
- GEICO includes discounts for seat belt use, multi-policy, good student, five-year accident-free, membership and employees, and defensive driver.
- AAA offers discounts for multi-policy, good student, anti-theft, education and occupation, AAA membership discount, multi-car, and good driver.
- State Farm offers premium reductions for anti-theft, good driver, defensive driving training, good student, passive restraint, and accident-free.
The chart below shows the comparison of insurance premiums with and without some available policy discounts. The rate quotes are based on a female driver, no accidents, no driving violations, Texas state minimum liability limits, comp and collision included, and $250 deductibles.
The first bar for each age group shows premium with no discounts. The lower bar shows the rates with anti-theft, passive restraint, vehicle safety, continuous coverage, paid-in-full, and paperless filing discounts applied. When discounts are applied, theaverage amount saved on insurance for first-time drivers is 28% or $923.
Choosing the highest-rated insurer can be difficult considering how many different companies sell coverage in Texas. The information below can help you select which auto insurers you want to consider when comparing rates. The rankings below are for companies with a national presence, so smaller companies are not factored into the list.
Top 10 Major Auto Insurance Providers in Houston Ranked by Customer Satisfaction
- USAA – 91%
- AAA Insurance – 90%
- Esurance – 90%
- Mercury Insurance – 89%
- Nationwide – 89%
- Travelers – 88%
- Progressive – 88%
- Safeco Insurance – 88%
- State Farm – 88%
- Allstate – 88%
Top 10 Major Auto Insurance Providers Overall in Houston
- Travelers
- USAA
- Mercury Insurance
- AAA Insurance
- Nationwide
- Allstate
- State Farm
- The Hartford
- Safeco Insurance
- Progressive
The benefit of shopping around
Texas insurance rates are impacted by many things that will increase or decrease the price you pay. Getting older, moving to a new city, or getting caught speeding can trigger rate changes that can now make some companies affordable when they were higher priced. Not only that, but car insurance companies change premium rates as often as every quarter to adjust for heavy claims or excess profits. Larger than normal claims can cause additional premium costs, while a lower level of claims may cause more affordable Houston car insurance rates.
As an example, the chart below shows which companies have the cheapest car insurance in Houston, TX for a 40-year-old male driver with no violations or accidents, and a decent credit rating. If we compare prices based on his current rating profile, Travelers may have the lowest car insurance rates in Houston at $1,300 per year. This is $604 less than the average rate paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also on the list of the cheapest Houston, TX auto insurance companies.
Now we will pretend the driver from the first rate comparison a claim or two, less-than-perfect credit, and a speeding ticket. Because every insurance company has a different formula to determining premium rates, getting updated rate quotes could now result in a significantly different list of the cheapest Houston car insurance companies as shown below.
Mercury now has the cheapest rate in Houston, TX with State Farm, Safe Auto, Nationwide, and USAA now being in the top five. This example proves why consumers need to spend some time comparing rates when trying to get cheap car insurance rates for first-time drivers.
Car insurance prices consist of many factors and can change without notice, so the cheapest option three years ago may now be quite expensive.
Ideas for finding more affordable car insurance for first-time drivers
The list below shows many thrifty suggestions that can help Texas drivers get cheap coverage.
- Home or renters coverage can save on auto insurance
- Increase the comprehensive and collision deductibles on your policy
- Having at-fault accidents will increase rates
- Try paying for small claims out-of-pocket
- Good credit can mean cheaper rates
- Just one traffic violation will increase your rates
- Check for cheaper rates once a year
The last tip in the list is certainly vital, as we hit on in the article above. Auto insurance prices in Houston vary greatly, so don’t be afraid to change to a new company if you find a cheaper price.
Many drivers tend to have loyalty to a certain company, but it’s not a great idea if that devotion results in you overpaying a small fortune. It takes less than five minutes to compare prices and find cheaper auto insurance for first-time drivers.