Who Has Cheap Car Insurance Rates for Teenagers in Houston?

This would be a really short article if we could tell you the company that has the best deal on coverage in Texas. It’s just not that easy, however, as there are many unknowns like if you have ever had a coverage lapse, citations or tickets, the safety features built into your vehicle, and if you have a spouse. Car insurance is kind of a dry topic, but this article will explain these things and hopefully give you enough understanding to have a good start in finding the cheapest car insurance in Houston.

Trying to find reasonably-priced auto insurance is not most people’s favorite thing to do, and finding out which companies quote the most affordable auto insurance rates for teenagers will involve a little more work. Every car insurance company has their own unique process for determining prices, so we need to take a look at the auto insurance companies with the overall cheapest rates in Houston.

It’s important that readers know that Houston auto insurance rates are influenced by many factors that control the cost of having a policy. Improving your credit score, buying a different home, or getting a reckless driving citation can trigger price changes that may make certain companies less affordable than competitors.

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Texas car insurance ranked by cost per year
Rank Company Cost Per Year
1 Travelers $1,041
2 USAA $1,117
3 Texas Farm Bureau $1,199
4 Germania Mutual $1,282
5 Esurance $1,379
6 California Casualty $1,382
7 Mercury $1,476
8 State Farm $1,495
9 Nationwide $1,538
10 Safe Auto $1,597
11 Progressive $1,664
12 Allstate $1,701
13 Amica $1,757
14 GEICO $2,093
15 Home State $2,134
16 MetLife $2,161
17 Encompass $2,232
18 Unitrin $2,264
19 21st Century $2,421
20 Titan $2,672
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Travelers may have some of the cheapest car insurance rates in Houston at around $1,041 each year. USAA, Texas Farm Bureau, Germania Mutual, and Esurance also are some of the more affordable Houston, TX auto insurance companies.

In the rate table above, if you are insured with Germania Mutual and switched to USAA, you might realize annual savings of about $165. Customers with Esurance could save as much as $262 a year, and California Casualty insureds might see rate reductions of $265 a year.

These rates are averages for all drivers and vehicles in Texas and are not factoring in a specific vehicle garaging location for teenagers. So the car insurance company that fits you best may not even be in the top 23 companies shown above. That underscores the importance of why you need to compare as many prices as possible using your own individual information.

One of the many factors that determine the amount you pay each year for auto insurance is where your residence is in Houston. More populated areas will most likely pay more, whereas areas with fewer weather claims and lower vehicle theft rates can boast about having cheaper rates.

The illustration below sorts the most expensive areas in Texas for teenagers in which to purchase auto insurance. Houston is ranked #3 with the annual price of $1,909 for coverage, which is around $159 each month.

How much is car insurance in Houston?
Rank City Premium Per Year
1 McAllen $1,956
2 Brownsville $1,927
3 Houston $1,909
4 Laredo $1,889
5 Dallas $1,837
6 Mesquite $1,825
7 Pasadena $1,812
8 Amarillo $1,786
9 Garland $1,778
10 Grand Prairie $1,740
11 Irving $1,736
12 San Antonio $1,722
13 Beaumont $1,702
14 Lubbock $1,682
15 Fort Worth $1,653
16 Arlington $1,642
17 Corpus Christi $1,636
18 El Paso $1,616
19 Austin $1,610
20 Plano $1,608
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Prices are approximated as the specific Houston residence address can alter prices substantially.

How careless driving impacts Houston auto insurance rates

The easiest method to obtain the most affordable auto insurance rates for teen drivers is to pay attention while driving and maintain a clean driving record. The example below demonstrates how speeding tickets and at-fault fender-benders increase car insurance costs for each different age category. The premiums are based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are factored in.

The data above shows the average cost of an auto insurance policy per year with a clean driving record and no accidents is $2,922. Receive two speeding tickets and the average cost increases to $3,883, an increase of $961 each year. Now add two accidents along with the two speeding tickets and the yearly cost of auto insurance for teenagers jumps again to an average of $7,323. That’s an increase of $4,400, or $367 per month, just for not keeping your driving record clean!

What is the best auto insurance company in Texas?

Ending up with the top insurance provider can be challenging considering how many companies sell insurance in Houston. The company ratings below can help you decide which providers to look at buying from.

These rankings only include companies with a national presence, so companies that focus mainly on Texas business are not factored into these rankings. If you’d like to compare prices from these and other top-rated companies, just click here.

Houston, TX Auto Insurance Company Rankings
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
Travelers 93 98 99 88% A++ 95.1
USAA 83 99 100 91% A++ 94.1
Mercury Insurance 97 96 88 89% A+ 93.4
AAA Insurance 91 95 92 90% A 93.3
Nationwide 85 95 97 89% A+ 92.4
Allstate 77 100 97 88% A+ 90.7
State Farm 80 94 96 88% A++ 90.6
The Hartford 88 93 91 87% A+ 90.4
Safeco Insurance 91 95 85 88% A 90.2
Progressive 88 94 83 88% A+ 90.1
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Data Source: Insure.com Best Car Insurance Companies

Cost comparison with and without full coverage

Saving money when shopping for auto insurance is the goal of most people, and an effective way to pay lower rates for insurance for teenagers is to buy only liability coverage. The chart below illustrates the difference between insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Texas. The prices are based on no tickets, no at-fault accidents, $100 deductibles, drivers are single, and no discounts are taken into consideration.

As an average, physical damage coverage on your policy costs an extra $2,429 per year over having just liability coverage. Many people question if full coverage is worth the money. There is no written rule to drop full coverage on your policy, but there is a general guideline you can use. If the yearly cost for physical damage coverage is more than about 10% of any settlement you would receive from your insurance company, then it could be time to drop full coverage.

For example, let’s pretend your vehicle’s replacement cost is $12,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most you would receive is $11,000 after the policy deductible has been paid. If you are paying over $1,100 annually for your policy with full coverage, then it’s probably a good time to buy liability coverage only.

There are a few cases where only buying liability is not in your best interest. If you still owe a portion of the original loan, you have to carry full coverage to satisfy the loan requirements. Also, if your savings is not enough to buy a different vehicle in the even your car is totaled, you should maintain full coverage.

Your low-price policy may be costing you money

Texas auto insurance rates are based on many factors that control the cost of a policy. Simply improving your credit, moving across town, or having an at-fault accident can trigger changes in premium that may make certain companies affordable when they were higher priced.

Not only that, but companies file new Texas auto insurance rates without warning in order to maintain liquidity for claims. A period of increased losses may result in increased policy costs, while less frequent claims may result in cheaper Houston car insurance rates.

To illustrate this point, the bar chart below compares the cheapest car insurance in Houston, TX for a 40-year-old female driver with no violations or accidents, and solid credit. Based on her personal risk profile, Travelers may offer the most affordable car insurance rates in Houston at $1,246 a year. This is $658 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remainder of the cheapest Houston, TX auto insurance companies.

The example below compares rates after we give the driver in the first example an accident claim, bad credit, and a stop sign violation. Because each insurer has a proprietary method for determining rates, comparing rates may now show a different ranking of cheap Houston auto insurance companies as shown below.

State Farm now has the lowest price in Houston with Mercury, USAA, Nationwide, and Safe Auto also being competitive. This shows why Houston drivers need to perform a complete rate comparison when trying to find the best car insurance quotes for teenagers.

Insurance rates are determined by many things and can increase or decrease at any time, so the best price a year ago may now not even be in the top five.