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How much does car insurance cost in Houston?
Car insurance in Houston costs an average of $1,183 for a six-month policy or $197 per month on average. In 2023, our data shows GEICO is the cheapest car insurance company in Houston with rates at $847 for a six-month policy.
Houstonians pay more than the average for car insurance in Texas ($985 every six months) and more than the national average of $742. In fact, 42% of our customers in Houston admit they're paying too much for their car insurance. If you agree or just need help with your car insurance, read on to learn more about what a fair rate looks like in Houston based on common factors like credit score, coverage level and more.
| Car Insurance in Houston vs. Texas | Avg. 6 Mo. Premium |
|---|---|
| Houston Average | $1,183 |
| Texas Average | $985 |
The cheapest car insurance companies in Houston
GEICO is the cheapest at $141 per month or $847 for a six-month policy.
In second place is State Farm, which costs $155 per month.
Rounding out the list is Nationwide as the third-cheapest insurance company. On average, a Nationwide policy in Houston costs $931 per six-month policy.
The Zebra's key takeaways about car insurance in Houston:
- The average cost of a car insurance policy in Houston is $1,183 per six-month policy — $197 per month.
- The cheapest company in Houston is GEICO ($847).
- Houston ranks as the eighth most expensive city for car insurance in Texas.
- 42% of Zebra customers in Houston stated they used our product because they were paying too much for car insurance with their current provider.
Are you paying too much for auto insurance?
Houston car insurance rates by company
According to our data for 2023, the cheapest car insurance company for full coverage in Houston is GEICO at $141 per month or $847 per six-month policy, while the second cheapest is State Farm at $155 per month or $927 for a six-month policy.
Learn more about top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey.
Cheapest car insurance companies in Houston, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| GEICO | $847 |
| State Farm | $927 |
| Nationwide | $931 |
| Texas Farm Bureau | $963 |
| USAA | $1,015 |
| Progressive | $1,441 |
| Allstate | $1,482 |
Shop around for the best rates
The only way to know which company is the cheapest coverage for you is to compare. Our comparison will do the leg work for you. Enter your ZIP code to see rates from Progressive, Allstate, Liberty Mutual and Nationwide (+ other top companies) to find the best and cheapest car insurance in Houston.
Average car insurance in Houston by rating factor
Rating factors are details about you that will impact what you pay for car insurance. While most companies use the same rating factors, how much they positively or negatively impact your premium will vary. For instance, some auto companies may place a higher priority on credit scores, while others look more closely at previous claims.
Ultimately, the best car insurance company for you could change as you get older or your personal profile changes. This is why it's important to get a quote from time to time to ensure you're still getting the best rates.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings (revenue of premiums versus the cost of paying insureds’ claims) is also a major rating factor for how much you will pay for car insurance in Houston. Even if you’ve had no claims with your insurance company, you could still be paying more with a particular insurance company because the price of doing business has increased in Houston.
Auto insurance premiums by age in Houston
Age is one of the most important rating factors when it comes to car insurance. This is because insurance companies use data to determine how likely drivers are to get into accidents, and unfortunately, teen drivers have a higher accident rate than any other age group. As a result, they face the highest insurance premiums: in Houston, the difference in rates paid by teenage drivers and drivers in their 20s is $2,059, the largest such difference between any two age groups for a new car insurance policy.
While this may seem unfair, it's important to remember that insurance companies are in the business of risk management. By charging higher rates for teen drivers, they are able to offset the increased cost of paying claims. In other words, it's not personal; it's just business.
Cheapest car insurance companies for teen drivers in Houston, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| Texas Farm Bureau | $1,821 |
| GEICO | $2,137 |
| USAA | $2,278 |
| State Farm | $3,126 |
| Nationwide | $3,445 |
| Allstate | $6,579 |
| Progressive | $6,832 |
Zebra Tip: The cheapest companies for Houston drivers between 20-40 are GEICO, Texas Farm Bureau and Nationwide
Our data tells us that drivers between the ages of 20-29 make up 28% of Houston drivers. On average, this group pays $1,522 every six months. By going with these companies, these groups can potentially save over 30%.
Auto insurance premiums for minimum coverage in Houston
The level of coverage you choose has a big impact on your car insurance rates. Our data indicates that 45% of Houston drivers have basic coverage. While drivers are only required to have a certain amount of coverage, having basic or state minimum coverage leaves you at risk of being underinsured.
Adding collision coverage or comprehensive coverage (commonly known as "full coverage" when purchased together) can increase your rates dramatically. These coverages typically require a deductible, which can also impact your rates. Simply put, the higher your deductible, the cheaper your rates will be.
Also worth considering are add-ons like roadside assistance or uninsured motorist coverage that can protect you against drivers who do not carry auto insurance coverage. While they can add to your overall car insurance premiums, experts at The Zebra still recommend carrying such coverage options, as they can go a long way in protecting both you and your vehicle.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In an analysis of our data, 52% of drivers in Houston have leased vehicles. If you are not leasing or financing your vehicle, you should consider if dropping comprehensive or collision coverage is right for you. We recommend getting the actual cash value of your vehicle via Kelley Blue Book or another reputable source. The general rule of thumb is if your vehicle is worth less than $4,000, you probably don't need collision coverage. Bear in mind, however, that dropping these coverages means that you will have to pay for any repairs out of your own pocket.
Cheapest car insurance companies for minimum coverage in Houston, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| GEICO | $329 |
| USAA | $377 |
| Texas Farm Bureau | $393 |
| Allstate | $433 |
| State Farm | $444 |
| Nationwide | $502 |
| Progressive | $545 |
Houston car insurance rates by credit score
In most states, including Texas, credit score is a rating factor in determining premiums. There are a few reasons why credit score is a rating factor for auto insurance. Historical data analysis suggests that drivers with lower credit scores are more likely to file claims, have lapses in coverage and engage in risky driving behavior. Since bad credit is associated with higher risk, the poorer your credit, the more you'll pay.
In fact, Houston drivers with poor credit (300-579) pay 107% more than drivers with excellent credit (800-850). Our data tells us 34% of drivers in Houston have a credit score of average (580-679). In 2023, GEICO is the cheapest option for Houston drivers for this credit range.
Cheapest car insurance companies for bad credit in Houston, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| GEICO | $1,313 |
| Nationwide | $1,450 |
| Texas Farm Bureau | $1,837 |
| State Farm | $1,911 |
| USAA | $2,019 |
| Allstate | $2,257 |
| Progressive | $2,524 |
Zebra Tip: If you recently improved your credit score, shop around for car insurance!
In Houston, our data shows drivers with "Fair" credit pay $1,141 less for car insurance in a year than drivers with "Poor" credit. If you have recently paid off a loan or other credit-improving actions, check your preferred credit monitoring software to see if your recent efforts could save you on your car insurance!
Auto insurance rates with an at-fault accident
At-fault and collision-type accidents are the most common type of insurance claims. In 2023, an at-fault accident raised the average car insurance rates in Houston from $197 to $315 per month. The cheapest insurance company in Houston after an at-fault accident is State Farm.
No matter where you live, keeping a clean driving record by avoiding accidents and citations is the best way to keep your auto insurance rates affordable. Speeding citations, reckless driving charges, DUIs and DWIs and at-fault accidents all result in rate increases. Depending on the type of accident or ticket, your premium will be impacted for three to five years. Typically, at-fault accidents and speeding tickets will be on your record for three to five years whereas DUIs or DWIs can follow you for longer.
Cheapest car insurance companies after an at-fault accident in Houston, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| State Farm | $1,123 |
| GEICO | $1,239 |
| Texas Farm Bureau | $1,525 |
| Nationwide | $1,531 |
| USAA | $1,553 |
| Progressive | $2,096 |
| Allstate | $2,364 |
Houston car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Houston.
Car insurance rate increases after violations and citations in Houston, TX
Why is car insurance in Houston so expensive?
Auto insurance in Houston is expensive for a variety of reasons. One reason is that the cost of living in Houston is high, which means that car insurance companies have to charge more to cover their costs. But there's more to it than that — on top of your coverage level, credit history and driving record, there are other factors that impact your rates.
Below you'll find a rundown of why car insurance is so expensive in Houston — regardless of your driving profile.
Where you live in Houston also affects how much you pay for car insurance. Besides your driving history and credit score, where you live is one of the biggest contributing factors to your insurance premiums.
The reason? Crime, theft and uninsured motorists vary by ZIP code. Some areas of the city are more prone to crime, which makes them riskier for insurance companies. If you live in a high-crime area, you will likely pay more for auto insurance than someone who lives in a safer neighborhood.
Expensive Houston ZIP codes: 77076, 77036, 77072, 77078, 77099
Cheap Houston ZIP codes: 77345, 77062, 77339, 77094, 77059
The damage caused by hurricanes and other similar weather-related damage can and has bankrupted insurance companies. Texas is no stranger to extreme weather, and Houston in particular — being near the Gulf of Mexico — carries an outsized share of those risks. Because of this risk, it’s expensive for auto insurance companies in Houston to do business. As such, they will raise their rates to anticipate further weather-related losses.
Damage to your vehicle caused by flooding is covered under your comprehensive coverage. If you have a new or nice vehicle, we definitely recommend considering comprehensive coverage as part of your Houston car insurance policy.
By any account, Houston is a city of drivers. With more cars on the road, more accidents are inevitable. The costs of accident-related claims are typically passed along to other drivers in the area through higher premiums — even for safe or occasional drivers.
According to our data, about 35% of drivers in Houston are not currently insured — one of the highest percentages in the state. If you’re hit by an uninsured driver in Houston, you could be left paying for the damage yourself.
Zebra Tip: Comprehensive coverage and uninsured property damage coverage are good to have in Texas
Damage caused by weather-related events is covered under comprehensive coverage. If you're worried about flooding or other weather-related events damaging your vehicle, consider if this coverage is right for you.
We also recommend carrying uninsured motorist coverage (also called UMPD) in cities with high rates of uninsured drivers. This coverage will provide assistance to you if you or your vehicle are damaged by an underinsured or uninsured driver. This coverage typically has a lower deductible and is cheaper than collision. Plus, the rate increase after a UMPD claim can be hundreds of dollars cheaper than a collision claim.
Bundling insurance policies in Houston
Car insurance prices may be going up nationally, but there are still ways to save. When shopping for a new auto insurance policy, consider bundling your home or renters insurance. By doing this, you can often qualify for a significant discount — you might be able to save 10% or more on your combined premiums. Learn more about bundling home and car insurance.
If you currently have separate policies for your home and car, it's definitely worth shopping around to see if you could save money by bundling them together. In many cases, you'll find that it's well worth the effort.
Cheapest car insurance companies for bundling home and auto insurance in Houston, TX
| Company | Avg. 6 Mo. Premium |
|---|---|
| State Farm | $778 |
| GEICO | $793 |
| Nationwide | $837 |
| Texas Farm Bureau | $877 |
| USAA | $929 |
| Progressive | $1,216 |
| Allstate | $1,241 |
While some things may be out of your control, drivers can work to make their profiles more appealing to insurers. The best advice we offer is to shop around and compare auto insurance quotes with as many companies as possible to ensure you're getting the most affordable rate that doesn't compromise coverage and service — especially if any personal factors have changed (like moving, celebrating a birthday and improving your credit). Try as you might, some companies are just more expensive than others; don't be afraid to switch.
