The Cheapest Car Insurance in Houston 2022
Houston drivers pay an average $114 a month for car insurance. USAA has the cheapest minimum car insurance rate in the city, $65 a month, according to our research.
Car insurance in Houston tends to be expensive, which makes it important for you to compare quotes from as many different auto insurance providers as possible. Factors such as your age and driving infractions may affect your final quote. Different auto insurers have different rates for such factors, making it important to compare.
That's where we come in. We studied the rates of the four biggest car insurance providers in Houston to help you find the best car insurance policy at the lowest price.
We'll cover:
- Houston's cheapest auto insurance companies
- Cheapest auto insurance rates by age
- Best car insurance for a bad driving history
- Minimum car insurance requirements in Texas
Which company has the cheapest car insurance rates in Houston?
We found that USAA has both the cheapest minimum-coverage and full-coverage auto insurance in Houston. USAA's average minimum-coverage rate is $65 a month, and its average full-coverage rate is $133 a month. However, USAA is only available to current and former military members and their families. For most drivers, State Farm has the lowest rates — $77 for minimum coverage and $138 for full coverage. The graph below shows how USAA's rates compare to city and state averages.
The following graph shows how USAA's car insurance rates compare to its biggest competitors in Houston.
As you can see, there is a significant price difference between minimum and full-coverage auto insurance across the biggest providers in Houston. While it may be tempting to choose minimum auto insurance coverage, keep in mind that minimum coverage primarily exists to fulfill Texas auto insurance liability limits required by law. It only covers damages to another person or their property that you're responsible for, up to your policy limits.
That's where full coverage comes in. A full-coverage auto insurance policy includes liability, collision and comprehensive coverages. If your car is damaged or stolen, a full-coverage policy can help to pay your own expenses. Full-coverage auto insurance is more expensive, but it's typically worth it.
Cheapest car insurance rates in Houston by age
If you're a teen driver, USAA has the cheapest car insurance rates for drivers ages 16 to 19, with 16-year-olds paying an average $322 a month. At the other end, Allstate has the highest rates, with 16-year-old drivers paying $815 a month.
| Age | GEICO | Allstate | State Farm | USAA |
|---|---|---|---|---|
| 16 | $682 | $815 | $499 | $322 |
| 17 | $588 | $657 | $450 | $273 |
| 18 | $536 | $622 | $405 | $243 |
| 19 | $446 | $737 | $360 | $223 |
| 20 | $387 | $672 | $314 | $199 |
| 30 | $252 | $360 | $138 | $133 |
| 40 | $250 | $360 | $136 | $123 |
| 50 | $243 | $334 | $133 | $115 |
| 60 | $235 | $336 | $125 | $114 |
| 70 | $266 | $279 | $130 | $136 |
| Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary. | ||||
As you can see, teen drivers pay the highest rates for car insurance of any age group. This is because their lack of experience behind the wheel leads to a higher risk of an accident. With time, better driving skills can develop and reduce this risk, leading to lower rates. Your rates may increase again to varying degrees at age 60 due to risks associated with slower reaction time. For drivers age 75, State Farm has the lowest full-coverage rate of $141 a month.
Cheapest car insurance for a bad driving history
If you have a collision, driving while intoxicated (DWI) conviction or speeding ticket on your record, it will likely result in higher car insurance rates. On average, an infraction stays on your record for about three to five years, and then drops off. According to our research, Houston is the 17th worst city for driving. This affects the overall average car insurance rate in the city.
Cheapest car insurance rates after an accident
At $163 a month, State Farm has the cheapest average full-coverage rates after you are in a car crash. The combination of the damage done to your or another driver's car, plus the higher risk you now present, results in your auto insurer compensating with higher rates. The graph below shows how the full-coverage rates of the four biggest insurers in Houston increase after a car accident.
Texas has seen a dramatic increase in fatal car crashes recently. According to the Texas Department of Transportation, 1,636 people died in driving-related accidents in the first five months of 2021. That's a 14% increase over the fatality rate in the same period of time in 2020. Practicing good driving habits can not only keep your car insurance rates down, they can help keep you alive.
Cheapest car insurance rates after a DWI
USAA has the cheapest average rate for full-coverage car insurance after a DWI in Houston, $202 a month. The increase to your auto insurance premium after a DWI can be the highest of any driving infraction. Furthermore, a DWI can stay on your record for life, even if you change auto insurance companies.
A factor in the large hike in auto insurance rates in Houston is the increase in DWI infractions in Texas. The Texas Department of Transportation states that approximately 2,458 drunk driving accidents happened on state highways in March 2021. That's 30% more than the number of DWI-involved crashes in February 2021. Of those 2,458 crashes, 1,161 people were injured or killed.
Also, don't assume you'll be able to get full-coverage auto insurance immediately after a DWI conviction. You may have your license suspended, in which case you'll have to get an SR-22. An SR-22 is a document proving that you consistently maintain minimum state liability coverage limits. Texas state law requires you to carry an SR-22 for two years. Even after that time period ends, finding an auto insurer to cover you may be difficult.
Cheapest auto insurance rates after a speeding ticket
State Farm's average cheapest full-coverage rate of $138 stays the same after your first speeding ticket. Auto insurers treat a speeding ticket differently. If you have only one in a few years, you may not see an increase at all. Other car insurance companies may increase your rates after one ticket.
If you have two or more speeding tickets in a couple of years, a premium increase becomes much more likely. The graph below shows how a single ticket can affect your rates with the four biggest insurers in Houston:
Texas minimum car insurance limits
Texas state law requires drivers to carry minimum car insurance limits of 30/60/25. That breaks down to:
- Bodily injury liability per person (BIL): $30,000
- Bodily injury liability per accident: $60,000
- Property damage liability (PDL): $25,000
An important thing to keep in mind with minimum auto insurance limits is that they are only meant to cover state legal limits. In the event of a totaled car, $25,000 is probably not enough to cover a replacement. A long hospital stay can easily cost over $30,000. In order to make sure you have adequate coverage, we recommend the following limits:
- Bodily injury liability per person (BIL): $100,000
- Bodily injury liability per accident: $300,000
- Property damage liability (PDL): $100,000
Methodology
We compared rates provided by Quadrant Information Services from the following four auto insurance providers:
- Allstate
- GEICO
- State Farm
- USAA
Our driver profile is a 30-year-old male driver with a 2012 Honda Accord LX. Our driver has a clean driving record and drives 13,500 miles a year. Coverage limits used are the Texas minimum liability requirements of 30/60/25.
For full-coverage policies, we increased liability limits to 100/300/100 and included a comprehensive and collision deductible.
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