Average car insurance cost in Houston, Texas

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Our analysis shows that drivers in Houston pay about $2,317 per year for car insurance. It is $274 more than the Texas average and $422 more than the nationwide average.

Insurance rates can vary significantly depending on where you live. Factors such as population density and accident and theft rates influence premium costs, making some areas more expensive or affordable than others.

Understanding how rates in Houston compare to state and national averages can help you spot a good deal, or know when it’s time to shop around. Below, we’ll break down local trends, show how rates vary, and explain how to save.

Cheap car insurance companies in Houston

Texas Farm Bureau offers the most affordable full coverage car insurance in Houston, at $1,530 annually, with coverage limits of $100,000 in bodily injury per person, $300,000 total per accident, and $100,000 for property damage.

Nationwide offers the second-lowest rate in Houston, with an average yearly premium of $1,640.

Car insurance rates vary by company because each insurer uses its own method to assess risk and determine premiums. That’s why it’s smart to compare quotes from different providers to find coverage that fits your needs and budget.

Below is a breakdown of average yearly and monthly car insurance rates from different insurers in Houston.

Read about the best car insurance companies.

Average car insurance cost in Houston by coverage limits

Here’s a breakdown of average car insurance rates in Houston by coverage type.

• State minimum coverage: $668 per year (limits are $25,000 bodily injury liability per person, $50,000 total bodily injury liability per accident and $25,000 property damage liability per accident).
• Liability only coverage: $959 per year (limits are $50,000 bodily injury liability per person, $100,000 total bodily injury liability per accident and $50,000 property damage liability per accident).
• Full coverage: $2,317 per year (limits are $100,000 bodily injury liability per person, $300,000 total bodily injury liability per accident and $100,000 property damage liability per accident).
• Non-owners coverage: $393 per year

Most states require drivers to purchase minimum liability insurance to drive legally, but the minimum required limits vary. This coverage helps pay for injuries or damage you cause to others in an accident.

However, a liability-only policy won’t cover damage to your car or medical expenses if you’re at fault. You’ll need to add collision and comprehensive coverage to your policy to protect your car.

Average car insurance rates by gender in Houston

In Houston, female drivers pay an average of $2,312 per year for car insurance. In comparison, male drivers pay $2,322 annually, which is $10 more than what female drivers pay. Most states consider gender when calculating premiums. However, states such as California, Hawaii, Massachusetts, Michigan, Montana, North Carolina and Pennsylvania don’t allow insurers to use gender as a rating factor to determine insurance rates.

According to the Insurance Information Institute, or Triple-I, women tend to be safer drivers than men and are less likely to be involved in severe accidents. Insurers account for this risk by charging male drivers higher premiums.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Houston

Teen drivers in Houston pay the highest car insurance premiums, at $5,181 per year or $432 per month.

Data from the Insurance Information Institute shows that teens aged 16 to 19 are more likely to be involved in crashes due to inexperience, which leads to higher insurance rates. On average, teen drivers pay $1,837 more annually than young adult drivers.

As teen drivers get older and gain more experience, their car insurance premiums usually decrease. On average, young adults aged 20 to 24 pay $3,344 per year for car insurance – that’s $1,837 less than what teen drivers typically pay.

Adult drivers aged 25 to 55 pay an average of $2,328 per year for car insurance, while seniors aged 60 to 75 pay around $2,246 annually.

Read more on auto insurance for seniors.

The table below shows the average annual full coverage car insurance rates for drivers of different age groups.

Car insurance rate trends in Houston

Car insurance premiums in Houston showed an upward trend between 2022 and 2023, with average rates changing by 4% or about $91.

The graph below tracks insurance costs from 2016 to 2023, highlighting long-term trends that help explain today’s rate changes.

How drivers can save on insurance even with higher rates

Car insurance rates in Houston are higher than the Texas state average. Drivers can get affordable insurance rates by shopping around and comparing quotes from at least three to five insurance companies. You should also look for available discounts, such as a safe driver discount, low mileage and bundling discounts.

Methodology

Insure.com commissioned car insurance rates in 2023 from Quadrant Information Services. To determine the average premiums, our team of data analysts and expert editors analyzed 53,409,632 insurance quotes from 170 insurance companies across 34,588 ZIP codes.

The insurance rates are based on a sample profile of a 40-year-old male and female driver with a clean driving record and a good insurance score. Quotes premiums are for a full coverage policy with limits:

• $100,000 bodily injury per person
• $300,000 bodily injury per accident
• $100,000 property damage per accident
• $500 comprehensive and collision deductible

The quoted insurance rates are for comparison purposes, and your rates may vary.

Shivani Gite

Contributing Writer

 

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Shivani Gite is a personal finance and insurance writer with a degree in journalism and mass communication. She is passionate about making insurance topics easy to understand for people and helping them make better financial decisions.