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The average car insurance cost in Houston, Texas is $2,317 per year, according to Insure.com data analysis. Also, the car insurance rates in Houston is $274 more than the average rates in Texas and $422 more than the national average.

Graph
Table
City average ratesState average ratesNational average cost
$2,317$2,043$1,895

Most insurance providers consider factors such as location, city demographics, population density, and average resident age, accident rates, theft and vandalism rates while determining your car insurance premium. This may lead to either lower or higher costs compared to other regions.

This article provides details on the most and least expensive car insurance companies in Houston, the average car insurance rates categorized by age and gender, and the cost of car insurance in Houston based on coverage limits. Whether you’re a new driver or an experienced driver, this article will help you find the most cost-effective auto insurance in Houston. Read on to learn more.

Key Takeaways

  • Car insurance costs $2,317 per year, on average, in Houston.
  • Texas Farm Bureau offers the cheapest car insurance in Houston, at an average of $1,530 per year.
  • Young adults pay $3,344 per year for car insurance in Houston.

Cheap car insurance companies in Houston

Texas Farm Bureau provides the best value for car insurance in Houston with coverage limits of 100/300/100, costing $1,530 annually.

A close second is Nationwide, which offers car insurance at $1,640 per year.

Affordable car insurance providers in Houston

Graph
Table
Company NameAverage annual costAverage monthly cost
Texas Farm Bureau$1,530$127
Nationwide$1,640$137
Geico$1,940$162
Redpoint Insurance$1,964$164
State Farm$2,278$190
Auto Club Enterprises (AAA)$2,426$202
Allstate$3,352$279
Progressive$3,655$305
USAA$2,102$175

Read about the best car insurance companies.

Average car insurance cost in Houston by coverage limits

The average car insurance rates in Houston based on coverage types are as follows:

  • State minimum coverage: $668 per year (limits are 25/50/25)
  • Liability only coverage: $959 per year (limits are 50/100/50)
  • Full coverage: $2,317 per year (limits are 100/300/100)
  • Non-owners coverage: $393 per year

In many states, it’s a legal requirement for drivers to maintain the state minimum coverage, although these requirements vary by state. The state minimum coverage does not cover vehicles listed on your policy in an at-fault accident.

To avoid the risk of insufficient coverage and out-of-pocket expenses, it’s advisable to opt for full coverage or non-owner coverage, especially if you frequently borrow or rent vehicles and don’t own one yourself.

Average car insurance rates by gender in Houston

The average car insurance per year for female drivers in Houston, Texas, is $2,312.

Whereas the yearly average car insurance rate for male drivers is $2,322, which is $10 more than what female drivers pay.

According to the Insurance Information Institute, women are considered to be safer drivers than men, and statistics have proved this. They often enjoy lower auto insurance premiums due to their lower incidence of severe accidents compared to men.

Read more on how gender affects car insurance rates.

Average car insurance rates by age in Houston

In Houston, teenagers have the highest car insurance rates, at $5,181 per year or $432 per month. This higher rate is attributed to the increased risk of road accidents among teenagers (aged 16 to 19) due to their limited experience on the road, according to the Insurance Information Institute.

However, there are driving laws for teens to improve their driving habits. Additionally, the cost of teen insurance can be reduced by adding them to a parent’s auto insurance policy. As teens mature and establish a positive driving history, their car insurance rates are likely to decrease.

Young adults, pay an average of $3,344 annually for car insurance, which is $1,837 less than what the teens pay for their insurance policy.

Meanwhile, adult, and senior drivers in Houston have car insurance rates of $2,328 and $2,246 per year, respectively. The car insurance rates for adults and seniors are lower than those for teens and young adults. “This is because they are more likely to obey the speed limits and follow the rules of the road,” says the Insurance Information Institute.

Read more on auto insurance for seniors.

The table below shows the average annual rates for drivers of different age groups:

Car insurance rates by age groups in Houston

Graph
Table
Teens (16- to 19-year-olds)Young adults (20- to 24-year-olds)Adults (25- to 55-year-olds)Seniors (60- to 75-year-olds)
$5,181$3,344$2,328$2,246

If we look at the car insurance rates trends in Houston, Texas, it was on an upward swing from 2022 to 2023. From 2022 to 2023, the rates increase overall by 4%, or $91.

The table below shows the trend for last four years:

How car insurance rates are changing in Houston

Graph
Table
2016 rates2019 rates2022 rates2023 rates
$1,505$2,114$2,226$2,317

Conclusion

In conclusion, the insurance rates in Houston, are higher than the average insurance cost in Texas. Shopping around and taking advantage of available discounts, drivers in Houston can find affordable car insurance options. Additionally, many car insurance companies offer discounts for customers who purchase multiple policies through the same company.

Sources

Methodology

Insure.com team worked with Quadrant Information Service to get car insurance data. To determine the average premiums, our team of data analysts and expert editors have 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 individual rates may vary.

How much is car insurance in other cities

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Prachi Singh
Contributing Researcher

 
  

Prachi is an insurance writer with a master’s degree in business administration. Through her writing, she hopes to help readers make smart and informed decisions about their finances. She loves to travel and write poetry.

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