Car insurance in Houston: Cheapest insurance and average rates

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Car insurance in Houston costs $2,317 per year for full coverage – $193 per month. In 2024, Texas Farm Bureau offers the cheapest car insurance policy at $127 per month.

Houston is the nation’s fourth most populous city, trailing only New York, Los Angeles and Chicago. The city is growing fast and is expected to move into the No. 3 position within the decade. 

It is also the most diverse city in the U.S. – 145 languages are spoken in Houston. 

Houston’s roads are congested, so car insurance coverage is crucial. Fortunately, there are ways to get cheap car insurance in Houston to protect you on the city’s roads and elsewhere. 

How to find the best car insurance in Houston

When searching for a car insurance policy in Houston, you want the right coverage at the best price. That starts with understanding the types of coverage you need and the amount of insurance you should purchase to ensure you are protected.  

Comparing rates from several different providers can help you get the right coverage at the best possible price. 

Each insurance company has its own criteria for setting rates, and your own insurance profile will likely be a better fit with some insurance companies than others. 

The cheapest car insurance company in Houston

Texas Farm Bureau provides the cheapest car insurance coverage in Houston, according to Insure.com research. It charges an average of $127 per month for a full-coverage policy.  The next cheapest car insurance companies are Nationwide ($137) and Geico ($162). See more Houston car insurance rates in the table below.

How much is car insurance in Houston per month?

Houston residents can expect to pay an average of $193 monthly for full coverage car insurance or $56 for state minimum coverage.

However, remember that this is just an average. Some people pay more, and others pay less. The car insurance company you choose will play a role in your costs. So will the type of coverage you choose and how much insurance you buy. 

“Discounts can often be obtained for things such as maintaining a history of continuous prior insurance or also carrying homeowner’s insurance,” says Rick Kautzer, director of personal lines product management for Dairyland Insurance.

Factors such as your age and gender, the type of car you drive, and your history of accidents and violations also influence how much you pay for insurance.  

How do rates in Houston compare to other large cities in the U.S.?

The cost of coverage in Houston leaves it in the middle ground among other major cities. It’s a bit higher than Dallas and a bit more expensive than San Antonio. 

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Here’s what you need to know when driving in Houston

The Houston Chronicle doesn’t pull punches, characterizing Houston’s traffic as “terrible.” 

That probably shouldn’t be a surprise, given how many people live in Houston and the number of new residents streaming into the city. 

In 2022, drivers in North Texas lost an average of 74 hours in traffic, according to INRIX, which looks at traffic patterns.

If you are driving in rush-hour, you can expect to spend an extra 22 minutes in traffic, according to the website CoPilot. That places Houston at No. 8 among all cities in the nation when it comes to losing time to rush hour. 

Other things to remember when driving around Houston:

• Speed limits in Houston are typically 25 to 30 mph on streets. Variations on these limits should be posted on roads where other speed limits apply.
• Houston has several toll roads, so be prepared to pay to use them. 
• Texting while driving in Houston is illegal, as it is in all places in Texas. 
• You must stop for a full two seconds at stop signs. 
• Owners of electric vehicles will find more than 800 places to charge their cars in the city. You will have to pay to use most of these charging stations. 

How much car insurance do I need in Houston?

Texas law requires you to purchase a minimum amount of car insurance liability coverage. These amounts are: 

• $30,000 of coverage for bodily injury liability per person
• $60,000 for bodily injury per accident
• $25,000 of liability coverage for property damage

This is often referred to as “30/60/25 coverage.”

Remember that minimum levels of car insurance coverage might not protect you and your family. 

For example, if you are in an accident and are responsible for badly injuring or even killing someone, you could be sued for hundreds of thousands of dollars — or more. 

In addition, carrying the minimum liability insurance required by law will leave your vehicle uncovered. That means you must pay out of pocket to cover damages to your vehicle. Drivers who want coverage for their own vehicles should consider purchasing comprehensive and collision insurance. 

If you are unsure of how much coverage you need, consult with an insurance agent who can help. 

Average cost of car insurance in Houston

The average annual cost of full-coverage car insurance in Houston is $2,317 annually. That compares to a statewide average of $2,043 and a nationwide average of $1,895.

How much does car insurance in Houston cost with violations?

If you have a history of moving violations, you will likely pay more for car insurance. More serious types of violations — such as being convicted of a DUI — are especially likely to cause your costs to jump significantly.  

See rate increases in Houston in the table below by violation.

Cheapest car insurance in Houston by age

Your age also affects how much you pay for car insurance. The youngest drivers tend to pay the highest rates, which is shown in the data for rates for 18-year-olds in Houston. See the table below for annual average rates by age in Houston, Texas.

Compare auto insurance rates in Houston by ZIP code 

Where you live also affects how much you pay for car insurance. See the tables below for the cheapest and most expensive ZIP codes for car insurance in Houston.

Our recommendations: Car insurance for drivers in Houston

On average, drivers get the cheapest coverage by purchasing a policy with the Texas Farm Bureau.

However, purchasing coverage based on pricing alone can be a mistake. A cheap policy isn’t worth much if it does not include the coverage you want and need. 

So, shop around and gather quotes from several insurance companies. This is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Houston.

What our expert says

Q: Why do insurance rates vary from city to city?

Dr. James BrauJoel C. Peterson Professor of Finance Brigham Young University

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles. As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

Resources & Methodology

Methodology

In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Chris Kissell

Contributing Researcher

 

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Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.