Best Cheap Auto Insurance in Houston, Texas (2023)

If you live in Houston you’ve seen your fair share of high car insurance prices – and car crashes. In 2022, Houston had more than 67,000 car crashes, resulting in 326 fatalities, according to Texas Department of Transportation data. The average monthly cost of car insurance in Houston is $326, which is about 25% more than the average cost of coverage for the state of Texas. 

Finding the cheapest car insurance in Houston depends on your unique situation and your preferences for insurance coverage. The good news is that several insurers in the city offer coverage options at affordable rates, and you’ll learn more about each of them here.

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Cheapest car insurance companies in Houston

No insurance company will be the best option for everyone. Instead, you’ll need to weigh aspects of your individual situation against your coverage needs and budget to narrow down the best insurance option for you.

Here’s an in-depth look at some of the cheapest insurance options based on different situations and needs, including wanting liability-only coverage, having an accident on record, and getting insurance for young drivers.

Best cheap car insurance in Houston: State Farm

Best cheap car insurance with a bad driving record in Houston: GEICO

Best cheap car insurance for young drivers in Houston: Allstate

Cheapest liability-only car insurance in Houston

Liability-only car insurance is often cheaper than full-coverage insurance because it provides less protection. Liability-only car insurance extends coverage only to the other person’s vehicle and their medical expenses when you’re at fault for an accident.

Since liability-only car insurance doesn’t cover your own vehicle or medical expenses, this coverage may not be enough to meet your needs. However, it could be ideal if you drive an older, paid-off vehicle and can afford to pay for repairs with cash.

Here are some of the cheapest liability-only car insurance rates in Houston.

Cheapest full-coverage car insurance in Houston

Full-coverage insurance includes liability coverage as well as coverage for your vehicle and your medical expenses after an accident. If you have a car loan or lease, your lender may require you to carry full-coverage insurance until your loan is paid off.

Even if you don’t have a car loan, full-coverage insurance can still be a good idea if you want collision and comprehensive coverages, as these costs can be expensive.

Here are some of the cheapest full-coverage car insurance rates in Houston.

Car insurance requirements in Texas

Most states require drivers to have liability car insurance coverage. Texas requires all drivers to carry a certain amount of liability insurance coverage, but you can always pay for more coverage if needed.

Texas is an at-fault state, meaning your insurance company will pay for damage to the other drivers’ vehicle and help cover their medical expenses if you’re at fault for an accident. And all policies in Texas include personal injury protection, which will pay for some of your medical costs when you cause an accident. But you can opt out in writing if you don’t want this coverage.

Texas drivers must meet the minimum coverage requirements:

Bodily injury liability

• $30,000 per person

• $60,000 per accident^[2]

Property damage liability

• $25,000 per accident

Depending on your needs and situation, you may want to consider getting optional insurance coverage as well, including:

• Uninsured motorist

• Underinsured motorist

• Comprehensive

• Collision

• Roadside assistance

Cheapest car insurance for drivers with an incident

Your driving record is one factor that directly affects your car insurance rate. If infractions like speeding tickets, DUIs, and at-fault accidents are on your record, these incidents can increase your rates.

In Houston, rates increase by about 30% for insurers like GEICO and Allstate when you have an at-fault accident on your record.

Cheapest car insurance for drivers with a speeding ticket

If you’re stopped by an officer and given a speeding ticket, it can show up on your driving record and cause your car insurance rates to increase.

Here are some average monthly quotes for insurers in Houston when you have a speeding ticket on your record.

Cheapest car insurance for drivers with an at-fault accident

Unfortunately, accidents are sometimes unavoidable and mistakes happen, so it’s always best to carry enough insurance to cover damage to your vehicle and the other driver’s car. An accident can stay on your record for three to five years. Below are some average monthly quotes for insurers in Houston when you have an at-fault accident on your record.

Cheapest car insurance for drivers with a DUI

Driving under the influence of alcohol is a serious offense that will affect your car insurance rates and may cause you to lose your coverage altogether. A DUI can stay on your driving record for several years and even permanently in some cases.^[3] In Houston, rates almost double when you have a DUI on your record. Here are some of the cheapest car insurance rates for drivers with a DUI in Houston.

Cheapest car insurance for seniors

While car insurance rates tend to decrease once you turn 25, they may increase again as you get older and enter your 70s. Insurance companies view older drivers and teens as riskier to insure, and that tends to raise rates. However, if you keep a clean driving record, you may not experience these higher rates, depending on where you live. Some insurers may also offer discounts to senior drivers.

Here you can see the average monthly quotes for senior drivers from many of the top insurers.

Cheapest car insurance for teens

Age also affects car insurance rates for young drivers, including teens. Insurance companies find that drivers younger than 25 tend to be in more accidents than older drivers. This increases the risk of insuring teens, so insurance companies tend to charge higher rates for this coverage.

Fortunately, drivers often see their car insurance rates decrease once they reach 25, but you can still find a few ways to save on insurance as a teen driver before then. Some insurance companies offer discounts to young drivers who get good grades or complete driver safety programs. Teens can also opt to stay on their parents’ insurance if it offers a lower rate than getting a policy on their own.

The average quotes below are for teens who opt to step away from their parents’ policies and secure their own coverage.

How to get the cheapest car insurance in Houston

Finding the cheapest car insurance in Houston will depend on factors like your driving history, age, ZIP code, and coverage needs. However, you still have control over some specific things when it comes to lowering your costs.

• Keep a clean driving record. Try to avoid violations and speeding tickets to obtain the cheapest car insurance rates insurers have to offer.

• Improve your credit score. Car insurance companies in Texas may look at your credit to determine, in part, your likelihood of filing an insurance claim. If you have a high credit score, you’re less likely to file a claim and will usually pay a lower premium. If you have a low credit score, you’re statistically more likely to file a claim and will pay a higher premium.

• Ask about discounts. Insurers offer a variety of discounts for coverage, including discounts for bundling auto insurance with homeowners insurance, owning a car with anti-theft and safety protection, and remaining accident-free.

• Shop around. Consider shopping around and gathering quotes from at least three different insurers to make sure you’re getting the best rate.

“Failing to compare shop unbundled policies is a big mistake because the company with the lowest price for your home may have the highest price for your car or vice versa,” says Anthony Verreos, strategic insurance advisor at Real Estate Bees. “Among the top sellers of car insurance, pricing can vary by hundreds of dollars per year.”

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Houston car insurance quotes by credit tier

Most states allow insurers to factor in your credit score when calculating car insurance rates, including Texas. Insurers in Houston use your credit score to determine how likely you may be to file an insurance claim.

Typically, a credit score above 720 is considered an excellent score, and the higher your credit score, the better chance you’ll have of getting a lower car insurance rate.

Insurers consider other factors in addition to credit, so a lower credit score doesn’t guarantee higher insurance premiums. Still, you can prioritize improving your credit score for a chance at better rates. Here are some monthly average quotes for car insurance in Houston based on your credit score tier.

Is car insurance more expensive in Houston?

The average cost of car insurance in Houston is $326 per month. This is 25% higher than the state average rate in Texas, which is $260.

Drivers in larger cities, which usually have more traffic or accidents on a regular basis, may see higher car insurance rates. Another factor that varies by city and could affect rates is the costs of auto repairs and medical expenses that insurance would have to pay out after an accident.

More cities in Texas

Car insurance in Houston is more expensive than in most other cities in Texas, including Arlington, Dallas, and Fort Worth. Here’s how the average monthly car insurance quote differs in other Texas cities compared to Houston.

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