The saying “everything’s bigger in Texas” might be applicable to the food, livestock, and hats, but it thankfully doesn’t apply for car insurance premiums. Texas ranks right near the national average for insurance premiums and many Texans can find full coverage policies for less than $1000 annually. But unfortunately, cheap insurance rarely finds its way into the big cities and Houston happens to be the most heavily populated area in the Lone Star State, so what are the best car insurance companies in Houston, TX.
Table of Contents
- Average Car Insurance Rates in Houston
- Texas State Car Insurance Laws and Minimums
- What Determines Car Insurance Rates in Houston?
- Houston Car Insurance Rates by Zip Code
- The Best Car Insurance Companies in Houston
Compare Affordable Car Insurance Rates
Average Car Insurance Rates for Drivers in Houston Texas
Premiums in Texas for a full coverage policy average about $1750 per year. That number jumps to $1890 for Houston residents and $1950 for Dallas residents. For reference, the current national average is $1680. If you live in the Houston area, you’ll need to get familiar with the insurance providers in your zip code. Shopping around is the best way to save money on insurance without cutting coverage.
Texas State Car Insurance Laws and Minimums
Texas state insurance minimums are fairly high compared to other states like California or New York. The Lone Star State requires 30/60/25 insurance coverage for drivers to get behind the wheel legally. What does that mean in English?
- $30,000 in bodily injury liability per person
- $60,000 in bodily injury liability per accident
- $25,000 in liability for property damage
Buying just the minimum coverage is not something we recommend. If you’re involved in a serious accident, $60,000 might not be enough to cover the injuries sustained by all those involved. And if you hit someone in a really expensive car like a Jaguar or BMW? That $25,000 in property damage liability might not cover the cost of fixing it – and that’s before even mentioning damage to your property.
If your policy comes up short on covering the medical bills and damages of the other driver, you’ll likely be sued, which will turn a bad situation into a nightmare.
Texas uses the tort system when determining responsibility in a car accident, which means the fault is assigned for every incident. If you’re involved in an accident in Texas and the other driver is ruled to be at fault, you have two options: file a claim on your own insurance or file a claim under the at-fault driver’s policy.
Injured parties can also choose to sue the driver responsible for the accident if their insurance doesn’t cover all medical bills or damages. Unlike California’s “pure comparative fault” system, Texas decides one driver to be at fault over another. In some cases, both drivers can be declared at fault, but the responsibility will always be split 50-50 in those situations.
What Determines Car Insurance Rates in Houston?
You’ll never find two identical car insurance policies, no matter how many quotes you request. Insurance providers use many of the same factors when determining rates, but they aren’t weighted equally. Some companies ding heavily for speeding tickets, others charge more for teenage drivers. Here are the most common factors that determine your car insurance premium:
- Age – Younger drivers get into more accidents on average, so they’re more expensive to insure. Premiums decrease in middle age but rise again after age 70.
- Gender – Men pay more than women on average, but not by much.
- Driving History – Drivers with speeding tickets, at-fault accidents, and moving violations pay more than those with clean driving records. And if you’re caught driving under the influence, your rates will be jacked to the moon – if your provider doesn’t drop you entirely.
- Credit History – Yes, even your credit score is factored into your policy premium. The higher your score, the cheaper you’ll be to insure.
- Location – Big cities are denser than rural areas, meaning accidents and crime are more prevalent. But insurance companies go even deeper and price policies according to zip code. Moving only a couple of blocks down the road could result in a completely different car insurance premium.
Most and Least Expensive Zip Codes for Car Insurance in Houston
Only drivers in Dallas deal with higher insurance premiums than Houston residents and much of that depends on where you live in the city. One of the first things car insurance providers look for is your zip code to determine how risky the area you drive in is. Factors like the number of claims filed, crime rates, and the number of uninsured motorists are all combined when pricing policies. Here are the most and least expensive zip codes for Houston drivers.
- 77076, Northside / Northline
- 77093, Eastex / Jensen
- 77016, East Little York / Homestead
- 77020, Denver Harbor / Port Houston
- 77022, Independence Heights
- 77095, Copperfield
- 77070, Louetta
- 77005, West University Place
- 77339, Humble
- 77489, Missouri City / Fort Bend
Best Houston Car Insurance Companies
If you’re looking for cheap car insurance in Houston, start with these companies. Also, note we’re using full coverage 100/300/100 premiums with comprehensive and collision coverage when comparing policies. You only need to purchase minimum coverage to drive legally in Texas, but a serious accident will sap those funds quickly.
Best Overall: Farmers – Not only does Farmers have rates comparable to Geico for full coverage policies, but they have great customer reviews and have written nearly 2 million policies in the state of Texas.
Most Affordable: GEICO – As usual, GEICO will get you the cheapest rates for state minimum and 50/100/50 policies. Farmers and GEICO are very competitive on full coverage policies though, so be sure to compare quotes from both.
Best Customer Experience: Texas Farm Bureau – The JD Power award winner for Best Insurance Provider in Texas in 2019. The Texas Farm Bureau has the best customer satisfaction scores in the state, along with affordable rates for auto, home, and life insurance.
Insurance premiums can be expensive – especially if you live in a big city like Houston. Shopping around for the best policy is crucial to finding affordable insurance, so always collect quotes from multiple providers. A good place to start searching would be with the three companies mentioned above. And of course, always buy a level of protection that ensures the safety of you and your family. We always recommend 100/300/100 policies with comprehensive and collision coverage.
Compare Affordable Car Insurance Rates
- 1 Table of Contents
- 2 Compare Affordable Car Insurance Rates
- 3 ZIP code
- 4 Current Insurer
- 5 Age
- 6 Average Car Insurance Rates for Drivers in Houston Texas
- 7 Texas State Car Insurance Laws and Minimums
- 8 What Determines Car Insurance Rates in Houston?
- 9 Most and Least Expensive Zip Codes for Car Insurance in Houston
- 10 Best Houston Car Insurance Companies
- 11 Summary
- 12 Compare Affordable Car Insurance Rates
- 13 ZIP code
- 14 Current Insurer
- 15 Age