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Houston Car Insurance Rates

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Car insurance rates in Houston range from an estimated low of $523 a year for a liability-only policy to well over $6,100 a year for a 16-year-old driver. The average estimated full coverage rate is $1,664 a year, or about $138 a month, and State Farm, Allstate, and GEICO are the most preferred companies in Houston.

The chart below shows how much Houston drivers can expect to pay to insure an average vehicle with full coverage.

Discount Rates

The discount rate is the best rate available if you qualify for the bulk of the discounts offered by a company. This includes discounts for owning a home, bundling your homeowners and auto policy, having excellent credit, and being a safe driver with no at-fault accidents.

High Deductibles Save Money

Not everyone will qualify for that rate, however, so the more realistic rates are towards the middle of the chart. The high deductible rate, average rate, and low deductible rate, are identical coverage-wise except they use $1,000, $500, and $100 physical damage deductibles, respectively.

High Risk Drivers Pay More

If your driving record needs improvement, you may pay closer to the high-risk rate depending on the number and severity of the violations. Drivers with a few minor violations like speeding tickets won’t pay the full high-risk rate, but those with major violations like a DUI, reckless driving, hit and run, or driving on a suspended license will probably pay close to $3,600 a year.

Teenage Drivers Pay the Most

The most expensive drivers to insure (sorry parents) are the newly licensed teenagers. Statistics show that they are by far the most likely to be involved in an accident, and insurance companies charge accordingly. Paying over $6,000 a year for car insurance for a teenager is not money well spent, but there are ways to reduce that cost like insure for liability-only or buy the highest deductibles available.

The prices below break down the average cost of insurance by coverage type.

Annual premium for full coverage: $2,194

Rate estimates by individual coverage type:

Comprehensive $481
Collision $881
Liability $582

When computing these rates, we used a 40-year-old male driver with a clean driving record and rated him on an average passenger sedan like a Honda Accord. Comprehensive and collision deductibles were $500 and liability limits were 30/60, which means $30,000 of bodily injury coverage per person and $60,000 per occurrence. This is the minimum amount required by Texas state law, along with $25,000 of property damage liability.

Which Company has the Cheapest Car Insurance Rates?

We’re not sure if the words ‘cheapest’ and ‘car insurance’ can be used in the same sentence, but we wrote it like that regardless. If we told you which insurance company has the cheapest car insurance rates in Houston, we would probably be flat out wrong.

There are so many variables that go into calculating the price you pay, that without knowing every detail about you, your vehicle, your driving habits, and the amount of coverage you want, it’s just not possible to make any kind of accurate prediction.

The companies below are the largest in Texas, which doesn’t necessarily relate to which one is cheapest. The average rates for each one don’t tell the whole picture either, because we don’t know what types of risks each one prefers to insure. If a company insures a lot of high-risk or ‘non-standard’ drivers, their average rates will be much higher than a company that only insures perfect drivers with impeccable credit and spotless driving records.

With that said, here’s the list of the companies who write the most business in the state of Texas.

Most Popular Auto Insurance Companies in Texas
RankCompanyMarket ShareAverage Rate
1State Farm18.09%$1,480
4Farmers Insurance9.82%N/A
7Home State4.03%$2,113
8Texas Farm Bureau3.61%$1,223
9Liberty Mutual2.92%$3,097
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Source: National Association of Insurance Commissioners (NAIC) 2015 Market Share Report and The Zebra

Auto insurance in Houston is in a state of flux, as insurers are still reeling from the flooding caused by hurricane Harvey. With over an estimated one million total loss vehicles from flood water damage, that is a lot of claims to have to process and settle.

Insurers will undoubtedly be raising rates this year due to the damage inflicted by the storm surge and flooding, and will probably have subsequent price increases in the coming years as underwriting losses are realized.

This will definitely shake up the market share rankings for the second through sixth companies in the table above, as the number one company, State Farm, as a pretty good market share lead in Texas.

Car Insurance Rates by Make and Model

One of the factors that plays a big part in determining how much you’ll pay for coverage in Houston is the type of vehicle you drive. Texans like trucks, of course, but unfortunately, most of the larger 3/4 and 1-ton trucks like the Ford F-250 and F-350, Silverado 2500HD and 3500HD, and the Dodge Ram 2500 and 3500, all have higher rates due to higher frequency of liability claims.

The table below shows estimated insurance rates for a variety of the more popular vehicles you’ll see while stuck in traffic on US-59 or I-10.

Houston Insurance Rates by Make and Model
Make and ModelAnnual PremiumMonthly Premium
Chevrolet Silverado$2,324$194
Dodge Ram$2,387$199
Ford Escape$1,836$153
Ford Focus$2,132$178
Ford Fusion$2,335$195
Ford F-150$2,072$173
GMC Acadia$2,028$169
GMC Sierra$2,288$191
Honda Accord$2,054$171
Honda Civic$2,405$200
Honda CR-V$1,786$149
Honda Pilot$2,093$174
Hyundai Sonata$2,231$186
Kia Optima$2,275$190
Nissan Altima$2,267$189
Nissan Rogue$2,210$184
Toyota Camry$2,244$187
Toyota Corolla$2,194$183
Toyota Prius$2,046$171
Toyota RAV4$2,075$173
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Houston car insurance infographic

How to Save Money on Houston Car Insurance

We covered a lot of data in this article, but the key takeaway is that you can lower your policy premium by taking a few proactive steps. This includes raising deductibles, driving safe and avoiding tickets, eliminating unneeded coverage, and not having kids (but seriously).

Here are the best ways to lower your car insurance rates in Houston.

  1. High deductibles cost less because you pay more in the event of a claim. If you have adequate savings, consider raising your deductibles as high as you feel comfortable. If your vehicle is getting older, consider dropping full coverage altogether.
  2. The type of vehicle you drive is in direct correlation to how high your rates are. If you’re due for a new car, consider skipping the uber high-performance model in favor of a more modest (and safe) sedan.
  3. If you tend to see red and blue lights in your rear-view mirror, lay off the gas pedal. If you do get a ticket, check into taking a defensive driver course that could prevent your car insurance company from every knowing about it.
  4. To save money when insuring your teen driver, don’t buy them a vehicle that requires full physical damage coverage. A 10-year-old vehicle will get them back and forth to school just fine.
  5. Many policy discounts are easy to miss, so ask your agent or company if there are any discounts that you should be getting, especially discounts for occupational or professional association memberships.
  6. If you own your home or even rent, chances are you have a homeowners or renters policy. If you bundle it with your auto insurance policy (buy from the same company), this often triggers a discount as much as 15%.
  7. Last but definitely not least, shop your policy around once a year. Price quotes are always free and you’d be surprised at how many companies sell car insurance in Houston that you have never even heard of.

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Rates by Driver Age

Houston Insurance Rates by Driver Age
Driver AgePremium

Full coverage, $500 deductibles

Rates by Deductible

Insurance Rates with Different Deductibles

Full coverage, driver age 40

Rates by Liability Limit

Insurance Rates with Different Liability Limits
Liability LimitPremium
100 CSL$2,369
300 CSL$2,689
500 CSL$2,922

Full coverage, driver age 40

Rates for High Risk Drivers

Insurance Rates for High Risk Drivers

Full coverage, $500 deductibles, two speeding tickets, and one at-fault accident

If a financial responsibility filing is required, the additional charge below may also apply.

SR-22 Surcharge $304

Potential Rate Discounts

If you qualify for discounts, you may save the amounts shown below.

5-yr Accident Free$164
5-yr Claim Free$141
Paid in Full/EFT$102
Advance Quote$109
Online Quote$156
Total Discounts$933
Rate after discounts $1,261

Discounts are estimated and may not be available from every company or in every state.

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