The Best Cheap Car Insurance in Houston, Texas in 2023

Texas drivers pay an average annual insurance premium of $1,742, which breaks down to about $145 per month, according to Compare.com data. However, rates can vary drastically from city to city and from driver to driver. Houston drivers often pay more expensive premiums than the state average.

When shopping for car insurance, it’s important to be aware of the different factors that can impact your premiums. Additionally, you can take steps to save money on your car insurance, including bundling your policies, taking advantage of discounts, and maintaining a safe driving record. We cover all of these topics (and more) in our in-depth guide to auto insurance in Houston. Keep reading to learn more.

Key Takeaways:

• The average auto insurance premium in Houston is about $211 per month, but yours could be higher or lower depending on several factors.
• Safeco is among the cheapest companies in Houston for many different driver demographics.
• Houston drivers are required by law to carry at least $30,000 per person and $60,000 per accident of bodily injury liability coverage and $25,000 in property damage liability.

The Cheapest Car Insurance in Houston Overall: Dairyland

While the average rate for auto insurance in Houston is $145 per month, premiums start as low as $108 from Dairyland. You’ll notice that prices can vary significantly between insurers, even for the same driver. While each insurance company uses the same general factors to set insurance rates, each has its own formula and may prioritize factors differently.

Keep in mind that while these companies are generally the cheapest, the most affordable car insurance for you may be different based on your driving history and personal factors. Because of that, it’s important to shop around with multiple companies.

The Best Car Insurance Companies in Houston in 2023

Looking for the best fit for your unique driving profile? These three insurers make up our best auto insurance companies in Houston for 2023.

Safeco: Best company for drivers with spotty records

Finding affordable car insurance with an imperfect driving record can be challenging. Safeco currently offers the cheapest insurance for drivers with spotty driving records — those with at least one ticket or at-fault accident on their records. Drivers can expect to pay an average of $95 per month for liability coverage and $164 per month for full coverage with Safeco.

The General: Best car insurance company for young drivers

Age can be an important factor when it comes to car insurance premiums.

“Younger drivers, especially those in their teenage years or early 20s, tend to face higher insurance premiums due to their limited driving experience and higher risk of accidents,” says Tyler Grizzle, a founding partner at GSP Insurance Group.

The General offers the cheapest quotes for drivers ages 16 and 25, with an average monthly premium of $315 for liability coverage and $638 for full coverage.

Mile Auto: Best auto insurance for Houston drivers who work from home

If you work from home or don’t drive often, you may be able to save on car insurance. Some insurance companies offer mileage-based insurance coverage, meaning you’ll pay a low base rate and then only pay for the number of miles you drive each month.

Mile Auto offers the cheapest insurance for people who work from home in Houston, with an average liability-only quote of $75 per month.

Cheapest Company for Liability Insurance in Houston: Safeco

Liability-only insurance provides both bodily injury and property damage liability coverage but doesn’t include any protection for your own vehicle. Below are the five cheapest companies in Houston for basic liability coverage.

Safeco offers the cheapest liability insurance, with an average quote of just $95 per month. In addition to offering the cheapest premiums, Safeco also offers a variety of other ways for drivers to save, including accident forgiveness and diminishing deductibles.

Cheapest Company for Full-Coverage Insurance in Houston: Safeco

Full-coverage car insurance includes liability coverage, as well as coverages to protect your own vehicle. A full-coverage policy is likely to include bodily injury and property damage liability coverage, comprehensive coverage, collision coverage, uninsured motorist coverage, and possibly more.

Just as Safeco offers the cheapest liability-only coverage, it also offers the cheapest full coverage, with an average monthly quote of $146.

Cheapest Car Insurance for Houston Drivers with Spotty Records

We’ve already talked about how having an imperfect driving record can affect your insurance rates, but did you know the effect can vary based on the offense? More serious violations — like DUIs or reckless driving — are likely to affect your premiums more than a more minor violation, such as failing to use a turn signal.

Cheapest company for Houston drivers with speeding tickets: Liberty Mutual

A speeding ticket in Texas will result in two traffic points and a fine. But it’s also likely to increase your insurance premiums. In Texas, you can generally expect a speeding ticket to affect your insurance rates for three years (though the effect may lessen before then). Below are the five cheapest companies for Houston drivers with one speeding ticket on their records.

Liberty Mutual offers the cheapest insurance for drivers with speeding tickets, with an average monthly quote of $132.

Cheapest company for Houston drivers after an accident: Safeco

Depending on your insurance company, you could see your premiums rise after an accident, regardless of who’s at fault — though that’s not always the case. But if you’re at fault for an accident, you can definitely expect your premiums to increase. The below table outlines some of the cheapest companies in Houston for drivers with one at-fault accident on their records.

Safeco offers the cheapest insurance for drivers after an accident, with an average monthly quote of $133 per month.

Cheapest Car Insurance Companies in Houston by Age

As we’ve mentioned, a driver’s age can play an important role in determining their auto insurance premiums. Generally speaking, young drivers tend to pay higher premiums because they have a higher chance of filing a claim. And as you get older, you can expect your premiums to decrease (though they may rise again in your senior years).

We’ve broken down average quotes for each age bracket in Houston, as well as which company is the cheapest for each.

Which company is most affordable varies in each age bracket. But depending on your age, chances are that either Dairyland or Safeco will be the cheapest option.

Cheapest company for Houston teens: Hugo

Teen drivers tend to pay the highest insurance premiums of any age bracket since they’ve generally just gotten their driver’s licenses and don’t have much experience. Additionally, a lack of maturity can lead to unsafe driving habits. You can find the five cheapest companies for drivers between 16 and 19 in the table below.

As you can see, Hugo offers the cheapest car insurance for teen drivers, followed closely by The General.

Cheapest company for Houston seniors: Dairyland

Shopping for car insurance as a senior can be just as challenging as doing so as a young driver. While older, more experienced drivers tend to pay lower premiums than young drivers, that trend starts to reduce once drivers hit their mid-60s. But as you can see in the table below, senior drivers, meaning those 65 and older, still have access to plenty of affordable insurance options, with Dairyland being the cheapest of the bunch.

Cheapest Car Insurance for Married Drivers in Houston: Safeco

Marital status is often a factor in setting insurance rates.   You can take advantage of this by letting your insurance company know when you get married or even shopping around for a new policy. We’ve broken down the cheapest quotes for married drivers in Houston in the table below.

Married drivers pay the lowest rates with Safeco, which charges an average of $109 per month.

How to Get Cheaper Car Insurance in Houston

Car insurance can be a major expense, especially if you have a violation on your record or have other risk factors. There are several ways you can save money on your premiums:

• Shop around. You never know which car insurance company will be the cheapest for you until you get quotes from several companies. And don’t just shop around when you first sign up for your policy — make it a practice to do so each time your policy renews.
• Take advantage of discounts. Most car insurance companies offer several ways for customers to save, including having certain vehicle safety features, paying their premiums up front, and more.
• Bundle your policies. If you have homeowners or renters insurance, you can save money on your policies by carrying both policies with the same insurance company. Most companies offer a bundle discount.
• Drive safely. As we’ve already discussed, having a clean driving record can decrease your insurance premiums. But you can also save by taking advantage of usage-based insurance discounts that a variety of companies offer.
• Improve your credit score. Your credit score can have a major impact on your insurance premiums. A lower credit score will generally result in higher insurance rates. On the other hand, you can reduce your premiums by improving your credit score.
• Raise your deductible. Insurers tend to charge higher premiums for policies with the lowest deductibles. After all, the higher your deductible, the more skin you have in the game and the less money that your insurer will have to pay if you file a claim.

Factors Affecting Car Insurance Rates in Houston

You may better understand how car insurance premiums work if you have an idea of the types of factors that affect how much you pay.

“Several factors come into play when determining car insurance premiums,” says Grizzle. “[But] the specific weight assigned to each factor may vary among insurance providers.”

Some of the most important factors include:

• Your driving history
• Your age
• Your gender
• Your marital status
• Your credit score
• Your location
• The car you drive
• How many miles you drive
• Your coverage types and policy limits

Minimum Car Insurance Requirements in Texas

Each state has a minimum car insurance requirement, which is the amount of coverage each driver must have to operate a vehicle within the state legally.

Drivers in Texas must have the following insurance coverage:

“The minimum coverage mandated by a state sets the baseline for insurance protection, ensuring drivers meet their financial responsibility in case of accidents,” says Grizzle. “However, the minimum requirements may only sometimes provide comprehensive coverage, and drivers may purchase additional coverage for enhanced protection.”

Penalties for driving without car insurance in Texas

Driving without the minimum insurance can result in fines and other penalties. In Texas, you’ll be stuck with a fine between $175 and $350 when caught driving without insurance for the first time. And subsequent offenses can come with fines ranging from $350 to $1,000.

In addition to a fine, driving without insurance could have other ramifications. For example, a second or subsequent offense could result in your license being suspended. Finally, if you’re in an accident and don’t have insurance, you could be financially on the hook for all damages, regardless of who was at fault.

Houston Car Insurance FAQs

Car insurance laws and premiums vary across the country, so it’s important to understand how insurance works where you live. Here are some additional things you may want to know about car insurance in Houston.

How much does car insurance cost in Houston?

The cost of car insurance in Houston varies depending on your driving history, personal factors, and insurance company. On average, you can expect to pay around $145 per month in Houston.

What is Texas minimum car insurance?

Texas state law requires all drivers to have at least $30,000 per person and $60,000 per accident of bodily injury liability insurance and at least $25,000 of property damage liability insurance.

Who has the cheapest car insurance in Houston?

The three cheapest insurance companies in Houston are Dairyland, Safeco, and Liberty Mutual. However, a different company may be the cheapest for you based on your own driving history and personal characteristics.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. J.D. Power “2023 U.S. Auto Insurance Study,” Accessed June 26, 2023
2. Harris County Justice Courts, “Information about Traffic Cases,” Accessed June 26, 2023
3. Insurance Information Institute, “What determines the price of an auto insurance policy?,” Accessed June 26, 2023
4. Texas Department of Insurance, “Automobile insurance guide,” Accessed June 26, 2023