Houston General vs. State Farm: Which Company is the Best Fit for You?

Quick Facts

• Looking at the national averages for auto insurance, State Farm offers slightly cheaper prices than Houston General
• Houston General offers more affordable average rates for residents of urban areas
• State Farm has less expensive premiums for people who are single and purchasing car insurance by yourself

Houston General vs. State Farm: Which Company has the Cheapest Car Insurance?

Are you in the market for a new insurance policy? You've probably seen commercials and billboards from companies offering large discounts, but exactly how much money can you save by switching?

You might be considering Houston General or State Farm as potential options, but between the two, which carrier will offer you more affordable rates?

As you can see, State Farm is about $2 per month cheaper than Houston General when looking at the national average rates for auto insurance.

But that doesn't mean State Farm will necessarily be less expensive than Houston General for each driver. Insurance companies use tons of complex algorithms to calculate prices, so depending on how old you are or how good your credit score is (among a whole bunch of other factors), you could see wildly different premiums from the ones above.

So, if you want to find out which of Houston General or State Farm is really the best for you, keep reading to see average rates for each carrier broken down by lots of different rate factors.

Houston General or State Farm: Average Car Insurance Rates by State

Houston General and State Farm only compete against each other in Texas, where State Farm offers the cheaper average prices. For Texas residents, State Farm offers auto insurance for $123 a month on average. Houston General's average rates come out to be over 20% more expensive, at $160 per month.

But there's more to calculating car insurance premiums than just your home state. Read on to learn more.

Which is the Best Company For Young Drivers?

You might already know that teen drivers usually pay a lot more for insurance than any other group of drivers out there on the road. That's typically because young, inexperienced drivers are statistically much more likely to get into an accident that results in a car insurance claim, making them much riskier to insure.

That being said, that doesn't mean teen drivers can't still save money on their auto insurance. Just look at the table above -- where 18-year-old drivers who have Houston General for their insurance pay more than $40 less than those who use State Farm.

However, both carriers will offer you dramatically lower prices once you turn 25. For example, average rates for Houston General policyholders drop nearly 45% and State Farm's premiums decrease almost 60% over that time.

Which is the Best Company for Retired Drivers?

Drivers around retirement age normally enjoy some of the cheapest car insurance prices you'll ever see. After all, they've likely been driving for quite some time, which generally decreases their chances of accidents and other infractions that can increase premiums.

When looking at Houston General and State Farm specifically, which company is best for retired drivers? Houston General gets the slight edge here, with average rates coming in at around $108 monthly compared to State Farm's $111. Even so, that difference is less than 5%, which means it ultimately will come down to other factors, such as where you live or your driving record.

Which is the Best Company for Married Drivers?

Married couples tend to get slightly more affordable auto insurance prices than those who are single. That's normally because married drivers tend to own and insure multiple cars, which can often earn you a discount.

If you're in the market for car insurance, State Farm tends to have the most affordable average premiums regardless of relationship status, with prices about 1% less expensive for single policyholders and around 3% cheaper for married policyholders.

Houston General vs. State Farm: Average Rates by Gender

Men are statistically more likely than women to cause a collision and get into accidents. That means when it comes to insurance men will typically end up paying a little more.

On average, women see rates over $10 a month more affordable with Houston General, while with State Farm, the difference is closer to $12 per month.

When it comes to the lowest prices for each gender, State Farm offers the cheapest average rates for both men and women. On average, male drivers save about $2 a month and women save about $2 with State Farm compared to the average Houston General policyholder.

Houston General or State Farm: Compare State Minimum vs. Full Coverage Rates

*State minimum value indicates liability-only policies at each state's minimum bodily injury and property damage (BI/PD) limits

**Full coverage indicates state minimum BI/PD limits with collision and comprehensive coverages added to policy.

For most people, auto insurance isn't the easiest topic to understand. There are a bunch of different coverages that account for many different things. Some protect you and your vehicle, while others only provide coverage for other people's property and health if you cause an accident.

The two most common policies that many drivers look at fall into two categories -- liability only (that covers bodily injury and property damage for other drivers if you cause a collision) and full coverage (which includes comprehensive and collision coverages that protect your own vehicle, in addition to what you get with liability coverage).

In this case, Houston General offers the lowest average prices for state minimum liability limits, while State Farm has the edge for full coverage policies with similar coverage limits. Drivers looking for basic state minimum coverage can save around $15 with Houston General Insurance Exchange, while full coverage comes out to be around $20 cheaper with State Farm.

Is Houston General or State Farm Better for Drivers with Spotty Records?

You've probably seen plenty of commercials from car insurance companies offering great premiums for good drivers, but that doesn't mean people with less-than-perfect driving records can't save money, too.

It's no secret secret that tickets and collisions lead to higher rates, but which carrier -- Houston General or State Farm -- has the most affordable premiums for drivers with spotty records?

Which Company is Best for Drivers with Speeding Tickets?

Houston General policyholders can expect their prices to go up an average of $37 per month if they get a ticket, while State Farm generally raises premiums about $21 a month, on average.

However, Houston General is usually the less expensive option for drivers both with a speeding ticket and with a clean record, offering rates that are $23 and $7 more affordable, respectively, compared to State Farm.

Which Company is Best for Drivers After an Accident?

Both carriers will raise prices pretty significantly if you get into an at-fault accident with Houston General raising by over $100. State Farm has a less extreme raise, but you can still expect to pay just under $30 more than you were prior to your first collision.

Overall, drivers who use State Farm end up with the cheaper prices after an accident, with monthly premiums averaging $163 compared to Houston General Insurance Exchange's $233.

Which Company is Best for Drivers with a DUI?

On average, a DUI offense is going to cost you much more than a single accident or ticket when it comes to your insurance bill. For example, State Farm increases average prices by $45 per month -- that's over a 25% increase.

How does Credit Score Impact Houston General and State Farm Rates?

You may not have known, but your credit score can come into play when companies determine your monthly bill. This isn't always the case (for example, Massachusetts and California are two states that ban the practice entirely), but it might come into play for lots of policyholders.

Car insurance carriers argue that those with good credit scores are more likely to pay their bills on time each month, which lowers the risk involved on their end, while the opposite is true for those with bad credit.

Looking at Houston General and State Farm specifically, which company has the best rates for drivers at different credit levels?

Which Company is Best for Drivers with Good Credit?

Which Company is Best for Drivers with Bad Credit?

Is Houston General or State Farm Better for Drivers who Work from Home or Have Short Commutes?

The amount of time you spend behind the wheel of your car plays a big role in how much auto insurance companies will charge for coverage. That's because the more miles you put on your car each year, the more likely you are to get into an accident and cause an insurance claim.

As you can see in the table above, annual mileage doesn't have much of an impact on how much Houston General charges. However, there's a small difference in monthly premiums for State Farm, with drivers who put 6,000 miles on their vehicle annually paying around $13 less every month compared to those who drive 12,000 miles each year.

Houston General vs. State Farm: Compare Rates for Urban, Suburban, and Rural Drivers

Where you park your car can play a substantial role in how much you pay for insurance. Generally, if you live in an urban area with more cars on the road, you'll pay a little more for car insurance, while the opposite is true for people in rural areas.

When comparing these two carriers side-by-side, Houston General boasts the cheapest average prices in urban and suburban areas, while State Farm wins in rural areas.

In urban areas, Houston General Insurance Exchange's average premiums are about 10% less than State Farm. Drivers in suburban ZIP codes pay around 7% less with Houston General compared to State Farm. If you live in a rural area, you can expect to save about 23% with State Farm compared to Houston General.

Houston General vs. State Farm Discounts

You want to save as much money as possible, right? The best way to do that is by utilizing as many auto insurance discounts as you can.

But with what seems like a million different discounts out there, it can be hard to find all the ones you qualify for or to nail down the carrier that has the most discounts for your unique driver profile.

Below, we've taken a look at all of the different discounts Houston General and State Farm offer their customers so that you can easily see which company offers the most discounts and, therefore, the biggest savings.

State Farm blows Houston General away when it comes to the sheer amount of discounts available, offering 23 different discounts to Houston General's eight.

Both companies offer lots of the same discounts -- like ABS discounts, anti-theft discounts, and discounts for being a good student -- but State Farm also offers annual mileage discounts, defensive driver discounts, drive safe & save discounts, and more that Houston General does not.

On the flip side, Houston General has a couple unique discounts of its own -- advance quote discounts and excess vehicle discounts.

Final Thoughts: Is Houston General or State Farm Best for You?

You've seen the effect certain variables have on your insurance and the different discounts carriers offer. That's all well and good, but when it comes down to it, which company is the right fit for you?

Houston General might be best for you if....

• You're planning on moving to another state soon -- undefined is only available in.
• You care about discounts (State Farm offers the most).
• You live in a rural neighborhood.

State Farm might be best for you if...

• You have a DUI charge on your record.
• Your neighborhood is in the suburbs.
• You're buying auto insurance for a teen and looking for a wallet-friendly option.

We hope this guide helps you get a good idea of the differences between Houston General and State Farm and that you can now make a more informed decision when it comes to your car insurance.

At the end of the day, the best way to make sure you're getting the best deal on your insurance policy is to compare quotes from multiple companies, not just Houston General and State Farm. Luckily, sites like Compare.com do all the hard work for you. Just enter your ZIP code below and get free quotes from dozens of top auto insurance carriers in your area, all in just a few minutes.

Houston General vs. State Farm FAQs

Is Houston General or State Farm cheaper?

Looking just at the national average rates, State Farm is the cheaper of the two companies, offering average rates of $158 a month compared to $160 for Houston General. That being said, State Farm won't necessarily be the most affordable carrier for everyone, since there are a range of different factors that come into play when it comes to your car insurance bill.

Who is better, Houston General or State Farm?

Sadly, the answer truly is "it depends.". No one company is "better" for every driver -- it all comes down to what your unique insurance profile looks like. For example, State Farm offers less expensive prices for policyholders with an at-fault collision on their record, while Houston General is cheaper for drivers who have less-than-stellar credit scores.

Why do Houston General and State Farm offer me different rates?

Car insurance carriers take a look at quite a few different variables when calculating the rates they charge drivers. Things such as your driving record, where you live, gender, age, and sometimes even things like your credit score can all be taken into consideration. Both Houston General and State Farm calculate premiums using different formulas, so each one will most likely offer different prices. The only real way to see which carrier is the lowest for you is by comparing personalized quotes from multiple different companies.

How do I know if Houston General or State Farm is right for me?

The only way to find the insurance company that's right for you is by getting quotes from several carriers and finding the one best suited for your individual budget. Luckily, Compare.com makes it easy for you to do just that. Just enter your information once and you'll get free quotes from dozens of the best auto insurance companies in your area. That way, you can guarantee you're getting the most affordable premium. And who knows, the best carrier for you might not be Houston General or State Farm at all!

Methodology

All of the data referenced in this article has been gathered in collaboration with Quadrant Information Services. We analyzed more than 2.5 million rows of carrier-reported data to calculate the average rates referenced above. All rates are based on an insurance profile of a single-vehicle policy for a driver that owns a 2016 Honda Accord. For more information on how we calculate rates, please reference our data methodology.