Texas Farm Bureau, State Farm and Mercury are the three cheapest car insurance companies in Houston. However, this depends on your unique driver profile and desired coverage level. We've broken down which company is most affordable for the common categories that can most affect your rates.
Cheapest Car Insurance in Houston, TX
Updated: November 8, 2024
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Key Takeaways
The cheapest car insurance companies in Houston are Texas Farm Bureau, Mercury, State Farm, National General and Progressive.
The lowest car insurance rates in Houston start at $35 per month for minimum coverage and $75 per month for full coverage.
The average cost of car insurance in Houston is $86 per month for minimum coverage and $177 per month for full coverage.
Why Trust MoneyGeek? MoneyGeek analyzed car insurance companies using data collected from the Texas Department of Insurance and Quadrant Information Services. Learn more.
Cheapest Car Insurance Rates and Companies in Houston
| Texas Farm Bureau | Minimum Coverage | $35 |
| Texas Farm Bureau | Full Coverage | $75 |
| State Farm | Teens | $206 |
| Texas Farm Bureau | Young Adults | $45 |
| Texas Farm Bureau | Senior Drivers | $31 |
| Mercury | Drivers With Bad Credit | $67 |
| Texas Farm Bureau | Drivers With a Speeding Ticket | $35 |
| Mercury | Drivers With a DUI | $68 |
| Texas Farm Bureau | Drivers With an Accident | $61 |
| Texas Farm Bureau | Military Affiliated Drivers | $35 |
Cheapest Car Insurance Coverage in Houston
When searching for the cheapest car insurance in Houston, comparing rates from multiple providers is key. Factors like age, driving history, vehicle type and coverage needs all influence the cost. Although the cheapest car insurance provider in Texas may not always offer the lowest rates in Houston, shopping around for car insurance quotes can help you secure affordable coverage without sacrificing essential protection.
Cheapest Minimum Coverage Car Insurance in Houston
On average, the most affordable car insurance providers for minimum coverage in Houston are Texas Farm Bureau at $35 per month and Mercury at $47 per month. Check the table below to see different providers offering the best rates for minimum car insurance coverage in Houston:
| Texas Farm Bureau | $35 | $50 |
| Mercury | $47 | $39 |
| State Farm | $48 | $38 |
| National General | $55 | $30 |
| Progressive | $63 | $23 |
| AAA Texas | $70 | $15 |
| Allstate | $80 | $6 |
Cheapest Full Coverage Car Insurance in Houston
On average, the most affordable auto insurance company for full coverage in Houston is State Farm at $900 annually. Review the table below to view more cheap companies in the city:
| Texas Farm Bureau | $75 | $102 |
| State Farm | $103 | $74 |
| Progressive | $125 | $52 |
| National General | $133 | $44 |
| AAA Texas | $139 | $39 |
| Allstate | $152 | $25 |
| Mercury | $165 | $12 |
| GEICO | $167 | $10 |
| Chubb | $175 | $2 |
Cheapest Car Insurance in Houston by Age
Car insurance rates in Houston vary significantly based on age, with younger drivers typically facing higher premiums due to inexperience. Premiums tend to decrease until you reach your 70s. We've listed the cheapest companies among teens, young adults and seniors.
Cheapest Car Insurance in Houston for Teens
If you live in Houston, State Farm, Nationwide and GEICO offer the cheapest car insurance for teens. Check the table below to see the lowest rates for this age group in the city.
| State Farm | $206 | $140 | $270 | $315 |
| Nationwide | $217 | $130 | $481 | $104 |
| GEICO | $269 | $77 | $300 | $285 |
Cheapest Car Insurance in Houston for Young Adults
The top provider for affordable minimum coverage car insurance for young adults in Houston is Texas Farm Bureau at $540 per year, 60% cheaper than the city average. State Farm and Mercury also have some of the most affordable rates for this group.
| Texas Farm Bureau | $45 | $67 |
| State Farm | $58 | $54 |
| Mercury | $63 | $50 |
| National General | $74 | $39 |
| Progressive | $74 | $38 |
| AAA Texas | $89 | $23 |
| Allstate | $100 | $13 |
| GEICO | $105 | $7 |
Cheapest Car Insurance in Houston for Seniors
Houston's cheapest car insurance for seniors comes from Texas Farm Bureau at $372 per year. Check the table below to explore options from other providers and find the best rates for senior drivers.
| Texas Farm Bureau | $31 | $56 |
| State Farm | $44 | $42 |
| Mercury | $53 | $34 |
| National General | $58 | $29 |
| Progressive | $62 | $25 |
| AAA Texas | $73 | $14 |
| Allstate | $82 | $5 |
Cheapest Car Insurance in Houston for Drivers With Bad Credit
A low credit-based insurance score may cause your premium to be higher than a driver with good credit. The top two options for cheap car insurance for drivers with bad credit in Houston are Mercury ($804 per year) and Texas Farm Bureau ($900 per year) for minimum coverage. Review the table below for more options from other providers.
| Mercury | $67 | $83 |
| Texas Farm Bureau | $75 | $75 |
| National General | $84 | $66 |
| Progressive | $95 | $56 |
| AAA Texas | $109 | $41 |
| Allstate | $119 | $31 |
| Nationwide | $132 | $18 |
HOW TO LOWER YOUR RATE WITH BAD CREDIT
If you have poor credit, you may lower your insurance costs by finding discounts, bundling different insurance policies and comparing personalized quotes from multiple companies. Taking extra steps to improve your credit over time can also help you get a lower rate.
Cheapest Car Insurance in Houston After a Driving Offense
Insurance providers assess risk when calculating car insurance premiums, and your driving record plays a key role. Violations like speeding tickets, accidents or DUIs can significantly raise your rates. Even the cheapest car insurance for drivers with violations will be more expensive than those with clean records. We've broken down affordable providers so you can find cheap car insurance after an accident or offense.
Cheapest Car Insurance in Houston After a DUI
For drivers in Houston with a DUI on their record, finding affordable car insurance is still possible. Mercury is the cheapest car insurance provider for drivers with DUIs in Houston, with an average annual rate of $816 for minimum coverage. Discover more providers offering the best rates for drivers with a DUI in Houston below:
| Mercury | $68 | $62 |
| Progressive | $68 | $62 |
| National General | $70 | $60 |
| Texas Farm Bureau | $81 | $49 |
| State Farm | $92 | $38 |
| AAA Texas | $110 | $20 |
Cheapest Car Insurance in Houston After an Accident
Texas Farm Bureau and State Farm are the most affordable minimum car insurance providers for drivers in Houston after an at-fault accident at $732 annually. The table below provides options to find the best car insurance company for drivers for this profile residing in the city.
| Texas Farm Bureau | $61 | $86 |
| State Farm | $61 | $86 |
| National General | $95 | $51 |
| Progressive | $100 | $46 |
| Mercury | $104 | $43 |
| AAA Texas | $105 | $41 |
| GEICO | $127 | $19 |
| Allstate | $137 | $10 |
| Chubb | $146 | $0 |
EXPERT TIP: ACCIDENT FORGIVENESS
Getting into an at-fault accident will make the cost of insurance go up unless you have accident forgiveness coverage on your policy. This optional coverage stops the premium increase after your first at-fault accident. Check with insurers in Houston to see if they offer it and whether maintaining a clean motor vehicle record before the accident means you get the coverage at no cost.
— Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
Cheapest Car Insurance in Houston After a Ticket
The cheapest minimum liability car insurance company for drivers in Houston with a speeding ticket is Texas Farm Bureau, charging an average of $420 per year. State Farm is a close second at $576 annually. See the table below to find out the providers offering the best rates for drivers with a speeding ticket in Houston:
| Texas Farm Bureau | $35 | $67 |
| State Farm | $48 | $55 |
| National General | $68 | $34 |
| Mercury | $70 | $32 |
| Progressive | $75 | $28 |
| Allstate | $80 | $23 |
| AAA Texas | $93 | $9 |
Cheapest Car Insurance in Houston for Military Drivers
Military drivers in Houston — including active-duty members, veterans and their families — can often find special discounts and competitive rates on car insurance. The two cheapest car insurance providers for military drivers in Houston for minimum coverage are Texas Farm Bureau (with an average annual premium of $420) and USAA ($528 per year).
| Texas Farm Bureau | $35 | $47 |
| USAA | $44 | $38 |
| Mercury | $47 | $36 |
| State Farm | $48 | $35 |
| National General | $55 | $27 |
| Progressive | $63 | $19 |
| AAA Texas | $70 | $12 |
| Allstate | $80 | $3 |
How Much Does Car Insurance Cost in Houston?
The average cost of full coverage car insurance in Houston is $2,124 per year. Minimum coverage costs almost half this, at $1,032 per year. However, these averages are based on a 40-year-old driver with good credit and no driving violations — your rate will vary depending on your unique profile.
Houston Auto Insurance Cost by Driver Profile
Below, we break down the average costs for other driver profiles so you can compare and see if you're getting a good deal.
| Teen Drivers | No Data | $585 |
| Young Adults | $112 | $230 |
| Senior Drivers | $87 | $171 |
| Drivers With Bad Credit | $150 | $317 |
| Drivers With a Speeding Ticket | $102 | $213 |
| Drivers With a DUI | $130 | $257 |
| Drivers With an Accident | $147 | $292 |
| Military Affiliated Drivers | $83 | $171 |
How Expensive Is Car Insurance Houston?
Based on our research, minimum car insurance in Houston is around 26% more expensive than the same coverage in Texas and 25% higher for full coverage compared to the Texas average. Houston is the most expensive city in the state overall for auto insurance policies.
| Houston Avg Rate | $86 | $177 |
| Texas Avg Rate | $68 | $142 |
| vs Texas Avg Rate | $-18 | $-35 |
Car Insurance Requirements in Houston
Texas law requires car insurance policies to meet at least the minimum coverage limits for bodily injury and property damage liability. The limits are:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
An auto insurance policy provides financial protection against expenses incurred due to an accident. Liability coverage pays for damages or injuries the policyholder causes to others in an at-fault accident.
For example, you have a policy with $50,000 in bodily injury liability per person. If you cause an accident wherein a party gets injured, your insurance company will only cover up to $50,000, so if the injured incurs costs above $50,000, they are your responsibility.
If you require SR-22 insurance in Houston — a certificate of financial responsibility that demonstrates you are maintaining the required liability insurance to drive legally — the above limits are the minimum you must carry.
Cheapest Car Insurance in Houston: Bottom Line
Finding the cheapest car insurance in Houston depends on several factors, including age, driving record, vehicle type and even credit-based insurance score. Although State Farm and Texas Farm Bureau consistently offer some of the lowest rates across various driver profiles and coverages, comparing quotes from multiple providers is essential to ensure you're getting the best deal.
Cheap Houston Car Insurance: FAQ
MoneyGeek answers frequently asked questions about the cheapest car insurance in Houston, helping you find the best coverage for your needs.
What is the cheapest car insurance company in Houston, Texas?
The cheapest car insurance company in Houston, Texas, is typically Texas Farm Bureau, with average rates of $420 per year for minimum coverage and $900 per year for full coverage. However, rates vary based on age, driving history and coverage needs, so it’s best to compare quotes.
What is the average cost of car insurance in Houston, Texas?
The average cost of car insurance in Houston, Texas, is around $2,124 per year for full coverage, while minimum coverage averages approximately $1,032 per year. These rates can vary depending on your specific circumstances.
Is car insurance in Houston, Texas, expensive?
Yes, car insurance in Houston, Texas, tends to be more expensive than the state average. Factors like higher traffic congestion, accident rates and crime rates contribute to the increased premiums. Shopping around and comparing quotes can help you find more affordable options.
How We Chose the Cheapest Car Insurance in Houston, TX
To help Houston drivers find the most affordable auto insurance companies, MoneyGeek analyzed Houston auto insurance rates based on data and information from the Texas Department of Insurance and Quadrant Information Services.
Houston Driver Profile
MoneyGeek created a sample driver profile to calculate car insurance quote averages in Houston with the following characteristics:
- 40-year-old male
- 2012 Toyota Camry LE
- Clean driving record
- 12,000 miles driven annually
Certain factors — such as age, driving record, credit score and military affiliation — were adjusted to find the most suitable insurance companies for specific driver profiles.
Coverage Levels in Houston
MoneyGeek compared the most affordable insurance providers for both minimum and full coverage auto insurance policies.
The minimum coverage requirements in Texas are:
- $30,000 bodily injury liability per person
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
For a full coverage policy, we used the following coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $100,000 property damage liability per accident
- Comprehensive and collision insurance, each with a $1,000 deductible
About Mark Fitzpatrick
Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.
Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.