Overview Of Car Insurance in Houston, Taxas

In our diligent search for the best car insurance in Houston, the MarketWatch Guides Team meticulously assessed 43 different providers across various categories. Our criteria included factors such as industry reputation, customer satisfaction, and cost-efficiency. This article serves as your compass in the pursuit of budget-friendly insurance tailored to your specific driver profile.

Key Takeaways

  • In Houston, minimal coverage is the most budget-friendly car insurance choice.
  • Car insurance in Houston is notably more expensive than the national average.
  • GEICO stands out as the most affordable car insurance carrier in Houston, with an average cost of $847 for a six-month policy.

Texas Minimum Car Insurance Coverage Requirements

Houston drivers must secure car insurance that aligns with Texas state’s minimum coverage requirements. These include:

  • Bodily injury liability at $30,000 per person and $60,000 per accident.
  • Property damage liability coverage set at $25,000.
  • Personal Injury Protection (PIP) of $2,500, unless you opt out of this coverage.
  • Uninsured motorist bodily injury, offering $30,000 per person and $60,000 per accident unless declined.
  • Uninsured motorist property damage with a $25,000 limit and a $250 deductible, unless rejected.
Texas Minimum Car Insurance Coverage Requirements

Types of car insurance coverage 

Liability

  • Bodily injury (BI) liability insurance covers medical expenses for other drivers and their passengers if you’re at fault in an accident.
  • Property damage (PD) liability insurance pays for damages to other drivers’ vehicles if you’re at fault in an accident.

Collision

  • Collision insurance covers damages to your vehicle resulting from a collision with another vehicle or a road hazard.
  • Comprehensive
  • Comprehensive insurance pays for damages to your vehicle caused by animals, natural disasters, theft, and vandalism.

Medical Payments Coverage (MedPay)

MedPay covers medical bills for you and your passengers after an accident.

Personal Injury Protection (PIP)

PIP also covers medical bills for you and your passengers after an accident and may cover lost wages.

Underinsured/Uninsured Motorist Coverage (UM/UIM)

Uninsured/underinsured motorist coverage includes property damages (UMPD/UIMPD) and bodily injuries (UMBI/UIMBI) for you and your passengers in accidents involving a driver who is underinsured or lacks insurance.

How Much Is Car Insurance in Houston?

In Houston, minimum-coverage insurance costs $74 per month or $893 per year, 43% above the national average of $52 per month or $625 per year. 

How Much Is Car Insurance in Houston?

On the other hand, full-coverage car insurance in Houston averages $224 per month or $2,687 per year. This represents a 34% increase compared to the national average of $167 per month or $2,008 per year.

Why is car insurance in Houston so expensive?

Car insurance in Houston comes at a higher cost due to a combination of factors, making it expensive regardless of your specific driving profile. These factors include:

Location 

Your residential area within Houston plays a significant role in determining your insurance premiums. Crime rates, theft occurrences, and the prevalence of uninsured motorists can vary by ZIP code. Neighborhoods with higher crime rates pose more significant risks for insurance companies, leading to increased premiums for residents.

Weather Risk

Houston’s proximity to the Gulf of Mexico exposes it to extreme weather events like hurricanes, which can result in substantial financial losses for insurance companies. To mitigate these potential risks, insurers in Houston often raise their rates, leading to more expensive auto insurance. Comprehensive coverage, which includes protection against flooding, is advisable for those with newer or valuable vehicles.

Number of Drivers

Houston is a city with a high volume of drivers. With more vehicles on the road, a greater number of accidents are likely to occur. The costs associated with accident-related claims, even for safe drivers, are often distributed across the area’s drivers through increased premiums.

Uninsured Drivers

Approximately 35% of drivers in Houston are uninsured, which is one of the highest rates in the state. In the event of an accident involving an uninsured driver, you may end up shouldering the expenses for damages, further impacting insurance costs.

Cheapest Liability Car Insurance in Houston

State Farm provides the most affordable liability insurance, averaging $36 per month or $427 annually. Texas Farm Bureau Mutual ranks as the second-most budget-friendly choice in Houston, with average rates of $39 per month or $467 per year.

Cheapest Liability Car Insurance in Houston
Car Insurance CompanyMonthly AverageAnnual Average
AAA$73$882
Allstate$62$743
Farmers$202$2,418
Geico$50$597
Nationwide$77$929
Progressive$85$1,019
Redpoint$69$822
State Farm$36$427
Texas Farm Bureau$39$467
USAA$52$629

The state of Texas mandates liability coverage as the minimum requirement for all drivers. Texas law stipulates that drivers must meet or surpass the following minimums:

  • $60,000 for bodily injury liability per accident
  • $30,000 for bodily injury liability per person
  • $25,000 for property damage liability per accident

Houston auto insurance discounts

  • Multiple Policy Discount

Bundling your home and auto policies with Allstate can lead to savings on both premiums.

  • New Car Discount

If your vehicle is from the current model year or one year older and you’re the first owner, you can enjoy savings on your car insurance.

  • Teen Driver Discounts

Even young drivers can find affordable quality coverage if they meet specific criteria, including being a single, full-time student under 25 with good grades, attending school at least 100 miles away from the car’s location, and successfully completing the teenSMART driver education program.

Houston, TX Proof Of Financial Responsibility & Penalties

In Houston, Texas, every driver must possess proof of financial responsibility to legally operate a vehicle. Driving without insurance can result in various penalties, including:

  1. License Suspension: Your driver’s license can be suspended.
  2. Registration Revocation: The registration of your vehicle may be revoked.
  3. Fines: You may face monetary fines.
  4. Potential Jail Time: In some cases, driving without insurance can lead to imprisonment.

The severity of the penalty depends on the specific offense and whether you are involved in an accident. It is essential for drivers to carry proof of insurance at all times and be prepared to provide it when requested. This proof can be in the form of a physical insurance identification card or an electronic copy on your mobile device. It may be required during various situations, such as traffic stops or at accident scenes.

FAQs

1. What is the average cost of a six-month auto insurance policy in Houston?

The average cost for a six-month auto insurance policy in Houston is around $1,183, which equates to approximately $197 per month. This cost exceeds both the national and Texas state averages.

2. Which car insurance provider offers the cheapest rates in Houston?

GEICO stands out as the most affordable car insurance carrier in Houston, with an average cost of $847 for a six-month policy.

3. What is the typical cost of car insurance for teenagers in Houston?

Teenagers in Houston often face substantial insurance costs, with rates exceeding $3,500 for a six-month policy, amounting to approximately $597 per month. To mitigate these expenses, it’s advisable to add young drivers to their parents’ policies, which can significantly reduce costs.

4. Which car insurance companies provide the lowest prices for full-coverage insurance?

Our cost analysis indicates that the cheapest options for full-coverage insurance in Houston include Nationwide ($119 per month), USAA ($126 per month), Geico ($133 per month), Travelers ($133 per month), and State Farm ($238 per month). The choice of the most economical provider depends on your individual driving history and eligibility for potential discounts.

We recommend obtaining full-coverage car insurance with the following limits:

  •    $100,000 bodily injury liability coverage per person
  •    $300,000 bodily injury liability coverage per accident
  •    $100,000 property damage liability coverage

   Full coverage incorporates both comprehensive and collision coverage, which address vehicle repairs in the event of accidents or collisions. If you drive infrequently, explore pay-per-mile plans as a potentially cost-effective alternative. Therefore, it’s advisable to consult with an agent or review available plans online to determine the best fit for your needs.

6. What types of damage does car insurance cover in Houston?

Minimum liability car insurance policies cover medical expenses and property damage for other individuals involved in accidents you cause, but they may leave you financially exposed in at-fault accidents. 

Full-coverage car insurance includes collision coverage, addressing damage to your vehicle when you cause an accident or collide with a stationary object. Additionally, comprehensive insurance covers damages stemming from theft, vandalism, fire, severe weather, or non-collision incidents such as a cracked windshield.

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