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Cheapest Auto Insurance in Houston for 2021

Dec. 9, 2020
Auto Insurance, Insurance
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Finding cheap auto insurance in Houston can be a challenge. On average, Houston auto insurance costs $1,821 a year, NerdWallet’s 2021 rates analysis found. That’s $185 above the Texas average and $226 more than the average cost of car insurance nationwide.

 

Those average rates are based on a 40-year-old with a clean driving record, buying full coverage car insurance. Depending on your car, driving history and insurance company, you might be paying well over the average.

If you’d rather keep some of those dollars in your pocket, make sure to compare car insurance rates before you buy. We analyzed rates in the Houston metro area from 28 insurers in Texas for several types of drivers, looking for Houston auto insurance rates that were cheaper than the Texas average.

Shopping around is essential, because every driver is different, and your actual rate will vary from the prices shown here. Here are the five cheapest options we found for drivers in the Houston metropolitan area.

Cheapest for 20-year-old drivers in Houston

Drivers in their 20s may have to get a lot of quotes to find cheap car insurance. Prices can be sky-high for younger 20-somethings, but tend to come down as drivers get more experience on the road. Still, some companies routinely have better insurance rates for young drivers, so it's best to shop around to find them.

Cheapest full coverage in Houston for 20-year-olds

Drivers in Houston with clean driving records may want to consider the following companies, which had the lowest average rates:

  1. Texas Farm Bureau: $2,161 per year.
  2. Geico: $2,493 per year.
  3. State Farm: $3,148 per year.
  4. Houston General: $3,181 per year.
  5. Nationwide: $3,268 per year.

Cheapest minimum coverage in Houston for 20-year-olds

Drivers in Houston who want just the state minimum coverage may want to check with these companies, which had the lowest average rates:

  1. Texas Farm Bureau: $917 per year.
  2. Geico: $1,004 per year.
  3. Allstate: $1,129 per year.
  4. Houston General: $1,135 per year.
  5. State Farm: $1,363 per year.

Cheapest coverage for 20-year-olds with poor credit in Houston

Drivers with poor credit in Houston should look at the following insurers with the lowest average rates for minimum coverage:

  1. Texas Farm Bureau: $1,631 per year.
  2. Houston General: $1,665 per year.
  3. Allstate: $1,719 per year.
  4. Geico: $1,793 per year.
  5. Dairyland: $1,919 per year.

Cheapest for 20-year-old drivers with one at-fault crash in Houston

For drivers with a recent accident in Houston, here are the companies with the lowest average rates for minimum coverage:

  1. Geico: $1,224 per year.
  2. Texas Farm Bureau: $1,428 per year.
  3. State Farm: $1,797 per year.
  4. Dairyland: $1,798 per year.
  5. Allstate: $2,080 per year.

Cheapest insurance for 20-year-old drivers after a DUI in Houston

The cheapest auto insurance we found after a DUI is shown here, alongside the insurers’ average rates for minimum coverage.

  1. Geico: $1,340 per year.
  2. Houston General: $1,380 per year.
  3. Dairyland: $1,575 per year.
  4. Esurance: $1,721 per year.
  5. Kemper: $1,734 per year.

Cheapest for 30-year-old drivers in Houston

By the time they reach their 30s, most drivers will enjoy cheaper car insurance rates than in their teens and 20s. Still, factors like a person’s driving record and car make and model can increase prices. Drivers in their 30s can get lower rates by shopping around and taking advantage of any car insurance discounts.

Cheapest full coverage in Houston for 30-year-olds

Drivers in Houston with clean driving records may get the lowest rates from these companies:

  1. Geico: $1,202 per year.
  2. Nationwide: $1,429 per year.
  3. Texas Farm Bureau: $1,459 per year.
  4. Republic Group: $1,467 per year.
  5. State Farm: $1,536 per year.

Cheapest minimum coverage in Houston for 30-year-olds

Drivers in Houston who want their state’s minimum coverage can check with the following companies, which had the lowest average rates:

  1. Geico: $446 per year.
  2. Texas Farm Bureau: $575 per year.
  3. Houston General: $600 per year.
  4. State Farm: $614 per year.
  5. Esurance: $620 per year.

Cheapest coverage for 30-year-olds with poor credit in Houston

Drivers with poor credit in Houston should consider the following companies with the lowest average rates for full coverage:

  1. Nationwide: $1,995 per year.
  2. Geico: $2,281 per year.
  3. Houston General: $2,573 per year.
  4. Republic Group: $2,618 per year.
  5. Texas Farm Bureau: $2,709 per year.

Cheapest for 30-year-old drivers with one at-fault crash in Houston

For drivers in Houston with a recent accident, here are the lowest average rate options for full coverage:

  1. Republic Group: $1,467 per year.
  2. Geico: $1,757 per year.
  3. State Farm: $2,022 per year.
  4. Nationwide: $2,289 per year.
  5. Texas Farm Bureau: $2,337 per year.

Cheapest insurance for 30-year-old drivers after a DUI in Houston

For the cheapest auto insurance after a DUI, we found the following options for full coverage.

  1. Esurance: $1,602 per year.
  2. Geico: $1,782 per year.
  3. Republic Group: $1,883 per year.
  4. National General: $2,268 per year.
  5. Houston General: $2,283 per year.

Cheapest for 40-year-old drivers in Houston

Drivers in their 40s tend to have better insurance rates than their younger counterparts on average, but still pay more than older age groups. Shopping around for cheap car insurance quotes with multiple insurers is the best way to find lower rates. Good drivers who don’t get behind the wheel often might want to consider pay-per-mile insurance, which charges drivers by how many miles they drive.

Cheapest full coverage in Houston for 40-year-olds

Drivers in Houston with clean driving records may want to think about the following companies, which had the lowest average rates:

  1. Geico: $1,189 per year.
  2. Nationwide: $1,390 per year.
  3. Texas Farm Bureau: $1,399 per year.
  4. Republic Group: $1,403 per year.
  5. State Farm: $1,510 per year.

Cheapest minimum coverage in Houston for 40-year-olds

Drivers in Houston who want just the minimum coverage may want to check prices from these companies, which had the lowest average rates:

  1. Geico: $444 per year.
  2. Houston General: $497 per year.
  3. Texas Farm Bureau: $542 per year.
  4. Loya Insurance: $563 per year.
  5. Esurance: $609 per year.

Cheapest coverage for 40-year-olds with poor credit in Houston

Drivers with poor credit in Houston can check out the following insurers with the lowest average rates for full coverage:

  1. Nationwide: $1,938 per year.
  2. Houston General: $2,194 per year.
  3. Geico: $2,254 per year.
  4. Republic Group: $2,508 per year.
  5. Texas Farm Bureau: $2,603 per year.

Cheapest for 40-year-old drivers with one at-fault crash in Houston

For drivers with a recent accident living in Houston, here are the companies with the lowest average rates for full coverage:

  1. Republic Group: $1,403 per year.
  2. Geico: $1,732 per year.
  3. State Farm: $1,990 per year.
  4. Nationwide: $2,232 per year.
  5. Texas Farm Bureau: $2,242 per year.

Cheapest insurance for 40-year-old drivers after a DUI in Houston

The cheapest full coverage auto insurance we found for drivers with a DUI came from the following companies.

  1. Esurance: $1,531 per year.
  2. Geico: $1,766 per year.
  3. Republic Group: $1,819 per year.
  4. Houston General: $2,103 per year.
  5. National General: $2,171 per year.

Cheapest for 50-year-old drivers in Houston

Drivers in their 50s have cheaper car insurance rates than most other age groups on average. Prices will continue to drop as they inch toward their 60s and gain more driving experience. Rates can still vary depending on other factors such as a driver’s gender and location, so it’s smart to shop around to find the best rate. Our list of the best cheap car insurance companies is a good place to start.

Cheapest full coverage in Houston for 50-year-olds

Drivers in Houston with clean driving records may want to get quotes from these insurers, which had the lowest average rates:

  1. Geico: $1,112 per year.
  2. Republic Group: $1,260 per year.
  3. Nationwide: $1,305 per year.
  4. Texas Farm Bureau: $1,358 per year.
  5. Esurance: $1,407 per year.

Cheapest minimum coverage in Houston for 50-year-olds

Drivers in Houston who opt for the state minimum coverage may want to consider the following companies, with the lowest average rates:

  1. Geico: $424 per year.
  2. Houston General: $452 per year.
  3. Texas Farm Bureau: $535 per year.
  4. Loya Insurance: $563 per year.
  5. Esurance: $578 per year.

Cheapest coverage for 50-year-olds with poor credit in Houston

Drivers with poor credit in Houston can check with the following companies, which showed the lowest average rates for full coverage:

  1. Nationwide: $1,817 per year.
  2. Houston General: $1,984 per year.
  3. Geico: $2,122 per year.
  4. Republic Group: $2,249 per year.
  5. Mercury: $2,318 per year.

Cheapest for 50-year-old drivers with one at-fault crash in Houston

For drivers living in Houston with a recent accident, here are the insurers with the lowest average full coverage rates:

  1. Republic Group: $1,260 per year.
  2. Geico: $1,629 per year.
  3. State Farm: $1,937 per year.
  4. Nationwide: $2,114 per year.
  5. Texas Farm Bureau: $2,255 per year.

Cheapest insurance for 50-year-old drivers after a DUI in Houston

The cheapest auto insurance we found for drivers with a recent DUI comes from the following companies, listed with rates for full coverage.

  1. Esurance: $1,407 per year.
  2. Republic Group: $1,676 per year.
  3. Geico: $1,694 per year.
  4. Houston General: $1,949 per year.
  5. National General: $2,116 per year.

Cheapest for 65-year-old drivers in Houston

Although 65-year-olds have cheaper car insurance rates than many other age groups on average, prices will start increasing as they get older. To find cheap auto insurance for seniors, drivers in their mid-60s should make sure to shop around to find the best rate. Drivers in this age group should also take advantage of any available discounts for senior citizens.

Cheapest full coverage in Houston for 65-year-olds

Drivers in Houston with clean driving records may want to think about getting quotes from these companies, which had the lowest average rates:

  1. Texas Farm Bureau: $1,149 per year.
  2. Geico: $1,149 per year.
  3. Republic Group: $1,244 per year.
  4. Nationwide: $1,280 per year.
  5. Houston General: $1,309 per year.

Cheapest minimum coverage in Houston for 65-year-olds

Drivers in Houston who want just the state minimum coverage may want to check with these insurers, which had the lowest average rates:

  1. Houston General: $438 per year.
  2. Geico: $467 per year.
  3. Texas Farm Bureau: $470 per year.
  4. Chubb: $508 per year.
  5. Loya Insurance: $563 per year.

Cheapest coverage for 65-year-olds with poor credit in Houston

Drivers with poor credit in Houston can look at the following companies with the lowest average rates for full coverage:

  1. Nationwide: $1,779 per year.
  2. Houston General: $1,837 per year.
  3. Texas Farm Bureau: $2,124 per year.
  4. Geico: $2,156 per year.
  5. Republic Group: $2,233 per year.

Cheapest for 65-year-old drivers with one at-fault crash in Houston

For drivers with a recent accident living in Houston, here are the companies with the lowest average rates for full coverage:

  1. Republic Group: $1,244 per year.
  2. Geico: $1,702 per year.
  3. State Farm: $1,834 per year.
  4. Texas Farm Bureau: $1,921 per year.
  5. Nationwide: $2,081 per year.

Cheapest insurance for 65-year-old drivers after a DUI in Houston

The cheapest auto insurance we found after a DUI came from the following companies, shown with their average rates for full coverage.

  1. Esurance: $1,590 per year.
  2. Republic Group: $1,660 per year.
  3. Geico: $1,774 per year.
  4. Houston General: $1,887 per year.
  5. State Farm: $2,249 per year.

Cheapest for military families

If you’re an active member of the military or a veteran — or have an immediate family member who is — chances are you’ll get a relatively cheap rate with USAA, a company that isn’t available to the general public.

Because of that restriction, USAA isn’t ranked with the others, but it was among the cheapest five auto insurance options for 35 of the 40 driver profiles we examined.

» MORE: Best car insurance for veterans and military

Minimum car insurance requirements in Houston

With rare exceptions (see below), Houston drivers are required to carry liability insurance. You’ll often see the minimum requirements written in shorthand as 30/60/25. This means in Texas you must buy at least:

  • $30,000 bodily injury/death liability coverage per person.
  • $60,000 bodily injury/death liability coverage per accident.
  • $25,000 property damage liability coverage per accident.

If you cause an accident, liability insurance kicks in to pay for others’ injury treatment and property damage, up to your limits. It doesn’t pay for your own injuries or vehicle repairs.

In many cases, the legal minimum insurance won’t be enough to cover costs if you cause an accident. If you total someone’s luxury car, for example, their repair costs could easily exceed a $25,000 ceiling. Any damage that surpasses your limits has to come out of your own pocket. That’s why for most drivers it’s wise to select higher limits, such as 100/300/50.

Auto insurance alternatives in Houston

If you’re having trouble getting insured in Houston, look into the Texas Automobile Insurance Plan Association. It can help connect you with a company that will cover you.

There are legally acceptable alternatives you can choose to prove your financial responsibility, including:

  • Filing a surety bond with the Department of Public Safety. You must file the bond jointly with at least two people, called “sureties,” who own property in the state. The property offered in the bond must be worth at least as much as the insurance amounts mandated under the state’s minimum liability car insurance requirements.
  • Making a $55,000 deposit with the state comptroller in either cash or securities.
  • Making a $55,000 deposit with the county judge where your vehicle is registered, in either cash or cashier’s check.
  • Qualifying for a certificate of self-insurance through the Department of Public Safety. You promise to pay up to the same amount covered by minimum liability insurance requirements if you cause an accident with one of your cars. This option applies if you own 25 vehicles or more.

For more help finding cheap car insurance in Houston, try NerdWallet’s car insurance comparison tool.

» MORE: The best cheap renters insurance in Texas

Methodology

For our “good driver” profile, NerdWallet averaged insurance estimates for single male and female drivers with good credit and no tickets or violations. The analysis included 5-10 of the largest insurance companies in the Houston-The Woodlands-Sugar Land, Texas, Metropolitan Statistical Area as defined by the U.S. Office of Management and Budget. The MSA encompasses nine Texas counties:

  • Austin County.
  • Brazoria County.
  • Chambers County.
  • Fort Bend County.
  • Galveston County.
  • Harris County.
  • Liberty County.
  • Montgomery County.
  • Waller County.

Smaller insurers were also included when rates were available. Liberty Mutual and its subsidiaries were excluded from our analysis as rates were not available.

For full coverage policies, we used the following coverage limits:

  • $100,000 bodily injury liability per person.
  • $300,000 bodily injury liability per accident.
  • $50,000 property damage liability per accident.
  • $100,000 uninsured motorist coverage per person.
  • $300,000 uninsured motorist coverage per accident.
  • Collision coverage with a $1,000 deductible.
  • Comprehensive coverage with a $1,000 deductible.

Some policies include additional coverages at the insurer’s discretion.

  • We used a 2018 Toyota Camry L for all drivers and assumed 12,000 annual miles driven.
  • We analyzed rates for drivers 20 to 80 years old in five-year increments.

We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.
  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
  • For drivers with one at-fault crash, we added a single at-fault crash that happened six months ago, resulting in $10,000 in property damage and no bodily injury claim.
  • For drivers with a DUI, we added a single drunken driving violation that happened six months ago.

These rates are estimates generated through Quadrant Information Services and do not reflect insurers’ proprietary pricing methods. Your own rates will be different.

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