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Erin Gobler is a personal finance writer and journalist who has been writing for Compare.com since 2023. With more than five years of experience personal finance experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more.
Her work has been featured in major publications like Business Insider, Fox Business, and Time.
Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
The average Texas driver pays around $235 per month for car insurance, according to our research, but Houston drivers often pay much more than the statewide average. In fact, you can expect to pay around $243 per month for car insurance if you live within Houston city limits — and those numbers will only continue to rise, according to a recent report from Insurify.
That said, savvy shoppers can still find a much better deal with the right insurance company. Our research found that State Farm and GEICO have some of the cheapest average rates in the area — as low as $53 per month.
We’ll cover everything you need to know to find cheaper car insurance in Houston, including the cheapest companies for a variety of driver types and a few tips on how to save even more.
The average auto insurance premium in Houston is about $53 per month, but yours could be higher or lower depending on several factors.
State Farm, GEICO, and Allstate often offer the lowest rates to Houston drivers.
Texas law requires all Houston drivers to purchase at least $30,000 per person and $60,000 per accident of bodily injury liability coverage and $25,000 in property damage liability.
While the average rate for auto insurance in Houston is $243 per month, many insurance companies offer policies for well below the citywide average.
The table below features Houston’s cheapest car insurance companies and their average monthly rates, according to Compare.com data.
Insurance Company ▲▼ | Average Monthly Premium ▲▼ |
|---|---|
| State Farm | $53 |
| GEICO | $58 |
| Allstate | $75 |
| Mile Auto | $81 |
| USAA | $95 |
| Nationwide | $119 |
| Mercury | $122 |
| Root | $122 |
| Progressive | $149 |
| Safeco | $153 |
| Dairyland | $155 |
| Chubb | $162 |
| National General | $176 |
| Clearcover | $176 |
| Direct Auto | $181 |
| The General | $182 |
| 21st Century | $186 |
| Bristol West | $186 |
| AssuranceAmerica | $190 |
| Elephant | $208 |
| GAINSCO | $231 |
| Liberty Mutual | $297 |
We found that State Farm has the cheapest average rates of any Houston insurer, with monthly policies averaging just $53 per month — much lower than the citywide average.
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.
Compare personalized quotes from Houston’s top insurers.
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No single insurance company is the best for every driver. At the end of the day, each insurer has its own formula to calculate rates, so just because a friend or neighbor gets great rates from one company doesn’t mean you’ll necessarily find the same great deal.
And since every driver has their own preferences when it comes to price, customer service, and other important factors, it’s important to take a more holistic approach when shopping for car insurance. With that in mind, we’ve analyzed dozens of Houston insurance companies to see how each fares in important factors — average rates, customer satisfaction scores, discount opportunities, and more.
These three insurers make up our best auto insurance companies in Houston.
Average premium: $203 per month
Compare.com Rating: 4.59 out of 5
Variety of coverage perks
Offers new car replacement
Highly rated RightTrack program
Quotes not available online
Below-average claims satisfaction
High number of customer complaints
Finding affordable car insurance with an imperfect driving record can be challenging. Safeco currently offers some of the cheapest insurance in Houston for drivers with spotty driving records — people who have at least one ticket or at-fault accident on their record.
Average Premium: $81 per month
Compare.com Rating: 4.65 out of 5
Incredibly affordable rates
Teen-focused discounts
Highly rated mobile app
No local agents
Middle-of-the-road customer satisfaction scores
Poorly rated claims service
Age is one of the most important factors when it comes to car insurance rates, and teens and young drivers pay the highest rates of any age group. But fortunately for Houston teens, GEICO offers affordable coverage that’s well below the whopping $299 per month the average teen pays.
Not only that, but GEICO also offers an array of discounts specifically for young drivers, including savings opportunities for getting good grades and taking a driver’s education course.
Average premium: $112 per month
Compare.com Rating: 2.98 out of 5
Rates based on mileage
30%–40% savings for most drivers
Few privacy concerns
Few industry ratings
Limited coverage options
Confusing claims process
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 great rates for people who work from home in Houston, with an average liability-only quote of $82 per month, according to our data.
Compare personalized quotes from Houston’s cheapest companies.
If you want the cheapest car insurance possible, state-minimum liability policies are the most affordable car insurance around. Liability-only insurance provides both bodily injury and property damage liability coverage, but it doesn’t include any protection for your own vehicle.
The chart below features the five cheapest companies in Houston for basic liability coverage, according to Compare.com data.
While liability-only policies are a low-budget choice for car insurance, many experts recommend purchasing additional coverage if you can afford it. With that in mind, let’s take a look at which Houston insurers offer the most affordable full coverage.
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.
The chart below highlights which Houston insurers currently offer the most affordable full-coverage policies to area drivers.
While the companies featured above are a great starting point if you’re looking for affordable coverage, your personal rates will likely come down to other factors, such as your age and driving record. With that in mind, let’s dive a little deeper.
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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.
The table below highlights exactly how average rates change in Houston depending on your driving record.
Driving Record ▲▼ | Citywide Average Monthly Premium ▲▼ | Cheapest Insurer ▲▼ | Cheapest Insurer’s Average Monthly Premium ▲▼ |
|---|---|---|---|
| Clean record | $243 | State Farm | $53 |
| Speeding ticket | $331 | State Farm | $67 |
| At-fault accident | $349 | State Farm | $71 |
| DWI | $398 | State Farm | $87 |
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).
State Farm offers the cheapest insurance for drivers with speeding tickets, with an average monthly quote of $67.
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.
State Farm offers the cheapest insurance for Houston drivers after an accident, with an average monthly quote of $71 per month.
No infraction affects car insurance rates more than a DUI. In fact, our data shows that the average American driver experiences a rate increase of more than 60% after a DUI conviction.
Still, that doesn’t mean you’re stuck with sky-high rates. We found that State Farm offers the best prices for Houston drivers with a DUI, at just $87 per month.
As we’ve mentioned, your age can play an important role in determining your 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, in the table below.
Age Group ▲▼ | Citywide Average Monthly Premium ▲▼ | Cheapest Insurer ▲▼ | Cheapest Insurer’s Average Monthly Premium ▲▼ |
|---|---|---|---|
| Teens | $456 | State Farm | $97 |
| 40s | $220 | State Farm | $48 |
| Seniors | $191 | State Farm | $40 |
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.
That said, Houston teens can still find a great deal from companies like State Farm. It offers the cheapest average premiums for this age group — just $97 per month
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 you reach age 70.
Still, senior drivers get some of the best rates around. And in Houston, those rates tend to come from companies like State Farm. Its average rate for drivers in their 60s is just $40 per month, according to our research.
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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 buying both policies from 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.
Compare personalized quotes from the cheapest insurers in Houston.
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:
Coverage ▲▼ | Minimum Requirements ▲▼ |
|---|---|
| Bodily injury liability | $30,000 per person, $60,000 per accident |
| Property damage liability | $25,000 per accident |
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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.
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.
On average, you can expect to pay around $53 per month in Houston. But keep in mind that the cost of car insurance depends on your driving history, personal factors, and insurance company.
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.
The three cheapest insurance companies in Houston are State Farm, GEICO, and Allstate. That said, a different company may be the cheapest for you based on your driving history and personal characteristics.
J.D. Power, “2024 U.S. Auto Insurance Study,” accessed January 13, 2025.
Harris County Justice Courts, “Information about Traffic Cases,” accessed January 13, 2025.
Insurance Information Institute, “What determines the price of an auto insurance policy?,” accessed January 13, 2025.
Texas Department of Insurance, “Automobile insurance guide,” accessed January 13, 2025.
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates 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 rates listed in this article have been collected 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 readers with insights into how auto insurance companies determine their premiums.
Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
Learn more about us, our team, and what makes us tick.
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Erin Gobler is a personal finance writer and journalist who has been writing for Compare.com since 2023. With more than five years of experience personal finance experience, Erin has covered topics such as investing, credit cards, mortgages, insurance, and more.
Her work has been featured in major publications like Business Insider, Fox Business, and Time.
Erin received her bachelor’s degree from the University of Wisconsin-Oshkosh in 2013, studying journalism and political science. She also received a certificate of financial planning from Boston University in 2022.
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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