What is the Average Cost of Car Insurance in Houston?

Houston is the most populous city in Texas, and the fourth largest in the United States. With 2,325,502 residents and a tourism industry that draws over seven million more people a year, it may sound crowded but the city itself encompasses 671 square miles and is the eighth-largest city area in the country.

According to the US Census, there are almost 1.3 million vehicles either owned or rented within the city limits and most people drive their own vehicle to work as opposed to using public transportation. With that many people and vehicles in that big an area, it’s no surprise that the mean travel time to their place of employment for Houston residents is 27 minutes each way. That means each adult in Houston spends at least an hour a day on the road, equaling five hours a week or 10 hours a week for 2-vehicle households, so adequate vehicle insurance is a high priority for those who live and work in the city of Houston.

The key word here is adequate: if you’re looking for vehicle insurance in Texas, you may be confused trying to find the minimum amount of coverage you need, the extra coverages you might be wise to opt for, and the best companies when it comes to both coverage and price. Here you’ll find an overview on the best vehicle insurance coverage and rates in Houston.

What are the Insurance Requirements in Houston?

In Texas, the minimum car insurance requirements are:

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

These amounts refer to the amount of money your insurance will pay for others’ property damage and physical injuries if you are found to be at fault in a vehicular accident. While it sounds like a lot, you should keep in mind both the current cost of vehicles and the current cost of emergency treatment or hospitalization, as either can easily end up being much higher than your insurance will pay.

Another point to examine while purchasing your vehicle insurance is extra coverage. While not all extras are necessary for everyone, you may at least consider opting to add theft coverage. Why theft coverage? Because according to the National Insurance Crime Bureau (NICB) Houston has 24,481 vehicle thefts in 2018, which is one per every 350 residents and is ranked 57 in vehicle theft nationwide.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Houston by Insurer

Although each insurance company determines your personal vehicle insurance rate by age, driving experience, credit score, and a wide range of other factors, some companies are consistently cheaper than others. The following chart is based on average costs per driver in the Houston area.

Use this guide to compare auto insurance quotes from the best companies.

Low Cost Auto Insurance for Bad Credit in Houston

One of the key factors used in calculating your insurance rate is your credit score, and if you have bad credit your rates will be considerably higher. Here are the best vehicle insurance companies for drivers with less than stellar credit scores.

Learn how your credit score determines your car insurance premiums.

Full Coverage Vs. Liability Coverage

What is Liability Only Insurance Coverage?

Liability insurance covers the possible cost of damage you cause to others while driving. This could mean the cost of medical care for those injured in an accident or repair costs of the damage you have caused to other vehicles.

With liability insurance, there are 3 key numbers: injury coverage per person, coverage for total injury per accident, and property damage coverage per accident. Each state has different requirements for car insurance minimums. In a policy that has coverage for 15/30/25 means $15,000 per injured person, with a maximum of $30,000 for all the people who are injured in an accident, and $25,000 in coverage for property damage.

What Full Coverage Covers

While liability insurance covers other people and vehicles in an accident where you were the one considered at fault, full coverage insurance can also cover you and your vehicle as well. Full coverage includes two different types of coverage combined into one insurance plan; comprehensive insurance and collision.

Comprehensive coverage is for the damage of other vehicles that are outside of driving situations such as weather damage, fire, or theft.

Collision coverage is basically to pay for damage that you caused while driving such as an accident with another vehicle, hitting an object, or driving off the road.

The difference between collision and comprehensive is, if a tree were to fall on your car and damage it, comprehensive insurance would cover it, however, if you were driving and hit a tree causing damage to your car, then it would be covered by collision.

What are the Major Differences Between Full Coverage and Liability?

The main difference between having liability and full coverage insurance is that liability insurance will only pay for injuries to others and their damages that resulted from an accident where you were at fault, where full coverage will not only pay for the damages and injuries done to others but will also cover your injuries and auto damages that resulted from an accident that you caused as well.

Average Annual Car Insurance Rates in Texas by City

Additional cities in Texas you can check out.


El Paso

Ways to Obtain a Lower Cost Auto Insurance Policy

There are many ways that you can save on auto insurance in Houston:

  • Shop around:

    It could not be clearer. The smallest difference in our driver demographics between the most expensive and the bargain insurance rate was over $1,100 yearly. It is a good idea to shop around yearly, especially if your policy rate goes up, since insurance carriers can change their rates whenever they feel it’s necessary.

  • Avoid accidents and moving violations:

    These will increase your rate, sometimes substantially.

  • If you have an accident or moving violation:

    It is often a good idea to spend a little bit of money now and attend traffic school, rather than have these violations stay on your driving record for years.

  • Insure your home and car with the same company:

    If you can insure your home or apartment and your vehicles with the same insurance carrier, you can also save money, as there is often a discount for bundling multiple services.

  • Look for discounts :

    Often, there are good driver rates for those with no moving violations or student driver rates. Sometimes, your insurance agent will not tell you about these discounts, but you can find them online.

  • Rates are influenced by the type of vehicle :

    Insurance rates are much higher if you carry full liability and have a vehicle you are paying off. Sometimes it is best to buy a new car and just maintain it thoroughly. Eventually, you will have no car payment, and you can eventually drop the collision insurance. When cars get to a certain age, you will not receive enough back from the insurance company if your car is totaled in an accident to justify buying the collision insurance each year.

Use this guide to find discounts here.

Houston, TX Car Insurance Premiums Cost – What Affects Your Rates?

There are quite a few factors included in determining your cost for auto insurance such as:

  • Your location
  • Age
  • Number of violations you had in the past
  • Gender
  • Whether you are married or single
  • Your credit score
  • The plan you are seeking
  • The deductible
  • Daily miles you drive
  • The make, model, and year of the vehicle to be insured
  • Whether you live alone or with others
  • Your occupation

How to tickets and accidents affect your driving record and insurance?

Helpful Houston, Texas Vehicle Resources:

Live Traffic Accidents by City

DMV in Texas (Find Locations, Vehicle Registration, Titles and Insurance Info)

Uber in Houston
Lyft in Houston TX

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