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Who Has the Cheapest Car Insurance Quotes in Houston?

Who Has the Cheapest Car Insurance Quotes in Houston?

Find Cheap Auto Insurance Quotes in Houston

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The average cost of minimum coverage auto insurance in Houston is $1,284 compared to the state average of $951.

Houston, Texas’ biggest city, has insurance rates that tend to be more expensive than the state average. But you can still find savings by shopping around for your best rates. In fact, the cheapest minimum insurance policy costs $777 on average, while the most expensive minimum policy costs $2,405 on average, highlighting the importance of getting car insurance rates from multiple companies before making a decision.

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Cheapest car insurance for a minimum coverage policy in Houston

Loya had the cheapest auto insurance quotes, with an average premium of $777 — nearly half as expensive as the city average.

The next best auto insurer for Houstonians is State Farm, which is around $14 per year more expensive at an average price of $791.

Qualified former and current military members should consider obtaining a quote from USAA, which costs $526 on average and is the cheapest overall insurer.

The graph shows which companies are the cheapest for car insurance in Houston TX

Find Cheap Auto Insurance Quotes in Houston

Currently insured?
Rank
Auto insurer
Average annual rate
1Loya$777
2State Farm$791
3Chubb$956
4Geico$1,200
5Nationwide$1,313
6Allstate$1,771
7Dairyland$1,815
8MetLife$2,405
N/A*USAA$526

Given Houston’s high auto insurance prices, it might seem worthwhile and cost-effective to purchase a minimum liability policy. However, liability insurance won't protect against the cost of damage to your own vehicle. If you get into an expensive crash, you won’t be covered by the minimum policy and will have to pay out of pocket costs to repair your car.

icon of car

We recommend drivers who own new or expensive vehicles invest in additional coverage or full coverage policy.

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Cheapest company in Houston for full coverage insurance

Loya, State Farm and Geico have the cheapest minimum and full coverage policies, costing less than $2,000 annually.

Drivers who are interested in switching from a minimum policy to a full coverage policy will see the smallest price jump with Loya. Loya’s full coverage policy is $444 more expensive on average than its minimum policy.

USAA had one of the cheapest full coverage policies, averaging $1,496 per year, but the company only insures qualified military members and their family members.

Rank
Company
Average annual premium
1Loya$1,221
2State Farm$1,731
3Geico$2,633
4Chubb$2,708
5Nationwide$2,849
6Dairyland$5,014
7Allstate$5,334
8MetLife$6,191
N/A*USAA$1,496

*USAA is only available to current and former military members and their families.

A full coverage policy can cost as much as three times more than a minimum policy. Paying more for a full coverage policy means that you not only meet the state insurance requirements but you will also receive comprehensive and collision coverage.

Comprehensive

Protects against "acts of God" or damage caused by circumstances out of your control, including storms, vandalism and falling

Collision

Protects you in cases where you crash your car into another object, or your car flips over or is driven into a ditch

If you have a car that is less than 10 years old or an expensive car worth more than $3,000, full coverage is recommended. Comprehensive covers situations that are unpredictable and out of your control, while collision covers some of the most common ways your vehicle can receive damage.

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Cheapest car insurance for drivers with prior accidents

Nationwide, State Farm and Loya had the smallest premium increase for a driver with an accident history.

Nationwide, notably, has no price change following an accident causing $2,000 in property damage, according to our data. Loya and State Farm increased prices by around $300.

Depending on your car insurance company, you could see your premium costs nearly double after an accident.

With insurance premiums in Houston already higher than average, drivers with an accident history have the additional challenge of finding coverage that won’t ruin their budget. Your accident history is one of the biggest factors that will affect your quote. If you’ve had an accident, insurance companies will likely raise your rates.

Insurer
Rate before accident
Rate after accident
Diff.
Loya$1,221$1,536$315
State Farm$1,731$2,024$293
Geico$2,633$4,162$1,529
Chubb$2,708$4,589$1,881
Nationwide$2,849$2,849$0
Dairyland$5,014$6,695$1,681
Allstate$5,334$8,573$3,239
MetLife$6,191$11,559$5,368
USAA$1,496$2,255$759

*USAA is only available to military members (current and former) and their families.

You can lessen the impact of an accident on your rates by taking advantage of your insurance company’s discounts that you may already qualify for. You can receive discounts for having anti-theft gear installed in your car, wearing seatbelts or taking defensive driving courses.


Cheapest full coverage auto insurance for young drivers

Auto insurance rates are higher for young and inexperienced drivers than for older drivers. Teens and young adults are more likely to be involved in an accident because they have less driving experience and are therefore seen as more risky investments to insurance companies.

The most affordable insurance companies for the average 18-year-old driver are State Farm and Geico, which have premiums under $6,000 per year.

USAA is by far the cheapest insurer, costing under $3,000 per year. We recommend that former and current military members and their family members reach out to USAA for a quote.

Rank
Insurer
Average annual premium
1State Farm$5,316
2Geico$5,712
3Loya$6,068
4Chubb$7,098
5Allstate$10,113
6Nationwide$11,148
7Dairyland$12,026
8MetLife$20,261
N/A*USAA$2,738

*USAA is not ranked because only military members (current and former) and their families are eligible. Our sample driver is an 18-year-old man.

Insurance for young people is expensive, but you should still reach out to several insurers to receive quotes. If you find that quotes are still too expensive even after contacting multiple companies, you can:

  1. Ask about discounts. Many insurers have discounts specifically for young people in school such as the good student discount.
  2. Talk to your parents about being on their insurance policy. Staying on a combined policy with other family members will be cheaper than having two separate policies.

Best car insurance company in Houston

The best insurance company will have not only affordable prices but also high-quality customer service. That means fast processing times, 24/7 customer service and open communication. The best Texas auto insurance companies with the strongest customer service, measured by the frequency of customer complaints, are Farmers, Chubb and Travelers.

When deciding which insurer to rely on, you need to strike a balance between service and cost. Loya, which has the most affordable minimum and full coverage policy, is listed as having the worst customer service out of 14 insurers. Many customers cited a lack of returned calls or long claims resolution as a reason.

It’s crucial that you ask yourself which company will not only get you the best savings but also ensure that your problems are being taken care of.

Rank
Insurer
Market share
NAIC Index
1Farmers Insurance6.7%0.16
2Chubb0.4%0.27
3Travelers1.9%0.34
4Nationwide1.5%0.39
5Progressive13.9%0.40
Show All Rows

Insurers were selected based on market share and quote availability. Complaint index information is drawn from the National Association of Insurance Commissioners. The national median for the complaint index is 1.0, meaning companies with a lower index provide better customer service compared to the median company.

A low complaint index indicates that consumers filed complaints about a given company to Texas state regulators less frequently than others, adjusted for market share.


Cost of car insurance in Houston by neighborhood

Car insurance rates will actually vary depending on which part of Houston you live in. For instance, drivers in Addicks, one of the more inexpensive areas, have average rates that are $144 cheaper than in Sharpstown, the most expensive neighborhood. Even if you live in an expensive neighborhood, you can still find affordable auto insurance if you shop around. Getting quotes from multiple local insurers increases your chances of getting good auto insurance rates.

ZIP code
Neighborhood
Average premium cost
77002Downtown$1,324
77003Downtown / East End$1,307
77004Binz$1,353
77005West University Place$1,248
77006Neartown / Montrose$1,283
Show All Rows

Auto insurance agents in Houston and Harris County

While many insurance companies like Geico and Progressive let customers get quotes as well as purchase policies online, most companies still want customers to buy policies from agents. That means speaking to one on the phone or in person. We found several insurers and agents around the Houston area:

City
Agent and address
Baytown
  • A-Z Auto Insurance
  • 3602 Garth Road
  • A1 Auto Insurance
  • 1102 Decker Drive
Show All Rows

Minimum car insurance requirements in Texas: The 30/60/25 law

In Texas, drivers have to obey the 30/60/25 law, which requires drivers to hold a certain amount of car insurance for bodily injury liability and property damage liability coverage.

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

While these minimum amounts tend to be slightly higher than in most other states, drivers should still consider getting more coverage, such as collision and comprehensive insurance. Drivers in Texas are also allowed to purchase personal injury protection (PIP). If you don't have good health insurance to cover injuries from a car accident, you should strongly consider PIP for your policy.

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Frequently asked questions

Who has the cheapest car insurance in Houston?

The cheapest insurer in Houston is Fred Loya, with a typical price of $1,284 per year. That's about 50% cheaper than the average rate citywide.

Who has the best car insurance in Houston?

Fred Loya is the absolute cheapest option, but State Farm is nearly as affordable, and has very dependable service and wide-ranging coverage options.


Methodology

Our sample driver is a 30-year-old single man with poor credit and no accident history and drives a 2015 Honda Civic EX. Rates are for minimum policy auto insurance from the top insurance companies in Houston.

For full coverage policies, coverage included:

Coverage type
Study limits
Bodily liability$50,000 per person/$100,000 per accident
Property damage$50,000 per accident
Uninsured/underinsured motorist bodily injury$50,000 per person/$100,000 per accident
Uninsured/underinsured motorist property$50,000 per accident
Comprehensive and collision$500 deductible

ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes may be different.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.