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Last updated: June 5, 2025
Best Cheap Car Insurance in Houston, Texas
Texas Farm Bureau has the cheapest average rates in Houston at $1,485 for full coverage and $578 for minimum coverage.
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Key Takeaways
- Houston is one of the most expensive cities in Texas for car insurance. On average, full coverage in the city costs $2,580 annually and minimum coverage is $938 annually.
- Texas Farm Bureau, USAA and State Farm offer the cheapest average rates in Houston. They also rank well for customer satisfaction in Texas.
- The cheapest company for you will vary based on unique factors like your vehicle, chosen coverage and driving record. Compare quotes from at least three providers to find the best insurance.
Cheapest Full Coverage Car Insurance in Houston
Texas Farm Bureau has the cheapest rates in Houston, 42 percent cheaper than the city average. State Farm and USAA also have full coverage rates well below average.
| Company | Annual Houston Average | Monthly Houston Average |
|---|---|---|
| Texas Farm Bureau | $1,485 | $124 |
| State Farm | $1,659 | $138 |
| USAA | $1,777 | $148 |
| Nationwide | $1,944 | $162 |
| GEICO | $1,951 | $163 |
| Allstate | $2,658 | $222 |
| Progressive | $3,007 | $251 |
| Houston average | $2,580 | $215 |
| Texas average | $2,353 | $196 |
| United States average | $2,399 | $200 |
Cheapest Minimum Coverage Car Insurance in Houston
For those looking for minimum liability coverage in Houston, Texas Farm Bureau also has the cheapest rates — 38 percent below the city average. Again, USAA and State Farm are not far behind.
| Company | Annual Houston Average | Monthly Houston Average |
|---|---|---|
| Texas Farm Bureau | $578 | $48 |
| USAA | $657 | $55 |
| State Farm | $662 | $55 |
| GEICO | $774 | $65 |
| Allstate | $967 | $81 |
| Progressive | $983 | $82 |
| Houston average | $938 | $78 |
| Texas average | $864 | $72 |
| U.S. average | $635 | $53 |
Best Cheap Providers in Houston
Texas Farm Bureau, State Farm and USAA don’t just have cheap average rates in Houston — they also happen to rank highly in a number of third-party measures of customer satisfaction. Here’s a summary of how they stack up:
Texas Farm Bureau
- Why we chose it: Texas Farm Bureau is a small, regional provider that pairs cheap rates with top-rated customer service. It scored highest in Texas for customer satisfaction in J.D. Power’s recent study (after only USAA, whose availability is limited). The company offers several discounts that can help customers save, including a telematics discount, which you won’t find with all small providers.
- Who it’s best for: Customers looking for standard coverages, including rental reimbursement and roadside assistance and those planning to bundle home and auto. Note that Texas Farm Bureau doesn’t advertise optional add-ons you might find with a major company, such as a vanishing deductible.
| Category | Texas Farm Bureau Average | Difference From Houston Average |
|---|---|---|
| Full coverage | $1,485 | -42% |
| Minimum coverage | $578 | -38% |
State Farm
- Why we chose it: State Farm scored above-average on multiple J.D. Power studies, suggesting customers in Texas are satisfied with its customer service and claims practices. It offers additional coverages, including rideshare coverage for Lyft and Uber drivers.
- Who it’s best for: State Farm is a good option for those who want the offerings of a major company with the service of a local agent. However, note that State Farm does not offer fully online quotes — you must complete your policy purchase over the phone.
| Category | State Farm Average | Difference From Houston Average |
|---|---|---|
| Full coverage | $1,659 | -36% |
| Minimum coverage | $662 | -28% |
USAA
- Why we chose it: Catering exclusively to the military community, USAA is known for its cheap rates and excellent service. It consistently scores highly on J.D. Power studies (although technically it doesn’t qualify to rank, due to its eligibility restrictions) and offers cheap rates in Texas, including for those with violations and households with teens. Members get access to a number of other financial services in addition to insurance, including competitive auto loans.
- Who it’s best for: Anyone who qualifies, including active service members, veterans and their families. Note that USAA did not score as well on CRASH Network’s Insurer Report Card, so customers may have a better experience working with
RELATED:
Check out our in-depth comparison of USAA vs. State Farm.
| Category | USAA Average | Difference From Houston Average |
|---|---|---|
| Full coverage | $1,777 | -31% |
| Minimum coverage | $657 | -30% |
Summary
| Report | What It Measures | Texas Farm Bureau Score | State Farm Score | USAA Score |
|---|---|---|---|---|
| J.D. Power Auto Insurance Study – Texas1 | Customer satisfaction regionally, based on responses from over 40,000 customers. | 686 out of 1,000 – 41 points above average | 654 out of 1,000 – 9 points above average | 710 out of 1,000 – 65 points above average* |
| CRASH Network Insurer Report Card2 | Claims handling and payment practices, based on an annual survey of collision repair shops. | B- | C- | D+ |
| J.D. Power Claims Satisfaction Study3 | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim. | Not rated, likely due to size (national survey) | 710 out of 1,000 – 13 points above average | 726 out of 1,000 – 29 points above average |
| NAIC Complaint Index | Consumer complaints relative to market share. The lower the score, the better — 1 is considered average. | 0.73 | 2.13 | 2.74 |
*USAA technically doesn’t qualify to rank on J.D. Power studies, due to its eligibility restrictions.
Honorable mentions
AAA
AAA has multiple regional clubs that sell auto insurance in Texas, including AAA Texas and Auto Club of Southern California (don’t let the name fool you). AAA Texas made the Honor Roll in CRASH Network’s Report Card and Auto Club of Southern CA scored highly in J.D. Power’s Auto Insurance Study for Texas. Average pricing data isn’t available, so get a quote to see if your rate is competitive.
GEICO
GEICO also offers cheap rates in Houston and scored above average in J.D. Power’s Auto Insurance Study for Texas. It offers some of the cheapest rates in the country, including for drivers with speeding tickets or low credit.
How many car accidents happen in Houston?
In 2023, Houston saw around 67,644 car accidents, including 274 fatal crashes that caused 290 deaths — a slight drop from the previous year. The city has averaged nearly 300 traffic deaths annually over the past five years.
There were also over 1,300 severe crashes in 2023, resulting in more than 1,600 serious injuries. Minor crashes accounted for thousands more, while the majority of incidents — over 42,000 — resulted in no injuries.4
DRIVE SAFE:
The stretch of Interstate 45 that runs through Houston is one of the most dangerous roads in the city, in particular the I-45 feeder road at Chartres Street and the intersection near I-45 and Greens Road.5 Drive carefully and defensively in these areas. You can protect yourself financially by increasing your liability limits and purchasing full coverage, including comprehensive and collision.
Minimum Auto Insurance Requirements in Texas
Texas is an at-fault state, meaning the driver who caused the accident is financially responsible for any injuries and damages. All Texas drivers must carry liability coverage, with the following limits at a minimum:
- Bodily injury liability: $30,000 per person/$60,000 per accident
- Property damage liability: $25,000 per accident
Insurers are required to offer uninsured/underinsured motorist and personal injury protection coverage in Texas, which must be rejected in writing.
FAQs
Why is Houston car insurance so expensive?
Houston car insurance tends to be more expensive due to factors like high traffic congestion, a higher risk of accidents, higher rates of theft, frequent severe weather events and a larger population, all of which contribute to a higher likelihood of claims.
How can I lower my car insurance rates in Houston?
To lower your car insurance rates in Houston, consider comparing quotes from multiple providers — at least three — to find the best deal. You can also increase your deductible, bundle your policies or ask about discounts like safe driving or vehicle safety features. Additionally, maintaining a good credit score and driving a car with lower repair costs can help reduce premiums.
Who has the cheapest full coverage auto insurance in Houston?
Texas Farm Bureau has the cheapest full coverage insurance in Houston, with an average rate of $124 monthly. State Farm ($138 monthly) and USAA ($148 monthly) also have cheap full coverage rates in Houston.
Methodology
We analyzed average premiums for full and minimum coverage in Houston, Texas for good drivers with good credit. Full coverage averages use the following limits:
- Bodily injury liability: $100,000 per person/$300,000 per accident
- Property damage liability: $50,000 per accident
- Uninsured and underinsured motorist bodily injury: $50,000 per person/$100,000 per accident
- Comprehensive and collision: $500 deductible
Managing Editor & Industry Analyst
Maya Afilalo holds over 10 years of professional experience in writing, communications, and research, which she leverages to provide accurate and reliable information to empower consumers. In addition to overseeing content production, Maya has herself written many articles on auto insurance costs, company comparisons, state laws and requirements, and other topics. She is committed to helping consumers navigate the complex world of car insurance with clarity and confidence. Maya holds a bachelor’s degree from the University of Pennsylvania and a master’s from North Carolina State University.
Citations
Trust Emerges as Top Driver of Customer Satisfaction with Auto Insurance as Prices Continue to Surge, J.D. Power Finds. J.D. Power. (2024, Jun 5).
https://www.jdpower.com/business/press-releases/2024-us-auto-insurance-study2024 CRASH Network Insurer Report Card. CRASH Network. (2024).
https://www.crashnetwork.com/irc/Auto Insurance Repair Cycle Times Improve but Price Increases Take a Toll, J.D. Power Finds. J.D. Power. (2024, Oct 29).
https://www.jdpower.com/business/press-releases/2024-us-auto-claims-satisfaction-studyHouston Car Accident Statistics. Merritt & Merritt Law Firm. (2024).
https://www.merrittandmerritt.com/blog/houston-car-accident-statistics/Most Dangerous Highways and Roads in Houston. J.D. Silva & Associates. (2023, Aug 14).
https://jdsilvalaw.com/blog/car-accidents/houston-highways/
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