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Last updated: August 15, 2025Best Cheap Car Insurance in Houston in 2025
Texas Farm Bureau has the cheapest average rates in Houston at $1,485 for full coverage and $578 for minimum coverage.
Cheapest
Best Major Insurer
Editor's Rating: 4.9/5
Average Cost in Houston
- Full Coverage Monthly: $138
- Minimum Coverage Monthly: $55
Best for Military and Veterans
Editor's Rating: 5/5
Average Cost in Houston
- Full Coverage Monthly: $148
- Minimum Coverage Monthly: $55
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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.
Our Top Picks for the Best Cheap Auto Insurance in Houston
- Cheapest: Texas Farm Bureau
- Best Major Insurer: State Farm
- Best for Military and Veterans: USAA
- Best for Customer Satisfaction: AAA
- Best for Online Quotes: GEICO
Compare the Best Cheap Auto Insurance in Houston
| Company | Full Coverage Annual Avg. | Minimum Coverage Annual Avg. | Texas Customer Satisfaction |
|---|---|---|---|
| Texas Farm Bureau | $1,485 | $578 | Below average |
| State Farm | $1,659 | $662 | Above average |
| USAA | $1,777 | $657 | Above average |
| AAA | Data unavailable | Data unavailable | Above average |
| GEICO | $1,951 | $774 | Above average |
| Houston | $2,580 | $938 | – |
Detailed List of the Best Cheap Providers in Houston
1. Cheapest - Texas Farm Bureau
What We Like Most:
- Cheapest Houston rates
- Regional provider
- Well-rated for claims satisfaction
Why we chose it
Texas Farm Bureau is a small, regional provider that pairs cheap rates with local customer service. While it scored below average in Texas for customer satisfaction in J.D. Power’s recent study, it received a B- on the CRASH Network Insurer Report Card and a low complaint score from the National Association of Insurance Commissioners. 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.
Houston Pricing
| Texas Farm Bureau | Monthly | Annual | Difference From Houston Average |
|---|---|---|---|
| Full coverage | $124 | $1,485 | -59% |
| Minimum coverage | $48 | $578 | -21% |
2. Best Major Insurer - State Farm
What We Like Most:
- Local Houston agents
- Nationally-known insurer
- Good telematics discount
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.
Houston Pricing
| State Farm | Monthly | Annual | Difference From Houston Average |
|---|---|---|---|
| Full coverage | $138 | $1,659 | -36% |
| Minimum coverage | $55 | $662 | -28% |
3. Best for Military and Veterans - USAA
What We Like Most:
- Highly rated in Texas
- Military/veteran-specific coverage
- Cheap rates
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 a direct repair (“in-network”) body shop.
>> RELATED: Check out our in-depth comparison of USAA vs. State Farm.
Houston Pricing
| USAA | Monthly | Annual | Difference From Houston Average |
|---|---|---|---|
| Full coverage | $148 | $1,777 | -31% |
| Minimum coverage | $55 | $657 | -30% |
4. Best for Customer Satisfaction - AAA
What We Like Most:
- Excellent customer satisfaction in Texas
- Best in class roadside assistance
- Additional DMV services available
Why we chose it
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.
Who it’s best for
Average pricing data isn’t available, so get a quote to see if your rate is competitive. That said, its rates tend not to be the cheapest, so it’s a good option if you prioritize satisfaction over the absolute lowest cost.
5. Best for Online Quotes - GEICO
What We Like Most:
- Easy online quotes and policy management
- Above-average satisfaction in Texas
- Cheaper after a speeding ticket
Why we chose it
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.
Who it’s best for
GEICO is a good choice for drivers who prefer to manage their policies digitally. In addition to drivers with speeding tickets, it tends to have competitive rates for younger drivers (including college students) and drivers with low credit.
Houston Pricing
| GEICO | Monthly | Annual | Difference From Houston Average | |
|---|---|---|---|---|
| Full coverage | $163 | $1,951 | -24% | |
| Minimum coverage | $65 | $774 | -17% |
| Company | J.D. Power Auto Insurance Study – Texas1 | CRASH Network Report Card2 | J.D. Power Claims Satisfaction3 | NAIC Complaint Index4 |
|---|---|---|---|---|
| Texas Farm Bureau | 628 | B- | Not rated, likely due to size (national survey) | 0.73 |
| State Farm | 645 | C- | 710 | 2.13 |
| USAA | 732 | D+ | 726 | 1.31 |
| AAA | 655 (AAA of Southern Calif.) | B (AAA Texas) B (AAA of Southern Calif.) | 706 (AAA of Southern Calif.) | N/A |
| GEICO | 651 | C- | 692 | 1.58 |
| Average | 640 (out of 1,000) | C+ | 697 (out of 1,000) | 1 |
| What the study measures | Customer satisfaction regionally, based on responses from over 40,000 customers | Claims handling and payment practices, based on an annual survey of collision repair shops | Satisfaction with the claims process, based on responses from nearly 10,000 customers who recently filed a claim | Consumer complaints relative to market share. The lower the score, the better |
*USAA technically doesn’t qualify to rank on J.D. Power studies, due to its eligibility restrictions.
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 |
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.5
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.6 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
- Price (40%): 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
- Claims Handling (25%): A good claims handling process from an auto insurer is prompt, transparent, and efficient, with clear communication throughout, fair evaluation of damages, and timely payment or resolution. We assess claims practices through sources like the CRASH Network Insurer Report Card and J.D. Power’s Claims Satisfaction Report, and financial strength from sources like AM Best and S&P Ratings. Real-life customer experiences are included when available.
- Customer Experience (25%): We evaluate the ease of the customer journey, from getting a quote and purchasing a policy to making changes or accessing documents. We consider the availability and quality of both online and agent interactions, as well as the functionality of the company’s website and mobile app. Our sources include J.D. Power studies, the NAIC complaint index, BBB ratings, and app store reviews.
- Coverage Options (10%): We review each company’s coverage offerings and value providers with options beyond the state required minimums, like accident forgiveness, gap coverage, rideshare coverage, and more.
Read more about our ratings and methodology.
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
It’s Now a Buyer’s Market for Auto Insurance, J.D. Power Finds. J.D. Power. (2025, June 10).
https://www.jdpower.com/business/press-releases/2025-us-auto-insurance-studyTop Rated U.S. Car Insurance Companies for 2025. Crash Network. (2025).
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-studyConsumer Insurance Search Results. NAIC. (2025).
https://content.naic.org/cis_refined_results.htmHouston Car Accident Statistics (Updated). Merritt & Merritt Attorneys. (2024, Oct 26).
https://www.merrittandmerritt.com/blog/houston-car-accident-statistics/Most Dangerous Highways in Houston. JDS. (2024, June 19).
https://jdsilvalaw.com/blog/car-accidents/houston-highways/
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