How much is car insurance in Houston?

Texas is a huge state, the largest in southern United States! Everything is bigger in the Lone Star state and as the biggest state in the south, you’ll likely need a car. Insuring that car is a requirement by law in the state of Texas.

How are Insurance Premiums Calculated?

Insurance premiums are calculated considering a variety of factors. There isn’t one set price for car insurance in Houston. When calculating premiums, insurance companies evaluate: personal info- credit, location, discounts, vehicle type, etc. Because this varies from person to person, you may pay a different premium than your cousin that lives in the same city, 10 minutes away.

Texas state insurance requirements are: 30/60/25. What does this mean? The required limits are broken down like this:

$30K for bodily injury of any 1 person in any 1 accident

$60K for bodily injury of any 2 or more persons in any 1 accident- $30K per person

$25K for injury to or total loss of property of others in an accident.

These are the minimum requirements for car insurance in Houston. There are options for higher limits. An insurance agent can assist with that.

Is Car Insurance Expensive in Houston?

Drivers in the state of Texas pay premiums higher than the national average. According to Quote Wizard, the average cost of car insurance in the state of Texas is $934.22 per year. The national average for car insurance is $889.01 per year.

Unfortunately, the answer is yes. Houston isn’t the most expensive location for car insurance. Michigan ranked #1 for the 5^th time. Much of the reason that Texans pay higher insurance premiums is due to the number of natural disasters that Texans experience.

So, How Much is Car Insurance in Houston?

Quote Wizard provided the statistics shown above. It appears that women in Houston pay rates higher than both the Texas average and national average. Men pay below state average, but still higher than national average.

Why is Auto Insurance More Expensive in Harris County, Houston Texas?

Houstonians finally discover why auto insurance rates are so high in Houston Texas

Age, gender, and driving history are some of the factors that help determine auto insurance premiums. Geographical location is another factor that must be taken into consideration. For example, Texas is ranked #13 out of the top 15 states with the highest auto insurance rates. Texas is divided by county, and because of this division, rates will vary. Harris County has the most expensive auto insurance rates compared to other areas within The Lone Star State, but why is that?

Geographical Location Influences Auto Insurance Premiums

In order to understand why Harris County has the most expensive auto insurance Houston, it is important to find out why geographical location is a factor in determining auto insurance premiums.

The cost of car insurance varies based on your zip code. If your zip code has a high-risk level of vehicular-related crime, then insurance premiums will be higher compared to another zip code with a lower risk level. This includes motor vehicle theft, vandalism, and collision. So, if you live in an area that has a high likelihood of these crimes and other situations, then you are forced to pay more for your insurance.

In addition, insurance rates increase for those making a claim. The percentage depends on which state the driver is located. In Texas, a single claim can cause a 32% increase to one’s auto insurance premium. However, this occurs if the accident is your fault.

Harris County and High Car Crash Total

How does this relate to Harris County? According to the Texas Department of Transportation, Harris County contributes the most auto crashes within the state. In 2015, Harris County had a total of 110,489 crashes. Out of the 110,489 crashes, 338 were fatal with 362 fatalities. 1,920 were incapacitating crashes and resulted in 2,332 incapacitating injuries. With this information, insurance companies can use geographical location as a determinant.

High Population

Another reason is the population density of Harris County. Harris County is the third most populous county in the United States. At 4.44 million people, the number of automobile owners increases, and naturally, so does the number of car-related accidents and crimes because of the grossly congested roadways. This makes sense with the 3.2 million vehicle registrations and 940,000 car title transfers (per year).  Houston, the largest city in Harris County (as well as Texas) and the fourth most populous city in the United States has more than 2.1 million people living there.  That’s a lot of road accidents waiting to happen.

Young Adult Drivers

Within Harris County, there are major cities and universities contributing to the large population. University of Houston, Rice University, and Texas Southern University are all populous institutions. This is important to note because of the age factor used to determine auto insurance rates. Most people entering universities are fresh out of high school, usually 17 or 18 years old.  Younger drivers have higher crash and fatality rates, due to the fact that younger drivers tend to drive at higher speeds and less likely to wear a seatbelt.

Drinking and Driving

Harris County has the highest rate of alcohol-related driving fatalities out of the most populous counties in the United States. It has been called a pandemic with approximately 10,000 driving‑while‑intoxicated cases filed per year. 

College drinking adds to the car crash and fatality rates. A study conducted by the University Of Maryland School Of Public Health revealed 1 out of 5 college students have driven while drunk. While men are more likely to partake in risky behavior, both men and women are both likely to drive drunk to some degree.

Houston Auto Insurance

With these interconnected factors, it is no wonder Harris County has the most expensive auto insurance out of all counties in Texas.