Scraping up a payment for expensive insurance in Houston can overdraw your budget and make it hard to pay other bills. Doing a rate comparison is recommended to tighten up your finances.

Surprisingly, a recent survey revealed that most Texas insurance customers have bought insurance from the same company for well over three years, and almost 40% of drivers have never taken the time to shop around. With the average insurance premium being $1,847, American drivers could save an average of up to $860 each year just by shopping around, but they don't want to take the time to compare rates. Multiple car insurance companies compete to insure your vehicles, and it can be difficult to compare rates and uncover the absolute lowest rate on insurance.

If you have insurance now or just want a better rate, use these tips to buy cheaper insurance and still have adequate protection. Buying the cheapest insurance in Houston is quite easy if you know the best way to do it. Smart buyers just have to learn the best way to compare company rates instantly.

Auto insurance providers offering low-cost price quotes in Texas

The auto insurance companies shown below have been selected to offer price comparisons in Texas. To buy cheap auto insurance in Houston, it's a good idea that you visit two to three different companies to get the best price comparison.

Insurance Rates for Popular Vehicles in Houston
Make, Model, and Trim Level Annual Policy Premium 6-month Policy Premium Monthly Premium
Chevrolet Colorado LT Extended Cab 2WD $1,468 $734 $122
Chevrolet Equinox LT AWD $1,300 $650 $108
Chevrolet Silverado LT Extended Cab 2WD $1,078 $539 $90
Dodge Ram Crew Cab Laramie 2WD $1,504 $752 $125
Ford Escape Limited 4WD $1,264 $632 $105
Ford Explorer Eddie Bauer 2WD $1,280 $640 $107
Ford F-150 XL Crew Cab 2WD $1,368 $684 $114
Ford Focus SE 2-Dr Coupe $1,666 $833 $139
Honda Accord EX 4-Dr Sedan $1,144 $572 $95
Honda CR-V EX 2WD $950 $475 $79
Honda Civic EX-L 4-Dr Sedan $1,632 $816 $136
Jeep Wrangler Unlimited Rubicon 4WD 4-Dr $1,112 $556 $93
Mazda 3 S Grand Touring 4-Dr Hatchback $1,260 $630 $105
Nissan Altima 3.5 SR 4-Dr Sedan $1,460 $730 $122
Toyota Camry SE $1,424 $712 $119
Toyota Corolla XLE $1,068 $534 $89
Toyota RAV4 Limited 2WD $906 $453 $76
Toyota Tacoma Double Cab 4WD $1,034 $517 $86
Get Your Own Custom Quote Go

Prices based on single male driver age 30, no speeding tickets, no at-fault accidents, $500 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, claim-free, multi-vehicle, multi-policy, and safe-driver. Information does not factor in zip code location which can influence premium rates greatly.

Full coverage or liability only

The chart below illustrates the difference between Dodge Ram insurance premiums when comparing full coverage to liability only. The prices are based on no claims or driving citations, $500 deductibles, single male driver, and no additional discounts are factored in.

Dodge Ram rates are for example purposes only. To get rates for your specific vehicle, click here.

Should you be buying full coverage?

There is no clear-cut formula for excluding physical damage coverage, but there is a general guideline. If the annual cost of having full coverage is more than about 10% of replacement cost minus your deductible, then it may be the right time to buy liability only.

For example, let's assume your Dodge Ram replacement cost is $5,000 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most you would receive is $4,000 after paying your deductible. If you are currently paying more than $400 a year for full coverage, then it's probably a good time to buy liability coverage only.

There are some circumstances where eliminating full coverage is not financially feasible. If you still owe money on your vehicle, you have to carry full coverage in order to keep the loan. Also, if you don't have enough money to buy a different vehicle if your current one is damaged, you should keep full coverage in place.

Age, gender, and differences in insurance rates

The example below illustrates the difference between car insurance costs for male and female drivers in Horizon City. The price estimates are based on a clean driving record, no claims, full physical damage coverage, $250 deductibles, drivers are single, and no policy discounts are applied on a Chevrolet Tahoe LTZ.

Chevrolet Tahoe rates are for example purposes only. To get rate quotes for your specific vehicle, click here.

You may qualify for discounts

Auto insurance companies don't always advertise all their discounts very well, so we took the time to find a few of the more common and also the more inconspicuous credits that may apply to you.Save money with discounts

Discounts lower rates, but most credits do not apply the the whole policy. The majority will only reduce the cost of specific coverages such as physical damage coverage or medical payments. So even though it sounds like adding up those discounts means a free policy, companies wouldn't make money that way.

If you would like to see a list of providers that offer discounts in Texas, follow this link.

Components of your car insurance premiums

Lots of factors are part of the equation when quoting car insurance. Some factors are common sense like an MVR report, but others are not as apparent like your vehicle usage or your commute time.

Listed below are some of the factors used by companies to determine your rate level.

What if I want to buy from local Houston auto insurance agents?

A small number of people prefer to sit down with an agent and doing so can bring peace of mind Licensed agents can help determine the best coverages and help submit paperwork. The biggest benefit of comparing insurance online is that drivers can save money and get lower premium rates but still work with a licensed agent.

Once you complete this quick form, your information gets sent to local insurance agents who will give you bids for your insurance coverage. You won't even need to contact any insurance agencies because quoted prices will be sent immediately to you. If you need to compare prices from one company in particular, you can always navigate to their website to submit a rate quote request.

Finding a good company shouldn't rely on just the bottom line cost. These are some questions your agent should answer.

Below are Houston insurance companies willing to provide comparison quotes.

Lucrecia Jasminoy - State Farm Insurance Agent
223 Cavalcade St - Houston, TX 77009 - (713) 884-1442 - View Map

360 FM 1959 - Houston, TX 77034 - (281) 484-8320 - View Map

12155 Jones Rd #300 - Houston, TX 77070 - (281) 469-6286 - View Map

1510 Eldridge Pkwy #108 - Houston, TX 77077 - (281) 759-4300 - View Map

View more agents

If you get positive feedback for all questions you ask and an acceptable price quote, most likely you have located an insurer that will provide insurance coverage.

Does auto insurance advertising bend the truth?

Consumers in Texas can't avoid all the ads that claim the best prices by Allstate, GEICO and Progressive. They all make an identical promise that you can save if you just switch to their company.

How can each company give you a lower rate on auto insurance?

All the different companies give the best rates for the type of customer that will add to their bottom line. For instance, a profitable risk profile might have to be a married male, has had continuous coverage, and has a high credit rating. A customer who meets those qualifications will probably get cheap prices and will probably save quite a bit of money when switching.

Potential insureds who don't meet the ideal profile will be quoted higher prices and this results in business going elsewhere. Company advertisements say "people who switch" but not "all drivers who get quotes" save that much when switching. That's the way insurance companies can lure you into getting a quote. Because each company has a different risk profile, you need to get a wide range of price quotes. It's just too difficult to predict which company will have the best auto insurance in Houston.

Insurance claim statistics

Which vehicle models have a high chance of claims? The statistics tables below list the best and worst manufacturer models for the overall chance of having to file claims for each type of coverage.

Lowest and Highest Medical Payment Claims by Manufacturer Model
Lowest Claims Highest Claims
Land Rover Range Rover Sport Mitsubishi Mirage
Audi A4 Allroad Hyundai Accent
Tesla Model S Nissan Sentra
Chevrolet Silverado 2500 Mitsubishi Lancer
Chevrolet Silverado 3500 Nissan Versa
Ford F-250 SuperCrew Chevrolet Spark

Data Source: Insurance Institute for Highway Safety for 2013-2015 Model Years

Auto Insurance Comprehensive Claims by Vehicle Make and Model
Lowest Claims Highest Claims
Nissan Leaf BMW M6
Ford F-350 Bentley Continental GTC
Infiniti QX50 Mercedes-Benz S Class
GMC Sierra 2500 Maserati Quattroporte
Chevy Spark Audi S7
Volvo V60 Bentley Continental GT

Data Source: Insurance Institute for Highway Safety for 2013-2015 Model Years

Vehicles with the Lowest and Highest Collision Coverage Claims
Lowest Claims Highest Claims
Nissan Xterra Ferrari 458
Mini Cooper Maserati Granturismo
Jeep Wrangler Maserati Ghibli
Ford F-150 SuperCrew Bently Continental GT
Ford Edge Bently Continental GTC
Ford F-250 SuperCab BMW M6

Data Source: Insurance Institute for Highway Safety for 2013-2015 Model Years

Vehicle Make and Models with the Lowest and Highest Car Insurance Liability Claims
Lowest Claims Highest Claims
Chevrolet Corvette Chrysler 200
Fiat 500 Kia Rio
Mercedes-Benz SL Class Chevrolet Impala
Audi A6 Hyndai Accent
Volvo XC60 Mitsubishi Lancer
Subaru Outback Kia Optima

Data Source: Insurance Institute for Highway Safety for 2013-2015 Model Years

Final considerations

When buying insurance coverage, don't be tempted to skimp on critical coverages to save a buck or two. There have been many situations where an insured dropped full coverage and learned later that the few dollars in savings costed them thousands. The proper strategy is to buy enough coverage at the best possible price, but do not sacrifice coverage to save money.

In this article, we covered some good ideas how to find cheaper coverage online. The key thing to remember is the more companies you get car insurance rates for, the higher your chance of finding low cost Houston car insurance quotes. Consumers may even find the lowest rates come from a small local company. Regional companies may often insure only within specific states and give getter rates as compared to the big name companies such as Progressive and GEICO.

Discount auto insurance in Houston can be bought online and with local Houston insurance agents, so you need to shop Houston car insurance with both so you have a total pricing picture. Some companies do not offer rate quotes online and most of the time these small insurance companies sell through independent insurance agencies.

More tips and info about auto insurance is located at these sites: