Why Is Car Insurance So Expensive In Houston?
They say everything is bigger in Texas, and that’s certainly true of your auto insurance premiums in Houston. The average cost of car insurance in Texas is several hundred dollars more than the national average. If you happen to live in Houston, then you’ll be paying the highest rates in the state, according to Value Penguin.
Why are the car insurance rates so much higher in Texas, and especially in Houston? Let’s take a look at the factors contributing to these startling increases.
#1. Texas Minimum Liability Requirements Are Higher
Most states require minimum liability coverage of 25/50/20. That’s $25,000 of injuries per person, or $50,000 per accident, and $20,000 in property damage. But the minimum in Texas is 30/60/25. This higher than average minimum starts the bidding off high for any auto insurance policy in the state.
#2. Houston Is A Densely Populated Urban Area
Texas is the second most populated state, behind California, and Houston is one of the largest urban areas. More people in an area driving means there is a higher risk of accidents, vandalism, and theft. Houston is in “the triangle,” an area of Texas known for having the highest population. It’s a trilogy of large cities including Houston, Dallas, and San Antonio.
#3. Long Commutes And More Time On The Road
The more you drive, the higher your auto insurance rates are going to be. Texans drive significantly more than that of people in other states. This is probably due to the landmass in TX and people who live in rural areas commuting to work in urban areas.
#4. More Accidents And DUI’s
Texas is known for speedy drivers and many of these drivers are in large trucks and vehicles that tend to do a lot of damage when they get in an accident. Unfortunately, Texas also has the highest number of DUIs that result in fatalities in the United States. This means insurance companies in Houston and throughout the state of Texas are paying out high dollar claims and need to make up the money somehow to mitigate their risk.
#5. Houston Contains More Expensive Cars
Houston can be an affluent area as well, with drivers typically purchasing more expensive or newer vehicles. The type of car you drive can heavily influence the premiums you pay in your auto insurance coverage. Pricey cars will cost more to insure. Newer cars with fancy computer systems and automated safety features push the purchase price of the vehicles up even further and they can be costly to repair.
Finding The Lowest Rates In Houston, Texas
In Texas, you’ll find the cheapest rates within the Texas Farm Bureau but you have to be a member to qualify. Besides the Farm Bureau, you’ll find the cheapest rates for good drivers at Geico and State Farm, among others. For more details, check out this list of the cheapest auto insurance companies in Houston from Nerd Wallet.