For drivers on welfare, one of the largest criteria that aid in calculating the price you pay for insurance is your zip code. Cities with larger populations tend to pay more, whereas more rural areas tend to receive slightly lower rates.
The following table rates the highest-priced places in Texas for welfare recipients to buy an auto insurance policy in. Houston shows up at #3 with the yearly price of $1,853 for the average policy, which is around $154 each month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | McAllen | $2,016 |
| 2 | Brownsville | $1,908 |
| 3 | Houston | $1,853 |
| 4 | Amarillo | $1,840 |
| 5 | Dallas | $1,837 |
| 6 | Laredo | $1,833 |
| 7 | Mesquite | $1,825 |
| 8 | Pasadena | $1,812 |
| 9 | Garland | $1,796 |
| 10 | Irving | $1,789 |
| 11 | Grand Prairie | $1,740 |
| 12 | Lubbock | $1,733 |
| 13 | Arlington | $1,709 |
| 14 | Beaumont | $1,702 |
| 15 | San Antonio | $1,688 |
| 16 | Carrollton | $1,664 |
| 17 | Fort Worth | $1,653 |
| 18 | Plano | $1,624 |
| 19 | Corpus Christi | $1,620 |
| 20 | Austin | $1,610 |
| 21 | McKinney | $1,609 |
| 22 | El Paso | $1,584 |
| 23 | Waco | $1,584 |
| 24 | Abilene | $1,515 |
| 25 | Killeen | $1,473 |
| Quote Best Rates Go | ||
Rate quotes are comparative as the specific Houston residence address can raise or lower price quotes considerably.
Shopping around for reasonably-priced auto insurance is challenging, and figuring out which company has the cheapest auto insurance rates for welfare recipients involves a bit more work. Each auto insurer uses their own formula for determining prices, so let’s rank the auto insurance companies that tend to be cheaper in Houston.
Find Cheaper Car Insurance in Texas
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,021 |
| 2 | USAA | $1,128 |
| 3 | Germania Mutual | $1,244 |
| 4 | Texas Farm Bureau | $1,247 |
| 5 | Esurance | $1,407 |
| 6 | California Casualty | $1,438 |
| 7 | State Farm | $1,465 |
| 8 | Mercury | $1,521 |
| 9 | Nationwide | $1,538 |
| 10 | Safe Auto | $1,613 |
| 11 | Allstate | $1,667 |
| 12 | Progressive | $1,698 |
| 13 | Amica | $1,705 |
| 14 | Home State | $2,134 |
| 15 | GEICO | $2,156 |
| 16 | MetLife | $2,161 |
| 17 | Encompass | $2,232 |
| 18 | Unitrin | $2,310 |
| 19 | 21st Century | $2,421 |
| 20 | Titan | $2,568 |
| Compare Rates Now Go | ||
Travelers quotes some of the most affordable car insurance rates in Houston at around $1,021 each year. This is $883 less than the average rate paid by Texas drivers of $1,904. USAA, Germania Mutual, Texas Farm Bureau, and Esurance would also be considered some of the cheaper Houston, TX insurance companies.
In the above rates, if you buy coverage from USAA and switched to Travelers, you could realize an annual premium reduction of in the neighborhood of $107. Policyholders with Germania Mutual may save as much as $223 a year, and Texas Farm Bureau policyholders might reduce rates by $226 a year.
Understand that those policy rates are averages for all types of insureds and vehicles and do not factor in a specific vehicle garaging location for welfare recipients. So the company that fits your age and vehicle best may not even be in the top 23 companies shown above. That is why you need to quote rates from as many companies as possible using your own driver data and vehicle information.
The illustration below highlights how deductible selection can affect annual premium costs when getting quotes for cheap insurance for welfare recipients. The costs are based on a single male driver, comprehensive and collision coverage, and no other discounts are factored in.
The chart above illustrates that a 30-year-old driver could pocket $352 a year by increasing from a $100 deductible up to a $500 deductible, or save $530 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, could reduce their rates as much as $1,026 or more by choosing larger deductibles on their policy. When choosing a higher deductible, it is necessary to have additional funds squirreled away to cover the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Does it make sense to buy full coverage?
Lowering the price of auto insurance is important to most people, and an effective way to pay less for insurance for welfare recipients is to only buy liability insurance. The chart below compares insurance premiums with full physical damage coverage compared to only buying liability only. Data assumes no driving violations, no at-fault accidents, $250 deductibles, drivers are not married, and no additional discounts are factored in.
If all age groups are averaged, physical damage coverage costs $2,000 per year more than just buying liability only. Lot’s of drivers question if buying full coverage is worth the money. There is no definitive guideline that is best for determining when to drop full coverage on your policy, but there is a general convention. If the annual cost of having full coverage is more than about 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
For example, let’s pretend your vehicle’s replacement value is $11,500 and you have $1,000 deductibles. If your vehicle is totaled, the most your company will settle for is $10,500 after you pay the deductible. If you are paying over $1,050 annually for comprehensive and collision coverage, then it might be time to buy liability only.
There are some circumstances where eliminating full coverage is not recommended. If you haven’t satisfied your loan, you have to keep full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should maintain full coverage.
Buying coverage from the right car insurance company can be rather challenging considering how many companies there are to choose from in Texas. The ranking information below can help you decide which coverage providers you want to consider shopping your coverage with. These ratings include companies who write in the majority of U.S. states, so companies that have a smaller presence are not taken into consideration for these rankings.
Top 10 Large Auto Insurance Companies in Houston Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Titan Insurance – A+
- Esurance – A+
- Progressive – A+
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
Top 10 Large Auto Insurance Companies in Houston Ranked by Value
- Mercury Insurance
- Travelers
- American Family
- AAA Insurance
- Safeco Insurance
- Progressive
- The Hartford
- The General
- 21st Century
- Esurance
Compare quotes and save
Houston auto insurance rates are determined by lots of factors that control the price you have to pay. Turning one year older, buying a new vehicle, or getting a ticket for careless driving can trigger changes in premium that can cause some rates to be cheaper than others.
Not only that, but car insurance companies change the rates they charge in Texas at least once a year to adjust for gains or losses. Significantly higher claims can cause higher prices, while lower claim expenses may result in lower-priced Houston car insurance rates.
The graph below shows the cheapest car insurance in Houston, TX for a 30-year-old female driver with no accidents, a clean driving record, and a good credit rating. If we look at prices based on her personal profile, Travelers might offer the lowest car insurance rates in Houston at $1,336 a year. This is $568 less than the average policy premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also included in the cheapest Houston, TX auto insurance companies.
In this example, we will give the driver from above a couple of claims, a little lower credit rating, and an imperfect driving record. Since each auto insurer uses their own method to establish rates, comparing insurance quotes may now show a different set of the cheapest companies as shown below.
State Farm now has the cheapest price in Houston, TX with Mercury, USAA, Safe Auto, and Nationwide completing the list. This example shows why consumers need to take the time to shop around when trying to get affordable auto insurance quotes for welfare recipients.
Prices are calculated by many different factors and change substantially, so the cheapest option a year ago may now cost much more than other companies.