These Houston Neighborhoods Pay the Most for Car Insurance

8/15/16

  • Houston car insurance rates have increased 35.4% over the past five years, far higher than the national increase of 11% over 2011 rates (though lower than the state of Texas increase of 40.5%)
  • Texas' average annual car insurance premium is $1,762, making it the 5th most expensive state for car insurance, and Houston residents pay even more — the average rate is $1,906. As for other major Texas cities:
    • Dallas pays $1,791
    • San Antonio pays $1,783
    • Austin pays $1,726
  • Houston zip codes paying the most for car insurance:
    • 77201 - $2,219
    • 77093 - $2,175
    • 77091 - $2,175
    • 77028 - $2,168
    • 77076 - $2,166
    • 77038 - $2,161
    • 77078 - $2,152
    • 77037 - $2,145
    • 77087 - $2,141
    • 77016 - $2,138
  • And who pays least? Lake Jackson ($1,670), Santa Fe ($1,695), Clute ($1,697), Angleton ($1,709), and La Marque ($1,710).
  • Within the city of Houston, the 77201 zip code saw the largest increase in rates, up 46.28% ($702/year) over this 5-year time period, and the 77062 zip code saw the smallest increase in rates, up 31.35% ($437/year).
  • Even with premiums in Houston far higher than they were five years ago, they're heading in the right direction. Rates are down 6.3% from 2015. (Texas rates are 6.6% lower than they were last year and national rates are 3.3% higher.)
Further, some Houston residents pay more than others:
  • Teens pay $6,915 annually for car insurance
  • Singles pay about $145 more per year than married folks
  • Men pay $5 more per year than women (Texas: men pay $12 more / U.S.: men pay $1 more)

How does a speeding ticket or DUI impact your car insurance in Houston?

  • There’s just a $30 insurance penalty for texting or using a cell phone while driving, but speeding will raise rates by $376, an at-fault accident by $927, a DUI by $1,075, racing by $1,233, and reckless driving by $1,403 per year (Texas: $29/$837/$961/$1,119/$1,268)

  • Using telematics will only save Houston drivers $20 annually on car insurance (Texas: $18, U.S.: $9)
  • Houston drivers can save $217 per year just by how they do business with their insurers (paying in advance and online, a week in advance, etc.)
The Zebra, the largest car insurance comparison marketplace in the U.S., just released the results of a massive national study exploring the true factors impacting car insurance rates. Using pricing data from the past five years, we explored millions of car insurance premiums as impacted by common variables such as state, age, gender, financial behaviors, and the vehicles themselves, and using all zip codes and providing state-by-state analysis.

Houston data comprises 240 zip codes across the metro area and includes all cities from Alvin to Pasadena to Winnie. (See attached to reference each zip code's and city’s data.)

Resources:

Why are rates increasing in Texas?

Here’s what The Zebra’s licensed insurance agent and resident expert Neil Richardson says:

"1. Inclement weather claims - Texas has experienced severe, damaging weather in the last few years that has led to billions of dollars in property claims. Because of the sheer dollar amount of claims payouts, insurance companies are losing lots of money so they raise rates to recoup those funds and stay solvent to cover future claims.
2. Compounding on the weather problem is the fact that Texas has experienced significant population growth in the last five years. Metropolitan areas have become increasingly densely populated, which means more people will be filing claims in a particular region when we experience flooding or hail or other damaging events.

3. With auto insurance rates rising, many people are choosing to forego coverage and drive uninsured. Since insurance is all about risk, this creates another problem. Normally, if you are hit by another driver who is considered "at fault,” his or her insurance pays for your damage. If you are hit by someone without insurance, then it is up to your company to pay for your damage. This puts more risk on the insurance company and they will charge consumers higher rates because of it."

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