If you would guess Houston in to be the largest city in Texas, you’d be right. This thriving city of more than 525 miles² is home to some 2.1 million people. It is the fourth-largest city in the United States and ranks as the fifth largest in terms of the greater metropolitan area, with a population in excess of 6.5 million. In terms of economics, the city is home to more Fortune 500 companies than any other city in the world, save New York. Suffice it to say that not only are there a lot of people living in the greater Houston area, but there’s also a lot of money floating around.

Houston Car Insurance

Both money and population are factors that go into making Houston’s car insurance rates the highest in the state. The average Houston driver will pay approximately $1750 per year; a rate that’s 35% higher than the median rate for the entire state of Texas. It is more than $300 higher than the average price throughout the rest of the country.

It’s important to note that drivers who live within the city limits, or who commute into the city for their daily work, will be subject to higher rates. This is because accident rates increase along with population. The more people you come in contact with on the road the more likely you are to have an accident.

Factors That Affect Car Insurance Rates

It goes without saying that the age and model of the car you drive does have some bearing on your individual insurance rates. The more value your car has at the time you insurance it, the more risk the insurance company is assuming to replace your vehicle after an accident or theft. But even more important than these factors are the personal driving habits of individual drivers. In other words, an individual driver poses more risk to the insurance company than any other factor.

If you’ve ever wondered why young men between the ages of 16 and 25 have the highest insurance rates in the country, that’s the reason. They tend to be the most reckless drivers on the road with a higher incidence of accidents and violations. Because they are at such a high risk, they must pay more for their insurance in order to protect the insurance company against significant loss. If a male driver has repeated accidents or violations throughout his early 20s, his insurance rates will climb even more.

Recent statistical data shows that men and women are split about 50-50 in terms of the total number of drivers on Houston-area roads. When it comes to young males, they make up about 20% of all Houston drivers. In terms of accidents, about 87.5% were caused by male drivers and 12.5% by female drivers. All things considered, the 2008 crash numbers from Houston are pretty normal. One of the most favorable statistics for the area is the fatality rate which was very low at 26.

All of this statistical data is plugged into a formula along with information about an individual driver in order to produce an annual car insurance premium. Despite protests by consumers, insurance companies use many years of statistical data which bear out their conclusions about high-risk drivers. In fact, the actuarial tables insurance companies use are so accurate they can predict the number and total financial value of annual claims within a very reasonable margin of error.

Finding Insurance in Houston

Finding Houston car insurance is no different than finding it in any other city in the country. There are a number of nationally known companies licensed to do business in the state which are accessible through their websites. Examples of these companies include Travelers, Allstate, State Farm, and Geico. Getting a quote is as easy as visiting their websites and entering information into their automated quote tool. You can also talk to a representative the over the phone if you prefer that method.

A third option for finding car insurance is to visit a local independent agent. In a city the size of Houston there are literally thousands of agents representing hundreds of car insurance companies. These are local agents generally representing several companies; they can compare prices and coverage among them before offering you a policy. They also offer the advantage of one-on-one service.