Farmers is the cheapest home insurance company in Texas, with rates as low as $484 per year — around $1,300 cheaper than the national average of $1,724 annually. Another plus? This insurer made our list of the best home insurance companies in Texas.
Cheapest homeowners insurance companies in Texas
Based on our analysis, Farmers, State Auto, Texas Farm Bureau, Lighthouse Property Insurance, and Chubb are the five cheapest home insurance companies in Texas, with statewide average premiums ranging from $484 to $2,201 per year. USAA, State Farm, and Mercury are also among the most affordable home insurance carrier options for Texas residents in 2023, as detailed in the table below.
Company | Average annual cost |
|---|---|
$484 | |
$665 | |
$722 | |
Lighthouse Property Insurance | $1,353 |
$2,201 | |
$2,703 | |
$2,743 | |
$2,760 | |
IAT Insurance | $3,699 |
$3,964 | |
$4,196 | |
$4,206 | |
$4,456 | |
$5,102 | |
$5,168 |
Methodology and why you can trust our rates
Policygenius has analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
Learn more >> Our complete guide to home insurance in Texas
Cheapest home insurance rates with a history of claims
One of the biggest factors that plays a role in your home insurance premium is your claims history. You'll typically pay more for home insurance if you have multiple claims on your record, since insurers perceive you as posing a greater risk of filing more.
Here's the cheapest home insurance companies in Texas for a homeowner with three claims within a five-year period:
Company | Average annual cost |
|---|---|
Farmers | $790 |
Farm Bureau Insurance | $807 |
State Auto | $1,472 |
Lighthouse Property Insurance | $2,043 |
Chubb | $2,437 |
State Farm | $2,740 |
USAA | $3,004 |
Progressive | $4,044 |
AmGUARD Insurance | $5,406 |
Mercury | $5,656 |
Texas FAIR Plan Association | $6,231 |
IAT Insurance | $6,340 |
Nationwide | $6,719 |
UPC Insurance | $8,134 |
Amica | $9,755 |
Cheapest home insurance rates if you have poor credit
Generally, individuals with better credit scores pay lower home insurance premiums. Insurance companies have found that customers with lower credit scores file more claims for small losses, like a pipe leak, since they may not be in a financial position to pay for these damages out of pocket.
Here's the cheapest homeowners insurance in Texas for a homeowner with poor credit.
Company | Average annual cost |
|---|---|
Farmers | $1,026 |
Farm Bureau Insurance | $1,072 |
Lighthouse Property Insurance | $1,353 |
State Auto | $2,471 |
USAA | $3,305 |
Texas FAIR Plan Association | $3,964 |
State Farm | $4,711 |
Mercury | $4,944 |
Nationwide | $5,734 |
Chubb | $6,031 |
AmGUARD Insurance | $6,204 |
UPC Insurance | $6,660 |
Amica | $6,671 |
Progressive | $6,713 |
IAT Insurance | $10,741 |
Cheapest home insurance rates if you have an older home
The median age of homes in Texas is 33 years old, according to an analysis of U.S. census data by House Method. And like everything else, the age of your home plays a role in how much you pay for home insurance in Texas.
Older and historic homes are usually more expensive to insure than newer homes. This is because insurers consider them a higher risk than newer homes since they can be fragile, their construction materials may be obsolete, and certain structural components like the roof or plumbing may not be in good shape or up to current-day code. Because of this, they'll charge higher premiums to offset the risk.
Here's the cheapest home insurance in Texas for a home that's over 50 years old:
Company | Average annual cost |
|---|---|
Farmers | $511 |
State Auto | $701 |
Farm Bureau Insurance | $722 |
Lighthouse Property Insurance | $1,394 |
Chubb | $1,968 |
Progressive | $2,682 |
State Farm | $2,740 |
USAA | $2,765 |
Mercury | $2,873 |
Texas FAIR plan Association | $3,964 |
IAT Insurance | $4,143 |
Nationwide | $4,144 |
UPC Insurance | $4,168 |
AmGUARD Insurance | $4,534 |
Amica | $5,912 |
How to lower the cost of home insurance
You can lower the cost of homeowners insurance in Texas by taking advantage of discounts offered through your home insurance company. This might mean bundling your home and auto policies together for discounts off your premiums, or adding security systems to your home.
Another way to lower your homeowners insurance rates is by shopping around for home insurance in Texas and opting for a higher deductible. Just keep in mind a higher deductible means you’ll have to pay more money out of pocket when you file a claim.
Common home insurance discounts
Many insurance companies offer discounts for bundling home and auto insurance, paying your premium up front, not filing claims, and more. These are just some of the discounts that can add up to big savings on your policy:
Bundling discount
Claims-free discount
Affiliation discount
Protective devices discount
New construction discount
Learn more >> Homeowners insurance discounts
