Why Texas Homeowners Insurance Is Expensive But Unique

The ins and outs of homeowners insurance in Texas can be quite complex. Insurance adjusters will be the first to tell you that the cost of homeowners insurance in Texas is sky high.

What a lot of people don’t realize is that the home insurance policies in Texas are just as unique as they are expensive. It’s obvious that insurance is costlier in Texas, but there are several reasons why it’s fundamentally different than the insurance available in other states.

What Keeps Insurance Rates High In Texas

Most Texans are aware of the nasty weather conditions that frequently assault the lone star state. Every year, Texas is hit by hundreds of tornadoes and several hurricanes.

In a single year, a catastrophic hurricane might sweep over the coastline, or a tornado might decide to rip through a portion of northern Texas. When compared with other states, there seems to be far more natural disasters occurring, so the cost of homeowners insurance in Texas remains high.

Insurance companies can’t afford to insure homes for too much less than their current rates because they’re businesses and need to make money. If tornados and hurricanes were the only natural disasters occurring in Texas, the insurance premiums wouldn’t be nearly as high.

Supplementary disasters are what keep the cost of homeowners insurance Houston sky high. For example, severe winds might find their way through a section of the state, which can cause severe damage to a home’s roof. Hail storms are also quite common and can cause significant damage to most homes.

Taking Advantage of More Insurance Options

The reason why homeowners insurance in Texas is so unique is the fact that there are many different options for homeowners to choose from. Since the premiums in Texas are very high, many insurance companies choose to offer homeowners insurance in Texas.

The news for homeowners is both good and bad. The good news is that it’s almost never a bad thing to have too many options. More companies competing for your business usually guarantees better prices and products. Also finding out what is the most important part of your homeowner’s insurance policy, will help you get a better rate.

On the flipside, such a large number of different companies offering homeowners insurance in Texas makes it difficult for every company to be properly vetted, which can result in homeowners doing business with shady companies. Fortunately, there are some simple steps that homeowners can take to reduce the risk of choosing a bad insurance company.

First, it’s a good idea to check the AM Best rating for the company, which provides an idea of financial stability. Second, talk to family and friends about the company. Another part of due diligence is checking the company’s rating with the BBB.

How to Keep Your Homeowners Insurance Texas Rate Low

If you want homeowners insurance in Texas and would like to have a low Texas insurance quote, there are some easy steps to take. Many Texans want to know how they can reduce the cost of insurance while ensuring they have ample coverage.

There are a few different ways to make homeowners insurance in Texas less expensive. For starters, you should make sure to buy a new home. Studies show that the cost of homeowners insurance in Texas is almost always cheaper for newer homes because insurance companies view older homes as higher risk.

It’s also important to realize that certain parts of Texas have cheaper rates than others. For example, the cost of insurance in El Paso or Austin should be quite a bit cheaper than what you might pay in Houston or Dallas. Improving your credit score and bundling your insurance policies are two more effective ways to save money on your coverage.

Auto Insurance Texas

Texas drivers are required to have auto insurance. The drivers need to have a proof of insurance in the vehicles always. The laws have must be complied with to help reduce the rate of accidents on the roads thus reducing the costs of insurance. Compliance with the laws helps in keeping roads safe and also saves time from unexpected traffic stops occurrence.

The proof of auto insurance is a must for car inspection, registration and driver license transactions. Drivers found driving without the insurance, risk being fined up to 350 U.S dollars and those found repeating the offense could end up losing their driving license for up to a year. Provision of proof of your insurance cover has been simplified through the use of the digital proof of insurance whereby it can be easily accessed by smartphone, tablet or any other digital device. The vehicle and insurance details verification is carried out using a statewide database called TexasSure. The database helps in identifying those without insurance coverage. The factors behind Texas Car Insurance rates include age, the driving experience, and the driving record of your claim history.

Other factors include:

  • The claimer’s ZIO code.
  • The car’s make and model.
  • The number of times the claimant drives their car.
  • The claimer’s insurance history.
  • The claimer’s credit-based insurance score to be used in calculating the premium.

The circumstances under which you may be required to provide insurance proof include:

  • During vehicle registration.
  • During issuing of the driver’s license.
  • When requested by the law enforcement officer during an accident or at a traffic stop.

It was reported by the Insurance Research Council in the year 2012 that 13.3 percent of drivers in Texas were driving without a car insurance coverage. The percentage went above the national estimate that was at 12.6 percent.

The cancellation of the insurance policy can occur if you have a policy for 60 days or more. The policy can be canceled by the insurance company if you don’t pay premiums, if you fail to file a fraudulent claim or if your driver license or registration is suspended.

Requirements for obtaining auto insurance in Texas

  • Property Damage Liability; the minimum legal requirement is 25,000 U.S dollars.
  • Bodily Injury Liability; the minimum legal requirement is 30,000 U.S dollars per individual and 60,000 U.S dollars per accident.
  • Uninsured Motorist Bodily Injury; the minimum requirement is 30,000 U.S dollars per individual and 60,000 U.S dollars per accident unless one rejects the coverage.
  • Uninsured Motorist Property; the minimum legal requirement is 25,000 U.S dollars and a 250 U.S dollars that is deductible unless one rejects the coverage.
  • Personal Injury Protection (PIP); the minimum legal requirement has been placed at 2,500 U.S dollars unless one rejects the coverage.

Cheap Car Insurance Companies in Texas

Identifying companies with cheap car insurance rates in Texas is not an easy task. Cheap car insurance companies are identified by reviewing their auto insurance quotes. The auto insurance quotes for single and married drivers from 35 years of age and above. The six companies with cheap car insurance in Texas include:

  • United Services Automobile Association (USAA); this is the company with the cheapest car insurance rates in Texas. The company only insures the armed forces with their family members.
  • Allstate Insurance Company; the company, offers cheap car insurance rates to civilians.
  • Foremost County Mutual.
  • Farmers Auto Insurance Company.

Cheap car insurance in Texas by City

  • Dallas, TX.
  • Cheap car insurance in Dallas can help you to save a lot. The three most affordable insurers in Dallas include Direct General, GEICO and Farmers.

  • Houston, TX.
  • The annual premium for paying for car insurance in Houston is estimated to be 1,206 U.S dollars. Despite that, the cheap car insurance quotes from GEICO, Direct General, or Farmers can help you save around 30 to 45 percent from the average auto insurance rate in the city. The difference between the company offering cheap car insurance rates and the one with the most expensive rates was 2,073 U.S dollars a year.

  • Austin, TX.
  • The cheap car insurance quotes from Direct General, GEICO and Farmers can help drivers save up to 40 percent compared to the average city cost.

  • San Antonio, TX.
  • The companies offering cheap car insurance quotes in San Antonio include the Direct General and GEICO offering the lowest rates can be found at this website.

  • El Paso, TX.
  • El Paso has the most affordable car insurance cost when compared to the average city in Texas. The cheap car insurance rates include annual premiums that are two percent cheaper than Texas’ average. Companies offering cheap car insurance rates include Direct General. Other companies with cheap car insurance quotes are GEICO and Farmers.

    How to Find Homeowners Insurance Houston


    Houston is one of the hottest real estate markets in the United States. Over the past couple of years, prices in the Houston area have gone up dramatically. There are a lot of reasons for the recent growth. First of all, the area has a lot of jobs for young people. Many are moving to Houston to start a career or even a family. With the great public schools in the state of Texas, many people realize how much of an opportunity they have with their location. One of the most important parts of buying a home is the insurance policy that a person chooses. There are a lot of people who simply choose the insurance policy that their real estate agent or other people want them to. However, there are a lot of things to consider in this decision. Here are a couple of tips on how to find the right Homeowners Insurance Houston policy for you.


    The premium on an insurance policy is the amount of money that must be paid in every month in order to have access to the coverage. In an effort to save money, many people look for an insurance policy with a low premium. However, this is generally not the best course of action to take. Instead of looking for the cheapest Homeowners Insurance Houston policy per month, it is vital to take a comprehensive look at the overall coverage offered by an insurance policy. This is a great way to look at your situation from a long term perspective. There are a lot of people who struggle to find an insurance policy that meets all of their needs. Instead of thinking about how much it will cost per month, ask yourself how much an insurance policy will cost of time. This is the best way to determine the amount of coverage you need and how much it will truly cost.

    Using Online Sources

    There are a lot of online resources that a person can use when looking at their insurance policy. In order to get a true comparison, it is vital to understand exactly what you are looking for during this process. There are some people who simply look for a policy that costs the least amount per month. This is not the best strategy to take when you are looking for insurance on your home. Anyone who is wanting to use online sources to find a good insurance policy has plenty of opportunities to do so. Over the long term, the more information a person has the better off they will be. Take some time to use various online calculators that look at how often an event occurs in your area. For example, these calculators tell you how much you will owe out of pocket when a weather event happens and damages your home. This is the best way to find Homeowners Insurance Houston that fits all of your needs.

    Ask Around

    Another good tip on finding a Homeowners Insurance Houston policy is to ask around for discounts. Many insurance companies quote prices that they want to give out to customers. However, everything in business is always open to negotiation. If you want to take the long term approach to your insurance, it is important to find a Homeowners Insurance Houston policy that fits your needs. There are a lot of ways that you can get a lower price if you take the time to look around. With all of the Homeowners Insurance Houston options that are out there, it can feel overwhelming at times trying to find the right policy to fit your needs. However, this work on the front end will actually save a lot of time and money down the road. Always makes sure you understand the overall insurance process and work to make sure you are saving the right amount of money to do so. Buying a Homeowners Insurance Houston policy is one of the most important decisions you will make in owning a home.

    Next Steps

    There are a lot of things to consider when you are looking for a Homeowners Insurance Houston policy in your area. Not only do you need to look at the monthly cost of coverage, but you also need to look at how much it will cost you in the event that something takes place that damages your home. Over the long term, there are a lot of people who want to find a Homeowners Insurance Houston policy that works in their situation. Instead of simply looking for a cheap Homeowners Insurance Houston policy, find one that meets all of your needs over a long period of time. Finding the right Homeowners Insurance Houston policy is something everyone should spend time doing.