Best cheap home insurance in Austin in 2024

The best home insurance companies in Austin

The right home insurance policy strikes a balance between your budget and your coverage needs. And you won’t want to choose just any provider: when disaster strikes, it is important to know that your home insurance will be there when you need it most. Bankrate took a close look at the Austin, Texas home insurance market and used our expertise to hand-pick the best insurance companies in the area. We looked at average rate data from Quadrant Information Services, customer satisfaction ratings, financial strength ratings, policy availability and other factors in our research. Our analysis found that USAA, Nationwide, Allstate, State Farm and Travelers write some of the best home insurance in Austin.

The cheapest home insurance companies in Austin

Based on our research, Nationwide, Farmers and Armed Forces have the cheapest home insurance on average for $300,000 in dwelling coverage. However, exactly which provider offers the cheapest rates may change depending on how much coverage you need. Below, we’ve found the cheapest home insurance companies for a variety of dwelling coverage limits.

How much is home insurance in Austin, Texas?

The average cost of home insurance in Austin, TX is $2,450 per year, which is 37 percent less than the Texas average of $3,884. Texas homes closer to the coast tend to experience hurricane damage, which can make the cost of home insurance skyrocket. While Austin can still experience wind damage, its inland position may help shield the city from more extensive damage. Keep in mind that these are just average figures — home insurance is a personalized product. Rating factors like your credit tier, the age of your home and the deductible you choose can all influence the cost of your homeowners insurance in ATX.

Austin rates by credit tier

In Texas, insurance companies are allowed to consider your credit rating when setting your home insurance premium. Homeowners with bad credit typically pay more than homeowners with good or excellent credit. Statistics show homeowners with poor credit are more likely to file claims, so those with poor credit are usually charged more to account for the added risk.

Austin rates by home age

How old your home is can also affect how much you pay for your insurance. Think about it like an insurer: If an insurance company has to pay to rebuild a home built with materials that cost significantly more today than they did 30 years ago, it’s in their best interest to pass those expenses on. In most cases, insurers build the added risk of insuring an older home into the policy cost.

Austin rates by deductible amount

Raising your home insurance deductible can be an effective way to curb your Austin home insurance costs — but be cautious when doing so. Your home insurance deductible is the amount of damage you are responsible for covering out of pocket in the event of a covered claim, so be careful not to raise it too high.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze November 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married male and female homeowners with a clean claim history, good credit and the following coverage limits:

• Coverage A, Dwelling: $300,000, $350,000, $450,000, $750,000
• Coverage B, Other Structures: $30,000, $35,000, $45,000, $75,000
• Coverage C, Personal Property: $150,000, $175,000, $225,000, $375,000
• Coverage D, Loss of Use: $60,000, $70,000, $90,000, $150,000
• Coverage E, Liability: $500,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000, $1,500, $2,000 or $5,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.

Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: 1959, 1982, 1992, 2010, 2016 (base) and 2020.

Bankrate Score

Our Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.