The Best Insurance Companies in Texas
Every state in the U.S. has its own mandatory requirements when it comes to insurance, and every individual has their own personal, voluntary insurance concerns. Fortunately, the state of Texas has a host of local and national insurance firms that provide many kinds of policies, including car, home, health and life insurance. Whatever your insurance needs, this article will give you the straight dope on where to look first. Of course, risk has been around since life began on planet Earth, but insurance as we know it only dates back to the late 17th century. Like any good idea, this ingenious way of mitigating risk expanded and now covers everything from your home, car and health care to Keith Richards’ hands, which are insured for $2 million bucks!
Beautiful, sprawling Texas is not without risk. With about 17,000 licensed drivers—the second-highest number of drivers in any U.S. state—Texas recorded, in 2019, more than 16,000 accidents on its 79,000 miles of roads, according to the Texas Department of Transportation. In fact, more than half of fatalities in Texas are due to car accidents. As you can see, there are about 16,000 reasons to take the time to find the right car and medical insurance. Texas is also prone to severe blows from nature—superstorms, floods, wildfires, tornadoes, hurricanes, landslides and even earthquakes—the results of which can endanger your most valuable assets: your health and your family’s health, not to mention your home and your car. But even if the sun is shining in a blue, cloudless sky, every day is full of risk. That’s why the SmartFinancial app helps customers find the right insurance coverage that fits their budget.
Best Car Insurance Companies in Texas
If you are a licensed driver in Texas, the state requires the following three kinds of insurance:
- Bodily injury per person (for a minimum liability of $30,000)
- Bodily injury per accident ($60,000)
- Property damage per accident ($25,000)
While these three are mandated by law—you can’t legally drive a car unless you have them—you can still purchase other kinds of car-related insurance, such as collision, towing and labor, uninsured and underinsured motorist, and comprehensive policies. Overall, Texas drivers tally up more than 286 billion miles a year and, believe it or not, more than 50% of car accidents occur on rural roadways, so you’ve got to cover your bases.
But since Texas is a no-fault state, which means every driver is responsible for their own health-care costs after a vehicular accident, every Texan who gets behind the wheel should seriously consider purchasing personal injury protection, also known as “no-fault insurance.” This insurance covers the health-care expenses of not only the policyholder but also any passengers in the car at the time of the accident; in fact, this insurance covers your passengers even if they don’t have health insurance.
In the Lone Star State, monthly car-insurance rates range between $130 and $500, depending on an individual’s coverage and risk profile. Below, we’ve ranked the insurance companies that offer the lowest rates for the three minimum insurance requirements in Texas:
- Direct Auto $109.64 (per month)
- State Farm $118.30
- USAA $122.93
- Texas Farm Bureau Group $130.67
- National General $176.24
- Esurance $195.89
- Chubb $201.02
- Mercury $209.01
- Encompass $220.74
- Nationwide $236.69
*Rates change daily; these numbers are based on average rates at the time of publication.
The remaining insurance companies, listed by price ranking, are Republic Indemnity ($245.88), Allstate ($263.48), State Auto ($267.31), Metropolitan ($282.88), Unitrin ($284.99), Permanent General ($287.33), Safe Auto ($316.79), Home State Ins Group ($439.75) and Loya Insurance ($485.45). Of course, your own rate will vary based on your age, driving record, location and other factors, so it’s important to investigate your options.
By logging on to SmartFinancial’s website, you can get started on a car insurance quote free of charge—just by entering your zip code. But if you want to dig deeper and check out all your coverage options at the lowest prices available, there’s no substitute for talking to one of SmartFinancial’s insurance agents at 855-214-2291.
How to Get the Best Car Insurance in Texas
The savvy Texan will consider purchasing a policy that includes more than just bodily injury and property damage. In fact, buying more insurance than what the state requires may well pay for itself in the long run. We’ve already discussed the importance of no-fault insurance, which helps to pay for your and your passengers’ medical bills. But did you know that 14 percent of Texas drivers don’t have any car insurance? That’s where an uninsured/underinsured-driver policy is a boon: For a small fee, an insurance company will cover the damage to your car, even if the other driver was at fault and has no insurance. Otherwise, you may have to foot the bill, even if you’re insured. Liability insurance only covers the “other guy.”
Getting a comprehensive policy will protect you against Mother Nature’s unpredictable machinations. For example, if your car is damaged in a flood or crushed by a tree, a comprehensive policy will cover the damages. If you only had the minimum insurance required by the state, those costs would come directly out of your pocket. If you have a new car or own more than one car, you probably should investigate guaranteed asset protection (GAP) coverage. For example, if your car is totaled or stolen and you owe more than the car’s depreciated value, this optional car insurance helps to pay the balance on your car lease or loan.
In the end, you must evaluate your needs and obtain quotes from several insurance companies to get the best car insurance. While insurance for bodily injury and property damage are a bare-minimum requirement in the state of Texas, other insurance protections could save you from financial disaster. Ready to speak with you about your unique needs and circumstances, SmartFinancial’s insurance experts are a just click away.
Texas Car Insurance Discounts
An insurance policy’s monthly rate can be lowered if the policyholder or the policyholder’s car possesses certain risk-lowering characteristics. Find out what discounts an insurance company authorizes and whether they apply to your case. Most insurance firms offer multi-policy and multi-vehicle discounts. Here are some other common discounts you may be eligible for:
- Anti-lock brakes
- Anti-theft devices
- Automatic or paperless billing
- Defensive driving course
- Early signing
- Full payment
- Good student
- Green vehicle
- Low annual mileage
- Military service
- Safe or accident-free record
How to Get the Best Homeowners Insurance in Texas
Out of the 10 major companies for homeowners insurance on U.S. News & World Report’s 2021 best-of-the-best list, nine of them do business in Texas:
- State Farm
- Liberty Mutual
- The Hartford
- Farmers Insurance
- Chubb Insurance
USAA is best for military families, and Chubb is excellent for high-value homes. The Hartford provides reduced rates for retirees, and Nationwide has lower rates for houses in gated communities. If your hunt for homeowners insurance has left you overwhelmed by the dizzying array of choices, SmartFinancial can point you to the insurance firm that best suits your particular circumstances.
For example, if hurricanes are your primary concern, St. Petersburg, Fla.-based UPC Insurance specializes in hurricane protection. While most companies market similar packages for basic homeowners insurance, many have areas of expertise, and all have strengths and weaknesses. Before deciding on an insurance company, the savvy customer decides on a budget and assesses their own immediate risk environment to prioritize their insurance requirements. When investigating an insurance company that interests you, it never hurts to check out that company’s score from either the Better Business Bureau or Consumer Reports. Here are some other tips on how to get the best homeowners insurance:
- Make sure the agent and company are licensed to sell insurance.
- Check a company’s financial rating and complaint history.
- Shop for a policy with low commissions and low fees.
- Get quotes from several companies.
- Compare apples-to-apples policies.
- Use Texas’ 10- to 20-day “free look” period.
- Review the information an agent gives you.
- Watch out for illegal acts.
Finally, when looking at specific companies, you should always look for any discounts that might apply to you—these discounts can quickly add up to a substantial savings over time. For example, if you decide to purchase home, car and life insurance from the same company, that company may well offer a multi-policy discount.
Natural Disasters in Texas
For homeowners in Texas, the risk environment is dominated by the environment. Indeed, four Category 4 and four Category 3 hurricanes have visited the Lone Star State in just the past 20 years, according to the National Oceanic and Atmospheric Administration. The cost of these weather events is staggering:
- Hurricane Katrina (2005) $161 billion (in damages)
- Hurricane Harvey (2017) $125 billion
- Hurricane Maria (2017) $90 billion
- Superstorm Sandy (2012) $72 billion
- Hurricane Irma (2017) $50 billion
The alert reader will note that Texas bore the brunt of three hurricanes (Harvey, Maria and Irma) all in the same year—and each one was a Category 4 blast! The deadliest hurricane to hit Texas since 1919, Harvey alone submerged a third of Houston in water. While one million vehicles were damaged beyond repair in the Gulf area, 204,000 houses were damaged; three-fourths of these homes were outside the 100-year floodplain.
House fires and wind damage are always covered by homeowners’ insurance, and most companies’ policies cover wildfires, tornadoes and hurricanes. However, as a rule, the majority of homeowner policies do not cover flooding; in fact, flood insurance is usually sold separately. Whether you buy a government-backed National Flood Insurance Policy (NFIP) or a commercial policy, both are priced about the same. Earthquake insurance is also sold separately and can easily be added to a standard home insurance policy.
How Much Is Homeowners Insurance in Texas?
The average cost of homeowners insurance in Texas is about $2,000 a year. For this amount, homeowners are receiving basic protection in the following areas:
- Dwelling insurance, which covers the replacement of or damage to the home and its structure.
- Personal property insurance, which covers the loss of or damage to possessions inside the home.
- Liability insurance, which covers any expenses resulting from someone getting hurt in your home or on your property.
Since every insurance company has multiple formulas for assessing risk, it’s important to remember that different policies will vary in price for the same individual. Further, prices will vary according to the actual particulars of each policy. For example, some customers choose to get not only dwelling, personal property and liability insurance but also loss-of-use protection, which covers the cost of living somewhere else while your home is uninhabitable. Of course, the addition of loss-of-use protection would bump up the monthly fee.
In Texas, some of the lower-cost policies include Liberty Mutual, with a monthly rate of about $80; Farmers, with a monthly rate of about $120, and Allstate, with a monthly rate of about $170.
Further, on average for a 12-month period, the insurance outlay is about $2,700 in Abilene and $1,700 in Austin. On a yearly basis, Chubb requires, on average, about $1,500, USAA expects $2,000, Texas Farm Bureau Insurance charges $2,800, and State Farm bills $3,700. If you want a quick-and-easy answer on a comparison basis, the quick-and-easy solution is to contact one of SmartFinancial’s seasoned insurance agents. They have all the answers at their fingertips.
Insurance companies proffer savings in the form of discounts. For example, if you have more than one policy with the same firm, you are likely to be eligible for a multi-policy discount. When considering a policy, keep your eyes peeled for these common discounts:
- Home security system
- Home-monitoring devices
- Security cameras
- Smoke or motion detectors
- Gated community
- New roof
- No prior claims
Taken together, these discounts can make for a nice tidy sum of month-to-month and year-to-year savings. Be sure to ask about discounts whenever you are speaking to a licensed insurance agent at SmartFinancial.
The Best Health Insurance Companies in Texas
The average per-day inpatient hospital expense in Texas is $2,321. Fortunately, Texas plays host to a number of health insurance companies, including Superior HealthPlan’s Ambetter, Blue Cross and Blue Shield of Texas, Celtic Insurance Company, FirstCare Health Plans, Friday Health Plans, Molina Healthcare of Texas, Oscar Insurance Company, and the Scott and White Health Plan.
The largest health-care provider in the U.S., United Healthcare offers healthcare short-term and long-term policies in the state of Texas. For example, its short-term TriTerm medical insurance lasts three years and covers preventative health care, visits to the doctor’s office and prescriptions. On most TriTerm plans, there is a $2 million lifetime maximum benefit for each person covered. Further, eligible expenses for preexisting conditions are covered after 12 months on the plan. United Healthcare also offers Health ProtectorGuard fixed indemnity insurance, which pays not only for medical services (doctor visits, a trip to urgent care, surgical procedures) but also has no deductibles or copays. The company’s Accident Pro product series combines accident insurance with critical illness, hospitalization, and accidental death and dismemberment coverage in the same package; some plans are “guaranteed issue,” meaning your application won’t be turned down due to a preexisting condition. Finally, United Healthcare provides vision and dental as well as health insurance for businesses. But United Healthcare is only one company. You should get health insurance quotes from at least three companies before making any decisions. SmartFinancial insurance agents handle auto, home, health and life insurance policies, among others. No matter what you’re looking for, they would love to walk you through your options to compare rates and find the policy that best fits your needs, budget and other expectations. You can click on the link above or call a live agent at 855-214-2291.
Best Life Insurance in Texas
In the event of your death, life insurance financially protects your family and others who depend on your income, allowing your chosen beneficiaries to pay for house payments, car payments, college tuition, and other bills and living expenses. Of course, there are many types of life insurance. For example, some types of insurance accumulate savings that you can use during your lifetime, so it pays to investigate.
When writing a life insurance policy, a company will weigh an applicant’s age, marital status, gender and health issues, including smoking. There are 123 life insurance companies doing business in the state of Texas, and the highest-rated companies include the following firms:
- Metropolitan Life
- Northwestern Mutual Life
- New York Life
- Pacific Life
- The General Insurance Company
- State Farm Life Insurance Company
- Mutual of Omaha
- The Hartford
In Texas, on average, a single 25-year-old female can expect to pay less than $200 a year for life insurance, a married 55-year-old female can expect to pay about $400, and a single 65-year-old male will probably pay $2,000 at the very least. As always, the price of your policy will depend on the insurance company’s own criteria and the policy’s specifics as well as your risk level.
SmartFinancial has a team of insurance experts who can help you see the trees for the forest, pinpointing the right insurance policy, whether it’s auto, home, health or life insurance. Get a free quote just by entering your zip code here to compare quotes. To fill out the application with the help of a live agent, call 855-214-2291.
Get a Free Auto Insurance Quote Online Now.
Have a plan in place. For instance, hopping on to the claim filing process right away will make the process easier for you in the long term.
High school is the starting point for many drivers. Car insurance companies know that new drivers may be struggling to make the right choices out on the road.
Looking for Auto Insurance?
Compare rates from dozens of companies in less than 3 minutes.
Although these jobs can provide a much-needed stream of income, they also come with a few risks. A personal auto insurance policy may not be enough.
Some people wrongly believe that an out-of-state ticket will somehow “go away” once they return home. However, you will most likely be tracked down.
The average dollar loss per auto theft is $8,407, according to the Insurance Information Institute. Here's what you need to know about car thefts.
No-fault states are different in how they handle accidents. See which 12 states are no fault states and what it means if you live in one.
What you need to know before you compare rates.
What your young driver does, while driving your car, has a direct impact on what you pay for your insurance.