Looking for a great homeowners insurance policy in Texas is one challenge, but adding an equally robust and valuable auto insurance policy is another. Plenty of Texas residents look for ways to save on these two types of policies, and bundling home and auto with the same insurance company can offer a substantial discount. It’s also easier for policyholders to keep track of their insurance policies.
Sometimes it’s more than simply saving, though; policyholders need assurance that an insurance company will provide outstanding coverage while making the claims and customer service processes as smooth as possible. The companies that can meet these expectations offer the best home and auto insurance in Texas, and they are worth considering by anyone in the Lone Star State looking to bundle their homeowners and auto policies.
- BEST OVERALL: State Farm
- RUNNER-UP: Amica
- BEST ONLINE EXPERIENCE: Allstate
- BEST FOR SERVICE MEMBERS: USAA
- ALSO CONSIDER: Lemonade
What to Consider When Choosing One of the Best Home and Auto Insurance Companies in Texas
Shopping around and comparing multiple providers is one of the most effective methods for finding the best homeowners insurance companies in Texas with auto bundles. But it helps to know what to look for and what categories are most important for comparison. Focusing on these categories can help home and auto owners find the best policy for their unique needs in Texas.
The purpose of insurance is financial protection when policyholders need it the most—after their home is damaged by a storm or after a major car accident, for instance. No matter what the situation, home and auto owners want peace of mind knowing their claims will be covered up to the highest extent possible, which is where a policy’s coverage amount comes into play. Coverage amounts determine how much an insurance provider will pay out for covered claims, and these limits set the maximum amount a policyholder might receive on a claim (minus their deductible).
It’s critical to review coverage amounts when selecting policy options. Coverage limits that are too low can leave the policyholder exposed to too much financial risk since they will be left to pay more out of pocket to repair or replace damaged or destroyed property after a covered loss. In addition, too-low liability limits can leave the policyholder exposed to expensive lawsuits and settlements if they are legally responsible for injuries or damages to third parties. On the other hand, if the coverage amounts are too high, a policyholder could end up paying for unnecessary coverage with increased premiums (the amount paid for the policy).
Policy options are another critical element to an insurance policy because it’s here a policyholder can truly customize their home and auto insurance coverage to suit their needs. In addition to standard dwelling coverage—which covers the structure of a home—and personal property coverage—which covers the contents inside the home—a policyholder can add other types of coverage to their homeowners insurance. This could include add-ons such as water backup coverage, identity theft protection, or possibly flood insurance coverage. Policyholders can also purchase scheduled personal property endorsements to raise coverage amounts on high-value items like jewelry or artwork, that might otherwise have limited coverage with a standard homeowners insurance policy.
Various policy options are also available for auto insurance, as policyholders can build out their policy beyond the minimum liability requirements mandated by Texas state law. For instance, auto owners can add collision coverage to their policy, which pays for damages to their own car in the event of a car accident, and comprehensive coverage, which pays for damage unrelated to car accidents such as hail, theft, and fallen tree branches. Other opportunities for customized auto insurance coverage can include medical payments coverage, which helps pay for the driver’s and passenger’s medical bills after an accident, or uninsured motorist, which helps pay for damages if the policyholder is involved in an accident with another driver who is underinsured or lacks insurance altogether. Because minimum auto insurance requirements in Texas are so meager, car owners may find that they want to purchase additional coverage to protect their finances. In fact, those who want to protect their vehicles from as many types of damage as possible may want to consider full-coverage auto insurance, which could include both comprehensive and collision coverage, as well as medical payments and uninsured/underinsured motorist coverage. In addition, a full-coverage policy may have higher liability limits, roadside assistance benefits, and rental car reimbursement options.
Insurance premiums are the amount the policyholder is responsible for paying to keep a policy active. The cost of insurance premiums varies widely and depends on numerous factors. For homeowners in Texas, these factors include the location of the dwelling, age and condition of the home, and coverage options, to name just a few. Auto insurance premiums can vary based on the numerous coverage options available, the type and age of a vehicle, the age of the driver and their driving history, and many other factors.
While homeowners insurance premiums are typically billed annually, policyholders can often choose other payment options such as semiannual, quarterly, or monthly billing (particularly for auto policies). If these choices are an important part of the policy selection, then shoppers can confirm this information prior to choosing an insurance company.
The quote process can provide a close estimate of how much a homeowners insurance or auto owners insurance policy in Texas will actually cost. It gives a potential policyholder the opportunity to customize coverage according to their needs, such as adjusting coverage limits or adding endorsements, so the provider can offer a realistic quote. In addition to providing a cost estimate, insurance quotes offer a snapshot of how easy it is to work with a particular provider too.
During the quote process, it’s helpful for shoppers to take note of the communication styles a company offers. These may include online tools (such as chatbots), in-app customer service options, speaking to a representative over the phone, or working with a local insurance agent. Whatever the preferred method of communication is, the quote process is a great way to find out what options are available and if they can meet the customer’s needs.
Being a homeowners insurance or auto insurance policyholder means there may come a time when a claim must be filed. Whether it’s because of a kitchen fire, vehicle break-in, or some other stressful event, a smooth and straightforward claims process can make a hard situation a tad bit easier.
Providers may offer an array of choices for submitting claims, including online, through the company app, over the phone, or through a local agent. Not all providers offer every one of these options, so if there’s a particular method a policyholder prefers, then it’s worth verifying that method is available before purchasing a policy. Prospective customers may also want to consider response times when submitting claims, as a lengthy claims process could put additional financial strain on policyholders waiting for a payout.
Policyholders expect payouts from their policies when there’s a covered claim, but some policyholders may not realize how much a deductible can make a difference in this. A deductible is the amount an insurance provider deducts from a claims payout before disbursing funds to the policyholder. As such, a customer’s deductible selection can have a major impact on the size of any payout they may receive on a future claim.
Deductible amounts can be as little as zero dollars (although this is very uncommon with both homeowners and auto insurance) or as high as several thousand. Homeowners insurance may also have deductibles that are based on a percentage of the policy’s dwelling coverage amount. It’s often an important factor for shoppers to weigh when deciding on a policy, as deductibles also affect insurance rates. A lower deductible may mean a higher payout, but it often comes with higher insurance premiums too. A high deductible means a policyholder takes on more of the financial burden from a claim if the payout is less than the cost to make repairs or replace damaged items, but it can also result in lower premiums.
The additional insurance policies available with a provider may be another important consideration for Texans. Purchasing other policies can offer shoppers a significant savings opportunity if bundling is an option while also ensuring there is adequate coverage for other areas of life. Providers may offer coverage for a variety of items and scenarios, such as mobile home insurance, boat insurance, RV insurance, or life insurance. Taking on more than one policy can help someone save with a bundling discount (when available) and make it easier to manage their insurance policies. For instance, customers may only have one account to manage, and they may be able to check in on their different insurance policies by going through the same online portal or picking up the phone and speaking with a single insurance agent.
Potential policyholders may not realize how much discounts can actually save them on their insurance premiums. Insurance providers offer a variety of discounts to their customers, such as for going paperless with their billing statements, enrolling in automatic payments, going an extended period of time without filing a claim, or even working for a particular employer.
Homeowners insurance discounts for Texans might be available for those who install safety devices, such as smoke or security alarms, or those who make upgrades to the roof or windows to better withstand severe weather conditions. Auto insurance discounts might be available for those who install anti-theft devices, enroll in a driver safety course, or maintain a clean driving record for a certain number of years. Not all companies offer the same number of discounts, so it’s worth comparing which ones are available, especially for car owners looking for affordable auto insurance in Texas.
AM Best Ratings
AM Best is a third-party credit-rating company that specializes in the insurance industry. AM Best analyzes the latest financial data for companies so consumers don’t have to spend hours digging through complex financial documents, assuming those records are readily available to the public to begin with. AM Best uses this data and assigns a simple letter grade to each participating company, with A++ (Superior) as the highest rating and a D (Poor) as the lowest. AM Best ratings matter because they represent an insurance provider’s financial standing, which may reflect the company’s long-term financial outlook and reliability. That may include its ability to handle claims and make payouts to customers. While an A++ rating can provide customers strong reassurance of a company’s stability, any company with a B+ rating or higher has good financial stability, according to AM Best.
Our Top Picks
The best home and auto insurance companies in Texas often offer hefty coverage while still staying within someone’s personal budget. These top picks may deliver generous coverage options, plenty of discount opportunities, and other factors impacting the overall customer experience.
Why It Made the Cut: State Farm offers a considerable bundling discount for those who purchase both homeowners and auto insurance together, while also offering high personal property coverage limits for homeowners.
State Farm stands out among the best homeowners and auto insurance companies in Texas for several reasons, starting with its relatively low insurance premiums and generous bundling discount. Policyholders can save up to 35 percent on their homeowners and auto insurance simply by bundling these two policies through State Farm. They can also save money on their auto coverage thanks to the wide variety of safe driver discounts available. These include discounts for completing safe driving programs, avoiding accidents, and participating in driver education courses.
State Farm doesn’t offer many deductible options for homeowners insurance, but customers can purchase personal property coverage on their homeowners insurance of up to 150 percent of their dwelling coverage limit, which may be enough on its own to persuade a homeowner to select State Farm. The company’s Superior A++ rating from AM Best is another reason State Farm may be appealing to prospective customers, as this is the highest grade an insurance provider can receive from the credit-rating agency. That high AM Best rating reflects State Farm’s strong financial performance and creditworthiness, which may provide greater peace of mind to customers looking for a reliable insurance company.
- Quote process: Online, phone, agent
- Claims process: App, online, phone, agent
- Bundling discount: Up to 35 percent
- Homeowners insurance deductibles: $5,000 or $10,000; 1 percent to 5 percent of dwelling limit; Wind/hail: 1 percent to 5 percent of dwelling limit
- AM Best rating: A++
- High personal property coverage of up to 150 percent of dwelling coverage limit for homeowners insurance
- Relatively low insurance premiums
- Generous 35 percent discount on home and auto bundles available
- Wide variety of safe driver discounts
- A++ AM Best rating
- Relatively high deductibles for homeowners insurance
Why It Made the Cut: Amica includes standard replacement cost coverage with its Texas homeowners insurance policies, as well as various add-on options for a truly customized approach.
Amica is another solid option for Texans interested in bundling their home and auto policies. Although it may have higher insurance premiums depending on a policyholder’s coverage options (along with other factors), customers can receive generous standard coverage in return. For instance, Amica includes replacement cost coverage with all of its homeowners insurance policies. This means depreciation isn’t taken into account when the company determines the value of covered items, which leads to policyholders receiving higher claims payouts.
Homeowners can also purchase up to $50,000 in water backup coverage and up to $50,000 in scheduled personal property coverage too, for even greater customization. These coverage limits are fairly high for the Texas market and may be appealing to homeowners who want additional protection for water damage or valuable possessions (such as jewelry, musical instruments, or sporting equipment) that wouldn’t be protected to the same extent with a standard homeowners insurance policy. Liability coverage options are equally robust too, with up to $2 million in personal liability coverage available for purchase on homeowners insurance in Texas. These higher coverage limits give policyholders more opportunities to build out their insurance to better suit their needs and protect themselves from financial loss and liability.
- Quote process: Online, phone, agent
- Claims process: App, online, phone, agent
- Bundling discount: Up to 30 percent
- Homeowners insurance deductibles: $500 to $25,000; 1 percent to 5 percent of dwelling limit; Wind/hail and hurricane: $500 to $25,000; 1 percent to 5 percent of dwelling limit
- AM Best rating: A+
- Standard replacement cost coverage on homeowners insurance
- High $2 million personal liability coverage available
- High $50,000 water backup endorsement available
- High $50,000 scheduled personal property endorsement available
- Relatively high insurance premiums
Why It Made the Cut: Allstate offers a large discount to policyholders who enroll in the company’s safe driving program, along with online resources to help customers build out their policy.
Allstate offers a range of discount opportunities and increased coverage options, so Texas customers can easily customize their homeowners and auto policies while saving as much as possible. For example, Allstate offers extended dwelling replacement cost coverage equal to 140 percent of the home’s estimated replacement cost. This may be especially valuable to a Texas homeowner if they needed to completely rebuild their home after a covered loss, especially if the price of building materials and labor, among other costs, has increased since their dwelling replacement cost was originally calculated. Another feature that homeowners may be interested in is Allstate’s online tool that ranks the most common and most expensive homeowners insurance claims filed in a particular ZIP code. This tool can shed light on the types of perils that may be most likely to befall a policyholder or cost the most money to address, which can be useful information when customers are building out an insurance policy.
While Allstate may require customers to make a somewhat large up-front payment to initialize a policy, policyholders who bundle their home and auto coverage can reduce costs in other ways. For instance, Allstate offers a generous 40 percent safe driver discount for qualifying drivers who participate in the company’s Drivewise program. It also features a pay-per-mile auto coverage option, which may help those who work from home, take public transportation, or only drive on a limited basis save money on their auto insurance in Texas.
- Quote process: Online, phone, agent
- Claims process: App, online, phone, agent
- Bundling discount: Up to 25 percent
- Homeowners insurance deductibles: $2,500 or $5,000; 1 percent or 2 percent of dwelling limit; Wind/hail: $2,500 or $5,000; 1 percent or 2 percent of dwelling limit
- AM Best rating: A+
- Extended 140 percent dwelling replacement cost coverage included for homeowners insurance
- Generous 40 percent safe driver discount available
- Pay-per-mile auto insurance option
- Insightful online tool identifies common and expensive claims for each ZIP code
- Relatively large up-front payment required
Why It Made the Cut: USAA offers generous discounts, consistently strong AM Best ratings, and unique coverage options tailored specifically to current or veteran service members and eligible family members.
For those eligible for USAA membership—currently limited to active or former service members and immediate family members—USAA offers a range of options for both homeowners and auto insurance policies in Texas. Although the exact policy information listed online is somewhat limited, registered USAA members can go online and request a quote for both home and auto coverage.
USAA maintains a “Superior” A++ AM Best rating, highlighting its financial strength as a company, which may provide peace of mind to customers looking for a reliable and stable insurance company. It also features standard replacement cost coverage with its homeowners policies, which may lead to larger payouts on insurance claims. Replacement cost coverage is often only available as an endorsement with other companies, so having it included standard could add a lot of value to a homeowners insurance policy. Service members in the market for both homeowners and auto policies may be able to take advantage of a large 60 percent discount on their auto coverage if they need to store their vehicle for an extended period of time—due to deployment, for instance.
- Quote process: Online (for USAA members), phone
- Claims process: App, online, phone
- Bundling discount: Up to 10 percent
- Homeowners insurance deductibles: Unknown
- AM Best rating: A++
- Standard replacement cost coverage for homeowners insurance
- Large 60 percent discount available for vehicles in storage
- A++ AM Best rating
- USAA membership limited to service members and their families
- Limited policy information online
Why It Made the Cut: Lemonade insurance claims may be instantly approved, and the company’s charitable donation and tree-planting programs could be appealing to prospective customers as well.
Lemonade is worth considering for several reasons, one of which is its unique digital approach. For instance, the company uses an AI-based claims-management platform to process claims, quickly flagging instances of potential fraud. Around 40 percent of claims are instantly handled, meaning that some customers may have their claim approved and paid out within seconds of submitting it.
Lemonade isn’t currently rated by AM Best, but it has received an “A” rating from Demotech, which is another respected financial analysis firm that focuses on specialized or regional insurance providers. That “A” rating is reserved for companies that have demonstrated excellent financial stability in the eyes of Demotech analysts. Although discounts are somewhat limited, Lemonade has unique charitable opportunities that may appeal to customers who are passionate about social or environmental causes. For instance, the company donates up to 40 percent of any unclaimed premiums to charity each year, giving customers the option to choose which company they would like to support. Policyholders with auto coverage may be interested in Lemonade’s tree-planting program that offsets customers’ carbon emissions.
- Quote process: Online
- Claims process: App
- Bundling discount: Up to 10 percent
- Homeowners insurance deductibles: $500 to $2,500
- AM Best rating: No rating
- Instant claim approval possible
- Up to 40 percent of unclaimed premiums donated to charity
- Policyholders’ carbon emissions offset via tree-planting program
- Limited discount opportunities
- Not currently rated by AM Best
State Farm is our pick for Best Overall thanks to its high personal property coverage limits and substantial bundling discount for home and auto policies. Amica is our Runner-Up choice due to its standard replacement cost coverage included with every homeowners insurance policy and high personal liability coverage options.
How We Chose the Best Home and Auto Insurance Companies in Texas
When selecting the best home and auto insurance companies in Texas, we reviewed a number of factors that may have the greatest impact on coverage, cost, and the customer experience. Our research looked at the coverage options offered by each company, including both standard coverage and add-ons available for purchase. Cost factors, such as insurance premiums, discounts, and deductibles, were also taken into account as they may heavily influence a customer’s decision when shopping for homeowners insurance and auto coverage. We also reviewed AM Best ratings for each provider, since a company’s financial stability, long-term outlook, and ability to pay out claims could all be crucial considerations when shoppers are selecting coverage. On the experiential side, our research included reviewing the quote and claims process for each insurance provider, as these processes offer a great deal of insight into a policyholder’s experience working directly with an insurance company.
Before You Choose One of the Best Home and Auto Insurance Companies in Texas
It’s important for shoppers to keep in mind that not every company on this list may be the best fit for every Texan. Customers can benefit from completing their own due diligence and finding a provider that works best for their communication preferences, budget, and coverage needs. This means researching and comparing several options from insurance companies that offer coverage in the Texas market. The most important step is shopping around and comparing options so a policyholder knows they’re getting the best coverage available for their individual needs. To that end, it’s often helpful for homeowners and auto owners to figure out exactly how much insurance they need to protect their home and assets. With that information in hand, they will be in a better position to find the right insurance provider and policy to suit their circumstances.
Cost of Opting for One of the Best Home and Auto Insurance Companies in Texas
Insurance rates for both home and auto coverage depend on several factors, including the amount of coverage selected, the policyholder’s claims history, and any endorsements added to the policy. Discounts such as those for bundling can reduce the overall cost of home and auto insurance, so it’s important to take these cost-savings opportunities into account when shopping around for the best rates. For instance, safe driver discounts could be very appealing to car owners looking for low-cost auto insurance.
Again, getting accurate quotes based on the policyholder’s coverage needs is a reliable way to find out the true cost of the best home and auto insurance bundles. Getting quotes from three or more companies can give Texans a good sense of what rates are typical for their level of coverage, helping them identify a good deal on their insurance.
The Advantages of Opting for One of the Best Home and Auto Insurance Companies in Texas
Purchasing the best home and auto insurance coverage in Texas offers numerous advantages to residents. For starters, the often-large bundling discount can make robust insurance coverage even more affordable and obtainable for policyholders. Using one company can offer a more streamlined approach to policy management, saving both time and energy. When Texans bundle home and auto insurance through the best insurance companies available, they can enjoy plenty of other benefits as well, including:
- Generous standard coverage, such as replacement cost coverage, that could lead to larger payouts on insurance claims;
- Extensive policy add-ons, including water backup and scheduled personal property endorsements with high coverage limits; and
- Generous auto insurance discounts for policyholders who participate in safe driving programs and enroll in educational courses.
Texans may have a number of questions regarding their home and auto insurance coverage options, especially as they start shopping around and comparing providers. Knowing the answers to several of the most common questions up front may help provide clarity before they get a quote online or speak to an agent. This will put them in a better position to find the best homeowners insurance or auto insurance to fit their needs.
Q. What is the average homeowners insurance cost in Texas?
The average cost of homeowners insurance in Texas is $1,860, but insurance costs vary widely based on numerous factors such as coverage options, location, and the age of the home.
Q. Is homeowners insurance mandatory in Texas?
No, homeowners insurance is not mandated by law in Texas (or any other state). However, most mortgage lenders require a homeowner to purchase a policy prior to closing on a mortgage as a condition of loan approval and maintain coverage throughout the life of the loan.
Q. What type of car insurance is required by law in Texas?
Texas state law requires auto owners to carry at least $30,000 in liability coverage for each injured person, $60,000 in liability coverage per accident, and $25,000 for property damage per accident. Car owners should note that these limits are very low, and given the high cost of replacing a vehicle or covering medical bills after an accident, they may want to carefully consider whether they want to increase those limits. Doing so would help them avoid being underinsured and in a position to have to pay out of pocket for damages caused by an accident that’s their fault.