Best cheap home insurance in Austin in 2025
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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.
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why USAA made our list: USAA is only available to members of the military and their qualifying family members. If you’re eligible for coverage from USAA, it could very well be one of the best home insurance companies in Austin. Its rates are at the lower end of the spectrum, and its policies come with replacement cost coverage pre-included (a feature that usually costs extra with other insurers). True to its core of servicing the military community, USAA offers military-focused coverage that could be hard or impossible to find with other insurers, like no-deductible coverage for military equipment.
Why USAA may be the best for customer service: USAA’s eligibility requirements prevent it from official J.D. Power ranking. However, the insurer consistently receives some of the highest marks for overall customer satisfaction and property claims satisfaction. It is partially for this reason that, for the fourth year in a row, USAA tied for Best Home Insurance Company Overall in our Bankrate Awards. Additionally, the carrier has a complaint index that’s well below average from the National Association of Insurance Commissioners (NAIC) for its home insurance product — another strong signal of excellent customer service.
| Bankrate Score | 4.8 |
| J.D. Power | 737/1,000 |
| AM Best Rating | A++ |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why Nationwide made our list: Nationwide made a showing at the 2025 Bankrate Awards, taking home the title of Best for Bundling Home and Auto Insurance. The company advertises that customers could save up to 20 percent by bundling home and auto coverage, and auto-home-life bundles are also available. Better Roof Replacement could be of interest to Austin homeowners too, considering the city’s high risk of wind damage. With Better Roof Replacement, Nationwide upgrades your roof with stronger materials after it is damaged in a covered loss.
Why Nationwide may be the best for digital tools: Homeowners who prefer to manage their policy digitally (versus going to an agency in person) may be interested in Nationwide. It scored near the top of the J.D. Power U.S. Insurance Digital Experience Study in the service category, implying that customers are relatively satisfied with managing their policies through its online interface. The Nationwide mobile app boasts a 4.5 out of 5.0 rating on Google Play and an even higher 4.7 on the App Store, which could be good for homeowners who prefer mobile over desktop.
| Bankrate Score | 4.2 |
| J.D. Power | 641/1,000 |
| AM Best Rating | A |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
Not available
JD Power
Why Allstate made our list: Allstate was named Best for First-Time Homeowners in the 2025 Bankrate Awards, due to its user-friendly online tools, 24/7 customer service, vast network of local agents and lengthy list of home insurance endorsements. Allstate’s endorsements can expand your financial protection and help keep your rate stable; its Claim Rateguard can help avoid a rate hike if you remain claims-free for five years.
Why Allstate may be the best for discounts: Allstate’s discount opportunities could help homeowners get a cheaper rate. Customers might qualify to earn a welcome discount, early signing discount, claim-free discount and responsible payment discount (to name just a few).
| Bankrate Score | 4.2 |
| J.D. Power | 631/1,000 |
| AM Best Rating | A+ |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
JD Power
Why State Farm made our list: State Farm can insure more than just your home. The company also offers auto policies, umbrella insurance, boat coverage and a variety of banking products. This could make State Farm a good choice for Austin homeowners looking to manage most of their financial products all in one place. State Farm’s home insurance policies come with extended replacement cost already included if your home is insured for its estimated replacement cost value — this costs extra with many other insurers.
Why State Farm may be the best for local agents: State Farm is the largest home insurance company in the country, with a network of 19,000 agents. There are ample offices in Austin, Texas for customers who would rather speak to an agent in person than manage a policy online.
| Bankrate Score | 4.1 |
| J.D. Power | 643/1,000 |
| AM Best Rating | A++ |
Bankrate Score
Avg. annual premium
$300K dwelling coverage
Not available
JD Power
Why Travelers made our list: Travelers’ customizable policies could fit the needs of a variety of different homeowners, but those with eco-friendly homes may be especially interested. Not only can you earn a discount for being environmentally conscious, but the company’s green home coverage also adds financial protection to help rebuild your home with green materials after a covered loss.
Why Travelers may be the best for add-on coverage: Homeowners can add a myriad of customizations to a Travelers home insurance policy, especially for valuable property. Homeowners can choose between special personal property coverage, a personal articles floater, jewelry and valuable items coverage and contents replacement cost.
| Bankrate Score | 4 |
| J.D. Power | 609/1,000 |
| AM Best Rating | A++ |
Bankrate's trusted insurance industry expertise
Read our full methodologyThe insurance market can be complicated, but Bankrate's insurance editorial team used our unique perspective to bring readers the information they need to make educated decisions when shopping for a policy.
78
years of industry experience
9
licensed staff
34.5K
ZIP codes examined
120
carriers reviewed
The cheapest home insurance companies in Austin
Based on our research, Farmers, USAA 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.
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|---|---|---|
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$136
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$1,631
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$144
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$1,728
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Armed Forces
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$154
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$1,853
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$171
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$2,049
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|---|---|---|
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$155
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$1,863
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$161
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$1,935
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Armed Forces
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$170
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$2,034
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$188
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$2,260
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|---|---|---|
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$192
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$2,302
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$195
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$2,340
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Armed Forces
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$201
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$2,407
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$216
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$2,593
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|---|---|---|
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$269
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$3,234
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$276
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$3,309
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$293
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$3,522
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Armed Forces
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$318
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$3,817
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Compare home insurance rates
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Powered by Coverage.com (NPN: 19966249)
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
How much is home insurance in Austin, Texas?
Homeowners insurance in Austin, TX averages $2,570 a year for $300,000 in coverage, which works out to about $214 a month. That is 37 percent less than the general Texas average of $4,049. Since Austin is not as close to the coast as Houston and other regions, it does not have as high a risk of hurricane damage. Homes may still experience wind damage, however, in storms that arrive from the Gulf of Mexico. Many homes in Austin are also at risk of flood damage, suggesting that homeowners may want to consider adding a flood endorsement or separate flood policy to their insurance portfolio.
To be sure, your rate is likely to differ from the average since it is based on factors that are unique to you and your property. These may include your credit, your home's age and the levels of coverage you choose. Insurers consider these and other factors when determining your rate.
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.
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|---|---|---|---|---|
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$3,827
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$1,781
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$1,631
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$1,257
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$2,229
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$1,752
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$1,728
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$1,644
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Armed Forces
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$2,961
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$1,979
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$1,853
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$1,712
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$3,028
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$2,180
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$2,049
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$1,834
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$5,501
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$3,030
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$2,752
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$2,265
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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.
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|---|---|---|---|---|---|
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$2,036
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$2,136
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$2,174
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$2,261
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$1,384
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$2,417
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$2,463
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$2,440
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$2,147
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$1,601
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Armed Forces
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$1,985
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$1,942
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$1,937
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$1,956
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$1,757
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$2,049
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$2,049
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$2,049
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$1,897
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$2,049
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$2,752
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$2,752
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$2,752
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$2,752
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$2,752
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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.
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|---|---|---|---|
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$1,537
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$1,448
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$1,110
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$1,588
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$1,588
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$1,338
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Armed Forces
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$1,853
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$1,660
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$1,463
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$2,049
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$2,049
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$2,014
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$2,752
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$2,752
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$2,512
|
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze April 2025 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, 2017 (base) and 2020.
Bankrate Score
Our 2025 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 cost of coverage, product availability, financial strength ratings, online capabilities and customer and claims support accessibility. We grouped these factors into three essential categories — cost and ratings, coverage and savings, and support — which we then weighted in a tiered approach.
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.
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Cost & ratings 50%
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Coverage & savings 30%
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Support 20%
- Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, our team analyzed average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the National Association of Insurance Commissioners (NAIC).
- Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
- Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored in a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company's true score in each category out of a possible five points.
