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Best cheap homeowners insurance in Austin

Updated May 06, 2024
Bankrate’s picks for the best homeowners insurance in Austin, Texas are USAA, Nationwide, Allstate, State Farm and Travelers.
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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.

Best for customer service

Bankrate Score

Rating: 4.7 stars out of 5
4.7

Avg. annual premium

$1,743

$300K dwelling coverage

JD Power

881/1,000

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 third year in a row, USAA has tied for the 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.

Scores and Ratings
Bankrate Score 4.7
J.D. Power 881/1,000
AM Best score A++
Read full review
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Best for digital tools

Bankrate Score

Rating: 4.3 stars out of 5
4.3

Avg. annual premium

$1,343

$300K dwelling coverage

JD Power

812/1,000

Why Nationwide made our list: Nationwide made a showing at the 2024 Bankrate Awards, taking home the title of Best Budget Home Insurance Company for its affordable rates and broad discount availability. Its Better Roof Replacement could be of interest to Austin homeowners, 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 pretty satisfied with managing their policies through its online interface. The Nationwide mobile app boasts a 4.4 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.

Scores and Ratings
Bankrate Score 4.3
J.D. Power 812/1,000
AM Best score A+
Read full review
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Best for discounts

Bankrate Score

Rating: 4.2 stars out of 5
4.2

Avg. annual premium

--

$300K dwelling coverage

Not available

JD Power

809/1,000

Why Allstate made our list: Allstate was the other winner of the Best Home Insurance Company Overall in the 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 may be a pricier option for home insurance in Austin, TX, but its multiple insurance discounts could help balance out its higher rates. Allstate offers multiple ways to get a cheaper rate, like its generous bundling discount of up to 25 percent. Customers could potentially earn a welcome discount, early signing discount, claim-free discount and responsible payment discount (to name just a few).

Scores and Ratings
Bankrate Score 4.2
J.D. Power 809/1,000
AM Best score A+
Read full review
Plus Collapse
Best for customer service

Bankrate Score

Rating: 4.2 stars out of 5
4.2

Avg. annual premium

$2,827

$300K dwelling coverage

JD Power

829/1,000

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, which usually costs extra with 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.

Scores and Ratings
Bankrate Score 4.2
J.D. Power 829/1,000
AM Best score A++
Read full review
Plus Collapse
Best for add-on coverage

Bankrate Score

Rating: 4.1 stars out of 5
4.1

Avg. annual premium

--

$300K dwelling coverage

Not available

JD Power

790/1,000

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 having an environmentally conscious house, but the company’s green home coverage can add extra 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 different add-ons 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.

Scores and Ratings
Bankrate Score 4.1
J.D. Power 790/1,000
AM Best score A++
Read full review
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Bankrate's trusted insurance industry expertise

Read our full methodology

Bankrate knows that, for Austin homeowners looking for a new insurance policy, cost is a major consideration. We refresh our rates from Quadrant Information Services every month so you know that what you see on our pages is as up-to-date as possible.

46

years of industry experience

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

The cheapest home insurance companies in Austin

Based on our research, Nationwide, Armed Forces and Farmers 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.

Caret Down
Company Average monthly premium* Average annual premium*
$112
$1,343
Armed Forces
$121
$1,450
$132
$1,587
$145
$1,743
*Average rates for policies with $300K in dwelling coverage
Company Average monthly premium* Average annual premium*
$124
$1,343
Armed Forces
$132
$1,450
$151
$1,587
$163
$1,743
Company Average monthly premium* Average annual premium*
$148
$1,770
Armed Forces
$156
$1,869
$187
$2,238
$197
$2,362
Company Average monthly premium* Average annual premium*
$234
$2,809
Armed Forces
$234
$2,813
$268
$3,215
$272
$3,259

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Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

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.

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How much is home insurance in Austin, Texas?

The average cost of home insurance in Austin $2,254 per year, which is 40 percent less than the Texas average of $3,773. 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 Austin, TX. 

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.

Company Poor Credit Average Credit Good Credit Excellent Credit
$2,049
$1,440
$1,343
$1,163
Armed Forces
$2,404
$1,557
$1,450
$1,328
$3,749
$1,735
$1,587
$1,220
$2,251
$1,767
$1,743
$1,658
$3,041
$2,199
$2,068
$1,853

Austin rates by home age

How old your home is can also affect how much you pay for your insurance. A home that is built with materials that are harder to find today can cost more to insure. 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, that could cost quite a lot of money. In most cases, insurers build the added risk of insuring an older home into the policy cost.

Company 1959 1982 1992 2010 2020
$2,821
$2,822
$2,926
$2,099
$1,011
Armed Forces
$2,045
$2,018
$1,997
$1,692
$1,229
$1,980
$2,076
$2,111
$2,111
$1,284
$2,440
$2,484
$2,455
$2,115
$1,577
$2,068
$2,068
$2,068
$1,875
$2,068

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 money you are financially responsible for when filing a covered claim, so be careful not to raise it too high.

Company $1,500 Deductible $2,000 Deductible $5,000 Deductible
$1,317
$1,275
$1,204
Armed Forces
$1,450
$1,260
$1,121
$1,497
$1,410
$1,083
$1,603
$1,603
$1,354
$2,068
$2,068
$2,033

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze May 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
  • Coverage C, Personal Property: $150,000
  • Coverage D, Loss of Use: $60,000
  • 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, 2015 (base) and 2020.

Bankrate Score

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts 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.

5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 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 NAIC, were analyzed.
  • 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 a company’s corporate sustainability efforts.
Written by
Elizabeth Rivelli
Contributor, Insurance

Elizabeth Rivelli is a contributing insurance writer for Bankrate and has years of experience writing for insurance domains such as The Simple Dollar, Coverage.com and NextAdvisor, among others

Edited by Senior Editor, Insurance