It’s hard to miss the commercials from companies like Nationwide, Allstate, and The General that say if you switch you’ll get enormous savings. So you just need to choose any one of them, right?
It’s just not that easy, however, as there are a ton of unknown aspects like the type of vehicle you drive, the amount of liability insurance you need, and the deductible level you need, that all help calculate your car insurance rates. We will touch on these topics and will hopefully give the reader a good start to your coverage search.
Finding out which companies quote the cheapest insurance rates for homeowners involves a little more sweat in order to find the best policy. Each auto insurer has a different formula to establish rates, so we’ll take a look at the most competitive insurance companies in Austin, TX.
It’s important to know that Texas insurance rates are influenced by many factors that control the cost of your policy. Simply turning a year older, becoming a homeowner, or having a fender bender can trigger rate changes resulting in some companies being cheaper than competitors.
Cheap Insurance Rates for Homeowners
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $1,041 |
| 2 | USAA | $1,084 |
| 3 | Texas Farm Bureau | $1,199 |
| 4 | Germania Mutual | $1,256 |
| 5 | Esurance | $1,421 |
| 6 | California Casualty | $1,438 |
| 7 | Mercury | $1,461 |
| 8 | State Farm | $1,495 |
| 9 | Nationwide | $1,553 |
| 10 | Safe Auto | $1,565 |
| 11 | Progressive | $1,664 |
| 12 | Allstate | $1,718 |
| 13 | Amica | $1,723 |
| 14 | GEICO | $2,135 |
| 15 | Home State | $2,155 |
| 16 | MetLife | $2,183 |
| 17 | Unitrin | $2,241 |
| 18 | Encompass | $2,255 |
| 19 | 21st Century | $2,396 |
| 20 | Titan | $2,646 |
| Quote Your Rates Go | ||
Travelers quotes some of the most affordable car insurance rates in Austin at around $1,041 each year. This is $863 less than the average price paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are also some of the lowest-priced Austin, TX insurance companies.
As the example above demonstrates, if you are currently insured with Germania Mutual and switched to USAA, you could see a yearly price reduction of in the neighborhood of $172. Policyholders with Esurance could save as much as $337 a year, and California Casualty customers might lower prices by $354 a year.
To find the cheapest rates for your vehicle, click here or visit any of the low-priced companies below.
It’s important to note that these prices are averaged across all ages of drivers and types of vehicles and do not factor in an exact zip code location for homeowners. So the insurer that is most affordable for your situation may not even be in the top 23 companies shown above. That affirms the importance of why you need to get car insurance quotes using your own driver data and vehicle information.
The vehicle model requiring insurance is one of the largest considerations that determines whether or not you find affordable car insurance for homeowners. Vehicles with more horsepower, a lack of advanced safety features, or a high likelihood of having liability claims will cost quite a bit more to insure than safer models. The next table presents auto insurance premiums for the most cost-effective automobiles to buy coverage for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $998 |
| Honda CR-V LX 2WD | $1,095 |
| Toyota Prius | $1,108 |
| Ford Escape XLT 4WD | $1,158 |
| GMC Sierra SLE Regular Cab 2WD | $1,185 |
| Dodge Grand Caravan Hero | $1,195 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $1,207 |
| Toyota Corolla LE | $1,248 |
| Toyota Camry SE | $1,255 |
| Ford F-150 XL Crew Cab 4WD | $1,248 |
| Ford Edge Limited 2WD | $1,268 |
| Chevrolet Equinox LTZ AWD | $1,270 |
| Nissan Altima 3.5 SR 4-Dr Sedan | $1,276 |
| Ford Explorer XLT AWD | $1,273 |
| Volkswagen Jetta LE 4-Dr Sedan | $1,293 |
| Toyota RAV4 Limited 4WD | $1,334 |
| Kia Optima EX | $1,352 |
| Honda Accord EX-L 2-Dr Coupe | $1,362 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,352 |
| Chevrolet Silverado 2500HD LT Crew Cab Diesel 4WD | $1,356 |
| Find Cheaper Rates Go | |
Data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Texas minimum liability limits. Discounts applied include homeowner, claim-free, safe-driver, multi-vehicle, and multi-policy. Prices do not factor in specific garaging location which can decrease or increase coverage rates significantly.
Looking at the numbers, we can presume that makes and models like the Hyundai Elantra, Honda CR-V, Toyota Prius, Ford Escape, and GMC Sierra are going to be some of the more affordable vehicles to insure for people who own their homes.
For people who own their homes, one of the largest criteria that help determine insurance cost is where you call home in Austin. Areas with a lot of weather claims or more people tend to have more expensive auto insurance rates, whereas more rural areas get the luxury of paying less.
The information below rates the most costly cities in Texas for homeowners to buy auto insurance in. Austin ranks #18 costing $1,627 for the average policyholder, which is around $136 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | McAllen | $1,956 |
| 2 | Houston | $1,891 |
| 3 | Laredo | $1,851 |
| 4 | Brownsville | $1,851 |
| 5 | Amarillo | $1,840 |
| 6 | Dallas | $1,837 |
| 7 | Pasadena | $1,794 |
| 8 | Garland | $1,778 |
| 9 | Beaumont | $1,754 |
| 10 | Mesquite | $1,753 |
| 11 | Grand Prairie | $1,740 |
| 12 | Irving | $1,736 |
| 13 | Lubbock | $1,716 |
| 14 | Arlington | $1,692 |
| 15 | San Antonio | $1,671 |
| 16 | Fort Worth | $1,670 |
| 17 | Carrollton | $1,664 |
| 18 | Austin | $1,627 |
| 19 | El Paso | $1,616 |
| 20 | McKinney | $1,577 |
| 21 | Plano | $1,576 |
| 22 | Corpus Christi | $1,572 |
| 23 | Abilene | $1,545 |
| 24 | Waco | $1,522 |
| 25 | Killeen | $1,488 |
| Quote Best Rates Go | ||
Premium costs are comparative as the specific area where the vehicle is garaged can change price quotes substantially.
Difference between liability only and full coverage rates
Lowering the price of insurance should be important to the majority of vehicle owners, and one way to find cheap insurance for homeowners is to buy liability only. The illustration below illustrates the comparison of car insurance rates with liability coverage only compared to full coverage. The rates are based on no claims, a clean driving record, $500 deductibles, single status, and no additional discounts are factored in.
If the expense is averaged for all age categories, physical damage coverage on your policy costs $1,793 per year over and above liability coverage. That amount may make you wonder if physical damage coverage is worth the money. There is no written rule for phasing out physical damage coverage, but there is a guideline you can use. If the annual cost of comprehensive and collision coverage is more than 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to consider dropping full coverage.
For example, let’s assume your vehicle’s book value is $11,500 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most your company will settle for is $10,500 after the deductible is paid. If you are currently paying more than $1,050 a year for full coverage, then it might be time to buy liability only.
The illustration below highlights how deductible selection can affect premium costs when getting quotes for cheap insurance for homeowners. Data assumes a single male driver, comprehensive and collision coverage, and no policy discounts are applied.
The data above shows that a 40-year-old driver could reduce rates by $314 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $472 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, could potentially save as much as $1,026 every year by selecting a higher deductible. When choosing a higher deductible, it will be necessary to have enough savings set aside to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Ending up with the top car insurance company is difficult considering how many companies are available to choose from in Texas. The company rank data listed below can help you decide which auto insurers you want to consider purchasing coverage from. The ratings below include companies that insure vehicles nationwide, so companies that focus mainly on Texas business are not included in these rankings.
Top 10 Large Auto Insurance Companies in Austin Ranked by A.M. Best Rating
- Travelers – A++
- USAA – A++
- GEICO – A++
- State Farm – A++
- Titan Insurance – A+
- Esurance – A+
- Progressive – A+
- The Hartford – A+
- Allstate – A+
- Nationwide – A+
Low rates today, overpriced tomorrow
Texas insurance rates are impacted by many factors which can significantly increase or decrease the price you pay. Simply improving your credit, getting married, or getting a reckless driving citation can trigger rate changes that can cause some rates to be more affordable than before.
Not only that, but companies amend pricing as often as every quarter in order to be able to pay unexpected claims. A period of higher than normal claims can cause higher prices, while profitable underwriting can result in lower-priced Austin car insurance rates.
For example, the data below analyzes the cheapest car insurance in Austin, TX for a 35-year-old female driver with a clean driving record, no accidents, and a decent credit rating. If we look at prices based on her personal profile, Travelers may offer the most affordable car insurance rates in Austin at $1,138 each year. This is $766 less than the average premium paid by Texas drivers of $1,904. USAA, Texas Farm Bureau, Germania Mutual, and Esurance are the remaining best Austin, TX auto insurance companies.
Let’s now give the driver in the first chart a claim, slightly worse credit, and a traffic ticket or two. Since each auto insurance company has a proprietary method to establish rates, comparing quotes could now result in a different set of the cheapest companies as shown below.
Mercury now has the cheapest car insurance in Austin with State Farm, Nationwide, Safe Auto, and USAA completing the list. This example shows why drivers need to perform a complete rate comparison to get the lowest auto insurance rates for homeowners. Car insurance prices are influenced by many factors and change frequently, so the most economical company the last time you checked may now be one of the more expensive options.