Texas homeowners pay an average of $6,715 annually for home insurance. Mercury offers the state's most affordable coverage at $3,025 per year, saving over 55%. USAA charges military families $4,233, while State Farm provides coverage at $4,454 through its wide agent network.
Cheapest Home Insurance in Texas (2026 Rates)
Updated: March 16, 2026
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Key Takeaways: Affordable Texas Home Insurers
Mercury charges $3,025 annually, 55% below Texas's state average of $6,722 for homeowners insurance.
Your city affects your premium. Mercury charges El Paso residents $1,360, but Webster homeowners pay $6,479.
Compare quotes from multiple insurers, ask about discounts and bundle policies to find savings on your home insurance.
Top 5 Cheapest Home Insurance Companies
| Mercury Insurance | 5.00 | $3,025 | -55% |
| USAA | 4.82 | $4,233 | -37% |
| State Farm | 4.78 | $4,455 | -34% |
| Farmers | 4.58 | $5,790 | -14% |
| Nationwide | 4.36 | $7,306 | 9% |
*These rates are based on a house built in 2000 with $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in liability coverage and a $1,000 deductible. We assumed good credit and no claims in the past five years.
COMPARE HOME INSURANCE COMPANIES BEYOND PRICE
Price matters when choosing home insurance, but customer service and coverage options affect your claims experience. Our separate guide to the best home insurance companies in Indiana compares insurers across multiple factors beyond cost.
Cheapest Texas Home Insurance Rates by Coverage Level
Insurance costs vary based on your home's value in Texas. Mercury consistently offers the lowest homeowners insurance rates across all coverage levels in our analysis. Find the cheapest insurers below for your specific dwelling coverage amount.
Data filtered by:
$100K Dwelling / $50K Personal Property / $100K Liability
| Mercury Insurance | $136 | $1,630 |
| USAA | $181 | $2,167 |
| State Farm | $182 | $2,187 |
| Nationwide | $243 | $2,919 |
| Chubb | $255 | $3,054 |
Cheapest Texas Home Insurance by City
Crime rates, weather risks and construction costs create rate differences across Texas cities. Mercury charges Pasadena homeowners $4,457 annually, while El Paso residents pay just $1,360 for identical coverage. Mercury offers the lowest rates in all 52 cities we analyzed, so check below for the cheapest providers in your specific area.
Data filtered by:
Abilene
| USAA | $344 | $4,130 |
| State Farm | $371 | $4,457 |
| Farmers | $416 | $4,995 |
| Mercury Insurance | $235 | $2,818 |
| IAT Insurance Group | $514 | $6,164 |
Find the Best & Cheapest Home Insurance in Texas Cities
For city-specific coverage, explore MoneyGeek's analysis of the best and most affordable home insurance in Texas cities.
Cheapest Texas Home Insurance by Homeowner Profile
Your personal profile affects your home insurance rates as much as your property details. Credit score and claims history create the largest rate differences among Texas homeowners.
Cheapest Home Insurance Companies in Texas by Credit Score
Credit scores help Texas insurers predict claim likelihood, affecting your home insurance premium by hundreds of dollars annually. Mercury consistently offers the most affordable rates across all credit tiers, from excellent to below fair scores.
Data filtered by:
Below Fair
| American Family | $137 | $1,647 |
| Farmers | $149 | $1,793 |
| USAA | $194 | $2,329 |
| State Farm | $206 | $2,473 |
| Nationwide | $226 | $2,708 |
Cheapest Home Insurance Companies in Texas by Claims History
Rate increases after filing claims vary between Texas insurers. Mercury consistently offers the most affordable home insurance rates, whether you have a clean record or multiple recent claims.
Data filtered by:
1 claim in the past 5 years
| American Family | $142 | $1,704 |
| USAA | $184 | $2,207 |
| State Farm | $193 | $2,318 |
| Nationwide | $206 | $2,469 |
| Farmers | $213 | $2,555 |
How to Find the Cheapest Texas Home Insurance
Finding affordable home insurance in Texas takes effort, but you can lower your costs. Here's how to save on your policy.
- 1Determine your coverage needs
Decide on your coverage limits before shopping to avoid buying more than you need. Understand dwelling coverage, personal property limits and liability protection to get adequate coverage without overpaying.
- 2Shop around and compare quotes
Get quotes from multiple carriers for identical coverage levels. Average Texas home insurance rates vary by hundreds of dollars annually between companies, even for the same home and profile. Gather quotes online, through agents and directly from insurers.
- 3Bundle your policies
Save 15% to 25% by bundling your home insurance with auto coverage. Most Texas insurers offer multi-policy discounts that reduce both premiums.
- 4Ask about available discounts
Ask agents about every discount you qualify for, as insurers won't apply them automatically. Common Texas discounts include protective device discounts for monitored alarm systems (5% to 20% savings), claims-free discounts, new home discounts and wind and hail-resistant roofing reductions.
- 5Improve your credit score
Texas allows credit-based insurance scoring, so improving your credit can lower your rates. Pay bills on time and reduce credit card balances to see premium reductions at your next renewal period.
Cheap Home Insurance in Texas: Bottom Line
Compare quotes from at least three insurers to secure the best deal on Texas home insurance, starting with Mercury Insurance's $3,025 annual rate. Your actual cost depends on your home's value, location and personal profile. Begin with companies on our recommended list and ask every insurer about available discounts to maximize your savings.
Cheapest Home Insurance in Texas: FAQ
Get answers to common questions about affordable home insurance in Texas.
Can I get cheaper home insurance with an older home in Texas?
Older homes cost more to insure due to outdated electrical, plumbing and roofing systems. Lower your premium by updating these systems and providing documentation to your insurer. Replacing knob-and-tube wiring, updating your roof and installing a modern HVAC system can reduce your rates. Some insurers offer renovation discounts when you complete major updates.
How does my roof age affect home insurance costs in Texas?
Roof age affects your premium and coverage eligibility. Most Texas insurers charge higher rates for roofs over 15 years old, and some won't cover roofs over 20 years without inspection. A new roof can lower your premium and qualify you for discounts. Insurers provide actual cash value coverage instead of replacement cost for older roofs, paying less when you file claims.
Will getting a dog increase my Texas home insurance rates?
Some dog breeds increase your liability premium or disqualify you from coverage entirely. Insurers consider pit bulls, Rottweilers, German shepherds and Dobermans high-risk breeds. You'll pay more for liability coverage with these breeds, and some insurers won't cover you at all. Disclose your dog when applying, as hiding this information can lead to claim denials.
Does Texas require flood insurance for homeowners?
Texas doesn't require flood insurance unless you have a federally backed mortgage in a high-risk flood zone. Standard home insurance doesn't cover flood damage, so you need separate flood insurance through the National Flood Insurance Program or private insurers.
How We Found the Cheapest Home Insurance Companies in Texas
MoneyGeek analyzed Texas rates to identify which companies offer the lowest premiums for homeowners across the state.
We gathered quotes from major insurers through Quadrant Information Services for a standard Texas home profile. The data shows which companies price competitively for typical homeowners.
Sample Home Profile
We gathered quotes using these specifications to represent a common Texas homeowner:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home built in 2000
- $1,000 deductible
- No claims in the past 5+ years
This profile reflects a moderately valued home with a clean claims history. Newer homes (built after 1990) get better rates than older properties with outdated electrical and plumbing systems. The $1,000 deductible balances affordable premiums with reasonable out-of-pocket costs when filing claims.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.