Finding Low Home Insurance Rates in Texas

Homeowners in Texas pay some of the highest insurance premiums in the United States. In fact, a recent Dallas News article pointed out that insurance rates in Texas are third-highest in the country. The reasons for the high rates are numerous.

Why Rates are High

First, weather plays a large role in setting insurance premiums, and Texas homeowners see plenty of weather-related damage to their properties every year.

Second, home insurance in Texas is high because insurance company expenses are high. Expenses that are higher than other state averages include areas like marketing and commissions that companies pay their insurance representatives.

Third, insurance companies are also hoping for bigger profit margins than in the past. This means that in order to make more money, companies are charging higher premiums in hopes of hitting their goal profit margin.

Fourth, a practice known as reinsurance drives up rates. Reinsurance occurs when an insurer purchases coverage that will help cover some of its risk. For example, an insurance company might insure a property located near a flood zone, and then purchase insurance on their risk for that property so that, in the event of a flood, they can be reimbursed for a portion of their payout to the homeowner. It’s a complex system, and it makes finding low rates in Texas difficult.

Finding Lower Rates

The high rates in Texas can make it difficult for homeowners to know if they are getting a good deal on their insurance. The following list includes some easy tips for getting the lowest possible quotes.

Shop Around

The most important tip for homeowners is to obtain multiple quotes from multiple companies. One of the easiest ways to prevent insurance agents from quoting too-high rates is letting them know what such and such company will charge for the same coverage. If you want to find good home insurance in Texas , do not stop with the first reasonable quote you are given; keep talking with agents until you get a rate that is competitive for the coverage.

Maintain Your Credit

It might seem unfair for homeowners just starting out or for those that have faced financial difficulty, but insurance companies use credit scores as a factor in determining insurance premiums. The argument is that a person with a higher credit score is less of a risk to the insurance company. If you find yourself with credit that may adversely affect your insurance premiums, stay on top of it. There are many ways to bring up a credit score, including small things like making payments on time, closing newer accounts that are not being used or refraining from taking out new lines of credit. Consumers who do not have a credit history could benefit from something as simple as using a credit card for a small purchase each month and then paying off the balance.

Bundle Up

Most insurance companies will offer discounts to customers who have multiple policies with them. For example, checking with the company who insures your automobile may give you a lower rate on your home insurance in Texas. Always ask the agent you speak with about a multi-policy discount, which can help you decide what rate is best for you as you compare quotes.

Switch it Up

Finally, a lot of insurance companies pour money into attracting new customers, which means that being loyal to your current insurance company may not be paying off. Chances are good that if you have been with one company for several years, you are paying higher premiums than you would if you switched to a new company. Consider visiting to compare rates on a new policy. You just might find a better deal waiting for you somewhere else.