13 Factors That Affect Your Texas Home & Auto Insurance Rates

(Some You Can Fix, Some You Can’t)

There are many factors that affect your insurance rates (up & down) each year.  Most important for you, is to know which of those you can control so you can maximize your efforts to improve those.

If you want to improve your short and medium term budgeting, you should also have a general sense of awareness of the factors outside your control, as they MAY be leading indicators of market wide rate increases (or decreases) coming.

How Are Rates Determined?

You can think of rates like making a bowl of soup.  Each ingredient you put in will impact the final product.  Each factor in that helps determine your rates will impact your final rate, similar to the way the ingredient impacts the soup.

The more of these factors you are aware of, the more that you can control what that final rate may be.

It’s easy to understand.

Let’s take a look at 13 of the top factors that affect your rates below.

Here’s The List

1.  Your Insurance Score (Based In Part On Your Credit Score)

This one is in your control, and can have HUGE impacts on your premium. We’re talking thousands of dollars annually in some cases.  Improve your credit/insurance score and you will see a difference in your insurance premiums.

Learn More Here:  What Is An Insurance Score?

2.  Your Location (Zip Code)

This one is sort of in your control.  Clearly, most people aren’t just going to up and move for lower insurance costs, but if you’re in the market and considering new locations, you should keep this in mine. Broadly speaking, zip codes in areas with higher percentages of weather claims will have higher insurance costs.

3.  Age Of House

Again, this is somewhat in your control prior to purchase.  Newer homes and COMPLETELY refurbished homes get the best rates.  That said, as homes ages, they generally cost more to insure and may begin to run into eligibility issues is systems (like HVAC, electrical, plumbing) haven’t been updated.

4.  Size Of House 

This will have a direct impact on the insured value of the home (which directly impacts rates)

5.  Age Of Roof

This can have huge impacts on premium and eligibility. Newer roofs in TX get the best rates.

6.  Combining Your Insurance With One Company

The biggest discount most companies offer is the home and auto discount.  You should always try and keep the home and auto together first when possible.

7.  Age Of HVAC/Heating System

If you get a new system, let your insurance company know, there’s a good chance your premium will reduce.

8.  Number Of Claims You’ve Filed (In Past 3-5 Years) 

This is an obvious one, but what it not so obvious is that multiple claim in a 3-5 year window will have a multiplier effect on renewal premiums.

9.  Large Weather Events From The Recent Past (Affects Everyone In The Area)

This is not always intuitive, but when major storms effect large areas, higher premiums will usually follow 18-24 months after.

Like this:  11 Tornadoes In Dallas

10.  Married Or Single

Typically married couples will get better rates than single individuals

11.  What’s Going On In The Stock Market

Many companies invest premiums and rates can be affected by the returns on their investments

Rates fluctuate based on these and other factors and can change drastically (up or down) year over year.   To help you have solid coverage and competitive pricing, we recommend working with a good independent agent that can offer multiple solutions for your insurance.

       12. Population Density

Many areas in Texas have experience very high population growth, unfortunately, with growth mean more accidents/thefts, more accidents and thefts, means increased rates for all.

       13. Increase construction costs

Construction and labor costs have increased drastically in the past, specifically since 2020.  This means when there are losses, insurance companies are paying those increased        costs, the unfortunate truth is that consumers end up also paying those costs in the way of increased premiums.

Want to see if you can improve your homeowners insurance now?

Grab your policy declarations page and email me directly here –> steve@stevewhiteinsurance.com

Or get started with your quotes here –> Get Home Quote Now