All About Home & Auto Insurance Companies in Texas

Summary: Across the Lone Star State, many different insurance companies are protecting against property and casualty losses. Different brands have different organizational structures that may affect how they operate and service policyholders. To ensure that everyone receives a fair marketplace, there are several entities that regulate insurance companies. These organizations also act as resources for consumers should disputes arise. Estimated Read Time: 14 mins

When it comes to protecting against losses, Texans have plenty of property and casualty insurance companies to choose from. Offering protection from perils that can affect your home, property, and finances, insurance companies can provide affordable coverage. Below, we’re looking at how different carriers are rated, how they operate, and where to find top-rated coverage for less.

Top Rated Insurance Companies in Texas

There are nearly 3,000 insurance companies available in Texas offering coverage for the many losses and expenses we all might face. Some are well known with millions of dollars invested in advertising and branding. Others are much smaller but more than capable of handling your claim.

Each insurance company is subjected to standards and regulations. In fact, the insurance industry is one of the most regulated that you’ll find. Still, not all insurance companies are the same, as each brand will have different financial prospects, insurance products, customer service ratings, etc.

Property and Casualty Insurance Companies

According to the Insurance Information Institute (III), Texas also accounts for more than $80.475 billion in direct premiums written for property and casualty insurance companies. The Lone Star State represents the second-largest insurance market in the country and seventh in the world.

When it comes to property and casualty, there are many different products available and different companies available. Many brands may represent more than one product and provide clients with the chance to bundle in some cases.

At Freedom Insurance Group, we collaborate with top-rated insurance companies to provide protection for your home, auto, boat, and much more. The best insurance companies are going to not only safeguard your finances but operate as financially viable operations:

Allstate
American Risk Insurance (ARI)
Bristol West
Conifer Insurance
Encompass Insurance
Foremost Insurance
GAINSCO
GEICO
Infinity Insurance
Kemper Insurance
National General Insurance
National Lloyds
Progressive
ROAMLY Insurance
Safeco
South and Western
Steadily
The General
Travelers Insurance
Texas Windstorm Insurance Association (TWIA)
Wellington Insurance

There are several top insurance carriers available to homeowners, drivers, renters, landlords, and businesses. Below, we’re breaking down the many types of insurance companies available and how they help you protect your finances by mitigating risk:

Car Insurance Companies

Our way of life wouldn’t be possible without the automobile, and yet, every time we get on the road, we accept a tremendous range of risks. This is why having liability coverage is required by law and is exactly why car insurance companies are so important.

Protecting against many different types of losses including bodily injury and property damage, auto insurance companies offer a range of products that help us safeguard our finances.

This can be as simple as liability coverage to help you restore losses to another driver if you cause an accident, policies specifically to help replace your vehicle if it is stolen, and much more.

Top auto insurance companies offer many policy options that allow you to customize your coverage according to your needs, all while maintaining a positive financial outlook for the present and future.

In addition to protecting your vehicle and finances, many perks may be available. Each auto insurance company offers its own specific benefits at its own discretion, such as roadside assistance, and such features are not guaranteed.

The same goes for discounts. Each car insurance company may offer discounts that help you save on premiums but these will differ depending on a number of factors including the brand you enroll with.

Home Insurance Companies

Homes can face several perils ranging from massive housefires to minor vandalism and everything in between. Policies from home insurance companies help homeowners protect their investments and safeguard finances.

Each home insurance company offers a variety of policies that aim to protect homes in specific ways. For example, if you live in a townhome compared to a traditional home or a condo, you’ll want to enroll in coverage that makes sense for your property type.

Home and auto insurance companies often provide bundles among other discounts to maximize your protection for less. Although you’ll have a higher premium than purchasing a single policy, combining coverages often allows cheaper overall rates from carriers that are personalized to your needs.

There are several top-rated homeowners insurance companies available in Texas. Comparing rates and finding the best premium in your area can help you personalize your policy while enrolling in the right coverage for less.

Commercial Insurance Companies

While not all companies are required to have coverage, there are several instances and industries that legally must maintain policies. Business insurance companies help provide commercial protection similar to personal policies.

The main difference with commercial insurance companies is that policies are going to only apply to business use and not personal. In the same vein, personal policies won’t apply in commercial settings. For example:

Commercial insurance companies have auto policies for businesses that can protect in the instance of a loss due to property damage or liability.
This is similar to a personal policy but only applies to commercially owned vehicles and/or vehicles being used to conduct business.
Therefore, even if you have a personal vehicle being used for a business purpose, you’ll need to have a commercial policy in place.

Commercial auto policies are just one part of the puzzle, however, as there are business crimes, general liability, product damage protection, cybersecurity risks, and much more to consider.

The best business insurance companies are top-rated and offer a wide range of products to fit your company’s needs.

Motorcycle Insurance Companies

Similar to car insurance, there are several different types of policies available for riders. Motorcycle insurance companies focus on helping you safeguard your finances from potential losses due to property damage and liability.

Bikes are covered but many other vehicles can also benefit from such coverage. Therefore, if you have an ATV, UTV (side-by-side), moped, or scooter, motorcycle insurance companies can help you stay legal while riding and protect against potentially large financial hurdles involving your vehicle.

Renters Insurance Companies

As a renter, you don’t have to worry about securing protection for your home as it falls on the responsibility of your landlord. Yet, you still have plenty of personal property to protect, such as your furniture, electronics, clothes, and more.

Renters insurance companies offer policies that help restore damaged or stolen property. You can even protect your finances in case you are found personally liable for property damage or bodily injury to a visitor or neighbor.

RV Insurance Companies

RVs must have liability coverage but there are many different policies available that can protect you in different ways. It’s similar to an auto policy where RV insurance companies help protect your recreational vehicle against many different types of potential losses.

But because RVs are part vehicle, part home, there are additional scenarios that may arise. Furthermore, some campers turn their vacation into a lifestyle and live in their RV full-time. Working with the right carrier can help you safeguard potential losses for these unique scenarios and more.

Boat Insurance Companies

On the water, property loss, and potential liability-related losses can be complex and expensive without the right coverage. However, watercraft also need protection when on land and on the way to a body of water while in transit.

Boat insurance companies can protect you from damage, theft, and liability involving your watercraft. This includes traditional fishing boats, sailboats, yachts, jet skis, and more. You can even find protection for your boat trailer and coverage for your watercraft while in storage.

Furthermore, insurance companies providing boat policies can help you with fuel spillage, salvage needs, and more. The right insurance company will not only protect you from risks but can help you find even lower overall premiums through bundling.

Flood Insurance Companies

The Federal Emergency Management Agency (FEMA) operates the National Flood Insurance Program (NFIP) which helps provide coverage for homeowners and renters against potential flood damage. However, flood insurance companies also exist and provide the following:

Flood protection at competitive premiums.
Personalized protection for your needs.
Private insurance companies may provide a wider range of coverage.

Whether or not you live in an area prone to flooding, you’ll want to look into flood insurance companies along with federal options as a home or renters policy won’t restore such losses.

Landlord Insurance Companies

If you own property and rent it to a tenant, you’re going to want to protect it as a landlord. Not only do landlord insurance companies protect your investment from physical damage but your personal finances are safeguarded from potential lawsuits and your rental income is covered should certain disruptions occur.

Umbrella Insurance Companies

If you have a home or auto policy, even if you increase its limits, some losses can surpass your coverage. Umbrella insurance companies provide supplemental coverage to help you avoid paying out of pocket for larger losses.

Often a very affordable product, an umbrella insurance company will help you protect your financial assets that may otherwise become subject to court rulings following a lawsuit when you’re liable beyond your initial coverage’s limits.

Condo Insurance Companies

Similar to traditional house insurance companies, a condo insurance underwriter is going to help protect townhomes and condos. While the focus is slightly different and somewhat more minimal, condo insurance companies are a great option for permanent living spaces and vacation homes alike.

Standard vs Non-Standard Insurance Companies

It doesn’t matter if you’re looking to protect your vehicle, your home, or whatever it might be, risk is a major element for any insurance transaction. However, this works both ways and insurance companies work to manage the risk they take on to remain financially viable.

This can lead to a number of scenarios and ultimately problems for consumers who carry a higher risk and have been dropped or non-renewed by an insurance carrier.

For example, if you live in an area prone to hurricanes and are suffering from wind damage at an abnormal rate, some P&C insurance companies may not renew your home after your policy is up. You may also find an issue finding coverage if you are a driver who causes frequent accidents.

But even under extreme circumstances, options are available. There are standard and non-standard insurance companies available. Both of which structure themselves differently to account for varying levels of risk. Here’s how they compare:

Standard Insurance Companies

A standard insurance company offers a range of property and casualty products. They typically refer to well-established carriers that have a strong financial backing and are known for dependability. The combination of a wide range of coverage options and reliability are trademark reasons standard insurance companies are such popular options.

Non-Standard Insurance Companies

A non-standard insurance company specializes in providing coverage to high-risk individuals or businesses. In most cases, non-standard insurance companies cover those facing challenges in obtaining a policy from standard carriers.

It’s a popular option, particularly for those in need of coverage from companies for auto insurance. Non-standard insurance companies focus on high-risk clients, such as those with poor driving records or negative claims history.

The key is providing specialized products with flexible underwriting criteria. Non-standard insurers may charge higher premiums to offset increased risk and operate within specific state regulations.

While non-standard companies may have limitations on coverage options compared to standard carriers, this can change depending on the individual and state.

Stock vs Mutual Insurance Companies

Insurance companies aren’t all structured the same way. This can affect how insurance companies not only operate but also affect their risk management. Consumers can have a voice in how their underwriters conduct business. Here’s how to compare stock vs mutual insurance companies:

Mutual Insurance Companies

A mutual insurance company provides membership to its policyholders who enroll in coverage but also can choose who manages the company. Members also receive dividends or lower premiums from the profits that mutual insurance companies make when investing.

There are mutual insurance companies available in Texas, however, such designation is only allowed by laws from the federal government. In the end, management aims to provide members with coverage around cost.

Mutual insurance companies were the original model in the United States brought over from England when Benjamin Franklin founded the Philadelphia Contributionship for the Insurance of Houses From Loss by Fire in 1752.

Because each mutual insurance company uses memberships instead of being traded on stock exchanges, the focus isn’t on meeting shorter financial goals but rather on setting up long-term success for policyholders.

Stock Insurance Companies

Through the act of demutualization, mutual companies can diversify their risk and operations. This allows underwriters to convert into stock insurance companies, with some completely forgoing membership models.

Just like any other stock company, a stock insurance company has shareholders who own stock and aim to profit from the operations of the business. These brands can be private or public companies and policyholders don’t gain access to profits or losses their insurer may incur.

There are different financial parameters companies must meet to become a stock insurance company as well as receiving approval from regulators on the state level.

Who Regulates Insurance Companies in Texas?

Regulating insurance companies occurs at both the federal and state levels. There are many different entities that help protect not only underwriters but consumers in the Lone Star State.

In 1851, the first insurance commissioner was appointed in New Hampshire, and in 1869, a Supreme Court ruling in Paul v. Virginia left regulations to the states. This would lead to the creation of the National Insurance Convention in 1871, known today as the National Association of Insurance Commissioners (NAIC).

However, federal legislation, including the Gramm-Leach-Bliley Act of 1999, and the Dodd-Frank Act of 2010 creating the Federal Insurance Office led to more involvement and regulation on the federal level.

Nevertheless, state legislation and government bodies primarily oversee the industry. Below are some of the biggest examples that are viable resources for consumers and carriers alike:

The Texas Department of Insurance (TDI)

The Texas Department of Insurance (TDI) regulates insurance companies by the authority of the Texas Insurance Code throughout the industry while also managing the responsibilities of the State Fire Marshal’s Office. This includes both personal lines and commercial insurance.

TDI regulates the market and helps maintain competition among insurance companies in an ethical manner. Commissioners are appointed for two-year terms by the governor. If you have an issue with an insurance company, you can file a complaint with TDI and the Office of the Attorney General’s Consumer Protection Division.

The Office of Public Insurance Counsel (OPIC)

The Office of Public Insurance Counsel (OPIC) serves to advocate for Texans within the insurance industry. Since 1991, OPIC has been helping regulate the actions of insurance companies by assessing rules, policies, and insurance rates.

This includes making comments, raising concerns, and filing formal objections. OPIC may also intervene in rate hearings before the Commissioner of Insurance and the State Office of Administrative Hearings.

Legislatively, OPIC recommends beneficial legislation to the Texas Legislature, providing resource testimony and information on insurance issues. A crucial aspect of OPIC’s mission is consumer education and outreach.

The agency provides Texans with access to helpful resources, including the consumer bills of rights, to help consumers better understand their legal avenues should issues arise.

OPIC disseminates information through postcards, brochures, and various materials, employing its website and social media applications for consumer education. OPIC’s multifaceted approach aims to empower and educate consumers while fostering a balanced insurance marketplace.

National Association of Insurance Commissioners (NAIC)

The National Association of Insurance Commissioners (NAIC), established in 1871, serves as the insurance industry’s standard-setting organization in the United States.

NAIC’s state-based system empowers regulators to act in their states’ best interests while facilitating collaboration and resource-sharing among commissioners.

Uniting chief insurance regulators from across states, D.C., U.S. territories, the NAIC provides expertise and coordination for effective insurance industry regulation, ensuring fair, competitive, and healthy markets while safeguarding consumers.

The group’s priorities include consumer protection and education, data analysis, technology, financial oversight, and licensing/testing. Additionally, NAIC provides training and accreditation for all levels to better protect consumers.

There are shifting priorities that the NAIC takes on as needed including evolving climate risk/natural catastrophes and resiliency, the responsible use of data/artificial intelligence, cybersecurity threats, and pushing innovative ideas forward.

NAIC combats deceptive marketing to maintain a robust and accountable marketplace. Overall, insurance companies are held to the right standards and consumers receive protections thanks to the work of the organization.

Sources:

1. 2022 State of the Texas Property & Casualty Insurance Market, ICT

2022 State of the Texas Property & Casualty Insurance Market, ICT. Accessed January 2024. https://www.insurancecouncil.org/assets/pdf/2022-State-of-the-Market_final/

2. Insurance Handbook, III.

Insurance Handbook, III. Accessed January 2024. https://www.iii.org/publications/insurance-handbook/economic-and-financial-data/state-by-state

3. Mutual Insurance Company: Definition and How They Invest, Investopedia

Mutual Insurance Company: Definition and How They Invest, Investopedia. Accessed January 2024. https://www.investopedia.com/terms/m/mutual-insurance-company.asp

4. Mutual vs. Stock Insurance Companies: What’s the Difference?, Investopedia.

Mutual vs. Stock Insurance Companies: What’s the Difference?, Investopedia. Accessed January 2024. https://www.investopedia.com/articles/personal-finance/011916/mutual-vs-publically-traded-insurance-companies.asp

5. STATE INSURANCE REGULATION, NAIC

STATE INSURANCE REGULATION, NAIC. Accessed January 2024. https://content.naic.org/sites/default/files/inline-files/topics_white_paper_hist_ins_reg.pdf

6. About TDI, TDI.

About TDI, TDI. Accessed January 2024. https://www.tdi.texas.gov/general/index.html

7. What We Do, OPIC.

What We Do, OPIC. Accessed January 2024. https://www.opic.texas.gov/what-we-do/

8. About, NAIC.

About, NAIC. Accessed January 2024. https://content.naic.org/about