Whether you navigate the Lone Star State’s open roads and large highways frequently or you simply run a business, you need to know the best insurance companies in Texas. However, finding the coverage you need from a company you can trust can be tricky.
Small businesses are a major part of the state’s economy in Texas. They employ nearly 5 million Texans, which make up 99.8% of all the businesses in the state, which makes getting the right insurance a process you do not want to get wrong. General liability insurance is a common policy for small business owners and self-employed professionals due to its important protections.
Also known as commercial general liability (CGL), this type of insurance helps cover costs that can result from commonplace accidents and risks, like property damage and injuries to someone other than an employee. When these types of accidents happen, your Texas general liability insurance policy helps protect you from related costs.
This coverage also extends to incidents where you need to defend yourself against an accusation of libel or slander.
But insurance in Texas is not limited to these alone.
Insurance policies in Texas
Health insurance
When you choose a plan for Texas private health insurance, your insurance company charges a periodic amount called a premium. The premium is critical as it provides you with the opportunity to continue to obtain coverage for your medical expenses. The Texas insurance company pays for a large portion of your costs after you have met your specific threshold. This threshold includes the following expenses.
Deductible: The deductible is the yearly limit that you must incur before your Texas insurer steps in and starts their coverage.
Copays: These are simple charges that you incur with each medical expense. It is present after you meet your deductible.
Coinsurance: This cost is a percentage of your healthcare bills and will come into effect once you have paid your deductible.
Out-Of-Pocket Maximum: As the name implies, this is the total you are required to pay per year and places a cap on your deductibles, coinsurance, and copays. The Texas insurance plan provider is then responsible for providing coverage according to their specific plan offerings.
Auto insurance
Auto insurance protects you financially by paying the other driver’s car repair and medical bills if you cause an accident. Depending on the kind of coverage you have, it can also pay to repair or replace your car if it’s damaged or stolen.
Texas has a Consumer Bill of Rights for auto insurance. Your insurance company will give you a copy of the bill of rights when you get or renew a policy.
Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver’s car, or other damaged property, and pays other people’s medical expenses when you’re at fault in an accident.
If you still owe money on your car, your lender will require you to have collision and comprehensive coverage.
Life insurance
In general, life insurance is a good idea if you have family or others who rely on you financially. To decide the amount that’s right for you, consider your debts, the amount of income your family must replace, and whether they’ll have bills or other expenses.
Your life insurance company will make payments after your death to the person you name in your policy. This person is called your beneficiary. You can name more than one beneficiary. Your beneficiaries can use the money to pay bills and living expenses, pay off debts, pay for college, and other things.
Some types of life insurance in Texas also build savings you can use during your lifetime.
Insurance companies in Texas use a process called underwriting to decide whether to sell you a policy. This often includes passing a medical exam and answering questions about your health, job, and habits. A company can refuse to sell you a policy if it considers you a high risk because of your health or other reasons.
Home insurance
Home insurance protects you financially if your home or property is damaged or destroyed by something your policy covers, like a fire or storm.
Similar to auto insurance, Texas has a Consumer Bill of Rights for home and renters insurance. Your insurance company will give you a copy of the Bill of Rights when you get or renew a policy. Your home policy protects you against different risks or perils. Risks and perils are things that could damage your house or property. Coverages vary by company.
The law doesn’t require you to have home insurance. But if you still owe money on your home, your lender will require you to have it. Even though it’s not legally required, home insurance is a good idea because it helps protect your home and other assets.
Long-term care insurance
Long-term care is a type of service you might need if you can’t care for yourself because of an illness, disability, or Alzheimer’s disease. It helps with routine daily activities like eating, getting around, and bathing. It can also help if you need someone to look after you or need reminders to take medicine.
The cost of long-term care is based on the type of care you need, how long you need it, where you get it, and what type of medical professional provides it.
There are several ways to pay for long-term care:
- Personal cash or savings.
- Medicaid.
- Medicare.
- Benefits or payments from a life insurance policy or annuity.
- Long-term care insurance.
Medicaid is a state and federal assistance program that pays for health care and some long-term care expenses for people with low incomes.
To get Medicaid, you must meet the Texas income and asset requirements. Assets are different than income. They are things you own – like your house, cars, and stocks – that you could turn into cash. Many people pay for long-term care out of pocket until they “spend down” their assets enough to be eligible for Medicaid.
Top insurance companies in Texas
Here are the top insurance companies in Texas for each of the categories listed above:
Blue Cross Blue Shield – Best for health insurance
Blue Cross Blue Shield of Texas is the largest health insurance provider in the state by market share, and its plans have a 3-star Healthcare.gov rating. The insurer’s gold plans are a particularly good value, with relatively low deductibles and the lowest estimated annual cost, on average, of available plans. What’s more, there’s a 24/7 nurse line, and you can get virtual care from a doctor 24/7 for more than 80 health conditions, all from your phone.
Blue365 is one of the more extensive discount programs in the industry, offering a variety of discounts on wellness-related products and services. You can even save on gym memberships and weight loss programs.
However, Texans looking for a more affordable plan designed for people who need infrequent doctor’s visits may be better served by another company, since BCBS Texas premiums are relatively high for silver and bronze plans.
Texas Farm Bureau – Best for auto insurance
Texas Farm Bureau is the best car insurance company in Texas for full and minimum coverage. It’s also a solid choice for young adults and seniors.
Texas Farm Bureau offers just two basic add-on coverages — roadside assistance and rental car coverage — which you can purchase as add-ons to your policy. By adding roadside assistance coverage, you’ll receive round-the-clock towing, lockout, and tire change services. With rental car coverage, Texas Farm Bureau will shoulder the costs of renting a car for your transportation needs while you’re waiting for vehicle repairs after a covered incident. These essential coverages can benefit all drivers.
Although this insurer is more limited in its coverage options, it is one of Texas’s cheapest car insurance providers. Policyholders can look forward to receiving top-notch service, given that this insurer ranked highly on J.D. Power’s 2022 customer satisfaction study for the 11th straight year. It also performed well for those with insurance from it per the National Association of Insurance Commissioners (NAIC) customer complaint index.
State Farm – Best for life insurance
State Farm is the best whole life insurance company in Texas. Whole life insurance is a type of permanent life insurance. It generally lasts for the lifetime of the insured, has a cash value, and may pay dividends. The cash value for a whole life policy is a kind of savings account. Policyholders can take a loan against the cash value and use it to pay premiums, although the death benefit will be diminished if those funds are not replenished.
The cash value builds its value through the premium payments and a fixed interest rate set by the insurance company. Because part of the premium payments go toward the cash value, it is often more expensive than a term policy.
Amica – Best for home insurance
Amica offers basic coverage for your home, personal belongings, liability, and loss of use as well as several add-ons designed to further cover the physical structure of a home and the personal belongings inside. It offers the Amica Platinum Choice plan, which allows policyholders to bundle basic homeowners insurance products, limited coverage for home business items, and other coverage options.
This includes credit card fraud insurance and water backup/sump pump insurance.
In addition, Amica pays dividends on some of its homeowners insurance policies, and states on its website that customers can receive up to 20% of their premium back each year.
Mutual of Omaha – Best for long-term care
Founded in 1909 and with an AM Best rating of A+ (Superior), Mutual of Omaha offers one long-term care base plan. It has built-in features that can be customized as needed. As part of the standard plan, customers can get:
- Cash benefits instead of being reimbursed for actual costs
- Access to a care coordinator who can assess your needs, develop an individual care plan, and arrange services as needed
- Waiver of premium, which means customers don’t have to pay for their monthly premiums while receiving LTC
- Coverage for alternative care that may not yet exist
Additional benefits are available for an extra cost, such as inflation protection, shared care (allowing partners to share benefits if needed), and a return of premium for any benefits not used.
The company stands out with its two discounts that benefit couples whether legally married, in a domestic partnership, or otherwise in a serious, committed personal relationship with a shared residence for the past three years or more.
Couples, where both partners sign up for Mutual of Omaha, can receive 15% off their policies. In situations where only one partner in a long-term relationship has a policy with the company, a 5% discount applies. There’s a third discount available to customers for being in good health regardless of their relationship status; eligible customers can save 15% on their bill.
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