Insuring a home can be expensive. The nationwide average home insurance rate is $2,777 nationwide for dwelling coverage of $300,000.
Fortunately, there are ways to cut costs. The price you pay for home insurance depends on factors such as your homeowner profile, where you live and steps you take to lower the annual premium.
Read on to see our expert picks for the best cheap home insurance companies and for more about how to get cheap homeowners insurance -- and to keep costs low as the years roll on.
Best cheap homeowners insurance companies
Below you’ll see our choices for the best home insurance companies that offer affordable pricing while also providing exceptional service. We looked at premiums, and all of the companies have below-average rates, but also coverage options, records of consumer complaints, claims satisfaction scores from J.D. Power, financial strength ratings and market share.
| Company | J.D. Power (out of 1,000) | NAIC complaint ratio* | AM Best rating | Average annual rate |
|---|---|---|---|---|
| State Farm | 829 | 1.07 | A++ | $2,534 |
| Auto-Owners | 825 | 0.19 | A++ | $2,355 |
| Travelers | 794 | 0.60 | A++ | $2,109 |
| Allstate | 815 | 2.04 | A+ | $2,383 |
Cheapest homeowners insurance companies
Wondering how to find cheap homeowners insurance? The insurance company that is cheap for your neighbor might not be so affordable for you. As we mentioned above, it is important to shop around, because each company has its own formula for setting rates, and your individual circumstances may determine which companies are cheap for you.
However, as a general rule, some insurance companies do tend to charge lower rates than others.
Insurance.com looked at average rates for insurance companies based on $300,000 in dwelling coverage, a $1,000 deductible and liability coverage of $300,000. Here are the rates from cheapest to most expensive.
| Company Name | Average annual rate |
|---|---|
| Tokio Marine Holdings | $514 |
| New Jersey Manufacturers | $747 |
| Vermont Mutual | $766 |
| Farm Bureau Mutual of Idaho | $783 |
| West Bend Mutual | $884 |
| Concord | $884 |
| Andover Group | $1,005 |
| Pemco | $1,005 |
| New York Central Mutual | $1,045 |
| CSAA Insurance Exchange | $1,113 |
| Western National | $1,260 |
| Auto Club | $1,319 |
| North Carolina Farm Bureau | $1,337 |
| Co Operative Insurance | $1,405 |
| Arbella | $1,411 |
| Palisades | $1,432 |
| Quincy Mutual | $1,530 |
| Cincinnati Insurance | $1,540 |
| Acuity | $1,545 |
| ARX Holding Corp | $1,577 |
| MMG Insurance | $1,590 |
| NBIC | $1,633 |
| Amica | $1,638 |
| IMT Insurance | $1,700 |
| Safety | $1,709 |
| Chubb | $1,737 |
| Erie | $1,832 |
| Michigan Farm Bureau | $1,973 |
| Travelers | $2,019 |
| COUNTRY Financial | $2,037 |
| Westfield Insurance | $2,110 |
| Mapfre Insurance | $2,112 |
| Nationwide | $2,135 |
| Nodak Mutual | $2,146 |
| United Insurance | $2,207 |
| USAA | $2,235 |
| Liberty Mutual | $2,329 |
| Auto-Owners | $2,355 |
| Allstate | $2,383 |
| Automobile Club MI | $2,521 |
| Farmers | $2,534 |
| State Farm | $2,534 |
| Southern Farm Bureau | $2,539 |
| Georgia Farm Bureau | $2,615 |
| American Family | $2,654 |
| South Carolina Farm Bureau | $2,811 |
| Hanover | $2,830 |
| Farm Bureau Mutual of AR | $3,122 |
| Iowa Farm Bureau | $3,165 |
| Louisiana Farm Bureau | $3,203 |
| Shelter Insurance | $3,402 |
| Alfa Mutual | $3,723 |
| Indiana Farm Bureau | $3,725 |
| Heritage Insurance | $3,978 |
| Universal Insurance | $4,168 |
| Kentucky Farm Bureau | $4,513 |
| Citizens | $4,607 |
Cheapest home insurance companies by state
What is the cheapest homeowners insurance company by state? Insurance.com looked across the country at the 10 cheapest insurance companies based on the rates they charge. Once again, the list is based on 300,000 in dwelling coverage, a $1,000 deductible and liability coverage of $300,000.
Depending on where you live, these cheap homeowners insurance companies tend to charge the lowest rates, among home insurance companies surveyed by Insurance.com:
| State | Company Name | Company average annual premium | State average annual premium |
|---|---|---|---|
| Alabama | Allstate | $2,437 | $3,066 |
| Alaska | COUNTRY Financial | $1,343 | $1,799 |
| Arizona | American Family | $1,431 | $1,966 |
| Arkansas | Shelter Insurance | $2,701 | $4,037 |
| California | Allstate | $849 | $1,380 |
| Colorado | State Farm | $3,006 | $3,388 |
| Connecticut | Amica | $1,232 | $2,100 |
| Delaware | Cumberland | $905 | $1,389 |
| Florida | Security First | $887 | $4,218 |
| Georgia | Farmers Ins Exch | $1,735 | $3,770 |
| Hawaii | Allstate Ins Co | $384 | $597 |
| Iowa | West Bend | $1,188 | $2,402 |
| Idaho | Nationwide | $1,237 | $1,892 |
| Illinois | Allstate | $1,406 | $2,604 |
| Indiana | Allstate | $1,184 | $2,721 |
| Kansas | Shelter | $3,396 | $4,665 |
| Kentucky | Cincinnati | $1,888 | $3,163 |
| Louisiana | United Insurance | $1,347 | $3,481 |
| Massachusetts | State Farm | $705 | $1,518 |
| Maryland | State Farm | $1,185 | $1,630 |
| Maine | Vermont Mutual | $688 | $1,407 |
| Michigan | Automobile Club MI | $1,384 | $2,607 |
| Minnesota | Auto-Owners | $1,568 | $2,327 |
| Missouri | Auto Club Enterprises | $2,014 | $3,349 |
| Mississippi | Allstate | $1,345 | $3,398 |
| Montana | Chubb | $1,344 | $2,874 |
| North Carolina | State Farm | $1,291 | $2,768 |
| North Dakota | Agraria Mutual | $1,719 | $2,946 |
| Nebraska | American Family | $3,286 | $4,624 |
| New Hampshire | Amica | $791 | $1,144 |
| New Jersey | New Jersey Manufacturers | $855 | $1,267 |
| New Mexico | Travelers Home & Marine Ins Co | $1,898 | $3,086 |
| Nevada | Nationwide | $1,167 | $1,457 |
| New York | New York Central Mutual | $1,083 | $1,728 |
| Ohio | Cincinnati Ins Co | $1,323 | $3,671 |
| Oklahoma | Allstate | $3,590 | $4,945 |
| Oregon | American Family | $1,049 | $1,503 |
| Pennsylvania | Nationwide Mut Fire Ins Co | $1,307 | $3,151 |
| Rhode Island | State Farm | $943 | $1,774 |
| South Carolina | Allstate | $1,515 | $2,379 |
| South Dakota | North Star Mutual | $2,194 | $3,529 |
| Tennessee | United Serv Automobile Assn | $2,139 | $3,696 |
| Tennessee | Tennessee Farmers Mut Ins Co | $2,354 | $3,696 |
| Texas | Progressive | $2,972 | $4,142 |
| Utah | Nationwide | $971 | $1,421 |
| Virginia | American Family | $863 | $1,999 |
| Vermont | Vermont Mutual | $712 | $1,175 |
| Washington | PEMCO | $919 | $1,659 |
| Wisconsin | West Bend | $928 | $1,508 |
| West Virginia | Allstate | $1,678 | $1,801 |
| Wyoming | Nationwide | $1,233 | $1,801 |
How to get cheap home insurance
The cheapest homeowners insurance rates belong to those who take the right steps to cut their costs. Getting affordable homeowners insurance rates is easier if you look for opportunities to save and take advantage of them.
Some ways to get the best price for homeowners insurance include:
Comparison shop
One of the best ways to save is to shop around and compare insurance companies against one another. If you hope to get cheap homeowners insurance quotes, go to a site like Insurance.com and compare rates from multiple insurers.
Each insurer has its own formula for setting rates. That means your own profile as a homeowner is likely a better match with some companies than others. Find the right company, and you can save a bundle.
Raise your deductible
Agreeing to pay a higher deductible gets you cheaper home insurance rates. Your insurance company likely will recommend you carry a deductible of at least $500. But if you bump that up to $1,000, you can save up to 25% off your premium costs, according to the Insurance Information Institute. Before you raise the deductible, make sure you can afford to pay more in out-of-pocket costs should you need to make a claim.
Know the difference between market value and replacement/insurance value
When insurers estimate the value of your home, they typically look at the cost of what it would take to repair or build it with similar materials. This is true if you have "replacement value" coverage, which is the most common arrangement. So, making renovations to your home or planning an addition that will increase your home's square footage might drive insurance costs higher. If you are truly focused on how to get cheap homeowners insurance, think twice about expensive upgrades and additions.
Safeguard against theft and fire
Filing claims for damages caused by thieves or fires can cause your homeowners insurance rates to jump. A single claim related to fire damage causes rates to rise 28% on average, according to an Insurance.com study. A theft claim will lift your rates by 24% on average. So, take steps to secure your home from these threats, such as installing good alarm systems.
Upgrade the roof and shutters
A single weather-related claim can cause your rates to bump up 16%. So, take steps to secure your home, such as upgrading the roof and shutters. These moves can actually help lower your rates. Homeowners who upgrade their roof save 11% on average in premium costs, for example.
Try to avoid ‘attractive nuisances’
An “attractive nuisance” is anything that might seem attractive to children or teens and potentially put them in danger. Common examples include pools, trampolines and woodstoves. Having one or more of these can cause your rates to rise. For example, a pool or trampoline will boost your costs by an average of 8% annually. So, unless you really cannot live without these features, it is best to skip them.
Maintain good credit
Some people are surprised to learn that their credit score can impact their insurance rates. But in many states, this is true. So, try to keep your credit score high. In fact, Insurance.com research has found that nothing will increase your insurance rates more than having poor credit. On average, homeowners with bad credit pay more than twice as much for homeowners insurance than those with excellent credit.
Review your inventory of personal property
It is possible that changes have occurred in your life that will drive insurance costs down when you report them to your insurer. So, review your inventory of personal property. If you have sold or given away valuable items, let your homeowners insurance company know.
Bundle your insurance policies
Many homeowners insurance companies will cut you a break on premiums if you also carry your other policies – such as auto insurance – through them. Insurance.com research has found that policyholders who bundle home and auto insurance with the same company save an average of 18% on coverage. You’ll save 4% each for bundling home and life insurance, and for bundling home and umbrella coverage.
Don’t file small claims
The true purpose of homeowners insurance is to protect you in the event of major and very costly mishaps. It makes sense to file a claim if a tornado damages your home. But you might want to skip filing a claim if someone accidentally cracks your window with a golf ball.
Avoiding making small claims can save you cash. Going five years without a claim can save you an average of 5%, while 10 years claims-free will net you another 5% savings.
Frequently asked questions: Cheap home insurance
How do I get cheap homeowners insurance if I have bad credit?
As we said above, bad credit can push your homeowners insurance rates sky high. The best way to reverse this impact is to gradually improve your credit over time. It won’t happen overnight, but as your score rises, your insurance rates should fall.
Insurance.com has more tips for how policyholders with bruised credit can push their rates back down.
Who has the cheapest home and auto insurance bundle?
Bundling insurance policies with a single insurance provider for a multi-policy generally can cut your insurance cost. But bundling is likely to save you more at some companies than others.
Insurance.com research has found that these companies offer the best discounts when you bundle home and auto insurance:
- Nationwide: 29%
- United Farm Family: 28%
- Farmers: 27%
- Grange: 27%
- State Farm: 27%
- Vermont Mutual: 26%
- Memberselect (AAA): 25%
- Allstate: 23%
