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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.

*anything below 1 is below average
CompanyJ.D. Power (out of 1,000)NAIC complaint ratio*AM Best ratingAverage annual rate
State Farm8291.07A++$2,534

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. 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.

Note: Not all companies operate in all states.
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
Andover Group$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
Quincy Mutual$1,530
Cincinnati Insurance$1,540
ARX Holding Corp$1,577
MMG Insurance$1,590
IMT Insurance$1,700
Michigan Farm Bureau$1,973
COUNTRY Financial$2,037
Westfield Insurance$2,110
Mapfre Insurance$2,112
Nodak Mutual$2,146
United Insurance$2,207
Liberty Mutual$2,329
Automobile Club MI$2,521
State Farm$2,534
Southern Farm Bureau$2,539
Georgia Farm Bureau$2,615
American Family$2,654
South Carolina Farm Bureau$2,811
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

Cheapest home insurance companies by state

What is the cheapest homeowners insurance company by state? 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

State Company Name Company average annual premium State average annual premium
AlaskaCOUNTRY Financial$1,343$1,799
ArizonaAmerican Family$1,431$1,966
ArkansasShelter Insurance$2,701$4,037
ColoradoState Farm$3,006$3,388
FloridaSecurity First$887$4,218
GeorgiaFarmers Ins Exch$1,735$3,770
HawaiiAllstate Ins Co$384$597
IowaWest Bend$1,188$2,402
LouisianaUnited Insurance$1,347$3,481
MassachusettsState Farm$705$1,518
MarylandState Farm$1,185$1,630
MaineVermont Mutual$688$1,407
MichiganAutomobile Club MI$1,384$2,607
MissouriAuto Club Enterprises$2,014$3,349
North CarolinaState Farm$1,291$2,768
North DakotaAgraria Mutual$1,719$2,946
NebraskaAmerican Family$3,286$4,624
New HampshireAmica$791$1,144
New JerseyNew Jersey Manufacturers$855$1,267
New MexicoTravelers Home & Marine Ins Co$1,898$3,086
New YorkNew York Central Mutual$1,083$1,728
OhioCincinnati Ins Co$1,323$3,671
OregonAmerican Family$1,049$1,503
PennsylvaniaNationwide Mut Fire Ins Co$1,307$3,151
Rhode IslandState Farm$943$1,774
South CarolinaAllstate$1,515$2,379
South DakotaNorth Star Mutual$2,194$3,529
TennesseeUnited Serv Automobile Assn$2,139$3,696
TennesseeTennessee Farmers Mut Ins Co$2,354$3,696
VirginiaAmerican Family$863$1,999
VermontVermont Mutual$712$1,175
WisconsinWest Bend$928$1,508
West VirginiaAllstate$1,678$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 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 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, 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. 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. 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. 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%
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