Insuring a home can be expensive. The nationwide average home insurance rate is $2,305, according to Insurance.com research.
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 insurance providers that offer affordable pricing while also catering to particular homeowner coverage needs. We looked at premiums, naturally, but also coverage options, records of consumer complaints, claims satisfaction scores from J.D. Power, financial strength ratings and market share.
- Best overall: Allstate
- Best cheap company for price: Travelers
- Best for customer service: State Farm
- Best for home and auto bundle: Nationwide
| Company | J.D. Power (out of 1,000) | Complaint ratio (below 1 is best) | A.M. Best rating | Market share | Rate |
|---|---|---|---|---|---|
| Travelers | 803 | 0.35 | A++ | 4.40% (6th) | $1,064 |
| Allstate | 829 | 0.60 | A++ | 8.84% (2nd) | $1,156 |
| State Farm | 829 | 0.87 | A++ | 17.84% (1st) | $1,157 |
| Nationwide | 808 | 0.33 | A+ | 3.03% (8th) | $1,768 |
Best overall: Allstate
Allstate’s average home insurance rate is lower than most other major carriers, but it offers more than savings. Allstate also has RateGuard, an add-on that gives you a pass on a rate increase for your first claim in a five-year period. Allstate had a lower than average complaint record, and it scored well for customer service, sixth out of 23 for customer service in J.D. Power’s 2020 U.S. Home Insurance Study. The company also offers a host of discounts to make coverage even more affordable, and has one of the best price breaks for bundling. Other carriers do have benefits similar to RateGuard, but Allstate’s overall package of customer satisfaction and coverages at a great price separates it from the pack..
In addition to standard coverages, Allstate offers:
- Water back up coverage if your home is damaged by sump pump or drain backups.
- Claim Rateguard, which means Allstate won’t hike your rate for the first claim filed within a five-year period.
- Identity theft coverage.
- Special coverage for musical instruments and sports equipment.
- Green improvement reimbursement covers the additional cost of replacing damaged or destroyed covered items with more energy-efficient items.
- Extra yard and garden coverage increases the limits for the cost of items like trees, landscaping and riding lawn mowers.
- Electronic data recovery covers the cost of recovering lost personal computer data, like photos or videos.
- Added protection that increases limits for business-related items stored in your home, like inventory.
- HostAdvantage, which covers your belonging when renting out your home.
Discounts include:
- Claim-free discount saves up to 20% when you switch to Allstate without a recent home insurance claim.
- Savings for having a good payment history like paying on time and payment type (in-full, escrow, etc.)
- Multi-policy discount saves up to 25% when you bundle home and auto policies with Allstate.
- Welcome & loyalty discount saves up to 10% on your home insurance premium when you switch to Allstate, and as long as you're a customer, you'll continue to save 10% every year after that.
- Home buyer discount gives a price break if you bought a newly constructed home, or if you're a recent homebuyer.
- Save up to 5% when you set up automatic payments.
- Theft and fire protection discounts.
- Save up to 10% on your home insurance premium when you sign up for a new policy at least seven days before your current one expires.
Best for price: Travelers
Travelers had the lowest rates for coverage among carriers surveyed, and also a low level of complaints filed with state regulators. However, it placed sixteenth out of 23 for customer satisfaction in J.D. Power’s rankings. Still, it’s a solid choice if you are looking for budget rates.
In addition to standard coverage, Travelers offers “green home coverage,” which pays for green materials when rebuilding or repairing your home. If you become a victim of identity fraud, Travelers’ identity fraud expense reimbursement coverage pays up to $25,000 for costs incurred to restore your identity. You can also manage your policy from an Alexa.
Discounts include:
- Multi-policy discount, with an average savings of 18% for customers with an auto policy.
- Home-buyer discount, for customers who have bought a home within a year before their policy starts.
- Loss-free discount, for policyholders who have not filed a claim.
- Protective device discount, for homes with devices like smoke detectors, fire alarms, sprinkler systems, home security systems and smart home technology installed.
- Green home discount, for homes certified by the Leadership in Energy and Environmental Design (LEED) organization.
Best for customer service: State Farm
State Farm combines cheap premiums with great customer service and a lower-than-average amount of consumer complaints. Additionally, State Farm has an increased replacement cost coverage feature that automatically boosts your replacement cost coverage to keep pace with inflation. Another add-on you can buy will help pay the extra cost to replace broken heating or cooling systems with energy efficient ones.
Discounts include:
- Home security and monitoring discount, earned if you have added fire, smoke or burglar alarms, or any other kind of home monitoring system.
- Roofing discounts, for using certain impact-resistant products on roof renovations.
- Multipolicy discount if you also buy auto insurance or life insurance.
Best for home and auto bundle: Nationwide
Nationwide isn’t the cheapest home insurance company on our list, but based on our auto and home bundle data analysis, has the highest multi-policy savings to even out your costs. It also excels in coverage options, which include extended replacement cost and roof repair limits and even perks for pet owners.
In addition to standard coverages, it offers:
- When filing a roof claim, the Better Roof Replacement add-on will replace your roof with a higher quality one than you had before.
- If you need to rebuild your home, Nationwide’s “replacement cost plus” coverage pays up to an additional 20% more than your policy limit if it costs more to rebuild your house.
- Ordinance or “law insurance” coverage may help pay to rebuild your home to current building codes after a covered loss.
- Nationwide’s On Your Side Review is a free personalized insurance evaluation that helps you determine what coverage is best as life events change your coverage needs.
- Credit card and debit card fraud protection.
- Its website has an entire pet insurance section, and if you’re already a Nationwide customer, you get 5% off pet insurance when you buy it.
- It also sells earthquake and flood insurance.
Discounts beyond the standard:
- Discount for home renovations, including electrical or plumbing upgrades.
- Gated community discount.
- Discount based on your roof’s age and surface type.
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. It found that the following 10 insurers tend to charge the lowest rates, among those surveyed:
| Company Name | Average annual rate |
|---|---|
| First Fire & Casualty of Hawaii | $514 |
| New Jersey Manufacturers | $747 |
| Vermont Mutual | $766 |
| Farm Bureau Mutual of Idaho | $783 |
| West Bend Mutual | $884 |
| Concord | $884 |
| Crestbrook | $947 |
| General Insurance Company | $976 |
| Pemco | $1,005 |
| Merrimack | $1,005 |
| New York Central Mutual | $1,045 |
| Travelers | $1,064 |
| CSAA Insurance Exchange | $1,113 |
| Allstate | $1,156 |
| State Farm | $1,157 |
| Fidelity | $1,241 |
| Umialik | $1,260 |
| Interinsurance Exchange of The Automobile Club | $1,319 |
| North Carolina Farm Bureau | $1,337 |
| Chubb | $1,357 |
| Co Operative Insurance | $1,405 |
| Standard Fire | $1,408 |
| Arbella | $1,411 |
| High Point Preferred | $1,432 |
| Farmers | $1,439 |
| Automobile Insurance Company of Hartford | $1,475 |
| Safeco | $1,504 |
| Farmers New Century | $1,511 |
| Patrons Oxford | $1,530 |
| Cincinnati Insurance | $1,540 |
| Acuity | $1,545 |
| Auto Owners Insurance | $1,552 |
| ASI Lloyds | $1,577 |
| Erie | $1,590 |
| MMG Insurance | $1,590 |
| Depositors | $1,604 |
| Homesite Insurance | $1,609 |
| Travco Insurance | $1,631 |
| Narragansett Bay | $1,633 |
| Amica | $1,638 |
| IMT Insurance | $1,700 |
| Safety | $1,709 |
| Mid Century | $1,713 |
| Phoenix | $1,716 |
| Farmers | $1,767 |
| Nationwide | $1,768 |
| Great Northern Insurance | $1,863 |
| Farm Bureau of Michigan | $1,973 |
| Amco | $1,980 |
| Charter Oak | $1,991 |
| Citation | $2,011 |
| Country Mutual | $2,037 |
| USAA | $2,091 |
| American Select | $2,110 |
| Nodak Mutual | $2,146 |
| United Property & Casualty | $2,207 |
| Liberty | $2,209 |
| Commerce Insurance | $2,214 |
| Homesite Insurance | $2,271 |
| LM Insurance | $2,300 |
| Tennessee Farmers Mutual | $2,354 |
| Metropolitan | $2,429 |
| American Family | $2,485 |
| Garrison | $2,507 |
| Memberselect | $2,521 |
| Allied | $2,539 |
| Mississippi Farm Bureau | $2,560 |
| Georgia Farm Bureau | $2,615 |
| First Liberty Insurance | $2,668 |
| Texas Farmers Insurance | $2,690 |
| Foremost Ins Co Grand Rapids MI | $2,799 |
| South Carolina Farm Bureau | $2,811 |
| Hanover | $2,830 |
| American Family | $2,875 |
| First Floridian | $2,907 |
| Citizens | $2,964 |
| Farm Bureau Mutual of Arkansas | $3,122 |
| Castle Key | $3,133 |
| Louisiana Farm Bureau | $3,203 |
| Property Owners | $3,313 |
| Shelter Mutual | $3,402 |
| Alfa Mutual | $3,723 |
| Heritage | $3,978 |
| Universal | $4,168 |
| Kentucky Farm Bureau | $4,513 |
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 | Lowest Annual Premium | Highest Annual Premium | Avg. Savings |
|---|---|---|---|---|
| Alaska | Umialik Ins Co | $1,260 | $2,521 | $1,261 |
| Alabama | United Serv Automobile Assn | $2,437 | $4,624 | $2,187 |
| Alabama | Garrison Prop & Cas Ins Co | $2,559 | $4,624 | $2,187 |
| Arkansas | Travelers Home & Marine Ins Co | $2,823 | $4,047 | $1,224 |
| Arizona | Nationwide Mut Fire Ins Co | $1,347 | $3,599 | $2,252 |
| California | Garrison Prop & Cas Ins Co | $791 | $1,615 | $824 |
| Colorado | Safeco Ins Co Of Amer | $2,116 | $4,461 | $2,345 |
| Connecticut | Travelers Personal Security Ins Co | $1,545 | $3,060 | $1,515 |
| District of Columbia | USAA Cas Ins Co | $805 | $2,001 | $1,196 |
| District of Columbia | Great Northern Ins Co | $1,029 | $2,001 | $1,196 |
| Delaware | Nationwide Prop & Cas Ins Co | $1,104 | $2,013 | $909 |
| Florida | Phoenix Ins Co | $1,762 | $4,607 | $2,845 |
| Georgia | Farmers Ins Exch | $1,735 | $3,770 | $2,035 |
| Hawaii | Allstate Ins Co | $384 | $597 | $213 |
| Iowa | IMT Ins Co | $1,700 | $4,030 | $2,330 |
| Idaho | Nationwide Ins Co Of Amer | $561 | $3,090 | $2,529 |
| Illinois | Allstate Ins Co | $1,344 | $3,372 | $2,028 |
| Indiana | Allstate Vehicle & Prop Ins Co | $1,424 | $3,725 | $2,301 |
| Kansas | USAA Cas Ins Co | $3,177 | $4,909 | $1,732 |
| Kansas | Travelers Prop Cas Ins Co | $3,274 | $4,909 | $1,732 |
| Kentucky | Liberty Ins Corp | $1,819 | $4,513 | $2,694 |
| Louisiana | ASI Lloyds | $1,577 | $5,181 | $3,604 |
| Massachusetts | State Farm Fire & Cas Co | $906 | $3,366 | $2,460 |
| Maryland | Nationwide Mut Ins Co | $1,025 | $2,044 | $1,019 |
| Maine | Concord Gen Mut Ins Co | $902 | $2,830 | $1,928 |
| Michigan | Safeco Ins Co Of Amer | $1,452 | $3,262 | $1,810 |
| Minnesota | Travelers Home & Marine Ins Co | $2,110 | $3,890 | $1,780 |
| Missouri | USAA Cas Ins Co | $2,419 | $4,499 | $2,080 |
| Mississippi | Mississippi Farm Bureau Cas Ins Co | $2,560 | $4,823 | $2,263 |
| Montana | Travelers Home & Marine Ins Co | $2,449 | $4,124 | $1,675 |
| North Carolina | North Carolina Farm Bur Mut Ins Co | $1,337 | $2,897 | $1,560 |
| North Dakota | Farmers Union Mut Ins Co | $1,439 | $4,026 | $2,587 |
| Nebraska | Farmers Mut Ins Co Of NE | $2,113 | $4,590 | $2,477 |
| New Hampshire | Concord Gen Mut Ins Co | $955 | $3,372 | $2,417 |
| New Jersey | New Jersey Manufacturers Ins Co | $747 | $2,711 | $1,964 |
| New Mexico | Travelers Home & Marine Ins Co | $1,898 | $3,086 | $1,188 |
| Nevada | Depositors Ins Co | $782 | $2,525 | $1,743 |
| New York | New York Central Mut Fire Ins Co | $1,045 | $3,596 | $2,551 |
| Ohio | Cincinnati Ins Co | $1,323 | $3,671 | $2,348 |
| Oklahoma | Safeco Ins Co Of Amer | $3,432 | $6,459 | $3,027 |
| Oregon | Safeco Ins Co of OR | $767 | $2,454 | $1,687 |
| Pennsylvania | Nationwide Mut Fire Ins Co | $1,307 | $3,151 | $1,844 |
| Rhode Island | United Prop & Cas Ins Co | $1,210 | $3,495 | $2,285 |
| South Carolina | Travelers Commercial Ins Co | $1,953 | $4,139 | $2,186 |
| South Dakota | Farmers Mut Ins Co Of NE | $2,259 | $4,332 | $2,073 |
| Tennessee | United Serv Automobile Assn | $2,139 | $3,696 | $1,557 |
| Tennessee | Tennessee Farmers Mut Ins Co | $2,354 | $3,696 | $1,557 |
| Texas | Texas Farmers Ins Co | $2,690 | $4,042 | $1,352 |
| Utah | American Family Ins Co | $1,007 | $2,143 | $1,136 |
| Virginia | Charter Oak Fire Ins Co | $1,420 | $3,653 | $2,233 |
| Vermont | Vermont Mut Ins Co | $766 | $1,791 | $1,025 |
| Washington | Crestbrook Ins Co | $582 | $2,748 | $2,166 |
| Wisconsin | West Bend Mut Ins Co | $884 | $3,050 | $2,166 |
| West Virginia | Allstate Vehicle & Prop Ins Co | $2,020 | $3,064 | $1,044 |
| Wyoming | Safeco Ins Co Of Amer | $1,046 | $3,838 | $2,792 |
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
Greeing to pay a higher deductible typically helps you access the lowest 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 29% on average, according to anInsurance.com study. A theft claim will lift your rates by 27% 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 17%. 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 a whopping 127% more 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.
FAQ on cheap home insurance
When you're shopping for insurance, you want to consider what insurance companies offer besides a low price. The cheapest home insurance company isn't always the best fit. Customer satisfaction, coverage options and home insurance discounts should all be taken into account when deciding which best cheap home insurance company is right for you.
Which company offers the best homeowners insurance?
Ask homeowners to talk about their experience with homeowners insurance, and you quickly discover that some home insurance companies are more well-loved than others.
Following are the best home insurance companies, according to an Insurance.com survey of nearly 3,000 policyholders that asked about customer satisfaction and coverage options:
- Best Home Insurance Company for price:Travelers
- Best Home Insurance Company for customer satisfaction:State Farm
- Best Homeowner Insurance Company for claims services:American Family
- Best for online transactions:Nationwide
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?
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%
What to consider when buying a homeowners insurance policy
When looking for cheap home insurance, you want to be sure you still get the home insurance coverage you need to fully protect your house and belongings.
When buying a homeowner insurance policy, you decide the coverage amount for the following:
- Dwelling
- Liability
- Medical payments
The limits of your coverage for the following are typically a set percentage of your dwelling coverage limit as shown below:
- Other structures – 10%
- Personal property coverage – 50%
- Loss of use – 20%
You also choose a home insurance deductible amount, which applies to claims for damage to your home or belongings, but not if you’re sued or a medical claim is filed by someone injured in your home. Deductibles usually come in the amounts of $500, $1,000, $1,500, $2,000 and $2,500. The higher your deductible, the lower your rate.
You should buy enough dwelling coverage to match the full replacement cost of your home. It's a good idea to get at least $300,000 of liability coverage to ensure sufficient coverage.
Learning how to calculate your home replacement cost or value is important, because the amount helps you determine how much dwelling coverage to buy. Figuring out an accurate replacement cost can be done by using online tools, calculating it yourself or by hiring an appraiser.
Medical payments coverage pays for injuries to guests in your home, regardless of who is at fault.Medical payments differs from liability insurance in significant ways, primarily in that it is for minor incidents and comes in very low limits of $1,000 or $5,000. The latter amount of $5,000 is recommended.
Finally, make sure you research the financial strength ratings of the insurance providers you're considering.
