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Here are our picks for the cheapest home insurance companies for April 2024:
| Company | Average annual cost | Average monthly cost |
|---|---|---|
Progressive | $729 | $61 |
Nationwide | $1,157 | $96 |
Erie | $1,256 | $105 |
USAA* | $1,270 | $106 |
State Farm | $1,298 | $108 |
Average rate | $1,678 | $140 |
Rates source: Quadrant Information Services, based on dwelling coverage of $350,000 with a $1,000 deductible. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance for Different Homeowners
A variety of situations can impact your home insurance costs—and affect which homeowners insurance company is the cheapest for you.
Cheapest Homeowners Insurance for Those with a High Deductible
Progressive has the cheapest homeowners insurance if you’re choosing a high deductible for your policy.
You can save money by raising your homeowners insurance deductible. A deductible is the amount your insurer subtracts from your insurance check after a claim. Common deductibles for home insurance are $500 and $1,000, but you can save by increasing your deductible.
These companies are all cheaper than the national average of $1,586 per year for a policy with a $2,000 deductible, based on the companies in our analysis.
| Home insurance company | Average home insurance cost per year with a $2,000 deductible |
|---|---|
Progressive | $760 |
State Farm | $1,183 |
USAA* | $1,233 |
Westfield | $1,236 |
Nationwide | $1,239 |
Erie | $1,315 |
Allstate | $1,385 |
Chubb | $1,508 |
Auto-Owners | $1,536 |
National Average | $1,586 |
Based on dwelling coverage of $350,000. *USAA home insurance is available only to the military, veterans and their families.
Cheapest Homeowners Insurance Based on Dwelling Coverage
Progressive tops the list for cheapest home insurance with Nationwide, Erie, USAA and Westfield as companies with averages well below the national average.
$200,000 Dwelling Coverage Limit
| Home insurance company | Average annual cost for $200,000 dwelling coverage | Average monthly cost for $200,000 dwelling coverage |
|---|---|---|
Progressive | $514 | $43 |
Nationwide | $752 | $63 |
Erie | $773 | $64 |
USAA* | $869 | $72 |
State Farm | $896 | $75 |
Allstate | $1,055 | $88 |
Westfield | $1,062 | $89 |
Auto-Owners | $1,101 | $92 |
Chubb | $1,113 | $93 |
Farmers | $1,286 | $107 |
Country | $1,358 | $113 |
American Family | $1,440 | $120 |
Shelter | $1,478 | $123 |
Travelers | $2,404 | $200 |
National average | $1,150 | $96 |
*USAA home insurance is available only to the military, veterans and their families.
Coverage for $350,000 Dwelling Coverage Limit
| Company name | Annual average for $350,000 dwelling coverage | Monthly average for $350,000 dwelling coverage |
|---|---|---|
Progressive | $729 | $61 |
Nationwide | $1,157 | $96 |
Erie | $1,256 | $105 |
USAA* | $1,270 | $106 |
State Farm | $1,298 | $108 |
Westfield | $1,344 | $112 |
Allstate | $1,395 | $116 |
Auto-Owners | $1,525 | $127 |
Chubb | $1,810 | $151 |
American Family | $2,020 | $168 |
Farmers | $2,035 | $170 |
Country Financial | $2,065 | $172 |
Shelter | $2,363 | $197 |
Travelers | $3,220 | $268 |
National average | $1,678 | $140 |
*USAA is only available to veterans, military members and their families.
Coverage for $500,000 Dwelling Coverage Limit
| Company name | Annual average for $500,000 dwelling coverage | Monthly average for $500,000 dwelling coverage |
|---|---|---|
Progressive | $975 | $81 |
Westfield | $1,513 | $126 |
Nationwide | $1,591 | $133 |
USAA* | $1,652 | $138 |
Erie | $1,663 | $139 |
State Farm | $1,708 | $142 |
Allstate | $1,784 | $149 |
Auto-Owners | $1,987 | $166 |
Chubb | $2,519 | $210 |
American Family | $2,559 | $213 |
Country Financial | $2,774 | $321 |
Farmers | $2,831 | $236 |
Shelter | $3,292 | $274 |
Travelers | $4,124 | $344 |
National average | $2,212 | $184 |
*USAA is only available to veterans, military members and their families.
Cheapest Homeowners Insurance Companies by State
Here’s a look at the cheapest home insurance in each state, based on the companies we analyzed.
Cheapest Homeowners Insurance by Credit History
Cheapest Homeowners Insurance for Poor Credit
| Company | Average annual cost for homeowners with poor credit | Average monthly cost for homeowners with poor credit |
|---|---|---|
Progressive | $1,312 | $109 |
Nationwide | $2,262 | $189 |
Westfield | $2,473 | $206 |
Country Financial | $2,591 | $216 |
USAA* | $2,822 | $235 |
State Farm | $3,266 | $272 |
Allstate | $3,307 | $276 |
American Family | $3,465 | $289 |
Erie | $4,473 | $373 |
Chubb | $4,584 | $382 |
Shelter | $4,916 | $410 |
Farmers | $8,018 | $668 |
Travelers | $10,211 | $851 |
Based on dwelling coverage of $350,000. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance for Excellent Credit
| Company | Average annual cost for homeowners with excellent credit | Average monthly cost for homeowners with excellent credit |
|---|---|---|
Progressive | $794 | $66 |
Auto-Owners | $897 | $75 |
Travelers | $961 | $80 |
State Farm | $1,036 | $86 |
Westfield | $1,078 | $90 |
Erie | $1,087 | $91 |
Nationwide | $1,182 | $99 |
USAA* | $1,262 | $105 |
Allstate | $1,376 | $115 |
Farmers | $1,600 | $133 |
Country Financial | $1,642 | $137 |
Chubb | $1,675 | $140 |
American Family | $1,699 | $142 |
Shelter | $2,644 | $220 |
Based on dwelling coverage of $350,000. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance for New & Old Homes
The age of your house generally plays a part in how much you pay for homeowners insurance. Insurers often charge lower rates for new homes.
Our analysis found that insurance for new homes costs an average of 41% less when compared to a 50-year-old home. The average difference varies between 29% and 62% depending on the company.
| Company | Average annual cost for new home rate (2023 construction) | Average annual cost for 50-year home | Annual $ difference between new vs. old home | % increase for old home vs. new home |
|---|---|---|---|---|
Allstate | $1,298 | $2,681 | $1,383 | 52% |
Auto-Owners | $1,667 | $2,375 | $708 | 30% |
Farmers | $2,036 | $2,870 | $834 | 29% |
Mercury | $684 | $1,424 | $740 | 52% |
Nationwide | $1,239 | $3,233 | $1,994 | 62% |
State Farm | $1,158 | $1,943 | $785 | 40% |
Travelers | $2,416 | $5,926 | $3,510 | 59% |
USAA* | $1,213 | $2,679 | $1,466 | 55% |
Westfield | $1,252 | $1,888 | $636 | 34% |
Average premium | $1,176 | $2,003 | $827 | 41% |
Based on dwelling coverage of $350,000. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance by Construction Type
Construction materials will affect your home insurance costs. Fire-resistive construction usually leads to lower rates because insurance companies believe those structures are a lower risk than regular frame construction.
You could save over $200 annually on your home insurance depending on the construction type and the insurance company if you own a home built with fire-resistant materials.
| Company | Average annual cost for frame construction | Average monthly cost for frame construction | Average annual cost for fire-resistive construction | % surcharge for pool |
|---|---|---|---|---|
Allstate | $1,760 | $147 | $1,601 | $133 |
Auto-Owners | $1,840 | $153 | $1,840 | $153 |
Farmers | $2,330 | $194 | $2,303 | $192 |
Mercury | $896 | $75 | $860 | $72 |
Nationwide | $1,642 | $137 | $1,493 | $124 |
State Farm | $1,420 | $118 | $1,232 | $103 |
Travelers | $3,046 | $254 | $2,983 | $249 |
USAA* | $1,576 | $131 | $1,564 | $130 |
Westfield | $1,350 | $112 | $1,312 | $109 |
Average premium | $1,446 | $120 | $1,264 | $105 |
Based on dwelling coverage of $350,000. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance by Roof Type
Your home’s roof can play a part in your homeowners insurance cost, though not as much of a cost driver as other factors.
For instance, you may save about $10 a month if you have a metal roof compared to an asphalt roof, but this will depend on the insurer.
| Company | Average monthly home insurance cost for asphalt roof | Average monthly home insurance cost for metal roof | Average monthly home insurance cost for slate roof | Average monthly home insurance cost for wood roof |
|---|---|---|---|---|
Allstate | $147 | $139 | $140 | $157 |
Auto-Owners | $153 | $155 | $153 | $183 |
Farmers | $195 | $177 | $206 | $206 |
Mercury | $74 | $75 | $74 | $79 |
Nationwide | $139 | $136 | $130 | $149 |
State Farm | $118 | $118 | $118 | $121 |
Travelers | $255 | $242 | $240 | $275 |
USAA* | $140 | $138 | $132 | $145 |
Westfield | $112 | $112 | $112 | $113 |
Average rate | $121 | $120 | $120 | $124 |
Based on dwelling coverage of $350,000. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance for Pools
An insurance company may deem a pool as risky and charge you higher rates. In our analysis the average premium increase is nothing or only a few dollars if you have a pool, but some insurers charge over $100 a year more to pool owners.
| Company | Average annual cost (base rate) | Average annual cost with a pool | $ annual increase for pool | % surcharge for pool |
|---|---|---|---|---|
Allstate | $1,760 | $1,765 | $5 | 0% |
Auto-Owners | $1,840 | $1,840 | $0 | 0% |
Farmers | $2,330 | $2,435 | $105 | 5% |
Mercury | $896 | $1,010 | $114 | 13% |
Nationwide | $1,642 | $1,642 | $0 | 0% |
State Farm | $1,420 | $1,420 | $0 | 0% |
Travelers | $3,046 | $3,344 | $298 | 10% |
USAA* | $1,576 | $1,576 | $0 | 0% |
Westfield | $1,350 | $1,497 | $147 | 11% |
Average premium | $1,446 | $1,449 | $3 | 0% |
Based on dwelling coverage of $350,000. *USAA home insurance is only available to veterans, military members and their families.
How to Get Cheap Homeowners Insurance
Comparison Shop
The easiest and best way to save is by shopping around. We recommend comparison shopping with at least three different companies. Request quotes for the same coverage levels from each insurer so that you’re comparing apples to apples.
Check for Unneeded Coverage
Another good starting point for getting cheap home insurance is to review your policy. Make certain the coverage, limits and deductibles are correct for your current situation.
Think about whether you have changed anything that could have lowered the “risk” you pose to your insurance company. For instance, if you got rid of a trampoline that was affecting your home insurance rates, tell your company it’s gone and see if it can reduce your rates.
Perhaps you’ve added items that have reduced risks. For example, have you added a security system? Or, if you have invested in smart home technology, like gas or water shutoff sensors, let your insurance company know. Items such as these often help lower rates.
Understand the Difference Between Your Home’s Market Value and Insurance Value
Another key to avoiding unneeded coverage is to understand the difference between market value and insurance value.
Real estate market value and insurance value are not the same. Your home’s market value is based on its worth when selling or buying it. The insurance value is the amount of coverage you’ll need to rebuild the house if it’s destroyed by a problem such as a house fire. The insurance amount could be more or less than your home’s real estate market value.
Also, when you determine your insurance amount, you don’t include land value. Home insurance dwelling coverage is based on the cost to repair or replace the house. Whether you own half an acre or 10 acres of land won’t make a difference in your house’s insurance value.
Ask for a Review of Home Insurance Discounts
Asking about home insurance discounts is another way to save. Check with your insurance company that you are getting all the discounts you’re eligible for at this time.
Bundling insurance for your house and vehicles with the same company usually results in one of the best discounts you can grab, often between 5% to 25%. The average bundling discount for home and auto coverages is 14%, according to Forbes Advisor’s analysis.
Bundling is also known as a “multi-policy discount.” You can bundle your home insurance with other forms of insurance, such as RV, motorcycle or boat insurance.
Here are some other common discounts that can help you get the cheapest home insurance:
- Loyalty discount (if you’ve been with the same insurance company for a certain number of years)
- Retired discount (if you’re a certain age and retired)
- New home discount
- Home buyer discount (if you’ve recently purchased a home)
- Home renovation discount (such as improvements to plumbing, heating, cooling and electrical systems)
- Paperless policy discount for getting all documents and bills electronically
- Paid-in-full discounts (when you pay in full at the start of the policy term)
Find Out Savings for Raising Your Home Insurance Deductible
Ask your insurance agent how much you can save if you increase your home insurance deductible. The deductible is the amount deducted from an insurance claim check. By lowering potential payouts, you should get cheaper home insurance.
Homeowners can save an average over $100 per year by increasing their home insurance deductible from $500 to $1,000, according to our analysis. Raising a deductible from $500 to $2,000 can save you over $250 per year on average.
Upgrade Your Roof and Shutters
If you’re planning on replacing your roof, you might want to speak with your insurance agent first. Certain types of roofing materials can result in lower home insurance premiums, depending on the insurer. For example, impact-resistant roofing shingles that are designed to resist damage from hail, high winds and flying debris may lead to better home insurance rates.
Some homeowners insurance companies offer discounts for houses with storm shutters and impact-resistant glass on exterior windows, depending on your area of the country.
Related: Does home insurance cover roof damage?
Be Aware of an “Attractive Nuisance”
Certain features like swimming pools, trampolines, skateboard or bike ramps, and tree houses are considered “attractive nuisances.” This means an insurer could see them as dangerous features on your property that children are attracted to and that pose a higher risk of serious injury or death to guests—and lawsuits against you.
By avoiding them when possible you can get cheaper home insurance rates. For example, some home insurers have a “trampoline surcharge” to account for the increased risk of insurance claims.
Maintain Good Credit
About 85% of homeowners insurance companies review your “credit-based insurance score” when calculating your rates, according to FICO.
A credit-based insurance score is not the same as your personal credit score. For example, your regular FICO credit score looks at several factors of your credit history to determine how likely you are to repay a loan or credit card, while a credit-based insurance score reviews factors of your credit history to determine how likely you are to file an insurance claim.
You can improve your insurance score the same way you would improve your credit score: Make credit card and loan payments on time, and keep your balances on credit cards as low as possible.
California, Maryland and Massachusetts don’t allow home insurance companies to use credit as a factor in rates.
Research the Cost of Insurance Before Buying a Home
If you’re in the market as a home buyer, a little research on the front end of the home-buying process could save you major headaches. You don’t want to be hit with an unexpected, shocking insurance bill after you’ve bought a house. Ask your agent to give you a rate estimate for a house you’re considering.
If your potential home is in an area prone to natural disasters, you might also want to buy separate policies like flood insurance and earthquake insurance.
What Factors Impact Home Insurance Premiums?
There a several factors that impact home insurance costs, such as:
- The cost to rebuild the house. The dwelling insurance portion of a homeowners policy covers your house if it is destroyed in a worst-case scenario (such as a fire). Your dwelling coverage limit should match the amount it will cost to rebuild your house. The higher your rebuilding costs, the more you’ll pay for home insurance.
- The house’s building materials. The materials that your house is built out of matter, such as brick, stone, stucco or wood. Some materials are more weather and fire resistant.
- The age of your house. Older homes typically cost more to insure. New homes have updated systems, such as electrical and plumbing, that are less likely to have issues.
- The fire rating of your location. A home’s fire rating includes the distance to the closest fire station and water source.
- The claims history in your location. Home insurers look at the area’s crime rates and natural disasters, including hurricanes and tornadoes.
- The claims history of your property. Even claims by previous owners could affect your current home insurance rates.
- Your personal claims history. Generally, homeowners who don’t have a history of filing insurance claims get cheaper home insurance.
- The coverage, policy limits and deductible you choose. The more coverage you need and the lower your home insurance deductible, the higher your home insurance rates will be.
Cheapest Homeowners Insurance Frequently Asked Questions (FAQs)
Which company has the cheapest homeowners insurance?
Progressive is the cheapest home insurance company, according to our analysis of large home insurance companies. Progressive’s average annual cost is $729 for $350,000 dwelling coverage. This is $949 less than the national average among the 14 home insurance companies we evaluated. Nationwide is the second cheapest home insurance company at $1,157 a year and Erie came in third at $1,256 on average.
Will my homeowners insurance go up if I file a claim?
Yes, it’s possible your homeowner insurance costs may increase at renewal time after you make a claim. The type and severity of the claim and the total number of claims you’ve made can affect your home insurance costs.
State laws can also determine if a home insurance claim increases your homeowners insurance costs. For instance, in Texas, home insurance companies aren’t permitted to raise rates if you make a claim for damage from natural causes, such as weather-related damages, or file a claim for appliance-related water damage, unless you have three or more claims in three years.
What does home insurance cover?
Your house and possessions are the main items covered by home insurance. Homeowners insurance pays to repair or replace your house and personal belongings—such as clothes, appliances and furniture—if damaged by an event covered by the policy.
Home insurance also includes liability insurance for accidental injury or damage that you do to others. Knowing what home insurance covers in a standard policy is crucial to buying a policy that best fits your needs.
Why does my home insurance premium keep going up?
Home insurance companies base their rates on risk, so you may see your home insurance costs increase if you file claims or if there have been multiple claims in your area. An insurance company could also increase rates based on other factors, including inflation and higher building costs.
Does age affect home insurance rates?
A home’s age can influence homeowners insurance rates. We found that insurance for new homes costs 41% less on average than insurance for a 50-year-old home. Companies often charge more to insure older homes because those structures may need updated plumbing, wiring, heating and roofs after they are damaged.
