Cheapest Homeowners Insurance Companies
Best cheap home insurance companies
Cheap homeowners insurance companies
Erie and State Farm are the cheapest homeowners insurance companies. Both companies offer average annual rates that are under $2,500 a year. However, Erie is only available in 12 states and Washington, D.C.
| Company | Annual rate | Monthly rate | LendingTree score | |
|---|---|---|---|---|
 | Erie | $2,055 | $171 |  |
 | State Farm | $2,427 | $202 | |
 | USAA* | $2,507 | $209 | |
 | Allstate | $2,560 | $213 | |
 | Country Financial | $2,827 | $236 | |
 | Nationwide | $3,055 | $255 |  |
 | American Family | $3,072 | $256 | |
 | Chubb | $3,664 | $305 | |
 | Farmers | $4,479 | $373 | |
 | Travelers | $4,586 | $382 | |
 | Progressive | $4,727 | $394 | |
 | Farm Bureau | $5,364 | $447 | |
Average rates are based on a policy with $400,000 of dwelling coverage and $200,000 of personal property coverage. *USAA is only available to military members and veterans, along with their families.
Cheapest insurance for most homeowners: State Farm
State Farm has the lowest average rate among national home insurance companies of $2,427 a year. You may drive down your rate even more with its multipolicy discount. You can save up to $1,073 a year on car and home insurance if you bundle both policies with State Farm.
State Farm also has good customer service ratings. The company earned a score of 643 out of 1,000 points for overall satisfaction from J.D. Power’s 2024 Home Insurance Study, which is better than average.
Pros
Cheapest national insurance company
Good customer satisfaction rating
Solid financial strength
Cons
Few discounts compared to competitors
Cheapest home insurance for great coverage: Allstate
Allstate offers all the standard home insurance coverages you expect as well as a variety of optional coverages. Optional coverages let you customize your policy and receive extra protection. Allstate’s optional coverages include:
- Scheduled personal property for expensive appraised items like antiques
- Business property for increased limits for business items in your home such as inventory
- Water backup for water damage caused by backups from drains and sewers or a sump pump breaking
- Identity theft for legal costs and lost wages if your identity is stolen
Pros
Affordable rates
Many discounts
Cons
Customer satisfaction rating is below average
Cheapest company for customer service: Erie
Erie has the cheapest home insurance rates overall, charging an average of $2,055 a year. On top of that, it offers a multipolicy discount that ranges from 16% to 25% if you bundle your auto and home policies.
Erie also receives few customer complaints, according to the National Association of Insurance Commissioners (NAIC). Erie received less than half as many complaints as expected for a company of its size.
Erie earned a score of 674 out of 1,000 from J.D. Power’s 2024 Home Insurance Study, which is among the highest scores.
Pros
Cheapest average rate in our study
Second-highest customer satisfaction rating of surveyed companies
Cons
Few discounts compared to competitors
Only available in 12 states and Washington, D.C.
Cheapest homeowners insurance companies by state
Average home insurance rates vary by state due to factors like natural disaster statistics. We found that Allstate and State Farm each offer the cheapest rates in six states.
| State | Cheapest company | Cheapest premium |
|---|---|---|
| Alabama | Allstate | $2,228 |
| Alaska | Western National Insurance | $1,235 |
| Arizona | State Farm | $1,737 |
| Arkansas | MetLife | $2,519 |
| California | USAA | $799 |
| Colorado | Chubb | $2,614 |
| Connecticut | Allstate | $1,737 |
| Delaware | Nationwide | $840 |
| Florida | Chubb | $2,294 |
| Georgia | Progressive | $2,061 |
| Hawaii | UPC Insurance | $370 |
| Idaho | Mutual of Enumclaw | $957 |
| Illinois | Nationwide | $1,545 |
| Indiana | Erie Insurance | $1,453 |
| Iowa | Pekin Insurance | $1,830 |
| Kansas | Shelter Insurance | $3,227 |
| Kentucky | Cincinnati Insurance Co. | $2,030 |
| Louisiana | State Farm | $1,274 |
| Maine | Vermont Mutual Insurance | $1,006 |
| Maryland | Travelers | $1,384 |
| Massachusetts | Norfolk & Dedham Group | $685 |
| Michigan | The Hanover Insurance Group | $1,004 |
| Minnesota | North Star Mutual Insurance Co. | $2,001 |
| Mississippi | Southern Farm Bureau Casualty | $3,249 |
| Missouri | Allstate | $2,356 |
| Montana | Farmers | $1,660 |
| Nebraska | American Family | $3,834 |
| Nevada | Nationwide | $1,065 |
| New Hampshire | Vermont Mutual Insurance | $1,048 |
| New Jersey | Allstate | $1,028 |
| New Mexico | State Farm | $2,183 |
| New York | NYCM Insurance | $529 |
| North Carolina | State Farm | $1,475 |
| North Dakota | North Star Mutual Insurance Co. | $1,947 |
| Ohio | Erie Insurance | $1,242 |
| Oklahoma | American Farmers & Ranchers | $4,466 |
| Oregon | Mutual of Enumclaw | $782 |
| Pennsylvania | Westfield Insurance | $1,017 |
| Rhode Island | State Farm | $1,027 |
| South Carolina | Allstate | $1,274 |
| South Dakota | North Star Mutual Insurance Co. | $2,530 |
| Tennessee | Erie Insurance | $2,332 |
| Texas | Texas Farm Bureau Insurance | $3,474 |
| Utah | Farm Bureau Financial Services | $1,230 |
| Vermont | Allstate | $768 |
| Virginia | State Farm | $1,483 |
| Washington | Mutual of Enumclaw | $907 |
| Washington, D.C. | Nationwide | $1,409 |
| West Virginia | USAA | $1,197 |
| Wisconsin | Erie Insurance | $1,222 |
| Wyoming | Nationwide | $1,408 |
Average rates are based on a policy with $400,000 of dwelling coverage and $200,000 of personal property coverage.
Cheapest homeowners insurance companies in biggest cities
Your home insurance rate can also vary by where you live within a state or city. Factors like crime rates in your area and your home’s distance from a fire department or a fire hydrant can affect your annual home insurance rate.
Cheapest home insurance rates by city
| City | Cheapest company | Cheapest premium |
|---|---|---|
| New York City | New York Central Mutual | $785 |
| Los Angeles | USAA* / Allstate | $821 / $857 |
| Chicago | Erie | $1,984 |
| Houston | Nationwide | $1,774 |
| Phoenix | State Farm | $1,866 |
| Philadelphia | Westfield Insurance | $1,276 |
| San Antonio | Chubb | $2,306 |
| San Diego | USAA* / Travelers | $705 / $796 |
| Dallas | Chubb | $2,952 |
| Jacksonville | UPC | $1,302 |
| Austin | Chubb | $2,024 |
| Fort Worth | Chubb | $3,199 |
| San Jose | USAA* / Travelers | $654 / $662 |
| Columbus | Erie | $1,305 |
| Charlotte | State Farm | $848 |
| Indianapolis | Erie | $1,661 |
| San Francisco | USAA* / Travelers | $681 / $836 |
| Seattle | Mutual of Enumclaw | $831 |
| Denver | Great Northern | $3,267 |
| Oklahoma City | Allstate | $4,592 |
| Nashville | Erie | $2,070 |
| Washington, D.C. | Nationwide | $1,409 |
| El Paso | Chubb | $1,337 |
| Las Vegas | Depositors Insurance | $1,245 |
| Boston | Norfolk & Dedham Mutual | $677 |
Average rates are based on a policy with $400,000 of dwelling coverage and $200,000 of personal property coverage.
Cheapest homeowners insurance by dwelling coverage
The higher your home insurance policy’s dwelling coverage limit is, the higher your premium will be. For example, there is a $569 difference between Allstate’s average annual rate for $350,000 of dwelling coverage and its average rate for $450,000 of dwelling coverage.
Home insurance rates by company and coverage limit
| Company | 350k | 400k | 450k |
|---|---|---|---|
| Allstate | $2,277 | $2,560 | $2,846 |
| American Family | $2,734 | $3,072 | $3,408 |
| Chubb | $2,314 | $2,606 | $2,897 |
| Country Financial | $2,552 | $2,827 | $3,113 |
| Erie | $1,829 | $2,055 | $2,281 |
| Farm Bureau | $3,114 | $3,466 | $3,799 |
| Farmers | $3,269 | $3,801 | $4,240 |
| Nationwide | $2,715 | $3,055 | $3,400 |
| Progressive | $2,397 | $2,648 | $2,999 |
| State Farm | $2,210 | $2,427 | $2,688 |
| Travelers | $2,845 | $3,149 | $3,519 |
| USAA* | $2,294 | $2,507 | $2,720 |
How to save on home insurance
There are other ways to lower your home insurance rate besides finding the cheapest company. They include comparing quotes, getting discounts and raising your deductible.
Compare quotes
Comparing home insurance quotes from several different companies is a great way to save money whether you already have a policy or you’re looking to buy your first.
Home insurance companies look at several factors when setting your premium, and they don’t all look at these factors in the same way. For example, one company may consider the age of your home a bigger risk than another and charge you a higher rate because of it. Another company may charge you more because of your insurance claims history, while a competitor might not care about it.
As long as you use the same information for each quote, comparing several quotes side by side can help you see which is the cheapest for you.
Get all the discounts you can
Discounts are a great way to get cheaper home insurance. If you have a car, many insurance companies offer a bundling discount that can save you money on both your home and auto insurance policies. You can also get home insurance discounts for fire alarms and other safety devices, paying in advance or on time, not filing claims and more. If you aren’t sure if you qualify for a discount, ask an agent.
Raise your deductible
Your deductible is the amount you agree to pay when filing a claim before your insurer pays the remainder. The higher your deductible, the lower your premium. If you own a newer home, raising your deductible could save you money.