Cheap Homeowners Insurance Companies of 2021


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Buying a home is an exciting experience, and it’s the biggest investment many people make in a lifetime. Homeowners insurance protects that investment. It protects the physical structure of your home, but it also covers your personal items, liability, medical expenses and loss of use.

With the average cost of homeowners insurance around $1,477 annually, you might be tempted to choose the cheapest home insurance policy you can find, but it’s not recommended. “Many homeowners assume that if they’ve been a loyal insurance customer, they must be getting the best insurance rate. Since insurers evaluate you differently and even offer different discounts, it’s critical to shop and compare rates,” says insurance expert Laura Adams.

Before you buy a policy, there are other important things to consider, like a company’s financial strength and customer service reviews. If price is your main concern, you’re in luck—there are ways to lower your premium so it fits within your budget. We found the cheapest home insurance companies that offer comprehensive coverage, financial stability and top-notch customer support.

Using resources such as J.D. Power and the Insurance Information Institute as well as our own insurance expertise, these are our top picks for the best cheap home insurance companies of 2021.

The cheapest home insurance companies

The following popular insurance companies offer the cheapest rates:

Home insurance company Average annual premium J.D. Power customer satisfaction score AM Best financial stability rating
Erie Insurance $1,088 839 out of 1000 A+
CSAA Insurance Group $1,127 825 out of 1000 A
AIG $1,130 809 out of 1000 A
Progressive $1,141 797 out of 1000 A+
MetLife $1,256 824 out of 1000 A+

Erie Insurance

A regional favorite among customers, Erie insurance has strong customer service ratings and competitive rates. Erie insurance offers homeowners several coverage options for your home including structure coverage, personal property coverage, liability coverage and home business protection. Erie also has add-on policies for computers, electronic equipment, firearms, jewelry and valuables, sewers, drains and sump pumps.

Erie offers several discounts, including for having multiple policies and safety devices like home sprinkler systems.

CSAA Insurance Group

CSAA Insurance Group is a part of the AAA company. Homeowners insurance is available through the AAA clubs in 23 states and the District of Columbia.To purchase AAA homeowners insurance, you must usually be an AAA member (may vary by location) and pay annual fees.

CSAA offers numerous ways to customize your homeowners policy. In addition to structure, property damage and liability coverages, you can choose replacement cost coverage for the value of your home contents. Identify fraud protection, sump pump coverage and high-value item coverage are other options available.


American International Group is over 100 years old and well-established in insurance products. AIG offers policyholders one option for homeowners insurance and is available through the Private Client Group Policy.

Although there are options for wealthier individuals, from private security reviews to estate management, there are options for those looking for a less expensive homeowners policy. With discounts available such as multi-policy and safety features, AIG offers multiple ways to save on coverage.


Progressive is well-known for providing policyholders plenty of discounts, and homeowners insurance is no exception. Progressive provides discounts for bundling with auto, having safety devices such as smoke detectors and security systems in place, getting a quote and securing your policy before it expires, having a new home, paying your policy in full, and for having paperless billing.


MetLife has been a long-standing fixture in the insurance world and still provides homeowners insurance to millions around the globe. The policies include the standard features, but you also have access to full replacement coverage for your belongings.

In addition to standard coverages such as property damage and liability, your policy includes identity protection services. There are plenty of opportunities for discounts too – including certain employer and association discounts.

Home insurance discounts

Multi-policy Home safety Loyalty Auto pay Claims free New home

Frequently asked questions

How can I save on homeowners insurance?

There are many things you can do to save on homeowners insurance. Here are some suggestions from the Insurance Information Institute:

  • Shop around and receive quotes from at least three companies.
  • Raise your deductible.
  • Add safety features such as a home security or fire protection system.
  • Maintain a good credit rating.
  • Review your policy often for additional discounts.

Bundling your policies is another great way to save money on your insurance. According to Adams, “If you have other insurance policies, such as auto, life, and personal umbrella liability, find out if bundling them with the same insurer could save money. Make sure your insurer knows if you make any significant improvements, such as installing new doors and windows, replacing your roof, upgrading your plumbing or electrical systems, or installing security systems.”

Does homeowners insurance cover me in a flood or earthquake?

Damage caused by floods and earthquakes is not covered by homeowners insurance. However, flood insurance and earthquake insurance is available. If you live in a flood zone or an earthquake-prone area, it may be worth it to add on this coverage to protect yourself in the future.

I have a lot of expensive electronics. Do I need a rider for them?

Your laptop, TV and computers are all covered under your homeowners insurance policy. However, if you are a professional photographer or musician with a lot of expensive equipment, you may want to insure it for its replacement value, especially if you use it to make a living.

What is the average premium for homeowners insurance?

The average cost of homeowners insurance is $1,477 annual. However, the cost of homeowners insurance varies by state.


Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Rates are determined based on 2020 Quadrant Information Services data.