A good choice for first-time homebuyers on a strict budget
- J.D. Power:
- 827 /1,000
- AM Best:
- A +
- Avg. annual premium for 250k dwelling
- $ 959
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Erie, USAA and Auto-Owners offer the cheapest home insurance at rates less than $1,000 per year, according to Bankrate's average premium analysis
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation for . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our
Bankrate’s insurance editorial team includes four licensed agents with real-world industry experience, so we know that while home insurance is an integral part of your financial plan, it doesn’t have to be a budget-buster. We also know that, with inflation reaching a decades-long high, many consumers are feeling the pressure to make their dollars stretch further than ever before. We’re here to help.
According to our analysis of nearly 150 of the largest home insurance companies by market share, the national average premium for a home insurance policy with $250,000 in dwelling coverage is $1,383 per year. We know that to find the best affordable coverage, you must consider more than just rates. For this reason, we also analyzed coverage options, available discounts, digital tools and third-party scores. Taking this holistic approach has allowed us to bring our readers the best home insurance companies that may fit your needs as well as your budget.
Cheapest home insurance companies:
Based on our research, Erie and USAA offer the cheapest average home insurance rates in the U.S. Erie is available in 12 states and Washington, D.C., while USAA serves active-duty military, veterans and their qualified family members. If neither company is an option for you, you might want to get homeowners insurance quotes from the other options on our list: Auto-Owners, Progressive, Nationwide and Travelers.
In the tables below, you’ll find the average premiums for these six cheap home insurance companies to help get you started on your shopping journey.
Insurance company | Average monthly premium | Average annual premium | Savings vs national average* | |
---|---|---|---|---|
Erie
3.1
Bankrate Score
|
Average monthly premium
$80
|
Average annual premium
$959
|
Savings vs national average*
- $424 |
Get a quote |
USAA
3.7
Bankrate Score
|
Average monthly premium
$82
|
Average annual premium
$978
|
Savings vs national average*
- $405 |
Get a quote |
Auto-Owners
3.2
Bankrate Score
|
Average monthly premium
$83
|
Average annual premium
$995
|
Savings vs national average*
- $388 |
Get a quote |
Progressive
3.7
Bankrate Score
|
Average monthly premium
$88
|
Average annual premium
$1,061
|
Savings vs national average*
- $322 |
Get a quote |
Nationwide
3.2
Bankrate Score
|
Average monthly premium
$90
|
Average annual premium
$1,075
|
Savings vs national average*
- $308 |
Get a quote |
Travelers
3.3
Bankrate Score
|
Average monthly premium
$100
|
Average annual premium
$1,202
|
Savings vs national average*
- $181 |
Get a quote |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Insurance company | Average annual premium | Average monthly premium |
---|---|---|
USAA
3.7
Bankrate Score
|
Average annual premium
$1,243
|
Average monthly premium
$104
|
Auto-Owners
3.2
Bankrate Score
|
Average annual premium
$1,279
|
Average monthly premium
$107
|
Erie
3.1
Bankrate Score
|
Average annual premium
$1,347
|
Average monthly premium
$112
|
Nationwide
3.2
Bankrate Score
|
Average annual premium
$1,504
|
Average monthly premium
$125
|
Progressive
3.7
Bankrate Score
|
Average annual premium
$1,536
|
Average monthly premium
$128
|
Travelers
3.3
Bankrate Score
|
Average annual premium
$1,660
|
Average monthly premium
$138
|
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Insurance company | Average annual premium | Average monthly premium |
---|---|---|
USAA
3.7
Bankrate Score
|
Average annual premium
$1,480
|
Average monthly premium
$123
|
Auto-Owners
3.2
Bankrate Score
|
Average annual premium
$1,547
|
Average monthly premium
$129
|
Erie
3.1
Bankrate Score
|
Average annual premium
$1,697
|
Average monthly premium
$141
|
Nationwide
3.2
Bankrate Score
|
Average annual premium
$1,869
|
Average monthly premium
$156
|
Progressive
3.7
Bankrate Score
|
Average annual premium
$1,906
|
Average monthly premium
$159
|
Travelers
3.3
Bankrate Score
|
Average annual premium
$2,063
|
Average monthly premium
$172
|
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
To find the cheapest home insurance companies, Bankrate’s insurance editorial team started by obtaining 2022 premium information for the largest homeowners insurance companies by market share from Quadrant Information Services. Because we know that many people want to find the best home insurance, we also used J.D. Power customer satisfaction scores and AM Best financial strength ratings in our research. Our analysis method allowed us to identify our top picks for the cheapest home insurance companies on the market. To qualify for ranking on this list, the companies had to meet these criteria:
A good choice for first-time homebuyers on a strict budget
A good option for military-focused coverage
A good option for flexible coverage
A good choice for comparing rates and saving time
A good choice for consolidating insurance and banking products
A good choice for customizable coverage
State-specific factors, such as the likelihood of natural disasters and the rising cost of building materials, can affect your home insurance premiums. For example, in states like Florida and Louisiana, where widespread wind damage from hurricanes is more likely, home insurance rates are likely to be higher than they would be in lower-risk areas.
Through our research, we determined the provider that has the cheapest home insurance rates in each state. If you’re looking for cheap coverage, you could start with a quote from these carriers. According to our research, USAA was the cheapest homeowners insurance company in many states, but because the company is only available to a certain segment of the marketplace, we chose not to include this carrier in the cheapest home insurers by state table. If you qualify for coverage with USAA, you may find cheap coverage after getting a quote.
State | Cheapest home insurance company | Average annual premium for $250,000 dwelling coverage |
---|---|---|
Alabama | Cincinnati Insurance | $746 |
Alaska | Umialik Insurance Company | $907 |
Arizona | ASI | $740 |
Arkansas | Travelers | $1,634 |
California | Armed Forces Insurance | $525 |
Colorado | State Auto Insurance | $612 |
Connecticut | Narragansett Bay Insurance Co | $515 |
Delaware | Cumberland Mutual Fire Insurance Co | $448 |
Florida | Security First | $341 |
Georgia | ASI | $780 |
Hawaii | Universal P&C Insurance Co | $253 |
Idaho | Mutual of Enumclaw Insurance | $590 |
Illinois | Allstate | $930 |
Indiana | Buckeye State Mutual Insurance Co | $478 |
Iowa | West Bend | $688 |
Kansas | Auto-Owners | $1,534 |
Kentucky | Cincinnati Insurance | $949 |
Louisiana | United P&C Insurance Co | $699 |
Maine | Vermont Mutual Insurance Co | $392 |
Maryland | Brethren Mutual Insurance Co | $583 |
Massachusetts | Quincy Mutual Insurance Co | $708 |
Michigan | Auto-Owners | $229 |
Minnesota | Auto-Owners | $1,012 |
Mississippi | Nationwide | $844 |
Missouri | Auto Club Insurance Co | $1,378 |
Montana | Chubb | $1,034 |
Nebraska | American Family Insurance | $1,612 |
Nevada | Universal P&C Insurance Co | $508 |
New Hampshire | American Family | $437 |
New Jersey | Selective Auto Insurance Co of NJ | $364 |
New Mexico | Allstate | $1,394 |
New York | NY Central Mutual Fire Insurance Co | $498 |
North Carolina | Universal P&C Insurance Co | $750 |
North Dakota | Farmers Union Insurance | $1,100 |
Ohio | Buckeye State Mutual Insurance Co | $369 |
Oklahoma | Allstate | $2,315 |
Oregon | Mutual of Enumclaw Insurance | $316 |
Pennsylvania | American Select Insurance Company | $375 |
Rhode Island | Narragansett Bay Insurance Co | $587 |
South Carolina | Lighthouse Property Insurance Co | $572 |
South Dakota | North Star Mutual Insurance Co | $1,399 |
Tennessee | Erie | $927 |
Texas | Bankers Insurance Group | $578 |
Utah | Mutual of Enumclaw Insurance | $444 |
Vermont | Vermont Mutual Insurance Co | $389 |
Virginia | Cincinnati Insurance | $420 |
Washington | Pemco Mutual Insurance Co | $383 |
Washington, D.C. | Chubb | $831 |
West Virginia | American Select Insurance Company | $598 |
Wisconsin | West Bend | $525 |
Wyoming | Amco Insurance | $687 |
While your state plays a big role in your premium, so does your city. Coverage tends to be more expensive in larger metropolitan areas, where the cost of living is higher, but some cities are still cheaper than others. Check out the cheapest home insurance company in the largest 20 cities in the country by population, below. Just like with the states, we left USAA off the list since not all homeowners will qualify.
City | Cheapest home insurance company | Average annual premium for $250,000 dwelling coverage |
---|---|---|
New York City, NY | NYCM | $623 |
Los Angeles, CA | Mercury | $600 |
Chicago, IL | Travelers | $1,045 |
Houston, TX | Bankers Insurance Group | $643 |
Phoenix, AZ | ASI | $824 |
Philadelphia, PA | American Select Insurance | $456 |
San Antonio, TX | Bankers Insurance Group | $469 |
San Diego, CA | Mercury | $573 |
Dallas, TX | Bankers Insurance Group | $492 |
San Jose, CA | Mercury | $447 |
Austin, TX | Bankers Insurance Group | $345 |
Jacksonville, FL | Security First | $456 |
Fort Worth, TX | Bankers Insurance Group | $448 |
Columbus, OH | Buckeye State Mutual Insurance Co | $372 |
Indianapolis, IN | Buckeye State Mutual Insurance Co | $550 |
Charlotte, NC | Universal P&C Insurance Co | $670 |
San Francisco, CA | Mercury | $546 |
Seattle, WA | PEMCO | $369 |
Denver, CO | State Auto Insurance | $651 |
Nashville, TN | Allstate | $866 |
Not all homeowners have the same rating metrics, and home insurance rates vary widely based on your individual circumstances. To help you understand what your average rate might be, we’ve isolated the cheapest companies based on several underlying rating factors.
In most states, your credit-based insurance score is among the rating factors used to determine your home insurance premium. Homeowners with low credit scores may be more likely to file claims.
To compensate for the increased risk, companies usually charge more for homeowners with lower insurance scores. For homeowners with good credit, the national average cost of home insurance is $1,383 per year for $250,000 in dwelling coverage.
Based on our research, these eight companies offer competitive premiums for homeowners with average credit, based on 2022 rates pulled from Quadrant Information Services.
Home insurance company* | Poor credit | Average credit | Good credit | Excellent credit |
---|---|---|---|---|
Secura | $1,135 | $757 | $720 | $657 |
Pekin | $1,382 | $974 | $876 | $882 |
Kemper | $1,303 | $991 | $907 | $886 |
Cincinnati | $1,494 | $1,032 | $959 | $886 |
USAA | $1,705 | $1,058 | $978 | $897 |
National General | $2,066 | $1,088 | $1,079 | $957 |
Hasting Mutual | $1,744 | $1,150 | $1,100 | $848 |
AAA | $2,190 | $1,155 | $1,046 | $1,028 |
*Not all of these home insurance companies are available in all areas.
Home insurance company* | Average annual premium |
---|---|
ASI Progressive | $1,061 |
Nationwide | $1,075 |
Grange | $1,134 |
Travelers | $1,202 |
Allstate | $1,300 |
*Not all of these home insurance companies are available in all areas.
If you are a first-time homebuyer, you may be happy to know that several companies offer new purchase or first-time buyer discounts.
These five companies are among the cheapest homeowners insurance carriers with these discount options, which could help your budget amid the expenses of homeownership.
While experiencing home damage is never a pleasant experience, it is why we carry homeowners insurance. Rates do typically increase after a home insurance claim, though, so being prepared for the increase and knowing what companies might be cheaper could help you shop once your claim is closed.
The rates below are average annual premiums for $250,000 in dwelling coverage for homeowners with one wind claim on their profile.
Home insurance company* | Average annual premium |
---|---|
Selective | $441 |
PEMCO | $566 |
Mercury | $726 |
Secura | $809 |
Erie | $983 |
USAA | $1,015 |
Auto-Owners | $1,139 |
Cincinnati Insurance | $1,146 |
*Not all of these home insurance companies are available in all areas.
Although home insurance isn’t required by law, your mortgage lender will probably require you to maintain a policy. Home insurance could be a smart purchase even if you own your home fully; a policy can protect you from financial devastation if your home is damaged or destroyed in a covered incident. While most insurance experts agree that purchasing home insurance is a good idea, you don’t have to overpay for coverage. You can take steps to find the most affordable home insurance policy that fits your needs and provides you with financial peace of mind.
Once you have found a carrier from which you would like to buy a policy, you’ll likely have to fill out and sign an application. You may need to make at least a first month’s payment to start the policy unless your premium is paid from your mortgage escrow account, which is common if you have a mortgage on the policy. In that case, your insurance company will bill your mortgage lender for the full annual premium.
Many homeowners will qualify for cheap homeowners insurance, but the cheapest homeowners insurance policies are likely going to have a few things in common:
That being said, most homeowners will be able to find affordable home insurance for their situation. Because premiums vary based on so many factors, the cheapest homeowners insurance for you will depend on your individual circumstances. Understanding your needs and comparing rates may help you find affordable insurance.
Finding the lowest home insurance premium takes some research, but how can you lower your rates once you’ve found a cheap company? Here’s a few steps you can take to lower your existing rates and get cheaper home insurance.
You might already get home insurance discounts on your policy, but you could also be missing some options. Talk to your provider to see if there are other ways to save. Sometimes the perks go beyond saving money; there are numerous benefits of bundling your home and auto insurance, for example.
Bundling your auto and home insurance often results in cheaper rates for both policies. Bundling just means buying both policies from the same insurance provider, and the discount — called a bundling, multi-policy or multi-line discount — is often one of the most significant savings opportunities a company offers. Bundling might also make it easier to manage your policies, since they’re with the same carrier. Insuring both your auto and home with the same company isn’t always the best option, though, so be sure to talk with your company or agent about your situation.