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Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.&Kara McGinleyKara McGinleySenior Editor & Licensed Home Insurance ExpertKara McGinley is a former senior editor and licensed home insurance expert at Policygenius, where she specialized in homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Forbes Advisor, Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.
Edited by
Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
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Fabio Faschi, PLCS, SBCS, CLCSFabio Faschi, PLCS, SBCS, CLCSLicensed Property & Casualty Insurance ExpertFabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.
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Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.
Top 5 cheapest homeowners insurance companies of 2023
Home insurance premiums were up 12.1% last year, according to the Policygenius Home Insurance Pricing Report. This is why it’s more important than ever to compare home insurance companies to find the best policy at the cheapest price.
Based on our analysis of average premiums of top home insurance companies by market share, we found that Erie, Auto-Owners Insurance, and USAA are the three cheapest homeowners insurance companies. However, Erie and Auto-Owners are only available in a limited number of states, and USAA only insures active-duty military, veterans, and their families.
If you’re not eligible for coverage with these companies, compare rates from Homesite or Travelers — two widely available insurers also included on our list of the best and cheapest home insurance companies of 2023.
Methodology: Why you can trust our picks for the cheapest home insurance companies
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
To find the top 5 cheapest home insurance companies in 2023, we analyzed average annual premiums from 128 companies based on rate data from Quadrant Information Services. With many of these companies only being available in one or two states, we only reviewed the largest companies and regional companies that are available in at least five states — this trimmed our list to 30.
It was important to us that our top picks offered cheap but high-quality coverage with wide state availability, so we also looked at each company’s financial strength ratings with AM Best, customer satisfaction scores with J.D. Power, and market share to ensure you find the best home insurance for your needs.
Policygenius prides itself on providing transparent, unbiased reviews of home insurance companies. Though we make money when you purchase a policy through our site, this does not affect our editorial independence and rigorous editorial standards
Deep dive into the cheapest home insurance companies
Here's a more in-depth look at some of the most affordable home insurance companies in the U.S., including discount opportunities, state availability, policy perks, and just how cheap their rates are compared to the national average.
Erie
Policygenius rating
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.5
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A+
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
Offers flood insurance
Mobile app
Smart home discounts
Why we chose it
Erie earns the top spot on our cheapest home insurance companies list thanks to its average annual premium that's 39% below the national average and stellar customer service ratings to boot.
Pros and cons
Pros
Cheap rates
Guaranteed replacement cost comes standard on Erie policies
Excellent customer service and claims satisfaction ratings
Cons
Only available in 12 states
Just three available discounts
Can’t get quotes or file claims online
More details
Average cost: $1,284 per year
Discounts offered
Multi-policy
Alarm systems and safety devices
Advanced quote
State availability
Erie homeowners insurance is available in the following 12 states and Washington, D.C.:
Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
5.0
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
Mobile app
Smart home discounts
Offers flood insurance
Why we chose it
Auto-Owners lands the No. 2 spot on our cheapest home insurance companies list thanks to its average annual rates that are 30% below the national average and up to a dozen potential discounts to help further your savings.
Pros and cons
Pros
Affordable rates
Several additional coverage options
Up to 12 available discounts
Cons
Only available in 26 states
Not able to get quotes or file claims online
More details
Average cost: $1,406 per year
Discounts offered
Multi-policy
Protective devices
Water shutoff system
Automatic backup generator
Claim-free
Mortgage-free
Mature homebuyer
Payment history
Green home
Advanced quote
Paid-in-full
State availability
Auto-Owners home insurance is available in the following 26 states:
Alabama, Arizona, Arkansas, Colorado, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, North Carolina, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Tennessee, Utah, Virginia, and Wisconsin
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.9
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
All 50 states
Bundle home & auto
Mobile app
Smart home discounts
Offers extended replacement cost
Offers flood insurance
Offers earthquake insurance
Why we chose it
USAA earns the third spot on our cheapest home insurance companies list thanks to its average annual rates that are 25% below the national average, industry-best customer service, and slew of home insurance discounts available.
Pros and cons
Pros
Affordable rates
Over a dozen additional coverage options
Industry-best customer service and claims satisfaction ratings
Cons
Limited to people affiliated with the U.S. military
More details
Average cost: $1,479 per year
Discounts offered
Home and auto bundle
Other multi-policy
Protective devices
Connected home
Claims-free
Loyalty
State availability
USAA homeowners insurance is available in all 50 states and Washington, D.C.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.3
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
All 50 states
Bundle home & auto
Offers earthquake insurance
Offers flood insurance
Smart home discounts
New homebuyer discount
Offers extended replacement cost
Offers wildfire insurance
Why we chose it
Homesite earns a spot on our cheapest home insurance companies list thanks to its average annual rates that are 24% below the national average and nine discount opportunities to lower your rates even more.
Pros and cons
Pros
Affordable rates nearly 25% cheaper than the national average
15 policy add-ons for extra protection, including extended replacement cost coverage
Offers flood and earthquake insurance, plus complimentary wildfire protection and mitigation services
Cons
Low score in J.D. Power’s claims satisfaction study
More details
Average rate: $1,487 per year
Discounts offered
New home purchase
Switching from a Homesite renters or condo policy
Bundling home and auto
Retired occupant
Fire protection system
Burglar alarms
Age of roof
Age of home
Opting for a Homesite endorsement package
State availability
Homesite offers home insurance policies in all 50 states and Washington, D.C.
Our proprietary rating methodology takes multiple factors into account, including customer satisfaction, cost, financial strength, and policy offerings. See the "methodology" section for more details.
4.4
AM Best rating
A.M. Best is a global credit rating agency that scores the financial strength of insurance companies on a scale from A++ (Superior) to D (Poor).
A++
Cost
Using a mix of internal and external rate data, we grade the cost of each insurance company's premiums on a scale from least expensive ($) to most expensive ($$$$$).
$
$
$
$
$
Bundle home & auto
New homebuyer discount
Mobile app
Offers extended replacement cost
Offers flood insurance
Why we chose it
Travelers tops off our list of the cheapest home insurance companies thanks to its average annual rate that's 19% below the national average, industry-best financial ratings, and flexible policy options for most home types and budgets.
Pros and cons
Pros
Green home coverage and discounts
Offers short-term rental coverage for Airbnb hosts
Doesn’t require prior insurance on the home
Cons
Subpar customer service ratings with J.D. Power
Underwhelming number of available discounts
More details
Average cost: $1,568 per year
Discounts offered
Multi-policy
Protective devices
Claims-free
New homebuyer
Green home
State availability
Travelers homeowners insurance is available in 48 states and Washington, D.C. — it is not available in Florida or California.
Home insurance typically costs more in states prone to natural disasters, which is why home insurance rates tend to be higher in Florida, Texas, Oklahoma, Nebraska, and other places with frequent hurricanes or tornadoes.
But even in states where rates skew higher, you can often find affordable homeowners insurance rates. According to our analysis of rates in each state, Allstate and State Auto offer the cheapest home insurance in the most states.
Your city and even your specific ZIP code can also impact your home insurance premiums. Cities or ZIPs with a high rate of burglary or arson often see higher rates and more restricted coverage than cities with less regional risk.
According to our analysis of the 20 biggest cities in the U.S., Farmers, CSAA, and Allstate offer the most affordable homeowners insurance premiums in more major cities than any other company.
Cheapest homeowners insurance by dwelling coverage amount
Your insurance premiums are primarily based on how much dwelling coverage you need to repair or rebuild your house in the event of a disaster. Your dwelling limit is based on things like your home’s square footage and the current price of labor and construction materials in your area — not the home’s market value or your remaining mortgage balance.
Below are the most affordable home insurance companies for various levels of dwelling coverage. Narragansett Bay has the lowest average annual premium for a policy with $100,000 in coverage, while USAA is the cheapest company for policies with $200,000 to $500,000 in coverage.
Below are five of the cheapest home insurance for multi-policy discount deals. If you need both home and auto insurance and you’re interested in bundling, you might want to consider State Farm first.
Cheapest homeowners insurance if you have a history of claims
Some insurance companies will increase your rates after a single claim, while others may outright deny you coverage if you have multiple claims on your record. Below are the five cheapest home insurance companies for a homeowner with three claims over a five-year period, with Auto-Owners’ average annual rate of $1,365 being the lowest.
Some insurers also consider older homes to be high risk due to the increased chance of structural damage and water damage due to plumbing leaks. Older homes are also generally built with more obsolete materials that can be expensive to replace.
With an average annual premium of $1,159, Auto-Owners’ average older home premium is nearly $800 lower than the next cheapest company.
Cheapest homeowners insurance if you have a dangerous dog breed
Home insurance companies often consider so-called aggressive dog breeds, like Rottweilers and pit bulls, to be a liability concern due to the chance of bites or attacks. If you own one of these breeds, your insurer could charge you higher premiums to offset the heightened risk.
With an average annual rate of $1,191, Cincinnati Insurance offers the best price on home insurance for homeowners with an aggressive dog breed.
Cheapest homeowners insurance for high-deductible policies
Many insurance companies offer discount options and cheaper rates if you choose a high out-of-pocket deductible, but be careful about increasing it to an amount that you won’t be able to afford in the event of a claim.
Below are the companies that offer the most affordable rates for high-deductible policies. While Auto-Owners Insurance provides the cheapest average rates, State Farm and Hippo offer the biggest average savings.
Most insurance companies also offer discounts to policyholders with new homes — or homes that are anywhere from 0 to 10 years old. According to our research, Auto-OwnersInsurance and AAA top our list of the cheapest rates for new homeowners.
Cheapest homeowners insurance for low-income families
While insurance companies can't use your annual income to determine your home insurance premiums, in most U.S. states they are allowed to factor in your credit score. Generally speaking, this tends to adversely impact low-income families more than others.
However, there's a number of ways for low-income homeowners to keep their premiums down, such as bundling home and car insurance, looking into various discounts, and shopping around for cheaper rates.
Based on our analysis, Hippo, Allstate, Narragansett Bay, Cincinnati Insurance, and Travelers offer the most affordable home insurance coverage for homeowners with a poor credit score.
Cheapest homeowners insurance from smaller companies
While major home insurance providers tend to offer the most convenience, nationwide availability, and multi-policy bundling perks, you can often find cheaper and better coverage with small or regional insurers.
If you’re looking for personalized customer service and claims handling from a local agent, consider one of the following cheap regional home insurance companies.
When getting homeowners insurance quotes, there are several things you can do to ensure you’re not overpaying for coverage. Below are the best ways to keep your home insurance costs low.
How to get cheap home insurance in 6 easy steps
Compare quotes from at least 3 companies: Shopping for home insurance through an accredited insurance marketplace like Policygenius is an easy way to compare policies and rates to help keep costs down.
Make sure your insurance limits are correct: When comparing quotes, it’s important to make sure your home’s dwelling estimate is in line with the actual cost to rebuild. If this amount is higher than your home’s true replacement cost, then you run the risk of significantly overpaying for home insurance. If it’s lower, then you risk being underinsured — or without enough home insurance to rebuild after a disaster.
Increase your out-of-pocket deductible: Increasing your policy deductible is one of the easiest ways to lower your home insurance premiums. But it also could leave you paying too much out of pocket when you make a claim. Keep this in mind when adjusting your deductible amount.
Improve your credit score: A good credit score is a sign of financial health and stability. Insurance companies reward a better credit score with lower rates. Limiting the amount of new credit accounts you apply for, paying down revolving account balances, and doubling your monthly payments can all improve your credit score.
Bundle home and auto policies: Bundling home and auto insurance policies can save you up to 30% on home insurance premiums. Package deals on insurance also come with added perks, including one bill and single-deductible claims if your home and car are damaged in the same event.
Add protective features to your home: Some insurance companies offer home security discounts of up to 15% if you add smart home devices, home security systems, and other protective devices to your home. Insurers in natural disaster-prone states like Florida and Texas also offer significant wind mitigation discounts if you disaster-proof your home. Everything from installing storm-proof windows to upgrading to hurricane-grade roof shingles may help you land major savings.
Bottom line: Is cheap homeowners insurance best for me?
When deciding on a policy, you may be tempted to go with the cheapest homeowners insurance quote or a policy with comparably worse coverage but more affordable premiums than others.
Before doing this, consider the fact that while you may save on premiums in the short term, you could find yourself in a tough spot should you have to file a claim — potentially costing you more in the long run.
In other words, you’ll likely see cheaper rates if you lower your dwelling coverage limit or switch to a less comprehensive type of home insurance (like an HO-1 or HO-2). But doing this could also leave you underinsured and unable to rebuild after a disaster, or your policy may simply not be broad enough to cover the type of damage or loss you’re claiming.
In both cases, you’re potentially having to pay tens of thousands of dollars out of pocket to get your home back to its original condition. That’s why it’s important to pick a company that offers a mix of affordable rates, financial stability, dependable customer service and claims handling, and high-quality coverage options that work for your home.
Find the best cheap homeowners insurance near you
Below are the most highly-rated insurers in each state, according to our analysis of the best home insurance companies in the U.S. Click on your state for our guide to the best available home insurance where you live.
Can you get cheap homeowners insurance with a bad roof?
It’s possible to get cheap homeowners insurance with a bad roof, but you’ll want to shop around. The age and condition of your roof is a big factor in your home insurance costs. Some insurers may refuse to cover you if your roof is above a certain age. Others may agree to cover you under the condition that you repair or replace your roof within a certain timeframe.
Can you get cheap homeowners insurance if you have bad credit?
Some companies, like Hippo and Allstate, offer cheap home insurance to homeowners with bad credit, and there are other low-credit friendly companies out there. But in general, if your credit score is low, you’ll probably be quoted higher rates compared to homeowners with higher scores.
How do you compare homeowners insurance quotes?
You can compare homeowners insurance quotes through Policygenius. One of our expert agents can help you choose the best coverage for your needs, get you quotes from multiple top insurers, and then compare your options to choose the best policy for the best price.
Who has the cheapest home insurance?
We found that Erie, Auto-Owners Insurance, USAA, Homesite, and Travelers offer the cheapest homeowners insurance rates in the U.S.
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Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
Kara McGinley is a former senior editor and licensed home insurance expert at Policygenius, where she specialized in homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Forbes Advisor, Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.
Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.
