Compare Cheap Home Insurance (2023)
Nationwide is the cheapest homeowners insurance company for most people, averaging $1,227 per year.
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Cheapest homeowners insurance companies
Cheap homeowners insurance companies
Nationwide and Erie have the cheapest rates for homeowners insurance.
Nationwide costs $1,227 per year and is widely available. Erie is even cheaper at $883 per year, but it's only available in 12 states and Washington, D.C.
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Cheapest annual home insurance quotes
Cheapest companies | Rate | ||
|---|---|---|---|
| Erie | $883 | |
| Nationwide | $1,227 | |
| State Farm | $1,510 | |
| USAA | $1,789 | |
| Travelers | $1,802 | |
The cheapest home insurance companies are based on averages of quotes from all ZIP codes in the country using the typical home value in each state. Ratings of the top companies consider customer service, claims satisfaction, affordability and availability. Full methodology
Cheapest quotes for most homeowners: Nationwide
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Editor rating
-
Monthly rate
$102 ?
-
J.D. Power
876 ? -
AM Best
A+ ?
Why it's great
Nationwide has the cheapest home insurance rates overall.
In most cases, Nationwide delivers cheaper homeowners insurance rates than any of its major competitors. A policy from Nationwide costs $1,227 per year or $102 per month. It also offers homeowners a number of discounts to help keep the cost of insurance affordable:
- Multipolicy discount
- Home purchase discount
- Claims-free discount
- Protective device discount
- Home renovation credit
- Roof rating discount
- Gated community discount
- Prior insurance discount
Nationwide also offers homeowners a range of optional coverage add-ons like identity theft protection, extended replacement cost coverage, water backup, earthquake and flood insurance.
However, shoppers may be able to find better customer service elsewhere. Nationwide scored 812 out of 1,000 points on J.D. Power's customer satisfaction survey, placing it in the bottom half of ranked companies. On the other hand, it has a good score on the National Association of Insurance Commissioners (NAIC) complaint index, which means that Nationwide gets fewer complaints than its competitors.
Ultimately, Nationwide home insurance is the best place to start comparing rates for your policy, but it shouldn't be the only company you check. Other large insurance companies — or even local companies — might offer both a decent rate and solid service.
Alternate cheapest home insurance company: Erie
If your home is located in one of the 12 states or Washington, D.C., where Erie insurance is available, you may be able to take advantage of even better rates. A policy with Erie costs $883 per year or $74 per month, which is 47% cheaper than the national average.
Erie is known for its excellent customer service. Our editors awarded it 4.5 out of 5 stars, and it ranked fourth in J.D. Power's customer satisfaction survey.
Cheapest home and auto bundles: State Farm
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Editor rating
-
Monthly rate
$126 ?
-
J.D. Power
881 ? -
AM Best
A++ ?
Why it's great
State Farm has the best bundle discount we found.
If you're shopping for lower rates for both home and auto insurance, then State Farm is probably the best company to start with. When we calculated the discount that each company offers customers who bundle auto and home coverage, the quotes from State Farm showed the greatest potential savings.
Homeowners insurance from State Farm costs $1,510 per year or $126 per month, on average. State Farm's home insurance rates went down by another 22% to 30% when we added an auto insurance policy. In most cases, the discount for bundling with State Farm is greater than with any other insurance company.
In addition to a solid bundling discount, State Farm offers the following discounts to homeowners:
- Home security discount, for customers who have added fire, smoke or burglar alarms, or any other kind of home monitoring system.
- Roofing discounts, for customers who use certain impact-resistant products on roof renovations.
Choosing State Farm for your homeowners insurance offers other advantages besides competitive discounts. Not only is it the largest insurance company for American homeowners, but it also earned a score of 835 out of 1,000 from J.D. Power — above the national average of 825. This means that State Farm is also one of the top choices for anyone who values excellent customer service from their home insurance company.
Cheap home insurance for veterans: USAA
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Editor rating
-
Monthly rate
$149 ?
-
J.D. Power
890 ? -
AM Best
A++ ?
Why it's great
USAA has low pricing and great service for military and veterans.
USAA is the best low-cost homeowners insurance option for veterans and active service members and their families. Although its membership is limited to people who can prove a personal connection to the armed services, USAA combines an excellent reputation for customer service with rates that often beat other home insurance companies.
In our search for the cheapest home insurance rates, we found estimates from USAA to be very affordable at $1,789 per year or $149 per month. Keep in mind that this number may be far from what you see in your own quote if your location, property and coverage limits are much different from the profile we used. You may be able to get your rates down by asking about USAA's home insurance discounts:
- Bundling discount, with 10% savings for customers who also take out a car insurance policy.
- Protective device credit for homeowners who have installed an ADT home security system.
- Claims-free discount, with 10% savings for customers who make no claims for five or more years.
Even in states where USAA wasn't the absolute cheapest option for homeowners, we felt that the company's great customer service reputation more than made up for that. Its affordable rates for auto insurance, combined with its solid bundling discount, could help shoppers reduce their rates.
In addition, USAA offers options in other areas like deposit accounts and loans that make it a great place for qualifying members to consolidate all their finances.
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Cheapest home insurance rates by state
We found the cheapest insurance company in each state, along with its average monthly rate in that state. Allstate has the cheapest rates in 15 states. Travelers has the best rates in eight states, while Nationwide offers the most affordable quotes in seven.
Homeowners in Michigan can take advantage of the lowest rate in the country from Auto-Owners — $417 per year. On the other hand, those living in Colorado pay the highest rates. State Farm offers the cheapest insurance in the state for $2,362 per year.
Monthly homeowners insurance rates
State | Cheapest company | Monthly rate |
|---|---|---|
| Alabama | USAA | $110 |
| Alaska | Allstate | $109 |
| Arizona | Nationwide | $69 |
| Arkansas | Travelers | $100 |
| California | Allstate | $93 |
The location of your home is one of the most important factors in determining the price you pay for homeowners insurance due to weather, population density and crime rates. Each company rates these hazards differently, meaning they don't all increase rates by the same amount. For that reason, the cheapest insurance company nationally may not be the most affordable option where you live.
How to compare quotes and save on home insurance
Comparing quotes is the best way to lower your home insurance costs.
Homeowners insurance rates may vary depending on a number of factors, including where you live, the value of your house and the amount of coverage you get. We recommend the following steps as you compare quotes from insurance companies near you:
- Gather your personal info. This includes details about your house, your personal property and your insurance history. Tracking down info about your home and taking inventory of your personal property can take time, so give yourself enough lead time.
- Figure out how much coverage you need. Your coverage needs can change from year to year, particularly if you've done home renovations or acquired expensive personal items like jewelry or fine art. We recommend purchasing dwelling coverage limits that match the replacement cost value (RCV) of your house and personal property rather than its actual cash value (ACV). Your quotes will be more expensive, but you will be spared extensive out-of-pocket expenses if your home is destroyed in a covered incident.
- Compare quotes from multiple providers. We generally urge shoppers to get quotes from at least three companies, if not more, before purchasing a policy. Insurance policies can vary by thousands of dollars, so comparing rates is the best way to ensure you're getting a solid deal. Make sure you request quotes for the same coverage limits so your comparison is accurate. You don't want to pay for a policy that seems like a great deal, only to later discover that you don't have enough coverage when you file a claim.
How to get cheap homeowners insurance rates
The average cost of homeowners insurance is $1,680 per year, but shoppers can use a number of strategies to reduce their rates.
Comparing rates from multiple companies and asking each one about discounts increases your chance of scoring a good deal. However, you can also raise your deductible to get a lower monthly payment. Just make sure that you choose an amount you could reasonably afford to pay should an unexpected event damage your home.
If you're willing to make a long-term investment in your home, consider updating your roof with impact-resistant materials or installing smart alarm technology that can help prevent a burglary or fire. Many companies will offer you a discount if you make these improvements. That's because they increase your safety and make it less likely you'll need to make a claim.
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