The Cheapest Home Insurance Companies Of September 2024 (2024)

Company	Company - Logo	Average annual cost for $350,000 dwelling coverage	Our Expert Take	Forbes Advisor Rating	Forbes Advisor Rating
Progressive		$729	Best for cheap home insurance		5.0
Erie		$1,256	Best for coverage perks		5.0
USAA*		$1,270	Best for military members and veterans		4.9
Westfield		$1,344	Best for customer satisfaction		4.8
Nationwide		$1,157	Best for high-value homes		4.3
State Farm		$1,298	Best for bundling home and auto		4.2
Auto-Owners		$1,525	Best for discounts		4.1

Rates source: Quadrant Information Services, based on dwelling coverage of $350,000 with a $1,000 deductible.
*USAA home insurance is only available to veterans, military members and their families.

Cheapest Homeowners Insurance for Poor Credit: Progressive

A credit-based insurance score is not the same as your personal credit score. For example, your regular FICO credit score looks at several factors of your credit history to determine how likely you are to repay a loan or credit card, while a credit-based insurance score looks at the factors to determine how likely you are to file an insurance claim.

You can improve your insurance score the same way you would improve your credit score: Make credit card and loan payments on time, and keep your balances on credit cards as low as possible.

Cheapest Homeowners Insurance for New & Old Homes: Mercury

The age of your house generally plays a part in how much you pay for homeowners insurance. Insurers often charge lower rates for new homes.

Our analysis found that insurance for new homes costs an average of 41% less when compared to a 50-year-old home. The average difference varies between 29% and 62% depending on the company.

Cheapest Homeowners Insurance for Those with a High Deductible: Progressive

Progressive has the cheapest homeowners insurance if you’re choosing a high deductible for your policy.

You can save money by raising yourhomeowners insurance deductible. A deductible is the amount your insurer subtracts from your insurance check after a claim. Common deductibles for home insurance are $500 and $1,000, but you can save by increasing your deductible.

These companies are all cheaper than the national average of $1,586 per year for a policy with a $2,000 deductible, based on the companies in our analysis.

Cheapest Home Insurance Company for Bundling: Auto-Owners

Home insurance companies often give you a discount when you bundle auto and home policies. State Farm has the highest average bundling discount (23%), but Auto-Owners has the cheapest overall rates when you bundle home and auto policies.

Cheapest Homeowners Insurance Based on Dwelling Coverage: Progressive

Progressive tops the list for cheapest home insurance with Nationwide, Erie, USAA and Westfield as companies with averages well below the national average.

$200,000 Dwelling Coverage Limit

Coverage for $350,000 Dwelling Coverage Limit

Coverage for $500,000 Dwelling Coverage Limit

Here’s a look at the cheapest home insurance in each state, based on the companies we analyzed.

Cheapest Home Insurance by City

Location is one factor that goes into home insurance costs. Our research found the cheapest company often varies by where you live.

Related: Does home insurance cover roof damage?

There a several factors that impact home insurance costs, such as:

	Cost to Rebuild The dwelling insurance portion of a homeowners policy covers your house if it’s damaged or destroyed in a worst-case scenario (such as a fire). Your dwelling coverage limit should match the amount it will cost to rebuild your house. The higher your rebuilding costs, the more you’ll pay for home insurance.
	Building Materials and Age Your home’s building materials, such as brick, stone, stucco or wood, will influence insurance costs. Some materials are more weather- and fire-resistant. Older homes typically cost more to insure. New homes have updated systems, such as electrical and plumbing, that are less likely to cause issues.
	Fire Rating A home’s fire rating includes the distance to the closest fire station and water source. A house that’s farther away from hydrants and fire stations can be considered a higher risk by insurance companies.
	Property’s Claims History Home insurance companies look at the area’s crime rates and natural disasters, including hurricanes and tornadoes. In fact, you may pay more if the previous homeowner filed multiple claims before selling to you.
	Your Claims History Homeowners who don’t have a history of filing insurance claims generally get cheaper home insurance. That’s one reason why you should be careful to file home insurance claims only when it’s absolutely necessary. For instance, if your home is damaged and the cost to repair is only slightly more than your deductible, you likely want to handle the cost of repairs yourself.
	Coverage and Policy Limits Higher liability limits and other coverage—such as extended or guaranteed replacement cost coverage—will mean higher home insurance costs. Figure out what you could lose if someone is injured and sues you. That may include the value of your house and property. Buy enough liability coverage to properly cover you.

While paying less for home insurance may be your goal, don’t sacrifice coverage for a cheaper policy that leaves you underinsured.

That includes purchasing enough dwelling coverage to pay to repair or replace your home if it’s damaged. Your insurance company or agent should help you figure out the right amount of dwelling coverage.

You also want to get enough personal liability home insurance. Liability coverage pays for accidental injury or damage that you and your household members do to others. It also pays for your legal defense if you’re sued because of an injury or damage covered by your home insurance.

Instead, consider other ways to decrease costs, such as choosing a higher deductible and shopping around for a policy with lower rates by comparing home insurance quotes.

To find the cheapest home insurance companies we analyzed costs around the country and complaints about home insurance made to state departments of insurance. We scored companies based on these factors:

• Home insurance rates for $200,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling limit. Source: Quadrant Information Services.
• Home insurance rates for $350,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling coverage. Source: Quadrant Information Services.
• Home insurance rates for $500,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling coverage. Source: Quadrant Information Services.
• Home insurance rates for $750,000 dwelling coverage (20% of score): Based on average rates for each insurance company for homes with that dwelling coverage. Source: Quadrant Information Services.
• Complaints (20% of score): Based on complaints about home insurance that were upheld by state insurance departments. Source: National Association of Insurance Commissioners.

Read more: How Forbes Advisor rates home insurance companies

Here are other home insurance companies we analyzed as part of our analysis.