Cheapest homeowners insurance in May 2025

Compare the cheapest home insurance companies

Based on our research, USAA and Auto-Owners offer the cheapest average home insurance rates in the U.S. USAA exclusively serves active-duty military, veterans and their qualifying family members, and Auto-Owners only writes home insurance policies in 26 states. If neither company is an option for you, you might want to get homeowners insurance quotes from the other options on our list: American Family, Nationwide, Erie and Allstate.

In the tables below, you’ll find average premiums for various dwelling coverage levels to help get you started on your shopping journey.

Cheapest home insurance companies by state

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, average home insurance rates are often higher than in lower-risk areas.

Through our research, we determined the provider that has the cheapest home insurance rates in each state. USAA is the cheapest in many places, but note that it only writes policies for active and retired military members and their families, so not everyone will qualify for coverage. Fortunately, many other carriers also offer competitive average rates.

Cheapest companies for homeowners insurance in each state

Cheapest homeowners insurance in 20 major cities

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 some of the largest cities in the country by population, below.

How to save on homeowners insurance 

Securing a lower premium for homeowners insurance often begins with research to identify affordable providers. However, beyond choosing a competitively priced insurer, there are actionable steps to potentially save even more. One strategy is to reassess your policy for coverage that may no longer be necessary. Over time, changes in your home's value, possessions or personal circumstances can impact your insurance needs. By fine-tuning your coverage to align more closely with your current situation, you might find opportunities to save on your homeowners insurance costs without compromising on essential financial protection.

Common home insurance discounts

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 policies: Buying your auto and home insurance with the same company isn't just about saving money (though the discounts can be a nice bonus). It's also about simplifying life – one bill, one company and one single point of contact for claims. On top of that, bundling might come with extra perks, like enhanced coverage options or loyalty rewards, that you likely wouldn't get by keeping your policies separate.
• Installing smart home systems: Installing smart home systems may qualify homeowners for insurance discounts. These usually apply to features that reduce the risk of claims, like smart home locks and property monitoring. If you've recently installed smart home features, you may want to notify your insurance company about these updates. 
• Making home updates: If you have a new roof, updated electric system, smart home technology, new HVAC unit or have done other home updates, you might qualify for savings.
• Remaining claims-free: If you haven’t filed a claim within a certain period of time — usually three to five years, although it varies by company — you could save money on home insurance.
• Paying automatically: Enrolling in automatic payments through your insurance provider typically earns you a discount on your home insurance, depending on your provider. Paperless billing options may also offer additional savings.
• Shopping early: When changing home insurance companies, you may be eligible for an early bird discount if you secure and pay for your new policy a few days before the effective date. Typically, providers offer this discount if the policy is purchased seven to 10 days ahead of time.

Frequently asked questions