What is the cheapest state for home insurance?

Bankrate found that Vermont is the cheapest state in the country for home insurance. On average, homeowners in Vermont pay $806 per year for a policy with a $300,000 dwelling coverage limit.

Will my homeowners insurance go up if I file a claim?

It is likely that your homeowners insurance premium will increase after you file a claim due to how insurance companies assess risk. Statistically, homeowners who file one claim are more likely to file another one in the near future. A home insurance provider may raise your premium after you file a claim to help offset this future potential payout. Consider not filing an insurance claim if the repairs are something you can comfortably pay out of pocket or if they are close to your insurance deductible. That way, you can avoid a premium surcharge.

Will my homeowners insurance change if my credit score changes?

In most states, yes. Insurance companies will typically check your credit history when you first purchase a policy (except if you’re in California, Maryland or Massachusetts)) but generally only re-check your credit if significant changes to the policy occur. For example, when policyholders divorce, one name is removed from the policy and the credit history of the newly named insured may be evaluated. If your credit has significantly improved since you started the home insurance policy, you can ask your insurance provider to re-run your insurance score. Keep in mind that requesting credit-based insurance score evaluations can cost the insurance company money, so the company may decline to re-run your credit or advise that it will run automatically at the next renewal. Likewise, if your credit has declined, you may see an increased premium upon renewal.

Why does my home insurance premium keep going up?

If you've noticed your homeowners insurance premium climbing, it's important to understand that various factors could be at play. Changes in the local real estate market can affect property values, potentially raising the cost of coverage. Additionally, if your area has experienced more frequent or severe weather events recently, insurers might adjust rates to account for the increased risk. Upgrades to your home or the purchase of high-value items can also lead to higher premiums, as they increase the replacement cost in the event of a claim. Each of these factors contributes to the insurer's assessment of risk and the necessary adjustments to ensure financial stability. It's often beneficial to discuss these changes with your insurance provider to understand specific impacts on your policy.

What does home insurance cover?

Home insurance covers a slew of things beyond your home’s physical structure. Typically, a standard home insurance policy will cover your home’s structure, your personal property, liability, medical payments to others and additional living expenses. If you have other structures on your property that are not connected to the main building, they will typically be covered under a standard HO-3 homeowners policy. But a standard home insurance policy is not likely to cover the following losses (unless you purchase additional coverage): earthquake and flood damage, some types of water damage, homeowners neglect and identity theft.

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Cheapest homeowners insurance in November 2024

USAA and Auto-Owners are the cheapest home insurance companies on average, according to Bankrate’s research.

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Updated Nov 13, 2024

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The rates above are based on $300k dwelling coverage with a clean claim history. Answer a few questions about where you live and get a personalized set of rates that are ready to buy if you are.

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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 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 the average premiums for these six cheap home insurance companies to help get you started on your shopping journey.


USAA	$121	$1,451	- $853	Get a quote
Auto-Owners	$141	$1,696	- $608	Get a quote
American Family	$142	$1,698	- $606	Get a quote
Nationwide	$148	$1,772	- $532	Get a quote
Erie	$156	$1,871	- $433	Get a quote
Allstate	$191	$2,289	- $15	Get a quote

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USAA	$134	$1,607
Auto-Owners	$158	$1,891
Nationwide	$166	$1,993
Erie	$169	$2,034
Allstate	$213	$2,554
Travelers	$234	$2,803


USAA	$160	$1,924
Auto-Owners	$191	$2,288
Nationwide	$198	$2,379
Erie	$210	$2,522
Allstate	$256	$3,074
Travelers	$296	$3,546

How Bankrate picked the cheapest homeowners insurance companies

To find the cheapest home insurance companies, Bankrate’s insurance editorial team started by obtaining November 2024 premium information for the largest homeowners insurance companies by market share from Quadrant Information Services. Because we know that many people want to find not just the cheapest but also the best home insurance, we 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:

Have an average annual premium below the national average for $300,000 in dwelling coverage
Have a Bankrate Score of 3.0 or higher
Have an AM Best financial strength rating of A (Excellent) or higher
Be ranked in the 2023 J.D. Power U.S. Home Insurance Study

Bankrate's trusted insurance industry expertise

Read our full methodology

years of industry expertise

122

carriers reviewed

34.5K

ZIP codes examined

1.2M

quotes analyzed

Top 6 most affordable home insurance companies

A good option for military-focused coverage

4.7

Bankrate scores primarily reflect a weighted rank of industry standard ratings for financial strength and customer experience, in addition to average quoted rates. A secondary assessment of each provider's online and mobile resources and policy management options also contributed to overall ratings.

USAA Review Get a personalized quote

Avg. premium for $300K dwelling

$121/mo

Avg. premium for $300K dwelling

$1,451/yr

Customer satisfaction

899/1,000

USAA is the fourth-largest home insurer in the U.S. by market share, according to the Insurance Information Institute (Triple-I). It is widely considered one of the best insurance companies for exceptional customer service, but coverage is only available to members of the military community and their families. If you qualify for coverage, USAA offers some of the best cheap homeowners insurance on the market, with top-notch service, a wide range of coverage options and consistently low premiums. The company carries an A++ (Superior) financial strength rating from AM Best, the highest level available.
Pros
Cheapest homeowners insurance rates on our list

Military-focused coverage choices

Consistently high customer satisfaction scores
Cons
Only available to active-duty military, veterans and eligible family members

Limited discount options

	$150,000	$350,000	$450,000	$750,000
USAA	$922	$1,607	$1,924	$2,808
National average	$1,406	$2,571	$3,117	$4,549

A good option for flexible coverage

4.6

Auto-Owners Review Get a personalized quote

Avg. premium for $300K dwelling

$141/mo

Avg. premium for $300K dwelling

$1,696/yr

Customer satisfaction

634/1,000

Auto-Owners offers property coverage in 26 states through a broad network of independent agents. Its home insurance policies are highly flexible, with coverage options like guaranteed home replacement, equipment breakdown and identity theft coverage. In addition to being the second-cheapest company Bankrate reviewed, the carrier also offers several discounts, including multi-policy, water shut-off system and mortgage-free. Auto-Owners has an A++ (Superior) financial strength rating from AM Best.
Pros
Numerous optional coverage choices

Superior financial strength rating from AM Best
Cons
Only available in 26 states

Fewer digital tools than some other companies

	$150,000	$350,000	$450,000	$750,000
Auto-Owners	$1,172	$1,891	$2,288	$3,357
National average	$1,406	$2,571	$3,117	$4,549

A good choice for customizable coverage

4.2

American Family Review Get a personalized quote

Avg. premium for $300K dwelling

$142/mo

Avg. premium for $300K dwelling

$1,698/yr

Customer satisfaction

638/1,000

American Family earned a Bankrate Score of 4.2 out of a potential 5.0, partly for its lengthy list of policy endorsements. With American Family, homeowners can add some of the more run-of-the-mill insurance add-ons like equipment breakdown, sewer backup, identity protection, scheduled personal property and service line coverage. The insurer also offers some more specialized coverage choices like flash flood, hidden water damage, matching siding coverage and senior living protection, which can help protect the personal property of a policyholder in an assisted living facility and add liability protection. However, it does have the lowest AM Best rating on our list, earning an A (Excellent).
Pros
Scored above average in the J.D. Power 2024 U.S. Property Claims Satisfaction Study

Local agencies available
Cons
Only issues policies in 19 states

Scored below average in the 2023 J.D. Power U.S. Home Insurance Study

	$150,000	$350,000	$450,000	$750,000
American Family	$1,144	$1,869	$2,204	$2,971
National average	$1,406	$2,571	$3,117	$4,549

A good choice for consolidating insurance and banking products

4.3

Nationwide Review Get a personalized quote

Avg. premium for $300K dwelling

$148/mo

Avg. premium for $300K dwelling

$1,772/yr

Customer satisfaction

641/1,000

Nationwide offers diverse coverage options for homes, condos and apartments, farms, pets, vehicles, investment products and much more. For homeowners looking to consolidate their insurance and financial products with one company, Nationwide might be a good choice, as it also offers retirement plans, annuities, mutual funds and other options. Nationwide is not the cheapest homeowners insurance company on our list, but its average premium is still well below the national average. Additionally, the insurer offers several discounts that could help you lower your rate. Nationwide holds an A+ (Superior) financial strength rating from AM Best.
Pros
Offers numerous types of insurance and other financial products, including banking and retirement options

Several discounts to help reduce premium
Cons
Below-industry average J.D. Power customer satisfaction scores

Mobile app provides limited services for homeowners customers

	$150,000	$350,000	$450,000	$750,000
Nationwide	$1,043	$1,993	$2,379	$3,850
National average	$1,406	$2,571	$3,117	$4,549

A good choice for first-time homebuyers on a tight budget

4.4

Erie Review Get a personalized quote

Avg. premium for $300K dwelling

$156/mo

Avg. premium for $300K dwelling

$1,871/yr

Customer satisfaction

674/1,000

Erie’s home insurance rates are well below the national average of $2,304 per year for $300,000 in dwelling coverage, making it a top choice for customers looking for cheap homeowners insurance coverage. The company provides numerous coverage options, like service line protection and sewer backup coverage, to help you tailor your policy to your needs. Over 13,000 local independent agents across 12 states can help you get a quote and buy a policy. The regional company also ranks highly in customer satisfaction, which may give first-time homebuyers both peace of mind and financial breathing room. It holds an A+ (Superior) financial strength rating from AM Best.
Pros
Ranked first in the J.D. Power 2023 Home Insurance Study for customer satisfaction

Numerous coverage options

Local independent agents
Cons
Only available in 12 states

No online coverage calculator

	$150,000	$350,000	$450,000	$750,000
Erie	$1,249	$2,034	$2,522	$3,588
National average	$1,406	$2,571	$3,117	$4,549

A good choice for policy management options

4.2

Allstate Review Get a personalized quote

Avg. premium for $300K dwelling

$191/mo

Avg. premium for $300K dwelling

$2,289/yr

Customer satisfaction

631/1,000

Whatever your preference, Allstate offers options that could make it easy to manage your policy. The company has a nationwide network of brick-and-mortar agencies, a 24/7 contact center and a mobile app. Additionally, Allstate offers robust homeowners coverage options, including extra protection options for those participating in home-sharing and endorsements for musical instruments and sports equipment. Allstate holds an A+ (Superior) financial strength rating from AM Best. Since Allstate is one of the most expensive of our cheapest home insurance companies, it may not be ideal for homeowners on a strict budget. Still, those looking for robust coverage options and multiple ways to handle their policy may want to consider requesting a quote. These factors and more helped Allstate become a 2024 Bankrate Awards winner for Best Home Insurance Company.
Pros
24/7 customer service with an online portal, mobile app and contact center

Wide network of local agents

Many coverage add-ons such as landscaping, eco-friendly home improvements, musical instruments and more
Cons
Highest average premium on our list

Slightly below industry average in the J.D. Power 2024 U.S. Property Claims Satisfaction Study

	$150,000	$350,000	$450,000	$750,000
Allstate	$1,532	$2,554	$3,074	$3,817
National average	$1,406	$2,571	$3,117	$4,549

Cheapest homeowners insurance companies for different homeowners

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.

The cheapest home insurance company for poor credit: Secura

In every state except California, Maryland and Massachusetts, your credit-based insurance score is one of the rating factors used to determine your home insurance premium. Homeowners with poor credit are statistically more likely to file claims. To compensate for the increased risk, companies usually charge homeowners with lower insurance scores more.

For homeowners with good credit, the national average cost of home insurance is $2,304 per year for $300,000 in dwelling coverage. Homeowners with poor credit pay an average of $3,887 per year for the same policy, while those with average credit pay $2,484.

Based on Bankrate’s analysis of quoted premiums from Quadrant Information Services, these six companies offer competitive premiums for homeowners with average credit. We’ve also included rates for other credit tiers in the table below for comparison purposes.


Secura	$2,022	$1,251	$1,126	$980
Pekin	$2,381	$1,609	$1,533	$1,370
Cincinnati	$2,103	$1,647	$1,613	$1,503
USAA	$2,411	$1,536	$1,451	$1,308
Hastings Mutual	$2,355	$1,335	$1,223	$951
AAA	$4,283	$2,052	$1,845	$1,567

Bankrate's take:

A low credit score can impact your financial stability in many surprising ways and having to pay more for home insurance is just one of them. Insurance actuarial data shows that consumers with lower credit-based insurance scores tend to file more claims than those with higher insurance scores. Homeowners whose insurance score falls into the poor category pay an average of 56 percent more per year for $300,000 in dwelling coverage than homeowners with average credit. Unless you live in California, Maryland or Massachusetts, working to improve your credit from poor to average could potentially amount to around $1,500 in savings each year.

The cheapest home insurance company for new homeowners: Nationwide

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 offer some of the cheapest homeowners insurance rates with these discount options, which could help your budget amid the expenses of homeownership.

Home insurance company*	Average annual premium
Nationwide	$1,772
Grange	$2,060
Travelers	$2,448
Allstate	$2,288
ASI Progressive	$2,485

*Not all of these home insurance companies are available in all areas.

Bankrate’s take: While shopping for an insurance policy after purchasing a home can feel stressful, being a first-time homeowner may actually work to your advantage. Aside from first-time buyer discounts, many providers offer savings geared toward new customers, such as early shopping discounts. Inquiring about discounts tailored to your situation may save you a significant amount of money now and in the future.

The cheapest home insurance company for claims history: Auto-Owners

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 $300,000 in dwelling coverage for homeowners with one wind claim on their profile.

Home insurance company*	Average annual premium
Auto-Owners	$1,717
USAA	$1,592
Erie	$1,924
American Family	$1,698
Nationwide	$1,811
Allstate	$2,464

*Not all of these home insurance companies are available in all areas.

Bankrate’s take: Policyholders with little to no claims are viewed as a lower risk than homeowners with an active claims history. Limiting the number of claims submitted to your insurance provider could help keep your premium lower. Consider only filing claims where the cost of repairs is more than what you can reasonably afford to pay independently. You may want to try to avoid filing claims that cost only a little more than your deductible. Filing multiple claims could lead to having your policy nonrenewed.

The cheapest for bundling home and auto insurance: Erie

Many home insurers incentivize customer loyalty with a bundling discount. If you purchase multiple policies from the same provider, like home and auto insurance, you may be rewarded with a discount. A bundling discount may be another added perk for homeowners who prefer the convenience of using one company for all of their insurance needs.

The premiums listed below represent annual averages for home insurance policies with $300,000 in dwelling coverage.

Home insurance company	Average annual premium	Typical bundle discount
Erie	$1,871	Up to 25 percent
Nationwide	$1,772	Up to 20 percent
State Farm	$1,984	Up to $1,073
Allstate	$2,288	Up to 25 percent
Travelers	$2,448	Up to 10 percent* on auto insurance policy and up to 12 percent on home policy

*In Texas and Oklahoma, the Travelers bundling discount is capped at 7 percent for auto policies.

Bankrate’s take: The exact amount you save with a bundling discount will likely vary based on where you live, and savings are generally applied to both policies. Bundles do not stop at just home and auto though; some insurers offer discounts for bundling RV coverage, boat insurance, umbrella coverage and more.

The cheapest for homeowners with a high deductible: Secura

The deductible level you choose influences your premium. Your insurance deductible represents your level of financial responsibility when you file a claim with your provider. By shifting some of the financial burden away from your insurance provider, you may be rewarded with a lower premium.

Selecting a deductible is a balancing act between immediate out-of-pocket expenses and long-term premium savings. A higher deductible can be a cost-effective option for those who are financially prepared to pay more out of pocket in the event of a covered incident. This strategy may be particularly appealing for homeowners looking to reduce their insurance costs while still maintaining adequate coverage. Note that most insurance professionals recommend keeping your deductible low enough that you could comfortably pay it with little notice.

Home insurance company	Average premium for $5,000 deductible
Secura	$1,000
Erie	$1,497
USAA	$1,124
Nationwide	$1,295
Auto-Owners	$1,557

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 they would be in lower-risk areas.

Through our research, we determined the provider that has the cheapest home insurance rates in each state. According to our research, USAA was the cheapest homeowners insurance company in many states, 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.