The cheapest home insurance companies are Allstate, Auto-Owners Insurance, Erie, Travelers, and USAA, based on our 2022 analysis of 128 companies. Get affordable coverage starting at $107/month today.
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.
Expert reviewed
Expert reviewed
This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.
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.
As of April 2022, owning a home is roughly 31% more expensive than renting one. [1] With mortgage rates continuing to climb and insurance rates skyrocketing due to record inflation, it’s more important than ever to compare quotes and find the most affordable homeowners insurance available. [2]
Top 10 cheapest homeowners insurance companies of 2022
Based on our analysis of average premiums from over 100 insurers, we found that Erie, Auto-Owners Insurance, USAA, Travelers, and Allstate are the cheapest homeowners insurance companies in the U.S. 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, consider comparing home insurance rates from Travelers, Allstate, or one of the other five widely available insurers included on our list of the best and cheapest home insurance companies of 2022.
How Policygenius picked the cheapest companies & why you can trust our picks
To find the cheapest homeowners companies for 2022, our team of licensed home insurance editors and operations specialists analyzed rates from 128 large and small insurance companies, making sure to exclude any with an average annual premium higher than the national average rate of $158 per month or $1,899 per year.
It was important to us that our top picks offered cheap but high-quality coverage, so we also looked at each company’s financial strength ratings with AM Best, customer satisfaction scores with J.D. Power, and other factors to ensure you find the best home insurance for your home.
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.
For a more detailed breakdown of the Policygenius scoring process and how we picked the cheapest companies, check out our entire methodology below.
Cheap homeowners insurance buyers guide
The average home insurance premium in the U.S. is $1,899 per year, but your own rates could vary significantly depending on factors related to you and your house, including where you live, the age and condition of your home, and how much coverage you need.
To find the cheapest homeowners insurance for a variety of coverage needs and scenarios, Policygenius analyzed average annual premiums from 128 home insurance companies across 12 different data points and rating variables. This included homeowners with poor credit, those in high-risk coastal states like Florida, those looking to bundle home and auto insurance, and more.
Factors specific to where you live, like the risk of natural disasters in your state or the rate of property theft and vandalism in your city, can have a major impact on homeowners insurance premiums. As the cost of building materials continues to go up in areas hit with both inflation and frequent bouts of severe weather, so too are home insurance rates.
According to our study, Allstate offers the cheapest homeowners insurance in more states than any other company in our analysis.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
Cheapest in most states
If you live in one of the five states where Allstate offers the lowest average rates or the other 45 states where its policies are available, consider getting a quote today.
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.
Home insurance rates are up nationwide. Here’s where they’re increasing the least
Home insurance premiums are up 12.1% compared to a year ago, according to the Policygenius Home Insurance Pricing Report. While homeowners in states like Texas and Colorado saw their rates increase at more than double the rate of inflation, others haven’t been hit nearly as hard.
Here are the top 5 states least impacted by the 2022 home insurance rate increases, according to our analysis:
If your house is over 100-years old, has old or partially damaged roofing, or if its systems or electrical work are obsolete and a potential hazard, the insurer may consider your house to be high risk and charge you higher home insurance premiums.
Additionally, insurance companies will consider factors such as your claims history, credit score, and attractive nuisances (like a pet or trampoline) when determining your home insurance rates.
Based on our analysis, Auto-Owners Insurance has the cheapest overall home insurance rates for high-risk homes.
Auto-Owners Insurance
4.5
Policygenius rating
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
Most affordable for hard-to-insure homes
If you have complicated coverage considerations and you live in one of the 25 states where Auto-Owners is available, consider getting a quote.
Auto-Owners’ high-risk home insurance rates at a glance
Compare cheap homeowners insurance rates by risk type
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.
Company
Average annual rate
Auto-Owners Insurance
$1,365
AIG
$1,608
Narragansett Bay
$1,926
Farmers
$2,005
USAA
$2,023
Homes 100+ years old
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.
Company
Average annual rate
Auto-Owners Insurance
$1,159
Travelers
$1,930
AIG
$2,047
Hippo
$2,085
AAA
$2,579
Bad credit
Insurance companies will consider your credit score when calculating your rates, as insurers consider homeowners with poor credit as more likely to file claims for small damages or losses.
With an average annual rate of $1,559, Hippo is the cheapest home insurance company for homeowners with bad credit.
Company
Average annual rate
Hippo
$1,559
Allstate
$1,613
Narragansett Bay
$1,765
Cincinnati Insurance
$1,766
Travelers
$1,789
Dangerous dog breeds
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 cheapest homeowners insurance for a homeowner with an aggressive dog breed.
Company
Average annual rate
Cincinnati Insurance
$1,191
Narragansett Bay
$1,429
AIG
$1,473
State Farm
$1,505
Auto-Owners Insurance
$1,507
Cheapest homeowners insurance for most dwelling coverage levels
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.
Looking at average annual premiums for five different levels of dwelling coverage, our study found that USAA is the cheapest home insurance for four of them.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
Cheapest for most levels of dwelling coverage
If you’re a veteran, currently enlisted in the military, or a family member of either, consider insuring your home with USAA for its cheap and flexible homeowners insurance policies.
Annual cost of USAA home insurance by coverage amount
Compare cheap home insurance rates by dwelling coverage amount
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.
Company
$100k dwelling
$200k dwelling
$300k dwelling
$400k dwelling
$500k dwelling
USAA
$743
$1,105
$1,432
$1,725
$2,009
American Family
$727
$1,115
$1,491
$1,855
$2,220
Narragansett Bay
$634
$1,078
$1,558
$2,011
$2,472
Allstate
$809
$1,177
$1,596
$2,035
$2,509
Universal Property
$781
$1,152
$1,667
$2,361
$3,009
American Modern
$718
$1,241
$1,765
$2,289
$2,813
AAA
$794
$1,281
$1,818
$2,350
$2,892
Farmers
$913
$1,338
$1,874
$2,431
$3,004
Mercury
$936
$1,392
$1,910
$2,420
$3,190
Chubb
$723
$1,355
$1,922
$2,451
$2,976
American National
$968
$1,455
$1,940
$2,436
$3,049
Nationwide
$880
$1,407
$1,955
$2,512
$3,140
State Farm
$1,049
$1,594
$2,039
$2,512
$3,092
What impacts homeowners insurance premiums?
Insurance companies consider several factors when calculating your homeowners insurance premiums. Below are a few examples.
Cheapest homeowners insurance for discount savings
Most insurance companies offer discounts for purchasing at least two different insurance policies with them, increasing your deductible, or if you’re a new homeowner.
Based on our analysis, State Farm offers the biggest discounts on your premiums if you bundle your home insurance with another State Farm product or if you opt for a high-deductible policy.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
Biggest discount savings
While they may not offer the cheapest premiums of the companies on our list, few insurers give you the opportunity to get your rates back down like State Farm, making it our top pick for discount savings.
Compare cheap home insurance rates by discount type
Bundling discount
Below are 10 of the cheapest home insurance for multi-policy discount deals. If you need both home and auto insurance and you’re interested in bundling, consider State Farm or one of the other nine companies below.
Company
Avg. annual rate with discount
Average savings
State Farm
$1,487
30%
California Casualty
$1,493
18%
AAA
$1,496
20%
Mercury
$1,581
17%
Grange Insurance
$1,610
6%
American Family
$1,642
4%
American Modern
$1,681
5%
Nationwide
$1,696
13%
Acuity
$1,705
15%
ASI Progressive
$1,776
1%
High-deductible discount
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.
Company
Avg. annual rate with discount
Average savings
Auto-Owners Insurance
$713
18%
AIG
$1,020
3%
Hippo
$1,071
49%
Farmers
$1,131
15%
Cincinnati Insurance
$1,170
13%
Erie
$1,259
14%
Narragansett Bay
$1,265
8%
State Farm
$1,358
36%
Travelers
$1,403
11%
American Family
$1,626
5%
New homeowner discount
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-Owners Insurance, AAA, Travelers, and The Hartford have the cheapest rates for new homeowners.
Company
Avg. annual rate with discount
Average savings
Auto-Owners Insurance
$712/year
19%
AAA
$1,295/year
31%
Travelers
$1,324/year
16%
The Hartford
$1,479/year
41%
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.
Of the small to regional-sized companies we analyzed, Erie is the best cheap home insurance option.
How we score: Policygenius’ ratings are determined by our editorial team. Our methodology takes multiple factors into account, including pricing, financial ratings, quality of customer service, and other product-specific features.
Best cheap regional company
Erie is the best cheap homeowners insurance company, offering a combination of unbeatable coverage, excellent third-party ratings, and affordable home insurance premiums in the 12 states where it’s available.
States where Erie offers home insurance
Erie is available in the following 12 states and the District of Columbia:
Compare cheap homeowners insurance rates from smaller companies
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.
Company
Average annual rate
First Insurance Company of Hawaii
$437
NYCM Insurance
$659
Mutual of Enumclaw Insurance
$661
Texas Farm Bureau
$700
PEMCO
$736
NJM Insurance
$776
State Auto
$857
Kemper
$954
Plymouth Rock
$1,002
MAPFRE
$1,081
Tower Hill
$1,128
Erie
$1,287
Narragansett Bay
$1,373
Auto-Owners Insurance
$1,406
California Casualty
$1,484
How to get cheap homeowners insurance
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 homeowners insurance policy, you may be tempted to go with the cheapest quote or a policy with worse coverage but affordable premiums compared to 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 Allstate, Auto-Owners Insurance, Erie, Travelers, and USAA offer the cheapest homeowners insurance rates in the U.S.
Methodology: How we found the cheapest homeowners insurance companies of 2022
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 10 cheapest home insurance companies in 2022, we analyzed average annual premiums from 128 companies based on 2022 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.
We know customers value a company that saves them both money on premiums and time when inquiring about a claim or making policy adjustments, so we also looked at each company's J.D. Power customer satisfaction, claims, and digital experience ratings, as well as NAIC customer complaint numbers.
With so many companies going insolvent or canceling policies in states with a high number of natural disaster claims, we finally looked at each company's financial ratings with AM Best, S&P, Moody's, and Demotech to ensure our top picks offered affordable butreliable insurance coverage.
We then converted each metric to a standardized amount (or z-score) to ensure we were rating the companies against each other and not some arbitrary baseline. This also made it possible to accurately combine metrics with different scales — such as the J.D. Power rating and NAIC index score — to come up with an overall rating for the larger category.
Once we rated all 30 companies, we then identified the 10 cheapest home insurance companies of 2022, making sure each company had a rating of at least 3.5 out of 5 and an average annual premium lower than the national average rate of $1,899 per year.
Here's an in-depth look at the factors Policygenius considered when scoring each company, weighted based on their order of importance to customers in 2022.
Cost (35%)
Average annual premium (80%): We calculated each company’s average annual premium for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
Each company’s average annual premium is a national average, and amounts can often vary drastically from state to state. To ensure we were reporting the national average accurately, we created a weighted average based on companies’ market share presence from state to state.
Discounts (20%): Number of discounts offered by each company.
Financial confidence (25%)
AM Best rating (50%): We scored each company based on their rating with AM Best — the insurance industry’s leading credit rating agency.
S&P rating (25%): The S&P rates insurance companies’ long-term ability to pay out claims.
Moody’s rating (25%): Moody’s rates insurance companies’ ability to repay short and long-term debts.
Customer experience (20%)
J.D. Power customer satisfaction score (35%): Rates companies based on customer interaction, policy offerings, price, billing process and policy information, and claims.
J.D Power claims satisfaction score (35%): Rates companies based on claim settlement, claim servicing, final notice of loss, estimation process, and repair process.
J.D. Power digital experience score (15%): Rates companies based on desktop and mobile web experience by looking at the following factors: ease of navigation, speed, visual appeal, information, and content.
NAIC Customer Complaint Index (15%): Scores whether or not the company receives more or less complaints than the average company.
Coverage (20%)
The number and quality of coverage add-ons, tiers of coverage, and policy perks offered by each company
Once we determined each company’s Policygenius score and identified the best cheap companies, our team of insurance experts analyzed these companies across several different data points and rating variables to find the cheapest home insurance companies for the following:
Most U.S. states
High-risk homes
Most dwelling coverage levels
Discount savings
Smaller companies
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.
References
Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of our
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.
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.
