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Cheapest homeowners insurance of September 2022

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 1600

By

Pat Howard

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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.

Learn more about oureditorial review process.

By

Fabio Faschi, PLCS, SBCS, CLCS

Fabio Faschi, PLCS, SBCS, CLCS

Licensed Property & Casualty Insurance Expert

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.

Updated|7 min read

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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.

Company

Average annual rate

% cheaper than average

Policygenius rating

Compare cheap quotes

Erie

$1,284

32%

4.1 out of 5

Auto-Owners Insurance

$1,404

26%

4.5 out of 5

USAA

$1,476

22%

4.3 out of 5

Travelers

$1,572

17%

4.1 out of 5

Allstate

$1,644

13%

4.3 out of 5

American Family

$1,716

10%

4.0 out of 5

Amica

$1,752

8%

4.3 out of 5

Mercury

$1,836

3%

3.8 out of 5

Farmers

$1,848

3%

4.0 out of 5

State Farm

$1,884

1%

4.1 out of 5

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.

Cheapest homeowners insurance for most locations

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. 

Allstate

4.3

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.

Allstate logo

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.

States where Allstate is the cheapest

  • California: $868/year

  • Indiana: $856/year

  • Mississippi: $1,372/year

  • Oklahoma: $3,086/year

  • Washington: $586/year

Best Allstate discounts

  • Multi-policy 

  • Responsible payment 

  • Claim free

Get quotes

Cheapest home insurance rates by state

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.

State

Cheapest company rate

Cheapest company

Alabama

$1,035

USAA

Alaska

$1,040

Western National

Arizona

$714

Armed Forces Insurance

Arkansas

$1,608

State Auto

California

$868

Allstate

Colorado

$308

State Auto

Connecticut

$692

Vermont Mutual

Delaware

$544

Cumberland Mutual

District of Columbia

$890

Chubb

Florida

$713

Security First Insurance

Georgia

$1,270

Cincinnati Insurance

Hawaii

$286

DB Insurance

Idaho

$508

American National

Illinois

$1,011

Auto-Owners Insurance

Indiana

$856

Allstate

Iowa

$1,014

West Bend Mutual

Kansas

$1,132

Armed Forces Insurance

Kentucky

$1,273

State Auto

Louisiana

$1,037

Armed Forces Insurance

Maine

$517

Vermont Mutual

Maryland

$656

Brethren Mutual

Massachusetts

$836

Quincy Mutual

Michigan

$236

Auto-Owners Insurance

Minnesota

$1,158

Auto-Owners Insurance

Mississippi

$1,372

Allstate

Missouri

$1,363

Armed Forces Insurance

Montana

$1,226

Chubb

Nebraska

$1,919

American Family

Nevada

$769

Universal Group

New Hampshire

$581

NGM Insurance

New Jersey

$481

Cumberland Mutual

New Mexico

$1,581

Farmers

New York

$659

NYCM Insurance

North Carolina

$708

Kemper

North Dakota

$1,382

North Star Mutual

Ohio

$813

Westfield Insurance

Oklahoma

$3,086

Allstate

Oregon

$430

Mutual of Enumclaw Insurance

Pennsylvania

$480

Cumberland Mutual

Rhode Island

$770

Narragansett Bay

South Carolina

$726

USAA

South Dakota

$312

State Auto

Tennessee

$1,048

State Auto

Texas

$478

Farmers

Utah

$617

American Family

Vermont

$515

Auto-Owners Insurance

Virginia

$828

Cincinnati Insurance

Washington

$586

Allstate

West Virginia

$1,072

USAA

Wisconsin

$817

West Bend Mutual

Wyoming

$711

USAA

Cheapest home insurance rates by city

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.

City

Cheapest company rate

Cheapest company

Austin

$475

Farmers

Charlotte

$798

Kemper

Chicago

$1,171

Allstate

Columbus

$820

American Select Insurance

Dallas

$556

Farmers

Denver

$336

State Auto

Fort Worth

$400

Farmers

Houston

$497

Farmers

Indianapolis

$519

Farmers

Jacksonville

$992

Allstate

Las Vegas

$869

Universal North America

Los Angeles

$818

Allstate

New York City

$1,091

NYCM

Philadelphia

$936

American Select Insurance

Phoenix

$725

Armed Forces Insurance

San Antonio

$518

Farmers

San Diego

$810

USAA

San Francisco

$800

CSAA

San Jose

$724

CSAA

Seattle

$586

Allstate

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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:

  • New York

  • Connecticut

  • California

  • Tennessee

  • New Jersey

Learn about why home insurance rates are up in 2022, and how to get them back down.

Cheapest homeowners insurance for high-risk homes

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.

Auto-Owners Insurance logo

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

  • Three or more claims: $1,365/year

  • Homes 100+ years old: $1,159/year

  • Dangerous dog breed: $1,507/year

Best Auto-Owners Insurance discounts

  • Multi-policy

  • New homebuyer

  • Water shutoff system

Get quotes

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.

CompanyAverage 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.

CompanyAverage 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.

CompanyAverage 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.

CompanyAverage 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. 

USAA

4.3

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.

USAA  logo

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

  • $100k: $743

  • $200k: $1,105

  • $300k: $1,432

  • $400k: $1,725

  • $500k: $2,009

Best USAA discounts

  • Multi-policy

  • Protective device

  • Claim free

Get quotes

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

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What impacts homeowners insurance premiums?

Insurance companies consider several factors when calculating your homeowners insurance premiums. Below are a few examples. 

  • Your home’s location and age

  • The condition of your roof

  • Your claims history

  • Home safety and protective features

  • Your home’s wiring and plumbing systems

  • Your credit history

Learn more about how home insurance rates are calculated

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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. 

State Farm

4.1

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.

State Farm logo

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.

State Farm discount highlights

  • Average multi-policy discount: 30%

  • Average high-deductible discount: 36%

  • Availability of these discounts: All 50 states

Best State Farm discounts

  • Multi-policy

  • Protective device

  • Roofing

Get quotes

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.

CompanyAvg. annual rate with discountAverage savings
State Farm$1,48730%
California Casualty$1,49318%
AAA$1,49620%
Mercury$1,58117%
Grange Insurance$1,6106%
American Family$1,6424%
American Modern$1,6815%
Nationwide$1,69613%
Acuity$1,70515%
ASI Progressive$1,7761%
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.

CompanyAvg. annual rate with discountAverage savings
Auto-Owners Insurance$71318%
AIG$1,0203%
Hippo$1,07149%
Farmers$1,13115%
Cincinnati Insurance$1,17013%
Erie$1,25914%
Narragansett Bay$1,2658%
State Farm$1,35836%
Travelers$1,40311%
American Family$1,6265%
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.

CompanyAvg. annual rate with discountAverage savings
Auto-Owners Insurance$712/year19%
AAA$1,295/year31%
Travelers$1,324/year16%
The Hartford$1,479/year41%

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. 

Erie

4.1

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.

Erie logo

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:

  • Illinois

  • Indiana

  • Kentucky

  • Maryland

  • New York

  • North Carolina

  • Pennsylvania

  • Ohio

  • Tennessee

  • Virginia

  • West Virginia

  • Wisconsin

Best Erie discounts

  • Multi-policy

  • Protective device

  • Advanced quote

Get quotes

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

  1. 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. 

  2. 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. 

  3. 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.

  4. 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.

  5. 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.

  6. 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.

State

Top-rated company rate

Top-rated company

Alabama

$1,035

USAA

Alaska

$1,712

USAA

Arizona

$856

USAA

Arkansas

$2,476

USAA

California

$994

USAA

Colorado

$2,286

USAA

Connecticut

$1,233

USAA

Delaware

$1,102

Allstate

District of Columbia

$990

USAA

Florida

$2,128

State Farm

Georgia

$1,639

USAA

Hawaii

$471

Allstate

Idaho

$1,143

USAA

Illinois

$1,387

USAA

Indiana

$1,340

USAA

Iowa

$1,796

USAA

Kansas

$2,172

Auto-Owners Insurance

Kentucky

$2,489

Auto-Owners Insurance

Louisiana

$2,504

USAA

Maine

$704

Auto-Owners Insurance

Maryland

$1,351

USAA

Massachusetts

$1,257

USAA

Michigan

$1,352

USAA

Minnesota

$1,158

Auto-Owners Insurance

Mississippi

$2,032

USAA

Missouri

$1,791

USAA

Montana

$1,642

USAA

Nebraska

$2,989

USAA

Nevada

$955

USAA

New Hampshire

$1,089

USAA

New Jersey

$1,100

USAA

New Mexico

$1,796

State Farm

New York

$1,522

Allstate

North Carolina

$1,939

USAA

North Dakota

$2,155

Auto-Owners Insurance

Ohio

$1,187

USAA

Oklahoma

$3,957

USAA

Oregon

$1,080

USAA

Pennsylvania

$880

USAA

Rhode Island

$1,403

Allstate

South Carolina

$726

USAA

South Dakota

$2,312

USAA

Tennessee

$1,646

USAA

Texas

$2,609

USAA

Utah

$1,197

USAA

Vermont

$881

USAA

Virginia

$1,240

Auto-Owners Insurance

Washington

$1,023

USAA

West Virginia

$1,072

USAA

Wisconsin

$1,135

USAA

Wyoming

$711

USAA

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Frequently asked questions

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 but reliable 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

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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

editorial standards.
  1. John Burns Real Estate Consulting

    . "

    The Light: Demand Shifting from Owning to Renting

    ." Accessed August 31, 2022.

  2. Freddie Mac

    . "

    Mortgage Rates Increase

    ." Accessed August 31, 2022.

Author

Managing Editor & Licensed Home Insurance Expert

Pat Howard

Managing Editor & Licensed Home Insurance Expert

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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 reviewer

Licensed Property & Casualty Insurance Expert

Fabio Faschi, PLCS, SBCS, CLCS

Licensed Property & Casualty Insurance Expert

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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.

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