Cheapest homeowners insurance in 2024

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Homeowners insurance rates are climbing in many parts of the country. If you want the best deal on a home insurance policy in these inflationary times, Allstate might be your best bet.

The insurer charges an average monthly premium of $175, according to an Insure.com analysis of average homeowners rates across the U.S. The average annual rate at Allstate is $2,098 for a policy with $300,000 in dwelling and liability coverage and a $1,000 deductible.

A handful of other companies also offer affordable coverage, including several insurers that charge less than $200 a month for coverage.

Although our rate comparison found that Allstate offers the best deal on average, some homeowners will do better with other companies. For example, if you have a history of claims or live in a hurricane-prone area, another insurer might suit you better.

Key Takeaways

Allstate offers the cheapest homeowners insurance coverage, at $175 a month, or $2,098 annually.
Several other insurers also offer coverage that averages less than $200 a month.
Some key factors — ranging from the age of your home to where you live and your credit score — can make a big difference in terms of how much you pay for coverage.

Insure.com’s choice: Cheap homeowners insurance companies

Allstate is the top choice among major insurance companies for those seeking affordable coverage, but a handful of other insurers have premiums that are almost as affordable.

Below are the 10 insurers that charge the cheapest rates based on the most recent Insure.com analysis. We have broken out USAA separately because only members of the military and their families are eligible for coverage from the insurer. Note that not all companies offer coverage in all areas.

Company	Average annual premium	Average monthly premium
Allstate	$2,098	$175
Auto-Owners	$2,160	$180
State Farm	$2,169	$181
Erie Insurance	$2,183	$182
American Family	$2,504	$209
Nationwide	$2,746	$229
Progressive	$3,193	$266
Farmers	$3,194	$266
Travelers	$3,701	$308
USAA*	$2,506	$209

*USAA is only available to military families.

How we found the cheapest home insurance companies

In our analysis, we used a sample coverage of $300,000 each for dwelling and liability coverage and a $1,000 deductible. Rates were fielded by Quadrant Data Services in all 50 states and D.C.

Overall, we examined 82 companies and analyzed more than 20 million quotes from 2023. We presented the rates from the largest companies available in the widest area to provide useful data to the largest number of readers. Although rates for USAA are shown, they are separated because USAA only writes insurance for military families.

We also broke down the rates by state, where regional carriers often outprice the national ones.

Our ZIP code tool allows you to find the cheapest rates in your area and compare them to the national companies shown on this page.

Find cheap homeowners insurance rates in your state

Where you live can play a major role in how much you pay for homeowners insurance. Additionally, many regional companies may offer much cheaper insurance in your area. The tool below allows you to compare rates from companies large and small so you can find the cheapest policy in your state.

Just enter your ZIP code to compare quotes.

Homeowners insurance rates by state calculator

See how the average annual home insurance rates vary with the options chosen.

State

Average Annual Home Insurance Rates In Florida

$5,097 Average rate

$9,995 Highest
rate

$853 Lowest
rate

Home insurance companies in Florida

Company	Average annual rate
Travelers	$1,755
Security First Insurance	$3,694
Amer Integrity Ins Co of FL	$4,051
Heritage Insurance Holdings	$4,481
Progressive	$4,638
State Farm	$4,806
HCI Group Inc	$4,887
Allstate	$4,916
Nationwide	$5,611
Universal Insurance Holding	$6,484
FedNat Holding	$7,212
Citizens Property Insurance	$8,632

Cheapest home insurance by coverage level

The amount of coverage you purchase also has a big impact on the cost of your homeowners insurance. The more coverage you buy, the more you will pay for a policy.

Here is a breakdown of the cheapest company at various coverage levels.

Dwelling coverage	Liability	Company Group	Annual Premium	Monthly Premium
$200,000	$100,000	Erie Insurance	$1,505	$125
$200,000	$300,000	Erie Insurance	$1,516	$126
$300,000	$100,000	Erie Insurance	$2,067	$172
$300,000	$300,000	Erie Insurance	$2,080	$173
$400,000	$100,000	Allstate	$2,461	$205
$400,000	$300,000	Allstate	$2,483	$207
$600,000	$100,000	Allstate	$3,371	$281
$600,000	$300,000	Allstate	$3,401	$283
$1,000,000	$100,000	Allstate	$5,182	$432
$1,000,000	$300,000	Allstate	$5,213	$434

A closer look at the cheapest home insurance companies

Many other factors can influence the cost of your homeowners insurance policy. Here is a list of some of the most important factors, as well as which companies offer the cheapest coverage to homeowners impacted by these factors.

Category	Company	Average annual premium
Cheapest overall nationwide	Allstate	$2,098
Cheapest for homeowners with claims	State Farm	$2,433
Cheapest for homeowners with bad credit	Allstate	$4,585
Cheapest for homeowners living in hurricane-prone areas	American Family	$1,186

Remember that the cheapest company last year may not be the cheapest when your policy renews.

“Homeowners insurance costs can change even if you don’t make changes to your policy,” says Theresa Breunig-Silbernagel, head of strategy and experience at Main Street America Insurance, an insurance company. “This occurs for many reasons — like labor and material costs, economic changes, and shifting weather patterns.”

Cheapest for homeowners with claims

If you have a recent history of homeowners insurance claims, insurers likely will view you as a bigger risk to file a claim in the future. Insurers often charge higher premiums to account for such a risk.

Here are the companies that offer the cheapest home insurance coverage to those with past claims, based on an average of rates across all claim types and for one or two claims. In this category, State Farm has the cheapest rates.

Company	Average annual premium	Average monthly premium
State Farm	$2,433	$203
Allstate	$2,936	$245
American Family	$3,364	$280
Erie Insurance	$3,403	$284
Nationwide	$3,702	$309
Progressive	$3,943	$329
Auto-Owners	$4,210	$351
Farmers Insurance	$4,291	$358
Travelers	$4,380	$365
USAA*	$3,182	$265

Cheapest for homeowners with poor credit

In most states, insurance companies use credit-based insurance scores when setting rates. Homeowners with poor scores tend to pay higher rates, while those with better scores may see their costs decline.

Insurers use these scores when setting rates because they have found a link between a person’s credit-based insurance score and the likelihood that they will file a claim in the future.

It’s important to note that a handful of states — California, Hawaii, Maryland, Massachusetts, Michigan, Nevada, Oregon and Utah — prohibit the use of credit-based scoring.

Here’s a look at rates from the top home insurance companies for homeowners with poor credit. As you can see, the cost with some companies is so high as to be prohibitive; these are companies that avoid taking on the risk of homeowners with poor credit by pricing them out. Fortunately, top companies like Allstate and Nationwide have affordable rates with poor credit.

Poor credit

Company	Annual premium	Monthly premium
Allstate	$4,585	$382
Nationwide	$4,762	$397
Progressive	$4,871	$406
American Family	$4,996	$416
State Farm	$5,414	$451
Erie Insurance	$8,213	$684
Farmers	$10,447	$871
Travelers	$17,525	$1,460
Auto-Owners	$51,186	$4,266
USAA*	$5,249	$437

Fair credit

The table below shows what even a moderate improvement in credit score can do for your home insurance rates. Allstate remains the cheapest option.

Company	Annual premium	Monthly premium
Allstate	$2,661	$222
State Farm	$3,021	$252
American Family	$3,069	$256
Nationwide	$3,479	$290
Progressive	$3,737	$311
Erie Insurance	$4,327	$361
Farmers	$4,989	$416
Auto-Owners	$5,287	$441
Travelers	$9,565	$797
USAA	$3,220	$268

Cheapest for homeowners living in hurricane-prone areas

Some homeowners — especially those living along the East Coast and the Gulf Coast — are at a high risk of damage from hurricanes and tropical storms. Insurers often charge higher premiums to these homeowners to compensate for that risk.

Here are the companies that offer the cheapest home insurance coverage to those who live in hurricane-prone areas. American Family is the cheapest overall across all states where hurricanes are a risk.

Company	Average annual premium	Average monthly premium
American Family	$1,186	$99
Auto-Owners	$1,817	$151
Erie Insurance	$1,890	$157
Allstate	$2,115	$176
State Farm	$2,245	$187
Nationwide	$2,838	$237
Travelers	$3,012	$251
Progressive	$3,155	$263
Farmers	$3,218	$268
USAA*	$2,421	$202

Cheapest for older homes

Older homes may have outdated wiring or plumbing or simply have more wear and tear from the years than newer homes.

In addition, renovation and rebuilding costs can be higher for older homes, especially if there are things that aren’t up to current codes.

So, homeowners insurance companies charge higher rates to compensate for these risks. Here are the companies that offer the cheapest home insurance coverage to those who live in older homes, based on a home that is 50 years old.

Company	Average annual premium	Average monthly premium	Average percent difference
Allstate	$2,118	$176	1%
Erie Insurance	$2,192	$183	0%
Auto-Owners	$2,242	$187	4%
State Farm	$2,310	$193	7%
American Family	$2,602	$217	4%
Nationwide	$2,607	$217	-5%
Progressive	$3,059	$255	-4%
Farmers Insurance	$3,259	$272	2%
Travelers	$3,812	$318	3%
USAA*	$2,485	$207	-1%

Frequently asked questions

What factors can affect your home insurance cost?

As you can see above, many different factors can impact the cost you pay for homeowners insurance. They include:

Where you live
The dollar amount of your deductible
Your history of filing claims
Your credit profile
Whether you live in areas prone to natural disasters, such as hurricanes
Whether you live in an older home
Risks on your property, like a pool or wood stove

How can you get the cheapest homeowners insurance?

There are several things you can do to lower your costs:

Raise your deductible to reduce premiums, but make sure you can afford the deductible you choose.
Ask your insurer about discounts it offers, and whether you qualify for these price breaks.
Compare quotes from a number of providers and choose the insurance company that offers the coverage you need at the most affordable price.
Bundle your home and auto insurance with the same company.

What is the average home insurance cost?

Nationwide, the average cost of home insurance is $2,601 annually. However, the cost can vary greatly depending on where you live and many of the other factors mentioned above.

What our expert says

Q: What affects home insurance costs?

Theresa Breunig-SilbernagelHead of strategy and experience at Main Street America Insurance, an insurance company.

“Homeowners insurance costs can change even if you don’t make changes to your policy. This occurs for many reasons — like labor and material costs, economic changes, and shifting weather patterns.”

Methodology

Insure.com commissioned rate data in all 50 states and D.C. from Quadrant Data Services based on a home insurance policy with $300,000 in dwelling coverage and liability coverage and a $1,000 deductible as the standard sample. A 2% hurricane deductible was used were applicable. Rates were also requested at additional dwelling coverage levels of $200,000, $400,000, $600,000 and $1 million.

Quadrant data was also fielded for the same sample coverage with poor, fair, good and excellent credit scores, homes at various ages including the 50-year older home sample rate, and for homeowners with past claims of all types.

Rates were fielded from 82 companies in 34,588 ZIP codes. Not all companies write home insurance in all locations. Rates are averages; your rates will differ.

Chris Kissell

Contributing Researcher

Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.