Travelers, Allstate, and Auto-Owners offer some of the most affordable home insurance options on average.
Homeowners insurance is crucial — but it can be expensive. The average cost for a policy with $300,000 in dwelling coverage rose by 12% in 2023, reaching $1,770 per year, according to Quote Nest data. In states with higher risks of severe weather, such as Florida, annual premiums can far exceed the national average.
By comparing quotes from multiple companies, you can find more affordable coverage tailored to your needs. However, it’s important to remember that the cheapest rates may not always mean the best coverage for your situation.
Here’s what you need to know to secure cheap home insurance.
Cheapest Home Insurance Companies in 2024
Travelers is the most affordable home insurance provider in 2024, with an average annual premium of $1,555. Allstate and Auto-Owners follow closely, with average yearly premiums of $1,607 and $1,658, respectively.
However, your exact premium will vary based on factors such as your home’s size, location, and age. In some cases, you might find even cheaper coverage through regional insurers like Westfield (with an average annual premium of $917) or Erie ($1,258), though these companies may not be available in all states.
How We Chose the Cheapest Home Insurance Companies
To identify the most affordable and reliable home insurance companies, Quote Nest’s editors and data analysts reviewed several key factors, including:
- Average national premium rates
- Third-party financial strength ratings
- Consumer satisfaction scores
- Customer support quality
- Available discounts and customization options
- Company availability
The average annual quotes are based on a $300,000 dwelling coverage limit and are derived from Quote Nest’s proprietary data and Quadrant Information Services.
Cheapest Home Insurance by Dwelling Coverage
As dwelling coverage limits increase, so do premiums. It’s essential to consider both the value of your home and the risk level of your location when determining how much coverage you need. Generally, it’s recommended that your dwelling coverage be at least 80% of your home’s replacement cost.
Keep in mind, the cheapest insurance company can vary depending on your coverage limit. For example, Allstate offers the lowest annual premium for a $500,000 dwelling limit, while Travelers provides the most affordable coverage for a $250,000 policy.
Best Home Insurance for New Construction: Travelers
Travelers offers the most affordable home insurance for newly constructed homes, with an average annual premium of $1,089. Newer homes are generally less expensive to insure than older ones because they are less likely to have issues that result in insurance claims.
Best Home Insurance for Older Homes: Travelers
Travelers is the most affordable home insurance provider for older homes. Older homes are often more expensive to insure due to several factors, including a higher likelihood of needing insurance payouts and the use of more costly construction materials or architectural details that are harder to replace.
Best Home Insurance for Bad Credit: Travelers
In most states, home insurance companies can factor in your credit history when determining your rates. Insurers use this information to create credit-based insurance scores, which help predict the likelihood of filing a claim. Travelers offers the most affordable home insurance for individuals with bad credit.
Best Home Insurance for High Deductibles: Travelers
Home insurance policies generally include one or more deductibles, which is the amount you must pay out of pocket before your coverage applies to a covered loss. Opting for a higher deductible can lower your premium since you share more risk with the insurer.
However, before committing to a high-deductible policy, ensure you can afford to pay that amount if you ever need to file a claim.
Cheapest Home Insurance by State
Vermont has the lowest average annual home insurance rate for a policy with a $300,000 dwelling coverage limit, coming in at $914, according to Quote Nest data. Utah and Oregon follow, with average annual premiums of $1,018 and $1,049, respectively.
At the other end of the spectrum, Florida holds the title for the most expensive home insurance, with an average annual premium of $9,213. The state’s exposure to severe coastal weather drives a high number of claims and increased costs of claims, pushing premiums up significantly.
Oklahoma, due to its vulnerability to tornadoes, is the second most expensive state, with an average annual premium of $4,782.
These significant differences between states stem from various factors. States like Florida, Oklahoma, and Louisiana are more prone to severe weather, which results in higher insurance costs. Additionally, the cost of materials, location, and labor also influence home insurance rates.
To find the best deal, always compare quotes from multiple insurance companies before making your decision.
How to Get Cheaper Home Insurance
You can reduce your home insurance premiums in several ways. Consider these tips when looking to lower your costs:
- Compare Home Insurance Quotes
Shopping around is one of the best strategies to lower your home insurance rates. Always compare quotes from at least three insurers before making a purchase.
- Increase Your Deductible
Raising your deductible can help lower your premium. Just ensure you’re comfortable paying the higher amount out of pocket if you need to file a claim.
- Raise Your Credit Score
Improving your credit score may lead to lower insurance rates, as insurers often associate bad credit with a higher likelihood of filing a claim.
- Look for Discounts
Take advantage of various discounts offered by insurers, such as loyalty discounts, security system discounts, or discounts for building with better materials.
What Factors Affect the Cost of Home Insurance?
Several factors can influence your home insurance premiums, including:
- The Size of Your Home
Larger homes cost more to replace, which insurers account for when setting rates.
- Local Building Costs
If building supplies and labor are expensive in your area, this can drive up repair costs, increasing your premiums.
- Your Credit History
Insurance companies often offer lower rates to homeowners with higher credit scores.
- The Age of Your Home
Older homes typically come with higher repair costs, as they may require specialized or costly materials.
- Location
Factors like natural disasters, crime rates, and severe weather can influence your likelihood of filing a claim, which impacts your insurance costs.
Cheap Home Insurance FAQs
Finding good, affordable home insurance can be more complicated than expected. Check out these answers to commonly asked questions before starting your search:
Will your homeowners insurance go up if you file a claim?
Yes, filing a claim typically leads to a rate increase when it’s time to renew your policy. Insurers may assess the type, number, and cost of your claims when determining the renewal price. However, state regulations can limit how much insurers can raise rates.
Does age affect home insurance rates?
Yes, the age of your home influences your rates. Older homes are more likely to need repairs or replacements, while newer construction tends to have fewer issues. Consequently, newer homes usually have lower insurance premiums.
Which company has the cheapest homeowners insurance?
Travelers offers the cheapest homeowners insurance for policies with a $300,000 dwelling limit, but your specific rates will vary depending on factors such as your home’s size, age, location, local building costs, and even your credit score.
What is the cheapest and best insurance bundle for home and auto insurance?
Travelers also provides the most affordable home and auto insurance bundle, with an average annual premium of $1,368. However, the best bundle for you depends on various personal factors, so it’s essential to compare quotes from multiple insurers to find the right fit