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Cheapest Homeowners Insurance Companies in 2024

Updated on:
Content was accurate at the time of publication.

State Farm has the cheapest home insurance in the U.S. among nationwide companies, with rates that average $2,427 a year.

Find the Cheapest Home Insurance Quotes in Your Area

Erie and State Farm are the cheapest homeowners insurance companies. Both companies offer average annual rates that are under $2,500 a year. However, Erie is only available in 12 states and Washington, D.C.

CompanyAverage annual rateAverage monthly rate
Erie$2,055$171
State Farm$2,427$202
USAA*$2,507$209
Allstate$2,560$213
Country$2,827$236
Nationwide$3,055$255
American Family$3,072$256
Chubb$3,664$305
Farmers$4,479$373
Travelers$4,586$382
Progressive$4,727$394
Farm Bureau$5,364$447

*USAA is only available to military members and veterans, along with their families.

State Farm has the lowest average rate among national home insurance companies of $2,427 a year. You may drive down your rate even more with its multipolicy discount. You can save up to $1,073 a year on car and home insurance if you bundle both policies with State Farm.

State Farm also has great customer service ratings. According to J.D. Power’s Home Insurance Study, State Farm has a score of 829 out of 1,000 points for overall satisfaction, which is higher than the average score in the study.

Pros

 State Farm is the cheapest national insurer.
 It has an above-average customer satisfaction rating from J.D. Power.
 Has a strong financial strength rating of A++ from AM Best.

Cons

 State Farm offers few discounts compared to competitors.

Allstate offers all the standard home insurance coverages you expect as well as a variety of optional coverages. Optional coverages let you customize your policy and receive extra protection. Allstate’s optional coverages include:

  • Scheduled personal property for expensive appraised items like antiques.
  • Business property for increased limits for business items in your home such as inventory.
  • Water backup for water damage caused by backups from drains and sewers or a sump pump breaking.
  • Identity theft for legal costs and lost wages if your identity is stolen.

Pros

 Allstate offers affordable rates, with an average annual rate of $2,560.
 Allstate has a variety of great discounts, including savings of up to 25% if you bundle your auto and home policy.

Cons

 Allstate received a below-average customer satisfaction score of 809 out of 1,000 points in J.D. Power’s 2023 U.S. Home Insurance Study.

Erie has the cheapest home insurance rates, charging an average of $2,055 a year. On top of that, it offers a multipolicy discount that ranges from 16% to 25% if you bundle your auto and home policies.

Erie also receives few customer complaints, according to the National Association of Insurance Commissioners (NAIC). Erie received less than half as many complaints as expected for a company of its size.

Erie earned a score of 856 out of 1,000 from J.D. Power’s Home Insurance Study, which is the highest score in the study after USAA.

Pros

 Erie offers the cheapest average rate in our study, at $2,055 a year.
 Has the second-highest customer satisfaction rating from J.D. Power.

Cons

 Erie offers few discounts compared to its competitors.
 Only available in 12 states and Washington, D.C.

Average home insurance rates vary by state due to factors like natural disaster statistics. We found that Allstate offers the cheapest rates in 6 states as well as State Farm.

StateCheapest companyCheapest premium
AlabamaAllstate$2,228
AlaskaWestern National Insurance$1,235
ArizonaState Farm$1,737
ArkansasMetLife$2,519
CaliforniaUSAA$799
ColoradoChubb$2,614
ConnecticutAllstate$1,737
DelawareNationwide$840
District of ColumbiaNationwide$1,409
FloridaChubb$2,294
GeorgiaProgressive$2,061
HawaiiUPC Insurance$370
IdahoMutual of Enumclaw$957
IllinoisNationwide$1,545
IndianaErie Insurance$1,453
IowaPekin Insurance$1,830
KansasShelter Insurance$3,227
KentuckyCincinnati Insurance Co.$2,030
LouisianaState Farm$1,274
MaineVermont Mutual Insurance$1,006
MarylandTravelers$1,384
MassachusettsNorfolk & Dedham Group$685
MichiganThe Hanover Insurance Group$1,004
MinnesotaNorth Star Mutual Insurance Co.$2,001
MississippiSouthern Farm Bureau Casualty$3,249
MissouriAllstate$2,356
MontanaFarmers$1,660
NebraskaAmerican Family$3,834
NevadaNationwide$1,065
New HampshireVermont Mutual Insurance$1,048
New JerseyAllstate$1,028
New MexicoState Farm$2,183
New YorkNYCM Insurance$529
North CarolinaState Farm$1,475
North DakotaNorth Star Mutual Insurance Co.$1,947
OhioErie Insurance$1,242
OklahomaAmerican Farmers & Ranchers$4,466
OregonMutual of Enumclaw$782
PennsylvaniaWestfield Insurance$1,017
Rhode IslandState Farm$1,027
South CarolinaAllstate$1,274
South DakotaNorth Star Mutual Insurance Co.$2,530
TennesseeErie Insurance$2,332
TexasTexas Farm Bureau Insurance$3,474
UtahFarm Bureau Financial Services$1,230
VermontAllstate$768
VirginiaState Farm$1,483
WashingtonMutual of Enumclaw$907
West VirginiaUSAA$1,197
WisconsinErie Insurance$1,222
WyomingNationwide$1,408

Find the Cheapest Home Insurance Quotes in Your Area

Your home insurance rate can also vary by where you live within a state or city. Factors like crime rates in your area and your home’s distance from a fire department or a fire hydrant can affect your annual home insurance rate.

Cheapest home insurance rates by city

CityCheapest companyCheapest premium
New York CityNew York Central Mutual$785
Los AngelesUSAA / Allstate$821 / $857
ChicagoErie$1,984
HoustonNationwide$1,774
PhoenixState Farm$1,866
PhiladelphiaWestfield Insurance$1,276
San AntonioChubb$2,306
San DiegoUSAA / Travelers$705 / $796
DallasChubb$2,952
Jacksonville, FLUPC$1,302

There are other ways to lower your home insurance rate besides finding the cheapest company. We recommend taking advantage of discounts, increasing your deductible and upgrading your home. If you already have a home insurance policy, you can also shop around to get the best rates.

Most companies offer discounts, some of which, like a multipolicy discount, can save you a lot of money. You can also lower your home insurance rate by increasing your deductible. However, you will need to pay a higher amount when you file a claim.

You can lower your home insurance rate by installing security devices and alarms in your home, too. Upgrading your roof can lead to a lower home insurance rate as well.

Methodology

The rates shown in this article are based on nonbinding quotes collected from Quadrant Information Services. Your rates may vary. Average rates were compiled from rates in all 50 states. The following coverages and deductible were used unless otherwise noted:

  • $400,000 dwelling coverage
  • $40,000 other structures
  • $200,000 personal property
  • $80,000 loss of use coverage
  • $100,000 liability
  • $5,000 medical payments
  • $1,000 deductible