The Cheapest Home Insurance Companies of 2025
Finding the right home insurance policy involves balancing cost and coverage. This analysis reveals the companies offering the most affordable homeowners insurance in 2025, helping you secure the best protection at the lowest price.
Summary: Cheapest Home Insurance Companies
- Progressive: Best for cheap home insurance
- Erie: Best for coverage perks
- USAA: Best for military members and veterans
- Westfield: Best for customer satisfaction
- Nationwide: Best for high-value homes
- State Farm: Best for bundling home and auto
- Auto-Owners: Best for discounts
The Cheapest Home Insurance Companies In More Detail
Progressive and Erie stand out as the most budget-friendly. While Erie’s rates are slightly higher, their low consumer complaint record is a major advantage.
Progressive 5.0
- Our Expert Take: Best for cheap home insurance
- Average Annual Cost For $350,000 Dwelling Coverage: $729
Erie 5.0
- Our Expert Take: Best for coverage perks
- Average Annual Cost For $350,000 Dwelling Coverage: $1,256
USAA* 4.9
- Our Expert Take: Best for military members and veterans
- Average Annual Cost For $350,000 Dwelling Coverage: $1,270
Westfield 4.8
- Our Expert Take: Best for customer satisfaction
- Average Annual Cost For $350,000 Dwelling Coverage: $1,344
Nationwide 4.3
- Our Expert Take: Best for high-value homes
- Average Annual Cost For $350,000 Dwelling Coverage: $1,157
State Farm 4.2
- Our Expert Take: Best for bundling home and auto
- Average Annual Cost For $350,000 Dwelling Coverage: $1,298
Auto-Owners 4.1
- Our Expert Take: Best for discounts
- Average Annual Cost For $350,000 Dwelling Coverage: $1,525
Rates source: Quadrant Information Services, based on dwelling coverage of $350,000 with a $1,000 deductible. *USAA home insurance is only available to veterans, military members and their families.
Cheapest Homeowners Insurance Companies by State
Home insurance costs vary significantly by location. Here’s a look at the most affordable option in each state:
- Alabama: Farmers
- Alaska: Country Financial
- Arizona: Progressive
- Arkansas: Farmers
- California: National General
- Colorado: Auto-Owners
- Connecticut: Century National
- Delaware: State Farm
- Florida: Security First
- Georgia: Progressive
- Hawaii: Dongbu
- Idaho: American National
- Illinois: Erie
- Indiana: Buckeye
- Iowa: Nationwide
- Kansas: Auto-Owners
- Kentucky: Progressive
- Louisiana: Centauri
- Maine: Vermont Mutual
- Maryland: Erie
- Massachusetts: Norfolk and Dedham
- Michigan: Auto-Owners
- Minnesota: Secura
- Mississippi: Allstate
- Missouri: Nationwide
- Montana: Nationwide
- Nebraska: Nationwide
- Nevada: CSAA
- New Hampshire: Amica
- New Jersey: United P&C
- New Mexico: State Farm
- New York: Ocean Harbor Casualty
- North Carolina: Nationwide
- North Dakota: EMC Insurance
- Ohio: Buckeye
- Oklahoma: American National and State Farm (tie)
- Oregon: Mutual of Enumclaw
- Pennsylvania: Cumberland
- Rhode Island: State Farm
- South Carolina: Bankers
- South Dakota: Nationwide
- Tennessee: American National
- Texas: Bankers
- Utah: Unigard
- Vermont: Vermont Mutual
- Virginia: Progressive
- Washington: Nationwide
- West Virginia: Progressive
- Wisconsin: Rockford Mutual
- Wyoming: Nationwide
What Factors Impact Home Insurance Premiums?
Several factors influence home insurance costs:
- Cost to Rebuild: The dwelling coverage limit should match the cost to rebuild your home.
- Building Materials and Age: Materials like brick and stone are more resistant. Older homes often cost more to insure.
- Fire Rating: Proximity to fire stations and water sources impacts your rates.
- Property’s Claims History: Areas with higher crime rates or natural disasters may have higher premiums.
- Your Claims History: Fewer claims generally mean lower insurance costs.
- Coverage and Policy Limits: Higher liability limits and added coverage increase costs.
The Risks of Buying Cheap Home Insurance
It’s crucial to avoid sacrificing adequate coverage for a lower premium. Ensure your dwelling coverage is sufficient to rebuild your home if necessary, and secure proper personal liability coverage.
Methodology
The rankings were determined by analyzing costs across the country and complaints filed with state insurance departments.
- Home insurance rates for $200,000, $350,000, $500,000, and $750,000 dwelling coverage (80% of score)
- Complaints (20% of score)
