Cheapest Home Insurance Companies in 2025
Home insurance costs are on the rise, mirroring inflation’s impact on various products and services. Many homeowners are seeing higher premiums than ever before. Bankrate is here to help you navigate these costs. Our insurance editorial team includes licensed agents who have extensive real-world experience in helping individuals find affordable homeowners insurance that suits their unique needs.
Based on our analysis of proprietary premium data from Quadrant Information Services, the national average rate for a homeowners policy with $300,000 in dwelling coverage is $2,242 annually. When seeking ways to save money, it can be tempting to opt for the cheapest quote available; however, it is important to ensure the insurance provides adequate financial protection.
To determine the best cheap companies, the following metrics were analyzed:
- Third-party customer satisfaction scores
- Customer service availability
- Financial strength ratings
Cheapest Home Insurance Companies:
- USAA: Military-focused coverage
- Auto-Owners: Flexible coverage
- Erie: Best for first-time homebuyers on a tight budget
- Nationwide: Best for consolidating insurance and banking products
- Allstate: Best for multiple policy management options
- American Family: Customizable coverage
How to Save on Homeowners Insurance
Beyond choosing a competitively priced insurer, there are steps to consider to maximize savings.
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Reassess Your Policy: Review your policy for any coverage that may no longer be necessary. Changes over time to your home’s value, possessions, and personal circumstances affect your insurance needs. By fine-tuning your coverage to closely align with your current situation, this could lead to saving money on your homeowners insurance costs.
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Common Home Insurance Discounts: See if you qualify for these discounts:
- Bundling policies
- Installing smart home systems
- Making home updates
- Remaining claims-free
- Paying automatically
- Shopping early.
Frequently Asked Questions
What is the cheapest state for home insurance?
Bankrate found that Vermont is the cheapest state for home insurance. Homeowners in Vermont pay $837 per year for a policy with $300,000 dwelling coverage.
Will my homeowners insurance go up if I file a claim?
It is considered likely that your premium will increase after filing a claim. Homeowners who file one claim are more likely to file another one soon. An insurance provider may raise your premium after a claim to help offset future potential payouts.
Will my homeowners insurance change if my credit score changes?
In most states, yes. Insurance companies check your credit when you first buy a policy, but typically only re-check if changes to the policy occur. You can ask your insurance provider to re-run your insurance score if your credit has significantly improved since starting your home insurance policy. If your credit has declined, you may see an increased premium upon renewal.
Why does my home insurance premium keep going up?
Changes in the local real estate market, more frequent or severe weather events, and upgrades to your home may contribute to higher premiums. Your insurance agent can provide further detailed insight on those changes.
