Cheapest Home Insurance Quotes (2025)

AIG, American Family, and Cincinnati Insurance are the cheapest national home insurance companies.

Danny Smith
Written byDanny Smith
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Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
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Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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Homeowners insurance is essential — and expensive. The average cost for a policy with a $300,000 dwelling coverage limit rose in 2024, landing at $2,377 per year, according to Insurify data. If you live in a state with high risks from severe weather, like Florida, your annual home insurance premium can be much higher than the national average.

Comparing quotes from multiple companies could help you find the most affordable coverage for your needs. But keep in mind that the company with the cheapest rates may not be the best option for you.

Here’s what you need to know to find cheap home insurance.

Quick Facts
  • AIG Property Casualty Company is the cheapest nationally available home insurance company, on average.

  • Your home’s age, location, structure, and other factors affect the cost of home insurance.

  • Florida is the most expensive state for home insurance, with an average annual premium of $10,675. Vermont has the cheapest home insurance coverage, averaging $954 per year.

Cheapest home insurance quotes in 2025

AIG is the cheapest home insurance company, with an average annual premium of $1,587 annually. American Family and Cincinnati Insurance are second- and third-cheapest, with average annual premiums of $1,702 and $1,870, respectively.

Your exact premium will depend on factors like your home’s size, location, and age. It may also be possible to find cheaper coverage through regional insurance companies like Vermont Mutual, which has the lowest rates of any insurer, according to Insurify data, but is only available in seven U.S. states. Regional insurers vary in size and aren’t available in every state.

The following table shows the average annual premium for $300,000 in dwelling coverage from top, widely available (operating in more than 26 states) home insurance companies.

Insurance Company
Average Annual Premium
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
AIG$1,587N/A
American Family$1,7028.6
Cincinnati Insurance$1,870N/A
USAA$1,9548
Foremost$2,0525.2
State Farm$2,1338.2
Armed Forces Insurance$2,158N/A
Travelers$2,2827.8
Allstate$2,4018.2
Auto-Owners$2,4957.4
Nationwide$2,5268.4
Allied$2,825N/A
Farmers$2,9098.4
  • Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

    We rate each company on a 1 to 10 scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

    • Third-party financial ratings: Insurify uses data from AM Best, S&P, Moody’s, and more to compare insurance companies’ credit and ability to pay out future claims.
    • Customer satisfaction: To calculate this score, Insurify analyzed more than 55,000 customer reviews across 155 car insurance companies. We also consider third-party ratings from J.D. Power, the National Association of Insurance Commissioners, and Trustpilot.
    • Affordability: Our data scientists analyzed more than 90 million real-time auto insurance rates from our partners across the U.S., as well as available discounts, to calculate an affordability score.
    • Customer support and transparency: This measures coverage options, ease of claims filing, and the insurer's transparency surrounding discounts, coverages, and claims process.
    • Availability and reach: Insurify scores availability and reach by identifying the number of states in which insurers offer coverage and company size by market share.

Cheapest home insurance by dwelling coverage

Higher dwelling coverage limits result in higher premiums. But it’s important to consider the value of your home and your location’s risk when determining how much coverage you need. Generally, your dwelling coverage amount should be equal to at least 80% of your home’s replacement cost.

It’s also important to note that the cheapest insurer for your desired dwelling coverage limit can vary. For example, in the table below, AIG has the lowest annual rate for a policy with a $250,000 dwelling coverage limit, while American Family is the cheapest for a $500,000 policy.

Insurance Company
$250,000
$350,000
$500,000
AIG$1,400$1,819$2,510
American Family$1,515$1,882$2,383
Cincinnati Insurance$1,633$2,088$2,809
USAA$1,730$2,165$2,782
Foremost$1,699$2,440$3,552
Erie$1,428$1,866$2,478
State Farm$1,913$2,350$3,015
Armed Forces Insurance$1,953$2,370$3,029
Nationwide$2,173$3,946$3,946
Farmers$2,490$3,345$4,760
Chubb$2,679$3,622$4,949

Cheapest home insurance by state

Vermont has the lowest average annual home insurance rate for a policy with a $300,000 dwelling coverage limit: $954, according to Insurify data. Hawaii and Alaska are the second- and third-cheapest states, with average annual premiums of $1,164 and $1,197, respectively.

Florida is the most expensive state for home insurance, with an average annual premium of $10,675. The state’s exposure to severe coastal weather results in a higher number of claims and a high cost of claims, which pushes home insurance costs higher.

Flood-prone Louisiana has the second-highest home insurance costs in the country. The average annual premium for $300,000 of dwelling coverage in Louisiana is $8,372 per month, according to Insurify data.

Rates differ so drastically between states for various reasons. Many states, like Florida, Oklahoma, and Louisiana, are much more prone to severe weather than others, resulting in more expensive premiums. Things like the cost of materials, location, and labor costs can also affect your home insurance premiums.

Always compare quotes from multiple insurance companies before buying a policy.

State
Cheapest Company
Cheapest Rate
AlaskaState Farm$1,021
AlabamaForemost$1,923
ArkansasMetropolitan$1,897
ArizonaArmed Forces Insurance Exchange$930
CaliforniaAllstate$605
ColoradoAuto-Owners$1,740
ConnecticutVermont Mutual$1,070
Washington D.C.USAA$992
DelawareCumberland Insurance Group$770
FloridaSecurity First$4,630
GeorgiaAllstate$1,392
HawaiiIsland Insurance Group$454
IowaWestfield$1,070
IdahoAmerican Family$823
IllinoisWestfield$952
IndianaAllstate$748
KansasArmed Forces Insurance Exchange$1,192
KentuckyWestfield$1,243
LouisianaEncompass$3,468
MassachusettsAIG$755
MarylandBrethren Mutual Insurance$827
MaineVermont Mutual$646
MichiganAuto-Owners$407
MinnesotaForemost$1,379
MissouriArmed Forces Insurance Exchange$1,047
MississippiMississippi Farm Bureau$2,110
MontanaChubb$930
North CarolinaState Farm$720
North DakotaAmerican Family$1,503
NebraskaUSAA$1,364
New HampshirePlymouth Rock$620
New JerseySelective$525
New MexicoForemost$2,267
NevadaCapital Insurance$846
New YorkOcean Harbor Casualty$695
OhioBuckeye Insurance Group$571
OklahomaAmerican National$2,383
OregonOregon Mutual$564
PennsylvaniaCumberland Insurance Group$616
Rhode IslandNLC Insurance$1,087
South CarolinaCincinnati Insurance$1,992
South DakotaFarmers$1,818
TennesseeWestfield$1,227
TexasRepublic Indemnity$1,817
UtahForemost$654
VirginiaArmed Forces Insurance$838
VermontConcord Group$525
WashingtonMetropolitan Epac$637
WisconsinAmerican Family$645
West VirginiaWestfield$895
WyomingUSAA$1,383

How to get cheaper home insurance

You can get cheaper home insurance in a number of ways. Consider the following tips when you’re looking to cut your home insurance costs:

  • illustration card https://a.storyblok.com/f/162273/150x150/59f0e4ac83/types-of-houses-96x96-yellow_029-mansion.svg

    Compare home insurance quotes

    Quote comparison is one of the best ways to lower your home insurance rates. Always compare quotes from at least three insurers before buying a policy.

  • illustration card https://a.storyblok.com/f/162273/150x150/354dc33bc8/banking-96x96-green_017-coins.svg

    Increase your deductible

    Increasing your home insurance deductible will lower your premium. Just be sure you can afford to pay the deductible out of pocket if you need to file a claim.

  • illustration card https://a.storyblok.com/f/162273/150x150/27a2e3602a/credit-and-loan-96x96-orange_033-discount.svg

    Raise your credit

    Improving your credit could lead to lower home insurance rates. Insurers correlate bad credit with a higher likelihood of filing a claim.

  • illustration card https://a.storyblok.com/f/162273/150x150/3b97fae014/money-96x96-blue_033-magnifying-glass.svg

    Look for discounts

    Many insurers offer a plethora of discounts that you can take advantage of. You may be able to get discounts for things like loyalty, building with better materials, and having home security.

  • Most insurance companies offer discounts that can help reduce the cost of home insurance. Common discounts include:

    • Bundling: Insurance companies typically offer a discount if you buy two types of policies — home and auto, for example — from the same insurer.

    • Paid in full: Paying your entire year’s premium at the beginning of the policy, or when it renews, could yield a discount.

    • Claims-free: You may qualify for a discount if you haven’t had any claims within a certain time frame.

    • Wind mitigation: If you make home improvements that reduce your home’s risk of wind damage, your insurer may offer a discount.

    • Paperless: You may get a discount if you agree to receive policy documents, bills, and communications digitally.

    • Green: Insurers often reward homeowners who update their home to green standards with a discount. You’ll likely need to have your home certified by an organization like the Leadership Energy & Environmental Design Organization (LEED).

Cheapest home insurance for new construction: AIG

AIG is the cheapest home insurance company for new construction, with an average annual premium of $756 for $300,000 in dwelling coverage. Newer homes tend to be cheaper to insure than older homes since they’re less likely to have issues that require claim payouts.

Insurance Company
Average Annual Premium
AIG$1,111
Erie$1,159
American Family$1,191
Cincinnati Insurance$1,309
USAA$1,368
Foremost$1,437
State Farm$1,493
Armed Forces Ins Exchange$1,510
Travelers$1,597
Pure Companies Grp$1,612

Cheapest home insurance for old homes: AIG

Older homes can be more expensive to insure for multiple reasons. They can be more likely to have issues that will require insurance payouts.[1] And they may be built with construction materials or architectural details that are more costly to repair or replace.

The following table shows average annual premiums for older homes from some of the cheapest insurers.

Insurance Company
Average Annual Premium
AIG$1,592
Erie$1,662
American Family$1,708
Cincinnati Insurance$1,876
USAA$1,961
Foremost$2,059
State Farm$2,140
Armed Forces Ins Exchange$2,165
Travelers$2,290
Pure Companies Grp$2,311

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Cheapest home insurance for bad credit: AIG

In most states, home insurance companies can consider your credit history when establishing rates. Insurers don’t look at your actual credit score. Instead, they use credit information to generate credit-based insurance scores and predict your likelihood of filing a claim.[2]

Here are average annual premiums for $300,000 in dwelling coverage for policyholders with poor credit.

Insurance Company
Average Annual Premium
AIG$1,713
Erie$1,789
American Family$1,838
Cincinnati Insurance$2,020
USAA$2,111
Foremost$2,216
State Farm$2,304
Armed Forces Ins Exchange$2,330
Travelers$2,465
Pure Companies Grp$2,487

Cheapest home insurance for high deductible: American Family

Home insurance policies typically have one or more deductibles, an amount you’ll have to pay out of pocket toward a covered loss before your insurance kicks in. Because a higher deductible is your way of sharing more risk with the insurer, the higher your deductible, the lower your premium will generally be.

But before buying a high-deductible policy, make sure you can afford to pay it out of pocket in the event of a claim.

The following table shows average annual premiums for a policy with $1 million in dwelling coverage and a $10,000 deductible.

Insurance Company
Average Annual Premium
American Family$3,932
Erie$4,090
AIG$4,141
USAA$4,591
Cincinnati Insurance$4,635
State Farm$4,975
Armed Forces Ins Exchange$4,998
Pure Companies Grp$5,228
Travelers$5,627
Foremost$5,861
Learn More: How Much to Make Your Homeowners Insurance Deductible

Learn More: How Much to Make Your Homeowners Insurance Deductible

Cheapest home insurance for bundling home and auto insurance: AIG

Bundling home and auto insurance is one of the best ways to save money on a policy.[3] Discounts can range from 10% to 25% — or even more — depending on the insurance company. Bundling may result in savings on one or both policies you buy with the same company.

Here are premiums from top insurers for bundling a $300,000 home insurance policy with an auto insurance policy from the same insurer.

Insurance Company
Average Annual Premium
AIG$1,396
Erie$1,458
American Family$1,498
Cincinnati Insurance$1,646
USAA$1,720
Foremost$1,806
State Farm$1,877
Armed Forces Ins Exchange$1,899
Travelers$2,008
Pure Companies Grp$2,026

Cheapest home insurance for high-value homes: American Family

Your home’s value directly affects how much you’ll pay to insure it each year. Generally, homes with higher values cost more to repair or rebuild and often contain luxury items or features that are costly to replace.

Insurers typically consider a home with a value of $750,000 or more to be a high-value home, although some companies may set the threshold at $1 million or more. Here are average annual premiums for a $1 million home insurance policy from top insurers.

Insurance Company
Average Annual Premium
American Family$3,932
Erie$4,090
AIG$4,141
USAA$4,591
Cincinnati Insurance$4,635
State Farm$4,975
Armed Forces Ins Exchange$4,998
Pure Companies Grp$5,228
Travelers$5,627
Foremost$5,861

What factors affect the cost of home insurance?

Many different factors affect the cost of home insurance, such as:

  • The size of your home: The larger your home, the more it’ll cost to replace. Insurers consider this when setting your rate.

  • Local building costs: Your premiums could increase if you live in an area where building supplies and labor are expensive, which drives up repair costs.

  • Your credit history: Insurance companies consider your credit when setting rates and usually offer lower rates to homeowners with better credit.

  • The age of your home: Older homes come with unique and often expensive repair needs. Having an older home can lead to increased premiums, as insurers will compensate for the increased cost of materials required to repair the home.

  • Location: Factors specific to your location can affect how likely you are to file a claim, like severe weather frequency, natural disasters, and crime rates. Insurers consider these factors when determining how likely you are to file a claim and how much those claims will cost.

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Cheap home insurance FAQs

Finding good, cheap home insurance can be trickier than you may expect. Take a look at the answers to these commonly asked questions about finding cheap home insurance before you start your search.

  • Will your homeowners insurance go up if you file a claim?

    Yes. Your homeowners insurance will typically go up at renewal time if you file a claim. Your insurer will likely consider the type, number, and cost of the claims you filed when deciding whether to renew your policy, and at what price.

    But each state has its own regulations about how much insurers can increase rates.

  • Does age affect home insurance rates?

    Yes. Your home’s age affects your home insurance rates. It’s simple: The older your home is, the more likely it is that something in it will break.

    Newer construction has new appliances and building materials and therefore is less likely to have issues in the near future, resulting in lower home insurance rates.

  • Which company has the cheapest homeowners insurance?

    AIG has the cheapest homeowners insurance for policies with a $300,000 dwelling limit. But your rates will vary based on numerous factors, so AIG may not be the cheapest option for you.

    Your rate will depend on things like your home’s size and age, local building costs, location, dwelling coverage limit, and even your credit.

  • What is the cheapest and best insurance bundle for home and auto insurance?

    AIG is the cheapest company to bundle home and auto insurance, with an average annual premium of $1,396. But the right insurer for you will likely be different, since every home and homeowner is different. Make sure to compare quotes before buying a policy.

Sources

  1. Progressive. "How can I get home insurance for an older home?."
  2. Insurance Information Institute. "Background on: Insurance scoring."
  3. Insurance Information Institute. "How to save money on your homeowners insurance."
Danny Smith
Danny Smith

Danny is a Brooklyn-based writer with a producer’s license for property and casualty insurance. A former editor at Insurify, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.

Danny has been a contributor at Insurify since March 2022.

Evelyn Pimplaskar
Edited byEvelyn PimplaskarEditor-in-Chief, Director of Content
Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content
  • 10+ years in insurance and personal finance content

  • 30+ years in media, PR, and content creation

Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.

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