Cheapest House Insurance: How Low?

Home insurance is a necessity, but it doesn't have to break the bank. The cheapest home insurance company depends on a variety of factors, including the location and age of your home, your credit score, and the deductible amount you choose.

According to research by NerdWallet, Progressive offers the cheapest annual home insurance on average at $1,815. However, other sources, such as Forbes Advisor and Bankrate, suggest that Auto-Owners and Erie are the cheapest options. It's important to note that rates can vary based on individual circumstances and location, so it's always a good idea to shop around and compare quotes from multiple companies.

When looking for cheap home insurance, it's essential to consider not only the price but also the coverage offered and the company's customer service and claims satisfaction ratings. Some companies may offer lower rates but may have higher customer complaints or lack certain coverage options. It's crucial to find a balance between affordable rates and adequate protection for your home.

Cheapest home insurance companies

The cheapest home insurance company for you will depend on your individual circumstances, including your credit score, the age of your home, and the state in which you live.

Progressive

Progressive offers the cheapest home insurance across multiple types of coverage and is available in all 50 states. However, it does not offer some of the coverage provided by competitors, such as extended replacement coverage. Progressive also has a higher-than-average level of complaints.

Erie

Erie combines excellent rates with low consumer complaints. It offers extended and guaranteed replacement cost options, which pay above your dwelling limit if your home is destroyed and rebuild costs exceed your limit. Erie is only available in 12 states and Washington, D.C.

USAA

USAA provides low home insurance rates and multiple types of discounts. Coverage is only available to active-duty military members, veterans, and their families.

Westfield

Westfield customers with $350,000 dwelling coverage save an average of nearly $335 each year compared to other major competitors. It also has a very low complaint level. Westfield is only offered in 10 states.

Nationwide

Nationwide offers excellent rates for multiple levels of coverage. However, it has a higher ratio of customer complaints compared to some competitors. Coverage is not available in some states.

State Farm

State Farm policyholders save $380 on average each year for $350,000 dwelling coverage. It has the largest bundling discount of the companies analysed. State Farm is available in all 50 states.

Auto-Owners

Auto-Owners has a wide range of home insurance discounts and cheaper-than-average rates. It also has a very low complaint trend. Auto-Owners is only available in 26 states.

Cheapest home insurance for different homeowners

Home insurance rates vary depending on a variety of factors, including the location of the home, the age of the home, the construction materials, the coverage limits, and the deductible. Here are some of the cheapest home insurance options for different types of homeowners:

Cheapest Home Insurance for Homeowners with Poor Credit

Homeowners with poor credit typically pay significantly more for insurance. Some of the companies that offer the lowest rates for homeowners with poor credit include:

• Secura
• Progressive
• Auto-Owners
• USAA
• State Farm

Cheapest Home Insurance for New Homeowners

Several companies offer discounts for new homeowners or first-time buyers. The following companies offer competitive rates and discounts for new homeowners:

• Nationwide
• Erie
• USAA
• Auto-Owners
• Allstate

Cheapest Home Insurance for Homeowners with a Recent Claim

Home insurance rates usually increase after filing a claim. The following companies offer competitive rates for homeowners with a recent claim:

• Auto-Owners
• USAA
• State Farm
• Erie
• Allstate

Cheapest Home Insurance for Homeowners with a High Deductible

Homeowners can often lower their insurance premiums by choosing a higher deductible. The following companies offer competitive rates for homeowners with a high deductible:

• Secura
• Progressive
• Auto-Owners
• USAA
• State Farm

Cheapest home insurance companies by state

The cheapest home insurance company for you will depend on your location and the type of house you're insuring. Here is a list of the cheapest home insurance companies by state:

• Alabama: State Farm
• Alaska: State Farm
• Arizona: USAA
• Arkansas: USAA
• California: State Farm
• Colorado: Auto-Owners
• Connecticut: USAA
• Delaware: State Farm
• Florida: State Farm
• Georgia: Auto-Owners
• Hawaii: Allstate
• Idaho: State Farm
• Illinois: State Farm
• Indiana: State Farm
• Iowa: Auto-Owners
• Kansas: State Farm
• Kentucky: State Farm
• Louisiana: State Farm
• Maine: State Farm
• Maryland: State Farm
• Massachusetts: State Farm
• Michigan: Auto-Owners
• Minnesota: Auto-Owners
• Mississippi: State Farm
• Missouri: State Farm
• Montana: State Farm
• Nebraska: USAA
• Nevada: State Farm
• New Hampshire: State Farm
• New Jersey: State Farm
• New Mexico: State Farm
• New York: Erie
• North Carolina: State Farm
• North Dakota: State Farm
• Ohio: State Farm
• Oklahoma: State Farm
• Oregon: State Farm
• Pennsylvania: State Farm
• Rhode Island: State Farm
• South Carolina: State Farm
• South Dakota: Auto-Owners
• Tennessee: State Farm
• Texas: State Farm
• Utah: State Farm
• Vermont: State Farm
• Virginia: State Farm
• Washington: USAA
• West Virginia: USAA
• Wisconsin: State Farm
• Wyoming: State Farm

Cheapest home insurance by credit history

Credit scores can have a significant impact on home insurance premiums. In most states, insurance companies are legally allowed to use an individual's credit history as a factor when setting home insurance rates. Poor credit scores can lead to higher insurance costs as insurers correlate bad credit with a higher likelihood of filing a claim.

According to Forbes Advisor, Progressive offers the cheapest home insurance for many homeowners, especially those with poor credit. Progressive's average annual rate for a policy with $350,000 in dwelling coverage is $1,815, which is nearly $1,000 cheaper than the national average.

NerdWallet's analysis also found that Progressive is the cheapest option for homeowners with poor credit, with an average monthly rate of $143. Progressive also has the cheapest rates for those with a high deductible.

In addition to Progressive, Allstate, Auto-Owners, Erie, State Farm, and USAA are other insurance companies that offer affordable rates for homeowners with poor credit.

Cheapest home insurance for new and old homes

The cost of home insurance depends on various factors, including the age of the home, its location, and the materials used in its construction. Generally, newer homes are cheaper to insure than older ones. Older homes are considered to be at a higher risk of needing an insurance claim, as they may have older electrical or plumbing systems that are more vulnerable to damage.

Insuring Older Homes

Older homes may also contain obsolete building materials and ornate features that are specific to the time period in which they were built. These can be more expensive and less flexible than modern structural materials. Older homes may also require a contractor with specialised knowledge in period architecture, which can be more costly.

The age of the roof is another factor that affects insurance premiums. If the roof is over 15 to 20 years old, insurance companies may exclude it from coverage or increase premiums.

The average cost of insurance for a 100-year-old home is $1,956 per year, nearly $850 more than the average cost of insurance for a new home. However, rates vary depending on factors such as location and construction materials.

Insuring Newer Homes

It is generally cheaper to insure new homes than older ones. Newer homes meet the latest building safety codes and are therefore considered more resistant to natural disasters. New plumbing, electrical, and other systems are also less likely to fail and cause damage.

Cheapest Home Insurance for Newer Homes

According to NerdWallet, Progressive offers the cheapest annual home insurance on average at $1,815. Progressive sells its own insurance policies and those from third-party insurers, allowing customers to choose from multiple providers.

Cheapest Home Insurance for Older Homes

USAA, Allstate, and Chubb offer the most affordable rates for older homes, according to Policygenius. USAA and Allstate offer building code coverage, which pays for the costs of bringing a home up to code after a covered loss. Chubb provides extended replacement cost coverage, which can increase coverage limits by up to 50%.

Other Options

Other insurance companies that offer competitive rates for older homes include Erie, Nationwide, and Auto-Owners.

Tips for Lowering Home Insurance Premiums

To lower insurance premiums on older homes, consider modernising wiring, replacing plumbing and utility lines, maintaining a good credit score, and making interior upgrades and renovations. It is also worth checking for available discounts, such as safety or bundling discounts. Re-shopping for home insurance and comparing quotes from multiple companies can also help save money.

Frequently asked questions