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Julia Taliesin is an insurance writer for Compare.com. An expert in personal finance and insurance topics, she began her career as a reporter, covering local business and government in Somerville, Massachusetts. Her reporting included local budgets and municipal finances, building development, and public health.
More recently, Julia uses her writing skills to simplify and explain complex insurance topics, including auto, home, renters, pet, travel, and more. She’s passionate about empowering readers with the knowledge to make more informed decisions with their money.
Julia earned a Bachelor’s degree in communications with a focus in journalism from Simmons University.
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Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
Buying a home is one of the biggest purchases you’ll make, and home insurance is essential for protecting your investment. Stuff happens, but home insurance can help protect your finances from unexpected events like theft, fire, and natural disasters.
Affordability is important, but the cheapest policy isn’t your best option if it lacks essential coverage. Many factors affect home insurance rates, like how much it costs to rebuild your home, the weather risks in your area, and your insurance claims history.
Fortunately, you have plenty of ways to lower your premiums. In this article, we’ll offer comparison strategies and expert tips for finding the cheapest home insurance.
Westfield has the cheapest average home insurance rates for most coverage levels and housing types.
Vermont, Hawaii, and Alaska have the cheapest average home insurance rates.
Comparing quotes and understanding the cost of home insurance coverage before buying a house can help you choose a more affordable home.
You may not realize it, but home insurance rates vary — sometimes drastically — from one company to the next. Insurers have different formulas for calculating premiums and may offer different coverages or sell policies in various locations, which means they need to account for different risks. That’s why it’s so important to compare multiple home insurance quotes. If you don’t, you could miss out on a great deal.
The table below shows the average annual home insurance premiums for the cheapest home insurance companies based on $300,000 of dwelling coverage, according to Compare.com data.
Insurance Company  | Average Annual Premium |
|---|---|
| Westfield | $1,189 |
| Kemper | $1,339 |
| Hastings Mutual | $1,463 |
| AIG | $1,587 |
| Erie | $1,656 |
| American Family | $1,702 |
| Cincinnati Insurance | $1,870 |
| USAA | $1,954 |
| Foremost | $2,052 |
| State Farm | $2,133 |
| Armed Forces Insurance | $2,158 |
| Travelers | $2,282 |
| PURE Insurance | $2,303 |
| Progressive | $2,355 |
| Allstate | $2,401 |
| Auto-Owners | $2,495 |
| Nationwide | $2,526 |
| Grange | $2,752 |
| Allied | $2,825 |
| Farmers | $2,909 |
| Encompass | $3,111 |
| Chubb | $3,162 |
| Universal | $3,421 |
| Hanover | $4,473 |
| MetLife | $4,678 |
| COUNTRY Financial | $4,722 |
| Shelter | $5,955 |
Westfield offers the cheapest average home insurance premium, at $1,189 per year, according to Compare.com data. But Westfield is a regional insurance company that offers home insurance in only 10 U.S. states, so your cheapest option might be another company.[1]
Compare personalized home insurance quotes from 100+ companies.
Where you live is one of the biggest factors affecting how much you pay for home insurance. Severe weather like hurricanes, tornadoes, hail, and wildfires can cause expensive damage, and regional inflation can affect the cost of rebuilding your home.[2] Insurers that have to pay expensive claims frequently increase premiums to match that risk.
Florida is the most expensive state for home insurance, with an average annual premium of $10,675 for $300,000 of dwelling coverage, according to Compare.com data. Vermont is the cheapest state for home insurance, with an average annual premium of $954.
Here’s a list of the cheapest home insurance companies in every state, along with each company’s average yearly rate, according to our research.
State | Cheapest Rate | Cheapest Company |
|---|---|---|
| Alaska | $1,021 | State Farm |
| Alabama | $1,923 | Foremost |
| Arkansas | $1,958 | Foremost |
| Arizona | $930 | Armed Forces Insurance |
| California | $605 | Allstate |
| Colorado | $1,740 | Auto-Owners |
| Connecticut | $1,070 | Vermont Mutual |
| Delaware | $770 | Cumberland Insurance Group |
| Florida | $4,630 | Security First Insurance |
| Georgia | $1,392 | Allstate |
| Hawaii | $454 | Island Insurance |
| Iowa | $1,070 | Westfield |
| Idaho | $823 | American Family |
| Illinois | $952 | Westfield |
| Indiana | $748 | Allstate |
| Kansas | $1,192 | Armed Forces Insurance |
| Kentucky | $1,243 | Westfield |
| Louisiana | $3,468 | Encompass |
| Massachusetts | $755 | AIG |
| Maryland | $827 | Brethren Mutual Insurance |
| Maine | $646 | Vermont Mutual |
| Michigan | $407 | Auto-Owners |
| Minnesota | $1,379 | Foremost |
| Missouri | $1,047 | Armed Forces Insurance |
| Mississippi | $2,110 | Mississippi Farm Bureau |
| Montana | $930 | Chubb |
| North Carolina | $720 | State Farm |
| North Dakota | $1,503 | American Family |
| Nebraska | $1,364 | USAA |
| New Hampshire | $620 | Plymouth Rock |
| New Jersey | $525 | Selective |
| New Mexico | $2,492 | State Farm |
| Nevada | $846 | CIG |
| New York | $695 | Ocean Harbor Casualty |
| Ohio | $571 | Buckeye Insurance Group |
| Oklahoma | $2,383 | American National |
| Oregon | $564 | Oregon Mutual |
| Pennsylvania | $616 | Cumberland Mutual |
| Rhode Island | $1,087 | NLC Insurance |
| South Carolina | $1,992 | Cincinnati Insurance |
| South Dakota | $1,818 | Farmers |
| Tennessee | $1,227 | Westfield |
| Texas | $1,817 | Republic Indemnity |
| Utah | $654 | Foremost |
| Virginia | $838 | Armed Forces Insurance |
| Vermont | $525 | Concord Group |
| Washington | $690 | Nationwide |
| District of Columbia | $992 | USAA |
| Wisconsin | $645 | American Family |
| West Virginia | $895 | Westfield |
| Wyoming | $1,383 | USAA |
Just as home insurance rates vary between states, costs also vary between cities. In the table below, we’ve compiled the average annual home insurance premiums for 10 cities with high percentages of homeowners.[3]
The premiums represent the average annual cost for $300,000 of dwelling coverage and a $500 deductible, according to Compare.com data.
City | Average Annual Premium |
|---|---|
| Birmingham, Alabama | $2,646 |
| Louisville, Kentucky | $3,054 |
| Detroit, Michigan | $4,420 |
| Minneapolis, Minnesota | $3,165 |
| St. Louis, Missouri | $2,682 |
| Raleigh, North Carolina | $2,826 |
| Cincinnati, Ohio | $1,562 |
| Pittsburgh, Pennsylvania | $1,265 |
| Richmond, Virginia | $1,691 |
| Salt Lake City, Utah | $1,812 |
How much home insurance coverage you need depends on the cost to rebuild your home. The higher the rebuild cost, the more dwelling coverage you’ll need. A home with $100,000 in dwelling coverage will have lower insurance premiums than one requiring $500,000 in coverage.
If you file a claim after a total loss, your insurance company would pay out a lower figure that’s limited to your coverage amount.
The table below highlights home insurance companies and the average annual premiums each charges for five different dwelling coverage amounts, according to Compare.com data.
Insurance Company | $100,000 Dwelling Coverage |
|---|---|
| Westfield | $871 |
| Kemper | $857 |
| Hastings Mutual | $722 |
| AIG | $844 |
| Erie | $752 |
| American Family | $950 |
| Cincinnati Insurance | $904 |
| USAA | $1,006 |
| Foremost | $764 |
| State Farm | $1,103 |
| Armed Forces Insurance | $1,300 |
| Travelers | $1,069 |
| PURE Insurance | $1,465 |
| Progressive | $1,156 |
| Allstate | $1,165 |
| Auto-Owners | $1,372 |
| Nationwide | $1,105 |
| Grange | $1,283 |
| Allied | $1,229 |
| Farmers | $1,425 |
| Encompass | $1,531 |
| Chubb | $1,108 |
| Universal | $1,638 |
| Hanover | $1,907 |
| MetLife | $2,130 |
| COUNTRY Financial | $2,424 |
| Shelter | $2,312 |
Insurance Company | $200,000 Dwelling Coverage |
|---|---|
| Westfield | $1,018 |
| Kemper | $1,102 |
| Hastings Mutual | $1,056 |
| AIG | $1,213 |
| Erie | $1,199 |
| American Family | $1,328 |
| Cincinnati Insurance | $1,397 |
| USAA | $1,506 |
| Foremost | $1,347 |
| State Farm | $1,693 |
| Armed Forces Insurance | $1,749 |
| Travelers | $1,697 |
| PURE Insurance | $1,920 |
| Progressive | $1,765 |
| Allstate | $1,804 |
| Auto-Owners | $1,938 |
| Nationwide | $1,820 |
| Grange | $2,014 |
| Allied | $2,012 |
| Farmers | $2,071 |
| Encompass | $2,362 |
| Chubb | $2,197 |
| Universal | $2,525 |
| Hanover | $3,249 |
| MetLife | $3,423 |
| COUNTRY Financial | $3,617 |
| Shelter | $4,353 |
Insurance Company | $300,000 Dwelling Coverage |
|---|---|
| Westfield | $1,189 |
| Kemper | $1,339 |
| Hastings Mutual | $1,463 |
| AIG | $1,587 |
| Erie | $1,656 |
| American Family | $1,702 |
| Cincinnati Insurance | $1,870 |
| USAA | $1,954 |
| Foremost | $2,052 |
| State Farm | $2,133 |
| Armed Forces Insurance | $2,158 |
| Travelers | $2,282 |
| PURE Insurance | $2,303 |
| Progressive | $2,355 |
| Allstate | $2,401 |
| Auto-Owners | $2,495 |
| Nationwide | $2,526 |
| Grange | $2,752 |
| Allied | $2,825 |
| Farmers | $2,909 |
| Encompass | $3,111 |
| Chubb | $3,162 |
| Universal | $3,421 |
| Hanover | $4,473 |
| MetLife | $4,678 |
| COUNTRY Financial | $4,722 |
| Shelter | $5,955 |
Insurance Company | $400,000 Dwelling Coverage |
|---|---|
| Westfield | $1,365 |
| Kemper | $1,581 |
| Hastings Mutual | $1,872 |
| AIG | $2,052 |
| Erie | $2,075 |
| American Family | $2,062 |
| Cincinnati Insurance | $2,306 |
| USAA | $2,375 |
| Foremost | $2,828 |
| State Farm | $2,567 |
| Armed Forces Insurance | $2,583 |
| Travelers | $2,819 |
| PURE Insurance | $2,674 |
| Progressive | $2,919 |
| Allstate | $3,029 |
| Auto-Owners | $3,054 |
| Nationwide | $3,233 |
| Grange | $3,543 |
| Allied | $3,684 |
| Farmers | $3,782 |
| Encompass | $3,839 |
| Chubb | $4,082 |
| Universal | $4,202 |
| Hanover | $5,795 |
| MetLife | $6,141 |
| COUNTRY Financial | $5,836 |
| Shelter | $7,703 |
Insurance Company | $500,000 Dwelling Coverage |
|---|---|
| Westfield | $1,522 |
| Kemper | $1,823 |
| Hastings Mutual | $2,300 |
| AIG | $2,510 |
| Erie | $2,478 |
| American Family | $2,383 |
| Cincinnati Insurance | $2,809 |
| USAA | $2,782 |
| Foremost | $3,552 |
| State Farm | $3,015 |
| Armed Forces Insurance | $3,029 |
| Travelers | $3,410 |
| PURE Insurance | $3,169 |
| Progressive | $3,592 |
| Allstate | $3,630 |
| Auto-Owners | $3,591 |
| Nationwide | $3,946 |
| Grange | $4,355 |
| Allied | $4,559 |
| Farmers | $4,760 |
| Encompass | $4,549 |
| Chubb | $4,949 |
| Universal | $5,094 |
| Hanover | $7,126 |
| MetLife | $7,657 |
| COUNTRY Financial | $7,010 |
| Shelter | $9,454 |
Your credit history can also affect your home insurance costs, but it’s only one of many factors an insurance company considers. Insurers don’t check your actual credit score. Instead, companies look at your credit-based insurance score, meaning the check won’t ding your credit. But some states limit insurers’ use of credit history in determining rates or writing policies.[4]
Data suggests that how someone manages their money is a good predictor of their likelihood of filing a claim, according to the Insurance Information Institute (Triple-I).[5] For example, if you have a history of poor credit, insurers will view you as a higher risk to insure. Your premiums could also be more expensive because insurers predict it’s more likely you’ll file a claim.
Let’s take a look at the average annual home insurance premiums for $300,000 of dwelling coverage for homeowners with poor credit, according to Compare.com data.
Insurance Company | Average Annual Premium |
|---|---|
| Westfield | $1,284 |
| Kemper | $1,446 |
| Hastings Mutual | $1,580 |
| 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 Insurance | $2,330 |
| Travelers | $2,465 |
| PURE Insurance | $2,487 |
| Progressive | $2,544 |
| Allstate | $2,593 |
| Auto-Owners | $2,695 |
| Nationwide | $2,728 |
| Grange | $2,972 |
| Allied | $3,051 |
| Farmers | $3,141 |
| Encompass | $3,360 |
| Chubb | $3,414 |
| Universal | $3,695 |
| Hanover | $4,830 |
| MetLife | $5,052 |
| COUNTRY Financial | $5,100 |
| Shelter | $6,431 |
It usually costs less to insure a newly constructed home than an older home.[6] The age and condition of your home affect your home insurance costs because outdated utilities, old roofs, and other run-down systems could increase your likelihood of filing a claim.
Newer homes generally have up-to-date plumbing, heating, and other systems that are in good condition. Plus, newer homes often qualify for discounts.
The table below shows the average annual home insurance premiums for different insurance companies based on $300,000 of dwelling coverage on a newly constructed home, according to our data.
Insurance Company | Average Annual Premium |
|---|---|
| Westfield | $832 |
| Kemper | $937 |
| Hastings Mutual | $1,024 |
| 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 Insurance | $1,510 |
| Travelers | $1,597 |
| PURE Insurance | $1,612 |
| Progressive | $1,649 |
| Allstate | $1,681 |
| Auto-Owners | $1,747 |
| Nationwide | $1,768 |
| Grange | $1,927 |
| Allied | $1,978 |
| Farmers | $2,036 |
| Encompass | $2,178 |
| Chubb | $2,213 |
| Universal | $2,395 |
| Hanover | $3,131 |
| MetLife | $3,274 |
| COUNTRY Financial | $3,306 |
| Shelter | $4,168 |
Insuring an old home could mean slightly higher insurance costs. Older homes are typically more prone to damage, made with more risky materials, and have older utility systems, like old knob-and-tube wiring, that could lead to a costly claim.
Also, while many companies offer discounts for new homes, older homes typically don’t qualify for discounts or preferred programs. Sometimes insurers may even require homeowners to make repairs or system upgrades before providing coverage, according to the National Association of Insurance Commissioners (NAIC).[7]
Many factors affect home insurance rates, from where you live to your claims history, but finding affordable insurance for an older home is possible.
Check out the table below, which lists the average annual home insurance premiums for $300,000 of dwelling coverage for a home built in the 1940s, according to Compare.com data.
Insurance Company | Average Annual Premium |
|---|---|
| Westfield | $1,193 |
| Kemper | $1,343 |
| Hastings Mutual | $1,468 |
| 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 Insurance | $2,165 |
| Travelers | $2,290 |
| PURE Insurance | $2,311 |
| Progressive | $2,363 |
| Allstate | $2,409 |
| Auto-Owners | $2,504 |
| Nationwide | $2,534 |
| Grange | $2,761 |
| Allied | $2,835 |
| Farmers | $2,919 |
| Encompass | $3,121 |
| Chubb | $3,172 |
| Universal | $3,432 |
| Hanover | $4,488 |
| MetLife | $4,693 |
| COUNTRY Financial | $4,738 |
| Shelter | $5,975 |
Insuring a condominium is a bit different than insuring a house, since you’re not buying coverage for the whole structure.
You’ll need two separate policies to fully cover your condo: a master insurance policy for the building and a personal insurance policy to cover your liability, protect your belongings, and insure any structural elements the master policy doesn’t cover.[8] Some of your maintenance fees or association dues will cover your part of the master policy.
A master policy covers common areas and features like the roof, basement, and elevators, as well as your condo’s bare walls, floor, and ceiling. That means your personal insurance policy needs to cover everything else, like cabinets, built-in appliances, bathroom fixtures, and even plumbing and electrical wiring.
To give you a sense of how much condo insurance costs, we’ve listed the average annual home insurance premiums for $400,000 in dwelling coverage for a condo.
Insurance Company | Average Annual Premium |
|---|---|
| Westfield | $1,092 |
| Kemper | $1,265 |
| Hastings Mutual | $1,497 |
| AIG | $1,642 |
| Erie | $1,660 |
| American Family | $1,650 |
| Cincinnati Insurance | $1,845 |
| USAA | $1,900 |
| Foremost | $2,262 |
| State Farm | $2,054 |
| Armed Forces Insurance | $2,066 |
| Travelers | $2,255 |
| PURE Insurance | $2,139 |
| Progressive | $2,335 |
| Allstate | $2,423 |
| Auto-Owners | $2,443 |
| Nationwide | $2,586 |
| Grange | $2,834 |
| Allied | $2,947 |
| Farmers | $3,026 |
| Encompass | $3,071 |
| Chubb | $3,266 |
| Universal | $3,362 |
| Hanover | $4,636 |
| MetLife | $4,913 |
| COUNTRY Financial | $4,669 |
| Shelter | $6,163 |
Save hundreds in just a few minutes by comparing quotes side-by-side.
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You have so many options and strategies available to help you lower your home insurance premiums. Here’s where to start.
Bundle policies and look for other discounts. Bundling your home and auto insurance is one of the best ways to save money on both coverages. You can also get discounts for simple things like setting up automatic payments, paying online, and being a first-time homebuyer.
Maintain a good credit history. It’s easier said than done, but having good credit can lower more than just your home insurance costs in the long run. To build good credit, pay bills on time, keep balances low, and don’t take out more credit than you need.
Invest in protective devices and resilience improvements. Many insurers offer discounts for installing security cameras, deadbolt locks, smoke detectors, and burglar alarms. Making your home more disaster-resistant by adding storm shutters, reinforcing your roof, and modernizing utility systems can also generate savings.
Think about insurance before you buy a home. A home’s location, age, and condition significantly influence insurance costs. It might not be fun to think about, but considering all the possible expenses when you’re buying a home can help you make sure you’re investing in something you can actually afford.
Compare home insurance quotes. Shopping around to compare rates and policy features is Triple-I’s top recommendation for lowering your home insurance costs. Do a little homework so you know what coverage you need to get the most accurate quotes. Using an insurance comparison site can make the process a lot faster.
Comparing multiple companies side by side makes shopping a breeze.
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Many factors influence home insurance costs, since insurers calculate premiums based on your personal risk and the risk associated with your home. Here’s an overview of some of the biggest factors affecting costs.
Rebuild or replacement cost: The cost of rebuilding your home is your dwelling coverage amount, which usually makes up the bulk of your home insurance. The more you need, the more it’ll cost — buying $300,000 of dwelling coverage will cost less than buying $600,000 of dwelling coverage.
Location: Your local severe weather risk, area crime rates, and even how close you are to a fire station all affect your likelihood of filing an expensive claim. For example, the nearer you are to professional fire protection services, the sooner they can put out a fire and limit damage, reducing any claim amount.
Building age, condition, and materials: Older homes often have older electrical, plumbing, and other utility systems, which increase your risk of fire or water damage. The materials builders use in your home can also affect your risk of structural damage from disasters like earthquakes.
Credit history: Most states allow insurance companies to review your credit history to help determine rates. Homeowners with good credit may receive cheaper quotes than homeowners with less-than-perfect credit.
Claims history: Insurers may review your history of making claims with a past home or renters insurance company to help determine your likelihood of filing a claim.
Deductible: Choosing a higher deductible means a lower monthly premium, but you’ll have to pay more out of pocket when you file a claim before your coverage kicks in.
Discounts: You could earn discounts for bundling policies, paying in full, installing safety features, being a new homeowner, serving in the military, and more.
Inflation: Economic factors like the rising cost of labor, lumber, and other building materials can drive up repair costs, influencing home insurance rates.
If you’re still wondering about the ins and outs of finding cheap home insurance, here are some answers to the most common questions people ask about home insurance.
Westfield, a regional insurer, is the cheapest home insurance company, with an average annual premium of $1,189 for $300,000 of dwelling coverage, according to our data. Kemper Insurance is the cheapest national insurer, with an average rate of $1,339 per year.[9] But neither company may be your cheapest option, so always compare quotes.
It depends. A reasonable cost for homeowners insurance will vary from person to person because companies use factors like your local weather risk, area crime rates, and the home’s condition to calculate rates.
For context, the national average home insurance rate is $2,584 per year for $300,000 of dwelling coverage. That said, average rates in the U.S. range from $954 in Vermont to $10,675 in Florida. Comparing multiple quotes will help you figure out what a reasonable home insurance premium is in your area.
It’s possible. Your home insurance premium could go up when you renew if you file a claim, but it usually depends on the type of claim and how many you file, according to the Texas Department of Insurance.[10]
Severe weather — like hurricanes, wildfires, tornadoes, and hailstorms — is a major factor behind rising home insurance costs, according to Insurify’s home insurance report. Inflation affects repair, reconstruction, and labor costs, which can also lead to insurance rate increases, as claims become more expensive for insurers to pay out.
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Julia Taliesin is an insurance writer for Compare.com. An expert in personal finance and insurance topics, she began her career as a reporter, covering local business and government in Somerville, Massachusetts. Her reporting included local budgets and municipal finances, building development, and public health.
More recently, Julia uses her writing skills to simplify and explain complex insurance topics, including auto, home, renters, pet, travel, and more. She’s passionate about empowering readers with the knowledge to make more informed decisions with their money.
Julia earned a Bachelor’s degree in communications with a focus in journalism from Simmons University.
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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