Cheapest Home Insurance Companies in 2026: Ranked by Average Premium

Based on average annual premiums for a $300,000 dwelling with a $1,000 deductible on a standard HO-3 policy. Remember: the cheapest national carrier may not be cheapest in your specific state.

Rank	Carrier	Annual	Monthly	AM Best	J.D. Power	Availability
1	USAA	$1,786	$149	A++	894	Military/veteran only
2	State Farm	$1,813	$151	A++	856	National
3	Amica Mutual	$1,924	$160	A+	882	National
4	Erie Insurance	$1,956	$163	A+	876	12 states + DC
5	Allstate	$2,098	$175	A+	834	National
6	Nationwide	$2,156	$180	A+	841	National
7	American Family	$2,234	$186	A	852	19 states
8	Travelers	$2,378	$198	A++	828	National
9	The Hartford	$2,412	$201	A+	838	National
10	Liberty Mutual	$2,567	$214	A	822	National

#1 USAA

$1,786/yr

Consistently ranked #1 for both price and customer satisfaction. Available only to active/former military, their spouses, and children. If you qualify, USAA should be your first call.

#2 State Farm

$1,813/yr

Largest home insurer in the U.S. Competitive pricing backed by strong financial ratings and one of the best bundling discounts (15-25%). Exclusive agent model means you work with a dedicated local agent.

#3 Amica Mutual

$1,924/yr

Mutual company that pays dividends to policyholders (5-20% of premium returned). Top-tier claims satisfaction. Slightly higher sticker price but the dividend effectively lowers the net cost.

#4 Erie Insurance

$1,956/yr

Available in DC, IL, IN, KY, MD, NC, NY, OH, PA, TN, VA, WV, WI. Exceptional claims service and competitive pricing in its footprint. If you are in an Erie state, always get a quote.

#5 Allstate

$2,098/yr

Strong discount program including smart home device discounts. Good bundling savings. Claims satisfaction is slightly below average but financial strength is solid.

#6 Nationwide

$2,156/yr

Competitive pricing for new construction homes. Strong bundling discounts (15-20%). Brand new home discounts can be significant.

#7 American Family

$2,234/yr

Strong in the Midwest (AZ, CO, GA, IA, ID, IL, IN, KS, MN, MO, NE, NV, ND, OH, OR, SD, UT, WA, WI). Good value for Midwest homeowners with competitive rates and above-average service.

#8 Travelers

$2,378/yr

Best financial strength rating (A++) among the affordable options. Good choice for high-value homes where carrier stability matters most. Smart home and green home discounts available.

#9 The Hartford

$2,412/yr

AARP partnership provides exclusive discounts for members. If you are 50+, The Hartford quote is often the most competitive. Age-related discounts compound with other savings.

#10 Liberty Mutual

$2,567/yr

Higher sticker price but one of the most customizable policies available. Many endorsement options that other carriers do not offer. Good for homeowners with specific coverage needs.

Best Carrier by Category

Best overall value

USAA

Lowest average premium AND highest customer satisfaction. The catch: military/veteran eligibility required.

Best for bundling

State Farm

15-25% multi-policy discount. Largest agent network for in-person service. Reliable claims handling.

Best for claims satisfaction

Amica Mutual

Consistently highest J.D. Power scores. Dividend policy returns 5-20% of premium. Mutual structure aligns company and customer interests.

Best regional value

Erie Insurance

Lowest rates in its 12-state footprint with top-tier claims satisfaction. If you are in an Erie state, always get a quote.

Best for AARP/50+ members

The Hartford

Exclusive AARP discounts. Age-related savings compound with other discounts for significant premium reduction.

Best for high-value homes

Travelers

A++ financial strength rating. Specialized high-value home coverage. Less likely to face capacity issues during catastrophe events.

Why "Cheapest" Is Misleading

National averages hide dramatic state-level variation. The carrier that is cheapest nationwide may be the most expensive in your state. Your credit score, claims history, home age, and roof condition all change the ranking. A carrier that charges $1,800/year nationally might charge $3,200/year for your specific risk profile. Always get multiple quotes based on your actual property details.

State-Specific Notes (Top 10 States by Population)

California

CSAA (AAA) and State Farm tend to be cheapest. USAA for military families. California's rate regulation keeps prices relatively uniform.

Texas

USAA, State Farm, and Amica. Texas has high premiums overall due to hail and wind. Shopping aggressively saves more here than in low-risk states.

Florida

Citizens (state insurer of last resort) is often the only affordable option for high-risk properties. USAA and Universal Property for those who qualify.

New York

Amica, Erie (upstate), and State Farm. New York's strict regulation keeps rates lower than many states. Urban vs rural rates vary significantly.

Illinois

State Farm (headquartered in IL), USAA, and Country Financial (regional). State Farm's local presence in Illinois translates to competitive rates.

Pennsylvania

Erie Insurance is typically the cheapest in PA (headquartered there). State Farm and Amica also competitive.

Ohio

Erie Insurance and State Farm. Ohio's moderate climate keeps rates manageable. Shopping 3+ carriers typically saves 15-20%.

Georgia

USAA, State Farm, and Allstate. Rates vary significantly between metro Atlanta and rural Georgia.

North Carolina

Erie, State Farm, and North Carolina Farm Bureau. NC rate regulation keeps prices competitive.

Michigan

Auto-Owners Insurance and USAA. Michigan saw massive rate increases in 2025-2026, so shopping is critical.

What You Might Give Up With the Cheapest Option

Claims Service

Budget carriers may take longer to process claims, use aggressive cost-containment tactics, or outsource adjuster work. A carrier with a 28-day average claim cycle vs a 42-day cycle makes a real difference when you are displaced from your home.

Coverage Quality

Some cheap carriers use ACV instead of RCV on personal property, have lower sub-limits for jewelry and electronics, or exclude water damage coverage that more expensive carriers include. Read the full policy, not just the premium.

Financial Stability

Carriers with AM Best ratings below A- are more likely to face financial difficulty during major catastrophe events. Several budget carriers in Florida and Louisiana became insolvent during recent hurricane seasons, leaving policyholders with unpaid claims.