Amica is the cheapest homeowners insurance company nationwide in our 2026 analysis, averaging $1,428 per year for a policy with $250,000 in dwelling coverage. That's 56% below the national average of $3,268 and $195 less annually than the second-cheapest insurer, AAA, at $1,623. USAA rounds out the top three at $2,233 per year, though it's only available to military families and veterans.
Cheapest Homeowners Insurance: Affordable Quotes & Companies in 2026
Updated: May 8, 2026
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Affordable Home Insurance: Key Takeaways
Amica is the cheapest homeowners insurance company nationwide, averaging $1,428 per year for $250,000 in dwelling coverage — 56% below the national average of $3,268.
Amica, AAA and USAA rank as the three most affordable national insurers, according to our analysis of millions of home insurance quotes across all 50 states. Each insurer's average falls 32% to 56% below the national average.
Your actual homeowners insurance rate depends on factors like your home's location, age, value and claims history, so the cheapest company for you may differ from national averages.
What Are the Cheapest Homeowners Insurance Companies in 2026?
$119 | $1,428 | -56% | |
$135 | $1,623 | -50% | |
$186 | $2,233 | -32% | |
$188 | $2,251 | -31% | |
$198 | $2,381 | -27% | |
$204 | $2,454 | -25% | |
$287 | $3,441 | +5% | |
$369 | $4,431 | +36% | |
$454 | $5,445 | +67% | |
$571 | $6,848 | +110% |
*USAA is available exclusively to military members, veterans and their dependents. Where USAA is the cheapest option, MoneyGeek shows the most widely available provider.
When we pulled quotes across all 10 insurers in our analysis, the pricing gap between cheapest and most expensive was striking. Amica's $1,428 annual premium is $5,420 less than Travelers' $6,848, a difference of 110% above the national average versus 56% below it. That $452 monthly spread between the cheapest and most expensive insurer is wider than what we see in auto insurance, and it shows how much homeowners leave on the table by not comparing quotes.
MoneyGeek's rate data comes from Quadrant Information Services, which aggregates premium filings from major insurers across all 50 states. We analyzed rates for a standard profile — a homeowner ages 41 to 60 with good credit, no recent claims, a 2000-built home and $250,000 in dwelling coverage — then varied one factor at a time to isolate cost impacts by credit score, claims history, home age and coverage level. Rates are averages and may not reflect your individual circumstances.
Reviews of the Best Cheap Home Insurance Companies
We looked beyond rates to evaluate each insurer's financial strength, coverage options and claims handling. The analysis identifies who each company works best for, and when you should look elsewhere.
Amica
Cheapest for Most Homeowners
MoneyGeek Rating
4.7/ 5
4.9/5Affordability
4.9/5Customer Experience
3.6/5Coverage Points
Average Annual Premium
$1,428Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleAverage Monthly Premium
$119Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleNumber of Discounts
9
AAA
Cheapest for Homeowners with Poor Credit
MoneyGeek Rating
4.6/ 5
4.9/5Affordability
3.8/5Customer Experience
4.8/5Coverage Points
Average Annual Premium
$1,623Cost tooltip: Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleAverage Monthly Premium
$135Cost tooltip: Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleNumber of Discounts
3
USAA
Cheapest for Military Families
MoneyGeek Rating
4.8/ 5
4.7/5Affordability
5/5Customer Experience
4.7/5Coverage Points
Average Annual Premium
$2,233Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleAverage Monthly Premium
$186Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleNumber of Discounts
5
Farmers
Most Discount Opportunities
MoneyGeek Rating
4.3/ 5
4.6/5Affordability
4.3/5Customer Experience
3.5/5Coverage Points
Average Annual Premium
$2,251Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleAverage Monthly Premium
$188Based on our methodology's base profile of a policy with $250K in dwelling coverage, $125K in personal property coverage and $200K in liability coverage with a $1,000 deductibleNumber of Discounts
14
Cheapest Home Insurance by State
The cheapest homeowners insurance company varies by state because each state has its own regulations, weather risks and level of competition between insurers. Hurricane risk drives up rates in Florida, while earthquake coverage increases costs in California. State regulators set different pricing rules, so what's affordable in Texas might be expensive in New York.
| Alabama | State Farm | $2,698 | -45% |
| Alaska | Umialik Insurance | $884 | -37% |
| Arizona | American Family | $1,938 | -26% |
| Arkansas | State Farm | $3,061 | -39% |
| California | State Farm | $986 | -36% |
| Colorado | Auto-Owners Insurance | $1,733 | -57% |
| Connecticut | Amica | $1,077 | -52% |
| Delaware | State Farm | $994 | 5% |
| District of Columbia | Chubb | $1,552 | 24% |
| Florida | State Farm | $3,727 | -64% |
| Georgia | Auto-Owners Insurance | $1,640 | -27% |
| Hawaii | AIG Insurance | $519 | -14% |
| Idaho | American Family | $980 | -41% |
| Illinois | Chubb | $2,300 | -26% |
| Indiana | American Family | $1,470 | -53% |
| Iowa | Auto-Owners Insurance | $1,711 | -28% |
| Kansas | Auto-Owners Insurance | $2,493 | -33% |
| Kentucky | Auto-Owners Insurance | $2,772 | -9% |
| Louisiana | State Farm | $4,502 | -38% |
| Maine | Chubb | $891 | -37% |
| Maryland | Chubb | $2,027 | -23% |
| Massachusetts | Chubb | $1,428 | -26% |
| Michigan | Auto-Owners Insurance | $400 | -82% |
| Minnesota | Chubb | $1,972 | -21% |
| Mississippi | State Farm | $4,349 | -16% |
| Missouri | AAA | $1,617 | -45% |
| Montana | Chubb | $847 | -82% |
| Nebraska | American Family | $3,903 | -38% |
| Nevada | State Farm | $1,184 | -6% |
| New Hampshire | Amica | $742 | -36% |
| New Jersey | New Jersey Skylands | $1,783 | 1% |
| New Mexico | State Farm | $1,542 | -13% |
| New York | State Farm | $980 | -37% |
| North Carolina | State Farm | $1,274 | -66% |
| North Dakota | Agraria Insurance | $1,654 | -27% |
| Ohio | Auto-Owners Insurance | $1,761 | -15% |
| Oklahoma | Chubb | $7,219 | -6% |
| Oregon | American Family | $1,092 | -3% |
| Pennsylvania | Erie | $1,718 | -22% |
| Rhode Island | PURE | $2,094 | 0% |
| South Carolina | Chubb | $2,047 | -34% |
| South Dakota | State Farm | $2,900 | -20% |
| Tennessee | Erie | $2,533 | -17% |
| Texas | State Farm | $4,455 | -34% |
| Utah | American Family | $1,243 | -14% |
| Vermont | Concord Group Insurance | $666 | -37% |
| Virginia | Chubb | $1,660 | -38% |
| Washington | Chubb | $1,794 | 22% |
| West Virginia | Erie | $1,726 | 7% |
| Wisconsin | Chubb | $1,011 | -27% |
| Wyoming | AMCO Insurance | $1,896 | 0% |
*In some states where USAA is the cheapest, MoneyGeek showed the most widely available provider. USAA is exclusive to military members, veterans and their dependents.
State Farm appears as the cheapest insurer in more states than any other company in our analysis, winning 14 states including high-cost markets like Florida ($3,727), Texas ($4,455) and Louisiana ($4,502).
But being the cheapest in a state doesn't always mean affordable rates. State Farm's $3,727 annual premium in Florida is still 64% below the state average there, which tells you how expensive Florida's market has become for every other insurer. Chubb, by contrast, wins 11 states and performs best in lower-risk markets like Montana ($847, 82% below average) and Wisconsin ($1,011, 27% below average).
The data also shows that regional and smaller insurers beat national brands in several states. Umialik Insurance is cheapest in Alaska at $884 per year, Concord Group Insurance wins Vermont at $666 and New Jersey Skylands takes New Jersey at $1,783. These aren't household names, but their pricing advantage in specific states is real. Umialik's $884 Alaska premium is 37% below the state average, a gap that no national carrier matched.
HOME INSURANCE COSTS VARY BY CITY AND ZIP CODE
Home insurance rates vary between cities in the same state due to differences in weather risks, building costs and local regulations. Within each city, rates shift by ZIP code based on crime statistics, fire station proximity and claim frequency. Your neighbor two blocks away might pay hundreds of dollars less with a different insurer, so compare quotes for your specific ZIP code.
How Do the Cheapest Companies Compare by Homeowner Profile?
Amica is the cheapest insurer in 10 of the 11 homeowner profiles we analyzed, but the one exception matters: AAA beats Amica for homeowners with poor credit, where premiums jump to $2,321 per year. Your cheapest option depends on your home's location, age and value, plus your credit score, age and claims history. These factors affect what you pay, so the best deal for your neighbor may not be your best choice. We analyzed rates for 11 specific scenarios to show where the rankings change and why.
Homeowners with Excellent Credit | Amica | $960 |
Homeowners with Poor Credit | AAA | $2,321 |
Most Homeowners | Amica | $1,428 |
Higher Dwelling Coverage ($1M) | Amica | $4,444 |
1 Claim in Past 5 Years | Amica | $1,503 |
2 Claims in Past 5 Years | Amica | $1,661 |
Claim-Free (5+ Years) | Amica | $1,428 |
Lower Dwelling Coverage ($100K) | Amica | $834 |
Older Homes (1980) | Amica | $1,371 |
Newer Homes (2020) | Amica | $956 |
The most important pattern we found: Amica's affordability advantage is largest at standard coverage levels and good credit, where its rates are 56% below the national average. That advantage compresses to about 29% for homeowners with poor credit ($2,763 vs. the national average), which is why AAA becomes the better choice for that profile — its rates run 29% below average at $2,321 for poor-credit homeowners.
How to Get Cheap Home Insurance
Finding affordable homeowners insurance doesn't mean accepting bare-bones coverage. These strategies can reduce your premium while maintaining solid protection.
- 1Set Your Dwelling Coverage Based on Rebuild Cost, Not Market Value
Dwelling coverage is the biggest cost driver in homeowners insurance. Insure your home for its rebuild cost (what it would cost to reconstruct it from the ground up) not its market value. Market value includes land and neighborhood desirability, which insurance doesn't cover. A home worth $400,000 on the market might only cost $220,000 to rebuild, so over-insuring wastes money every year.
- 2Compare Quotes From at Least Three Insurers
Rate differences between companies can exceed $1,000 annually for identical coverage. In our analysis, the spread between the cheapest and most expensive national insurer was $5,420 per year for the same $250,000 dwelling coverage. Don't only call the big names — regional insurers often beat national companies on price while providing comparable coverage and service.
- 3Raise Your Deductible
A higher deductible directly lowers your monthly premium. Raising your deductible from $500 to $1,000 or $2,000 can save $200 to $500 annually. Only raise your deductible if you have that amount available in savings — otherwise you're taking on financial risk you can't cover. Keep the deductible amount in a dedicated emergency fund.
- 4Improve Your Credit Score
Credit score is one of the strongest pricing factors in homeowners insurance. Moving from poor to good credit saves an average of $840 per year based on our rate analysis ($2,321 vs. $1,428). Pay bills on time, reduce credit card balances and avoid opening unnecessary new accounts. States that prohibit credit scoring in insurance pricing include California, Hawaii, Massachusetts and Michigan.
- 5Take Advantage of Discounts
Most insurers offer multiple ways to lower your premium. Common home insurance discounts include bundling home and auto coverage (typically 5% to 15%), claim-free history, new home buyer status, safety system installation and automatic payment setup. Amica offers nine discount opportunities, including a loyalty discount that grows with each year of continuous coverage.
- 6Review Your Policy Annually
Your coverage needs and insurance rates change over time. We recommend that you review your policy each year, especially after major renovations or when local construction costs rise. This is also the right time to get fresh quotes from other insurers — loyalty doesn't always produce savings in insurance, and rate increases after a claim can be an opportunity to switch.
What Is the Cheapest Home Insurance for You?
Finding affordable homeowners insurance starts with knowing what to expect. Our home insurance calculator draws on millions of home insurance quotes across hundreds of ZIP codes in all 50 states, using your credit score, state and coverage preferences to estimate rates from several budget-friendly insurers. It won't replace a formal quote, but it gives you a grounded starting point built from real rate data before you contact a carrier.
Home Insurance Rates by State, Coverage and Credit Score
A profile of 41 to 60-year-old homeowners with no prior claims insuring a 2,500-square-foot home with a $1,000 deductible.
Select State
Select Coverage Level
Select Credit Score
Average Annual Premium—
Select State
Average Annual Premium—
Select Coverage Level
Select Credit Score
Low-Cost Homeowners Insurance Quotes: Bottom Line
Amica is consistently the cheapest homeowners insurance nationwide across coverage levels, home ages and most credit tiers, with rates 56% below the national average at $1,428 per year. If you have poor credit or live outside Amica's coverage area, AAA is the next strongest option at $2,321 per year for the same standard profile. The cheapest premium isn't always the right choice. Balance affordability with solid coverage, reliable claims handling and financial stability. Compare quotes from multiple insurers and review your policy annually to make sure you're getting the best value.
Finding Affordable Homeowners Insurance: FAQ
Find answers to common questions about finding cheap home insurance:
Who has the cheapest home insurance?
Amica has the cheapest homeowners insurance nationwide, averaging $1,428 per year for $250,000 in dwelling coverage — 56% below the national average of $3,268, based on our analysis. AAA and USAA are the second and third most affordable options nationally, averaging $1,623 and $2,233 per year respectively. For homeowners with poor credit, AAA offers the lowest rates at $2,321 per year.
What is the cheapest home insurance provider for $100K in dwelling coverage?
Amica is the cheapest option for $100,000 in dwelling coverage, averaging $834 per year or $70 per month for a standard homeowner profile. AAA is the second most affordable at the same coverage level. Rates at $100,000 in dwelling coverage are significantly lower than the standard $250,000 benchmark, but you should confirm this level actually covers your rebuild cost before reducing coverage.
How much more do homeowners with poor credit typically pay for insurance?
Homeowners with poor credit pay an average of $2,321 per year with the cheapest insurer (AAA) for standard $250,000 coverage, compared to $1,428 per year for homeowners with good credit (Amica) — a 63% gap. California, Hawaii, Massachusetts and Michigan prohibit insurers from using credit scores when setting rates, so residents there won't see this pricing difference.
Why does increasing my deductible lower my premiums?
Raising your deductible shifts more out-of-pocket risk to you, which reduces the insurer's expected payout on claims. Insurers price this reduced risk as a lower premium. The savings typically work in your favor if you have at least one or two years of premium savings in reserve to cover a higher deductible when a claim occurs.
What is the 80% rule in homeowners insurance?
The 80% rule requires you to insure your home for at least 80% of its replacement cost to receive full coverage on partial losses. If your home needs $300,000 to rebuild but you carry $200,000 in coverage (67%), your insurer pays only 67% of any covered partial loss, leaving you responsible for the remaining 33%. Insuring to full replacement cost avoids this penalty.
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Our Methodology: How We Determined the Cheapest Home Insurance Companies
Why Trust MoneyGeek to Help You Find Affordable Home Insurance?
MoneyGeek's home insurance analysis draws from data provided by Quadrant Information Services, an insurance analytics firm. Our research approach helps consumers get accurate, relevant information when comparing coverage options, though rates represent averages that may not reflect your individual circumstances.
Data Sources and Analysis
We analyzed premium data from major homeowners insurance carriers across all 50 states to identify the most affordable options for different homeowner profiles and coverage needs. Our evaluation of the cheapest homeowners insurance companies focused on affordability, financial stability and available discounts to identifying which companies offer the lowest rates for specific situations like different age groups, credit scores and home characteristics..
Sample Homeowner Profile
For accurate rate comparisons, we built our analysis around a typical homeowner profile that reflects common demographics and property types:
Homeowner Demographics:
- Ages 41-60 with good credit scores (769-792 range)
- No recent claims history
- Financially stable with standard risk profile
Property Characteristics:
- Home built in 2000
- Wood-frame construction with composite shingle roof
- Standard safety features and building materials
- $250,000 replacement value
Coverage Standards
Our base profile uses these coverage limits representing typical protection levels:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 personal liability coverage
- $1,000 deductible
Premium home analysis increased coverage to $1,000,000 dwelling coverage, $500,000 personal property coverage, and $1,000,000 liability coverage.
This comprehensive approach allows us to identify the cheapest companies across different coverage scenarios while maintaining consistent comparison standards.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has analyzed the insurance market for almost a decade, first with LendingTree and now with MoneyGeek, conducting original research on hundreds of insurance companies and millions of insurance rates for insurance shoppers.
He writes about economics and insurance on MoneyGeek, breaking down complex topics so people can have confidence in their purchase. Like all MoneyGeek analysts, Mark collects and analyzes independent cost and consumer experience data on insurance companies to provide objective recommendations in our content that are independent of any of MoneyGeek's insurance company partnerships.
His insights on products ranging from car, home and renters insurance to health and life insurance have been featured in The Washington Post, The New York Times and NPR, among others.
Mark holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He started his career working in financial risk management at State Street before transitioning to the analysis of the personal insurance market. He's also a five-time Jeopardy champion!