Reviews Report
- New Jersey Manufacturers (NJM) offers the cheapest homeowners insurance at an annual rate of $355 a year for $250,000 dwelling coverage, based on 2021 average premium data from Bankrate.com.
- Top cheap home insurance companies in our review include NJM, Auto-Owners, and Cincinnati Insurance.
- Homeowners may find cheap home insurance by bundling other policies and saving up to 25% on premiums.
Shopping for cheap home insurance can be quite an undertaking when there are so many home insurance companies to shop and compare. However, coverage options and customer experience can vary considerably, so it’s important to consider not just picking a cheap homeowners insurance provider for the sake of premiums. The goal of this review is to help you find the right provider that offers the financial protection you need, at a price you can afford. While this comparison may help you identify competitive premiums and standout qualities for each, keep in mind that not all of these companies are available in all states.
The 6 Cheapest Home Insurance Companies
- New Jersey Manufacturers: Cheapest Average Rates
- Mercury Insurance: Best for Coverage Add-Ons
- Erie: Best for Basic Home Insurance
- Cincinnati Insurance: Best for High-Value Home Coverage
- Nationwide: Best for Availability
- Auto-Owners: Best for Customer Satisfaction
Compare the Best Cheap Home Insurance
| Avg. Annual Premium* | J.D. Power** J.D. Power scores are based on surveys for customer satisfaction and product quality. | AM Best Rating AM Best rates insurance providers creditworthiness. Ratings are based on the provider’s ability to follow through with a payout when a consumer files a claim. | ||
|---|---|---|---|---|
| Pin NJM | $335 | N/A | A+ (Superior) | |
| Pin Mercury Insurance | $614 | N/A | A (Excellent) | |
| Pin Erie | $897 | 835 | A+ (Superior) | |
| Pin Cincinnati Insurance | $843 | N/A | A+ (Superior) | |
| Pin Nationwide | $1,042 | 812 | A+ (Superior) | |
| Pin Auto-Owners | $1,165 | 831 | A++ (Superior) |
*Based on $250,000 dwelling coverage
**J.D. Power’s 2021 Home Insurance Satisfaction Study
Cheap Homeowners Insurance Companies, Reviewed
New Jersey Manufacturers
New Jersey Manufacturers
Cheapest Average Rates
Why we chose it
New Jersey Manufacturers has the cheapest overall home insurance rates when compared to other cheap homeowners insurance companies on our list.
Why we chose it
New Jersey Manufacturers has the cheapest overall home insurance rates when compared to other cheap homeowners insurance companies on our list.
Pros
- Lowest average rates based on available data
- Opportunity to receive dividends
- Wide variety of endorsements
Cons
- Fewer online tools and resources than some competitors
- Limited customer satisfaction ratings
- Some coverages and discounts are not available in every state
Read More
Available Discounts
- Backup or portable generator
- Electronic payment
- Non-smoker
- Retired homeowner
- Storm shutters and hurricane glass
Additional Coverage
- Credit card fraud
- Earthquake insurance
- Family liability
- Fungi, wet/dry rot, and bacteria
- Identity theft fraud
- Scheduled personal property
- Supplemental loss assessment
- Valuable items
- Water backup/sump pump
More NJM Insurance Reviews
Mercury
Mercury Insurance
Best for Coverage Add-Ons
Why we chose it
Mercury Insurance offers specialty add-on coverages not as commonly available among other major insurers, such as home systems, service line, and home cyber protection coverage.
Why we chose it
Mercury Insurance offers specialty add-on coverages not as commonly available among other major insurers, such as home systems, service line, and home cyber protection coverage.
Pros
- Dedicated agent for every customer
- Flood and earthquake insurance available (separately)
- Special endorsements available
Cons
- No online claims-filing option
- Limited customer satisfaction ratings
- Not available nationwide
Read More
Available Discounts
- Bundling
- Protective devices
- Fire-resistant materials
- Newer home
- Gated community
Additional Coverage
- Earthquake
- Extended replacement cost
- Flood insurance (through Wright Flood)
- Home systems coverage
- Identity/cyber theft
- Service lines
Erie
ERIE Insurance
Best for Basic Home Insurance
Why we chose it
Though Erie offers comparatively affordable ‘basic’ home insurance coverage, the policies include unique perks such as guaranteed replacement cost and higher coverage limits for valuables, plus coverage for things like gift cards, some pets, or passports.
Why we chose it
Though Erie offers comparatively affordable ‘basic’ home insurance coverage, the policies include unique perks such as guaranteed replacement cost and higher coverage limits for valuables, plus coverage for things like gift cards, some pets, or passports.
Pros
- Robust basic policy
- Strong customer satisfaction ratings
- Strong financial ratings from AM Best
Cons
- Limited discounts
- No home insurance mobile app or online claims
- Not available in all states
Read More
Available Discounts
- Advanced quote
- Multi-policy
- Smoke/burglary alarm system or automatic sprinkler system
Additional Coverage
- Water backup and sump pump
- Identity theft
- Service lines
More Erie Insurance Reviews
Cincinnati Insurance
Cincinnati Insurance
Best for High-Value Home Coverage
Why we chose it
Cincinnati Insurance works with high-value homeowners with homes worth at least $1 million, offering specialized coverages for these unique homes with its Executive Capstone plans. While it does insure homes under this value, homeowners seeking coverage for higher value homes may find this choice appealing for its high-value plans.
Why we chose it
Cincinnati Insurance works with high-value homeowners with homes worth at least $1 million, offering specialized coverages for these unique homes with its Executive Capstone plans. While it does insure homes under this value, homeowners seeking coverage for higher value homes may find this choice appealing for its high-value plans.
Pros
- Coverage for landscape features available
- High-value home coverage
- Superior financial strength ratings
Cons
- Limited available discounts
- No online quote option
Read More
Available Discounts
- Multi-policy
- New home
- Claims-free
- Protective device
Additional Coverage
- Earthquake insurance
- Golf cart insurance
- Identity theft insurance
- Family shield coverage
- Assisted living coverage
- Flood insurance
- Water backup/sump pump coverage
- Green updates coverage
- Service line coverage
- Equipment breakdown coverage
- Cyber protection
- Emergency event cancellation coverage
- Single deductible
- Loss prevention device coverage
Nationwide
Nationwide
Best for Availability
Why we chose it
Among the cheapest companies included in our review, Nationwide offers home insurance in all but 7 states. While specific discounts and coverages may vary, Nationwide home insurance is widely available in all states except Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, and New Mexico.
Why we chose it
Among the cheapest companies included in our review, Nationwide offers home insurance in all but 7 states. While specific discounts and coverages may vary, Nationwide home insurance is widely available in all states except Alaska, Florida, Hawaii, Louisiana, Massachusetts, New Jersey, and New Mexico.
Pros
- Available in 43 states and D.C.
- Superior financial strength ratings
- Unique optional coverage add-ons
Cons
- Lower-than-average customer satisfaction scores
- Mobile app limited in home policy management
Read More
Available Discounts
- Better roof replacement
- Brand new belongings
- Credit card coverage
- Identity theft
- Replacement value plus
- Water backup
Additional Coverage
- Credit card coverage
- Replacement cost plus
- Valuables Plus®
More Nationwide Insurance Reviews:
Auto-Owners
Auto-Owners Insurance
Best for Customer Satisfaction
Why we chose it
Auto-Owners has high customer satisfaction scores and a low complaint index, making this insurer our top pick for customer service. With 48,000 agents located in 26 states, handling policyholder quotes, claims, and coverage needs is a top priority for Auto-Owners.
Why we chose it
Auto-Owners has high customer satisfaction scores and a low complaint index, making this insurer our top pick for customer service. With 48,000 agents located in 26 states, handling policyholder quotes, claims, and coverage needs is a top priority for Auto-Owners.
Pros
- 12 listed discounts
- Guaranteed home replacement cost coverage
- Strong customer satisfaction ratings
Cons
- Must file claim directly with an agent
- No online quote option
- Not offered in all states
Read More
Available Discounts
- Auto water shutoff
- Automatic backup generator
- Favorable loss history
- Mortgage-free
- Paperless “green” discount
Add-on Coverage
- Identity theft
- Sewer or drain backup
- Ordinance or law coverage
- Extended personal property
- Equipment breakdown
More Auto-Owners Insurance Reviews
Cheap Home Insurance: What You Need to Know
According to 2021 average annual premium data from Bankrate.com for $250,000 dwelling coverage, the average cost of home insurance is $1,312 per year. However, the cost of home insurance is based on a few very specific rate factors, such as these:
- Location: Where you live has a big impact on how much you pay for home insurance. For example, if you live in a state like Florida or Texas that faces perils like hurricanes, flooding, and high winds, your home insurance will likely cost a lot more, due to these increased risks. Rates will even vary by specific ZIP code in most states.
- Coverage amount: The dwelling coverage portion of your policy is a huge portion of what determines the cost of your home insurance policy. If you experience structural damage, this is what pays for the repair or replacement, so it is based upon the total value of your home. Additional coverage limits such as personal property or other structures, as well as optional add-ons will contribute to your total policy cost.
- Risk history: Insurance providers in most states may consider both your credit history and claim history to determine your level of risk and how likely you are to file a claim. If you have a history of late payments or you have filed multiple claims in the past, insurers may increase rates to offset these additional risks.
How to Shop for Cheap Home Insurance Online
To find the best cheap home insurance quotes for you, these are some tips that may help.
- Shop around: Compare home insurance quotes to see which company offers the best pricing and discounts for your specific needs. Getting a quote with the same coverage types and limits can help you determine the best deal when comparing multiple companies.
- Check ratings: Expert analysis and ratings from industry leaders can help you determine which providers’ services may provide the best experience for you. Ratings from J.D. Power for customer satisfaction, AM Best for financial stability, and the National Association of Insurance Commissioners for customer complaints can help you understand historical performance of a company.
- Bundle where you can: When you find an insurance company that you like, consider if it would be even more beneficial to bundle your home and auto insurance with the same provider. Most companies will reduce the cost of both policies if you insure your home and vehicle with the single insurer.
- Ask about discounts: Most insurance companies have at least a few discounts that can help you save on premiums. Some discounts may be based on the policyholder’s profile like age, driving history, and employment or student status. Easy-to-qualify-for discounts commonly include those for remaining claims-free or opting for paperless billing.
Cheap Home Insurance FAQ
Methodology
We evaluated the companies based on their third-party agency ratings for customer experience, financial stability, as well as coverage options to determine which might be the best providers.
To compare home insurance companies across the board, we considered the following factors:
- Customer Ratings — Customer ratings are an indication of satisfaction with the process of filing a claim. We measured this using 2021 J.D. Power Home Insurance Study ratings.
- Coverage — As there isn’t one company to fit everyone’s needs, we evaluated companies by the amount of coverage options and add-ons available.
- Confidence — It is extremely important for insurance companies to fulfill customers’ claims. Companies with sound financial strength ratings indicate a positive history of being able to pay out claims. We measured this using AM Best ratings.
- Customer Experience — The amount of complaints a company receives is an indicator of the overall customer experience as it expresses dissatisfaction. We have based this measure on the NAIC National Complaint Index.
Rates are based on quoted annual premiums from Bankrate.com. These are sample rates and should be used for comparative purposes only. Your quotes may be different.
The coverage limits for home insurance rates reflect the following coverage and limits:
- Coverage A, Dwelling: $250,000
- Coverage B, Other Structures: $25,000
- Coverage C, Personal Property: $125,000
- Coverage D, Loss of Use: $50,000
- Coverage E, Liability: $300,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
About the Authors
Mandy Sleight is an insurance writer for Reviews.com. Over the last three years, she has covered insurance providers, coverage, costs of insurance, and more at MoneyGeek, Bankrate, and The Simple Dollar.
