These 5 Home Insurers Had the Cheapest Rates in 2023
KEY POINTS
- Homeowners insurance rates vary widely depending on location and home construction.
- Shopping around is crucial to finding the best rates.
- Homes with certain features may qualify for discounts.
The average annual homeowners insurance premium was $1,787 in 2023, and rates can be much higher in areas prone to natural disasters like hurricanes or wildfires. Skipping home insurance isn't an option for most homeowners as lenders require it, so the next best thing is to find affordable coverage. Easier said than done, I know.
But after crunching the numbers, I found that the following five companies offered pretty reasonable rates to homeowners in 2023. We'll look at them below along with more advice on how to save.
The five home insurers with the cheapest rates in 2023
The following five home insurers offered some of the best premium rates in 2023:
- Erie Homeowners Insurance: ($1,569)
- Progressive: ($1,631)
- Farmers: ($1,707)
- State Farm: ($1,726)
- USAA: ($1,770)*
* USAA is only available to active-duty military members, veterans, and their family members.
Keep in mind that these are just averages. Homeowners could pay more or less than the averages above depending on the size and construction of their homes and where they live. However, it doesn't hurt to check them out when shopping for homeowners insurance in 2024.
How to find affordable homeowners insurance in 2024
Shopping around is crucial to landing a great deal on any type of insurance. Insurers evaluate risk differently, which is why they all offer different prices to the same homeowner. The only way to know which favors a given individual the most is to get quotes from several companies and compare them side by side.
Monthly premiums are an important factor, but they shouldn't be the only one. Deductibles are also important, and so is the amount of coverage the insurer offers for the money. Customer service is critical too, should the homeowner need to file a claim.
There aren't as many discounts for home insurance as there are for auto insurance. But homeowners with special items, like new roofs or certain smart devices, might do better by seeking out insurers that reward these things.
Finally, opting for a higher deductible lowers premiums. But those who plan to go this route should try to save for their deductible in an emergency fund so they aren't caught off guard in the event of a claim.
It's not a bad idea to shop around for new rates once or twice per year. It doesn't take a lot of time and it could help homeowners find better deals.
Our Research Expert
Kailey Hagen has been covering personal finance topics, including banks, insurance, and retirement since 2013.
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