AIG has the cheapest homeowners insurance in our 2026 analysis at $1,089 a year for $250,000 in coverage, which is 67% below the national average of $3,299. It comes out on top across every profile we analyzed: good credit, bad credit, recent claims and every coverage level. If you want the best overall value and not just the lowest price, USAA earned a MoneyGeek score of 4.8 out of 5, but is only available to military members, veterans and their families.
Cheapest Homeowners Insurance: Affordable Quotes & Companies in 2026
Updated: July 9, 2026
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Affordable Home Insurance: Key Takeaways
AIG is the cheapest for most homeowners at $1,089 a year or $91 per month for $250,000 in coverage, which is 67% below the national average of $3,299.
Your credit score affects your rate more than almost anything else; with AIG, poor credit costs $639 more a year than good credit for the same coverage.
Comparing quotes can save you over $2,200 a year since AIG's $1,089 annual rate is $2,210 less than the national average of $3,299.
What Are the Cheapest Homeowners Insurance Companies in 2026?
*USAA is only available to military members, veterans and their dependents.
WHY TRUST MONEYGEEK?
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. Read more about our home insurance methodology.
AIG
Cheapest for Most Homeowners
MoneyGeek Rating
4.8/ 5
5/5Affordability
4.2/5Customer Experience
5/5Coverage Points
Average Monthly Premium
$91
Cheapest Home Insurance by State in 2026
The cheapest homeowners insurance company varies by state, and regional insurers beat the national brands in 23 of 51 markets we analyzed. State Farm wins in 13 states, Chubb in 12 and Auto-Owners sweeps the Midwest with wins in Michigan ($33 a month), Colorado ($144), Iowa ($143) and four others.
| State | Cheapest Provider | Average Monthly Premium |
|---|---|---|
| Alabama | State Farm | $225 |
| Alaska | Umialik Insurance | $74 |
| Arizona | American Family | $162 |
| Arkansas | State Farm | $255 |
| California | State Farm | $82 |
| Colorado | Auto-Owners Insurance | $144 |
| Connecticut | Amica | $90 |
| Delaware | State Farm | $83 |
| District of Columbia | Chubb | $129 |
| Florida | State Farm | $311 |
| Georgia | Auto-Owners Insurance | $137 |
| Hawaii | AIG Insurance | $43 |
| Idaho | American Family | $82 |
| Illinois | Chubb | $192 |
| Indiana | American Family | $123 |
| Iowa | Auto-Owners Insurance | $143 |
| Kansas | Auto-Owners Insurance | $208 |
| Kentucky | Auto-Owners Insurance | $231 |
| Louisiana | State Farm | $375 |
| Maine | Chubb | $74 |
| Maryland | Chubb | $169 |
| Massachusetts | Chubb | $119 |
| Michigan | Auto-Owners Insurance | $33 |
| Minnesota | Chubb | $164 |
| Mississippi | State Farm | $362 |
| Missouri | AAA | $135 |
| Montana | Chubb | $71 |
| Nebraska | American Family | $325 |
| Nevada | State Farm | $99 |
| New Hampshire | Amica | $62 |
| New Jersey | New Jersey Skylands | $149 |
| New Mexico | State Farm | $129 |
| New York | State Farm | $82 |
| North Carolina | State Farm | $106 |
| North Dakota | Agraria Insurance | $138 |
| Ohio | Auto-Owners Insurance | $147 |
| Oklahoma | Chubb | $602 |
| Oregon | American Family | $91 |
| Pennsylvania | Erie | $143 |
| Rhode Island | PURE | $174 |
| South Carolina | Chubb | $171 |
| South Dakota | State Farm | $242 |
| Tennessee | Erie | $211 |
| Texas | State Farm | $371 |
| Utah | American Family | $104 |
| Vermont | Concord Group Insurance | $56 |
| Virginia | Chubb | $138 |
| Washington | Chubb | $149 |
| West Virginia | Erie | $144 |
| Wisconsin | Chubb | $84 |
| Wyoming | AMCO Insurance | $158 |
*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.
In high-cost markets like Oklahoma, Louisiana, Texas and Florida, even the cheapest insurer is still above the national average of $3,299 a year. Michigan sits at the opposite extreme, where Auto-Owners comes in at $400 a year, 82% below the state average and the lowest rate we found anywhere in the country.
NOT FAMILIAR WITH THE CHEAPEST INSURER IN YOUR STATE?
If a regional provider you've never heard of comes up as the cheapest option, check its AM Best rating for financial stability, look up customer reviews, and verify it's licensed in your state before buying. You can also work with an independent insurance agent who can vet the insurer and walk you through the policy details.
How Do the Cheapest Companies Compare by Homeowner Profile?
AIG is the cheapest option across every profile we analyzed, but your rate still shifts depending on your coverage amount, credit score and claims history. A homeowner with poor credit pays $639 more a year than one with good credit, even with the same insurer. Knowing where you fall in each category helps you understand what you'll actually pay before you get a quote.
How to Get Cheap Home Insurance
Affordable homeowners insurance doesn't have to mean bare-bones coverage. These strategies lower your premium without cutting protection you actually need.
- 1Compare Quotes From at Least Three Insurers
In our analysis, the difference between the cheapest and most expensive insurer for identical $250,000 coverage is $4,416 a year, with AIG at $1,089 versus Progressive at $5,505. Even stepping down from the most expensive to the national average of $3,299 saves over $2,200 a year. No discount or tip on this list comes close to the savings you get from comparing quotes across insurers.
- 2Insure Your Home for Its Rebuild Cost, Not Its Market Value
Dwelling coverage is the biggest cost driver in your premium. Your home's market value includes land and neighborhood desirability, neither of which insurance covers. A home worth $400,000 on the market might cost $220,000 to rebuild, and over-insuring that difference costs you money every year. In our data, dropping from $250,000 to $100,000 in dwelling coverage with AIG saves $360 a year, but only do this if $100,000 actually covers what it would cost to rebuild your home.
- 3Raise Your Deductible
Raising your deductible means more risk on your end, which is exactly why insurers charge less for it. Moving from $500 to $1,000 or $2,000 can save $200 to $500 a year, depending on your insurer and location. Before you make the change, make sure you actually have that cash set aside. A lower premium isn't worth much if you can't cover the deductible when a claim hits.
- 4Improve Your Credit Score
Credit score swings AIG's rate by $639 a year, from $1,089 for good credit up to $1,728 for poor credit, on the exact same coverage. You don't need perfect credit to see the savings: moving just one tier, from poor to below fair, cuts $433 off your premium. Twelve months of on-time payments and lower credit card balances is usually enough to get there. One exception: California, Hawaii, Massachusetts and Michigan ban insurers from using credit scores to set rates, so skip this one if you live in those states.
- 5Take Advantage of Discounts
Most insurers offer multiple ways to lower your premium beyond the strategies above. Bundling home and auto coverage saves 5% to 15%, and insurers also reward claim-free history, new homebuyer status, safety system installations and automatic payments. Check the full list of common home insurance discounts to see what you might qualify for. Amica offers nine discount opportunities, including a loyalty discount that grows with each year you stay covered.
- 6Review Your Policy Annually
Your coverage needs and insurance rates change over time. 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 a rate increase after a claim can be an opportunity to switch.
What Is the Cheapest Home Insurance for You?
Knowing what to expect makes homeowners insurance shopping easier. Our home insurance calculator draws on millions of 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 real rate data to work with before you contact a carrier.
Find the Cheapest Home Insurance Provider For Your Needs
Our home insurance calculator uses 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 Limit
Select Credit Score
Cheapest Provider & Premium—
Select State
Cheapest Provider & Premium—
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Low-Cost Homeowners Insurance Quotes: Bottom Line
AIG is the cheapest homeowners insurance we found in 2026 at $91 a month ($1,089 a year) for $250,000 in coverage, which is 67% below the national average of $3,299. It comes out cheapest across every credit score, claims history and coverage level we analyzed. Whatever insurer you go with, comparing quotes matters more than anything else on this page. AIG at $1,089 a year versus Progressive at $5,505 is a $4,416 difference for the exact same coverage.
Finding Affordable Homeowners Insurance: FAQ
Find answers to common questions about finding cheap home insurance:
AIG has the cheapest homeowners insurance in our 2026 analysis at $1,089 a year ($91/month) for $250,000 in dwelling coverage, 67% below the national average of $3,299. Amica is the second most affordable at $1,425 a year and is more widely available since AIG operates through the AIG Private Client Group.
AIG is the cheapest for $100,000 in dwelling coverage, averaging $729 a year, or $61 a month. Before dropping your coverage to that level, confirm it would actually cover the cost to rebuild your home from scratch, not just its market value.
Poor credit costs AIG policyholders $639 more a year. Those with poor credit pay $1,728 annually versus $1,089 for good-credit homeowners, the same insurer and the same coverage at two very different prices. California, Hawaii, Massachusetts and Michigan don't allow insurers to use credit scores to set rates, so homeowners in those states won't see this difference.
A higher deductible means you pay more out of pocket before your insurance kicks in, which lowers what the insurer expects to pay out and brings your premium down. Raising your deductible from $500 to $1,000 or $2,000 can save $200 to $500 a year, but only makes sense if you have enough in savings to cover that amount when a claim comes in.
The 80% rule requires you to insure your home for at least 80% of its rebuild cost to get full coverage on partial losses. If your home costs $300,000 to rebuild but you only carry $200,000 in coverage, your insurer pays out 67 cents on the dollar for any partial loss and you cover the rest. Insuring to full rebuild cost avoids that 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 rates represent averages and may not reflect your individual circumstances.
Data Sources and Analysis
We pulled premium data from major homeowners insurance carriers across all 50 states to find the most affordable options for different homeowner profiles and coverage needs. We weighed affordability, financial stability and available discounts to determine which insurers offer the lowest rates for specific situations, including different age groups, credit scores and home characteristics.
Sample Homeowner Profile
We built our analysis around a typical homeowner profile, reflecting common demographics and property types, to keep rate comparisons accurate.
Homeowner demographics:
- Ages 41 to 60 with good credit scores (769 to 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:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 personal liability coverage
- $1,000 deductible
Premium home analysis used $1,000,000 dwelling coverage, $500,000 personal property coverage and $1,000,000 liability coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a licensed Property and Casualty (P&C) Insurance Producer in Connecticut, is MoneyGeek's resident insurance expert. He has spent nearly a decade analyzing the market, first at LendingTree and now at MoneyGeek, where he produces original research on hundreds of carriers and millions of rates across auto, home, renters, health and life insurance.
He covers economics and insurance at MoneyGeek, and his work has been featured in The Washington Post, The New York Times and NPR, among other outlets.
Like all MoneyGeek analysts, he draws on independent cost and consumer experience data. No insurance company partnership influences his recommendations.
Mark holds a B.A. from Boston College and an M.A. in Economics and International Relations from Johns Hopkins University. He started his career in financial risk management at State Street and is also a five-time “Jeopardy!” champion.