How we put this guide together: national company figures come from NerdWallet’s February and May 2026 analyses of more than 100 insurers (40-year-old homeowner, good credit, $400,000 dwelling, $300,000 liability, $1,000 deductible). Bundle discounts are insurers’ advertised maximums as reported by NerdWallet. See our advertiser disclosure.
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| Insurer | Average a year | Difference from national average ($2,490) |
|---|---|---|
| USAA* | $1,940 | −$550 |
| State Farm | $2,415 | −$75 |
| Progressive | $2,580 | +$90 |
| Travelers | $2,710 | +$220 |
| Allstate | $2,715 | +$225 |
| Farmers | $3,250 | +$760 |
| Nationwide | $3,345 | +$855 |
| American Family | $4,235 | +$1,745 |
*USAA serves military members, veterans, some federal employees and their families. Source: NerdWallet (2026). Differences are our arithmetic.
Regional insurers can be cheaper
National averages hide how local the home insurance market is. In NerdWallet’s state-by-state data, the cheapest insurer was often a company most people outside that state have never heard of. Examples from its February 2026 analysis:
| State | Cheapest insurer | Average a year |
|---|---|---|
| Alabama | Centauri | $2,525 |
| Alaska | Umialik | $1,285 |
| California | Pacific Specialty | $1,130 |
| Colorado | Grange Insurance Association | $2,180 |
| Connecticut | State Farm | $585 |
| Florida | People’s Trust | $1,715 |
| Georgia | Auto-Owners | $2,520 |
| Hawaii | DB Insurance | $415 |
| Illinois | Allstate | $2,260 |
| Indiana | Buckeye | $1,050 |
| Iowa | Integrity | $2,655 |
| Kansas | State Farm | $2,665 |
Source: NerdWallet, cheapest home insurance (updated February 20, 2026), selected states. Same sample policy as above.
Some of these cheapest options cost well under half their state’s average. In Indiana, for example, Buckeye’s $1,050 compares with a state average of $2,985 in NerdWallet’s May data.
Bundle discounts by insurer
Bundling home and auto with one company is often the single largest discount available. Advertised maximums reported by NerdWallet in September 2026:
| Insurer | Bundle discount |
|---|---|
| American Family | Up to 40% |
| Amica | Up to 30% |
| Country Financial | Up to 30% |
| Farmers | 10% or more |
| USAA | Up to 10% |
| State Farm | Up to $1,429 a year |
A big bundle discount doesn’t guarantee the lowest total. American Family has the highest average home price in the table above, so compare the bundled total with buying home and auto from two different cheap insurers.
Savings tip: get three numbers for each insurer: home alone, auto alone and the bundle. Then compare the cheapest bundle against the cheapest separate home plus the cheapest separate auto.
What to compare in every quote
| Item | What to check |
|---|---|
| Dwelling limit | The same in every quote, and close to your real rebuild cost |
| All-perils deductible | The same dollar amount in every quote |
| Wind, hail or hurricane deductible | Fixed dollars or a percentage of the dwelling limit |
| Personal property valuation | Replacement cost or actual cash value |
| Roof valuation | Whether older roofs are paid at actual cash value |
| Liability limit | $300,000 or more if you have assets to protect |
| Extras | Water backup, ordinance or law, extended replacement cost |
| Discounts applied | Bundling, claims-free, protective devices, paid in full |
A quote that looks $300 cheaper may simply have a higher wind deductible or pay actual cash value for your roof. Lining up these items side by side shows the real difference.
Cheap isn’t the only test
Home insurance is bought for the rare, big claim, so how an insurer handles claims matters as much as price. Before switching to save money:
- Compare like with like: same dwelling limit, deductible (including any wind or hurricane deductible), and replacement cost for belongings.
- Check complaints: the NAIC and many state insurance departments publish complaint data by insurer.
- Check financial strength: ratings agencies such as AM Best show whether an insurer is in a strong position to pay large claims, which matters most after a major storm.
- Read the exclusions: some low-cost policies cover less, for example paying actual cash value for roof damage.
If insurers won’t cover your home
In some high-risk areas, especially wildfire zones in the West and hurricane-exposed coasts, standard insurers have limited new policies. If you are turned down:
- Try an independent agent, who can approach regional and specialist insurers you might not find on your own.
- Look at surplus lines insurers, which cover risks standard companies avoid, usually at a higher price.
- Use your state’s insurer of last resort, such as a FAIR plan or, in Florida, Citizens Property Insurance. These provide basic cover when the private market won’t, though coverage can be narrower.
- Reduce the risk: clearing brush, upgrading the roof and adding storm shutters can make a home insurable again and lower the price.
Independent agent or buy direct?
Buying directly from an insurer online or through its own agent is simple and quick. An independent agent can compare several companies at once and is often the easiest way to find regional insurers, which were cheapest in many states in NerdWallet’s data. Agents are paid by commission from the insurer, so you don’t pay extra to use one.
How to find your own cheapest rate
- Get quotes from at least one national insurer, one regional insurer and an independent agent, who can quote several companies at once.
- Use the same coverage in every quote.
- Ask for every discount: bundling, claims-free, new roof, security system, smart water sensors, paperless and paid in full.
- Choose the highest deductible you can comfortably afford.
- Re-shop every year or two, especially after a big renewal increase.
See also average costs in every state and ways to lower your premium.
Common questions
Who has the cheapest home insurance in 2026?
Among large insurers, USAA had the lowest average at $1,940 a year in NerdWallet’s 2026 analysis, but only military families can join. State Farm was the cheapest widely available large insurer at $2,415.
Are regional insurers cheaper?
Often. In NerdWallet’s state data, the cheapest insurer in many states was a regional company, such as Buckeye in Indiana or Pacific Specialty in California.
Is bundling home and auto always cheaper?
Usually, but not always. Compare the bundled total with buying home and auto separately from the cheapest insurer for each.
Sources
- NerdWallet: Cheapest home insurance, 2026 (Feb 2026)
- NerdWallet: Average homeowners insurance cost, 2026 (May 2026)
- NerdWallet: Best home and auto insurance bundles (Sept 2026)
Prices, discounts and rules change often and vary by state and driver. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.