Cheap Home Insurance: Tips to Lower Premiums

Shop and Compare Quotes Annually

The single most effective way to get cheap home insurance is to shop around. Rates vary dramatically between insurers for the same coverage. A homeowner paying $1,800 per year with one company might find the same coverage for $1,200 with another. Get quotes from at least three to five insurers, including both national carriers and regional companies. Use online comparison tools and work with an independent insurance agent who can access multiple carriers. Do not just compare premiums — compare coverage limits, deductibles, exclusions, and endorsements. The cheapest policy is not a bargain if it lacks important coverages. Set a calendar reminder to shop your policy every 12 to 24 months. Insurance companies adjust their rates based on claims experience and reinsurance costs, so a company that was expensive last year might be competitive this year. When you switch, ensure there is no gap in coverage — schedule the new policy to start before the old one ends. Also ask your current insurer if they can match a lower quote before switching; many will offer retention discounts to keep your business.

Increase Your Deductible

Your deductible is the amount you pay out of pocket before your insurance coverage kicks in. Increasing your deductible is one of the fastest ways to lower your premium. Raising your deductible from $500 to $1,000 typically saves 15% to 25% on your premium. Going from $500 to $2,500 can save 30% or more. Before raising your deductible, ensure you have enough savings to cover the higher amount in case of a claim. A good rule of thumb is to set your deductible at an amount you could comfortably pay without financial hardship. Consider a separate, higher deductible for wind and hail damage if you live in a prone area — percentage deductibles (typically 1% to 5% of dwelling coverage) are common for hurricane and windstorm perils and can significantly lower premiums. Some insurers offer vanishing deductibles that decrease over time if you remain claim-free. Remember that you cannot change your deductible mid-policy — it applies when you renew or purchase a new policy. For a detailed look at deductibles, see our home insurance deductible explained guide →.

Bundle Home and Auto Insurance

Bundling your home and auto insurance with the same company is one of the most common ways to get cheap home insurance. Most major insurers offer multi-policy discounts ranging from 10% to 25% off each policy. State Farm, Allstate, GEICO, Progressive, and Travelers all offer substantial bundling discounts. Some insurers also extend bundling discounts to include other policies like life insurance, umbrella insurance, RV insurance, or boat insurance. The savings from bundling can be significant — a family paying $1,600 for home insurance and $1,200 for auto insurance might save $400 to $700 per year by bundling. However, bundling is not always the cheapest option. Compare the bundled premium against buying separate policies from different companies. Sometimes the discount does not offset a higher base rate. Also consider service quality — if your bundled insurer has poor claims service for either home or auto, the savings may not be worth it. Review your bundled policies annually to ensure both are still competitively priced. If you find a better deal on one policy, ask your current insurer if they can match it before switching everything.

Improve Home Security

Installing home security features can qualify you for discounts and make your premium cheaper. Most insurers offer discounts for central station burglar alarms (5% to 15% off), smoke detectors (2% to 5%), fire sprinkler systems (5% to 10%), and deadbolt locks (1% to 3%). More advanced systems with smart home features — like smart water leak detectors, freeze sensors, and smart smoke alarms — can qualify for additional discounts. Some insurers partner with companies like Ring, SimpliSafe, or ADT to offer verified discounts for specific systems. A monitored security system not only lowers your premium but also reduces your risk of burglary and can help prevent water and fire damage through early detection. Keep receipts and documentation for security upgrades, and provide them to your insurer to claim the discount. Some insurers require the system to be professionally monitored rather than self-monitored. Ask your agent about all available security discounts — many homeowners miss out simply because they do not ask. Installing these systems can pay for themselves through premium savings within a few years.

Upgrade Your Roof and Plumbing

Older roofs and plumbing systems increase your insurance risk and premium. Upgrading these components can make your home insurance cheaper. A new roof (architectural shingles or metal roofing) can qualify for discounts of 5% to 20%, especially in areas prone to hail, wind, or wildfire. Impact-resistant roofing materials that meet UL 2218 Class 4 standards earn the largest discounts. Updated plumbing — replacing old galvanized pipes with copper or PEX — reduces the risk of water damage claims and can lower your premium by 5% to 10%. Installing water shut-off devices that detect leaks and automatically turn off the water supply can qualify for additional discounts. Modernizing your electrical system — replacing old fuse boxes with circuit breakers and updating outdated wiring — also reduces fire risk and can lower your premium. Many insurers offer credits for homes that have been recently renovated or have updated major systems. Keep documentation of all upgrades and provide them to your insurer. Some companies offer a "new home" discount for homes under 10 years old, and a "recently renovated" discount for older homes with significant updates.

Maintain Good Credit Score

In most states, insurers use credit-based insurance scores to determine rates. Maintaining good credit is one of the most effective ways to get cheap home insurance. Studies show that individuals with excellent credit pay 50% to 100% more in premiums than those with poor credit. Insurance companies use credit history as a predictor of claims risk — statistically, individuals with lower credit scores file more claims. To improve your credit score, pay bills on time, keep credit card balances low, avoid opening too many new accounts, and check your credit report for errors. Even if you have good credit, review your credit report annually at annualcreditreport.com to ensure accuracy. Some states (California, Hawaii, Maryland, Massachusetts, Michigan, Oregon, and Washington) restrict the use of credit scores in insurance pricing, so residents of these states may not see credit-based adjustments. If your credit has improved since you last purchased insurance, ask your insurer to re-evaluate your rate. Some companies periodically review credit but others do not — a proactive request could lower your premium. Maintaining good credit helps not just with insurance but with mortgages, loans, and credit cards.

Ask About Discounts (Loyalty, Claims-Free, New Home)

Many homeowners overpay simply because they do not ask about available discounts. Loyalty discounts reward long-term customers — typically 5% to 10% after three to five years with the same insurer. Claims-free discounts offer 5% to 20% off for policyholders who have not filed a claim in three to five years. New home discounts apply to homes built within the last 10 years, reflecting the lower risk of newer construction. Other common discounts include: senior discount (5% to 10% for homeowners over 55), retiree discount (because retirees are home more often and can respond to issues quickly), gated community discount (for reduced crime risk), non-smoker discount, professional association discount (membership in certain organizations qualifies for group rates), and early renewal discount (for renewing before your policy expires). Some insurers also offer paperless billing and automatic payment discounts (2% to 5%). The key is to ask your agent specifically about every discount the company offers. Many discounts are not automatically applied — you need to request them and provide supporting documentation. Review applicable discounts at every renewal to ensure you are receiving all the savings you qualify for.

Common Saving Mistakes

Homeowners often make mistakes when trying to get cheap home insurance. One common error is dropping coverage to save money — reducing dwelling coverage below your home's replacement cost can leave you underinsured. Another mistake is choosing the cheapest policy without checking the insurer's financial strength or claims satisfaction ratings. Some people avoid filing small claims to keep premiums low but then fail to maintain an emergency fund to cover those small losses themselves. Others overlook available discounts, assuming they do not qualify without asking. A frequent mistake is not updating coverage after home improvements — this can both leave you underinsured and miss potential discounts for upgrades. Some homeowners fail to shop their policy for years, missing out on competitive rates from new market entrants. Another error is misunderstanding how deductibles work — raising the deductible too high without adequate savings creates financial risk. Finally, some people focus only on premium cost and ignore coverage quality. The cheapest home insurance is only valuable if it pays claims when you need it. Balance savings with quality coverage from a financially stable insurer with good customer service.

FAQs

How much can I save by bundling home and auto insurance?

Bundling typically saves 10% to 25% on each policy. For a typical household paying $1,600 for home and $1,200 for auto, bundling can save $400 to $700 per year.

What is the best deductible to choose for cheap home insurance?

A $1,000 to $2,500 deductible offers the best balance of premium savings and out-of-pocket risk. Raising from $500 to $1,000 typically saves 15% to 25% on premiums.

Does home insurance get cheaper as your home ages?

No, older homes typically cost more to insure due to higher risk of claims from outdated systems. Upgrading roof, plumbing, and electrical systems can help lower premiums.

How often should I shop for home insurance quotes?

Compare quotes every one to two years. Insurance rates change frequently, and you may find better coverage at a lower price, especially if your situation has changed.

Do home security systems really lower insurance premiums?

Yes, monitored security systems typically save 5% to 15% on premiums. Smart water leak detectors, fire sprinklers, and deadbolt locks also qualify for discounts.