Best home insurance companies
We used two criteria to assess the best cheap insurance companies: their services and price-related factors. We looked at each insurer’s availability (discounting companies that did business in fewer than 35 states); financial strength, as measured by independent agencies such as A.M. Best; customer satisfaction, as reflected in studies by J.D. Power and Consumer Reports; and whether the company offered the popular “open perils” coverage also known as HO-3.
To assess price, we looked at the number of discounts offered that can lower premiums, as well as customer satisfaction with their price (measured in the J.D. Power and Consumer Reports studies, as well as Insure.com rankings). Individual quotes, which can vary so widely from person to person, were only given weight in the case of a tie.
We’re big fans of Amica, and so are its customers. The company reigns in customer service studies, which means you’re less likely to encounter any runaround after submitting a claim. Customers are also very happy with their premiums relative to the level of coverage and service they receive. When we hunted down quotes in our all-up review of best homeowners insurance companies, Amica consistently came in cheaper than other insurers.
But will Amica be cheapest for you? Maybe; maybe not. Admittedly, the company doesn’t offer as many discounts as some of its competitors, which will dole out better rates for everything from storm shutters to deadbolts. However, because it sells direct to customers, local agents aren’t taking a cut of profits via commissions, which means the company can pass those savings onto you.
Liberty Mutual really shines when it comes to discounts: You can save for all sorts of reasons, including bundling your home insurance with (for example) auto insurance, staying claims-free, purchasing a new home or renovating an old one, and getting a new quote before your old policy expires.
Compared to Amica, customers aren’t quite as satisfied with Liberty Mutual’s value. They may pay less, but some customers feel they don’t get as much for their money. For homeowners who never have to make a claim, that’s no biggy. But who ever plans on making a claim? That said, getting a quote will help you see whether Liberty Mutual’s discounts stack up significantly for you.
Like Liberty Mutual, Allstate has a wide range of home insurance discounts. They include popular price breaks for bundling policies and staying claims-free, as well as not-so-common discounts for not smoking and for being a new customer.
Also like Liberty Mutual, customers are divided on whether Allstate is a good value for the money: Some are satisfied; others aren’t. You’ll need a quote to see whether Allstate can deliver you the lowest rate.
Other Companies to Consider
We only considered companies that had a nationwide (or near-nationwide) reach, but customers are also big fans of smaller companies such as Erie, Auto-Owners, and Auto Club of Southern California (AAA). If they service your region, definitely get a quote. If you’re military, check out USAA, which customers routinely laud for its value and service.