Nobody wants to overpay for insurance, and the good news is that cheap homeowners insurance is usually a matter of strategy, not luck. The national average premium is about $2,490 a year in 2026—but the tactics below can cut hundreds off that figure. Here are 7 proven ways to pay less without leaving your home underprotected.
Way 1: Bundle Home and Auto for Up to 40% Off
The single biggest discount most people qualify for is bundling—insuring your home and car with the same company. Typical savings run 10–25%, and NerdWallet reports discounts of up to 40% off premiums.
On the $2,490 national baseline, a 25% bundling discount means:
$2,490 × 25% = $622.50 saved per year → new premium $1,867.50
One caveat worth knowing: bundling is not always the cheapest option. A few homeowners save more by splitting policies between two providers, so treat the bundle as your starting quote and compare it against standalone prices before committing.
Way 2: Raise Your Deductible and Save Up to 25%
The deductible is the fastest lever you control. According to the Insurance Information Institute, raising your deductible from $500 to $1,000 can cut your premium by up to 25%—another potential $622.50 a year on the baseline.
The rule is simple: never pick a deductible you could not pay from emergency savings after a loss. The discount is only a good deal if a claim does not leave you stuck.
Way 3: Install Safety Devices That Earn Discounts
Insurers reward homes that are harder to damage and quicker to alert. Typical national-average discounts (via Motley Fool):
| Device | Typical discount | Dollar saving on $2,490 |
|---|---|---|
| Smoke alarms | 6% | $149.40 |
| Fire extinguisher | 6% | $149.40 |
| Burglar alarm | 8% | $199.20 |
| Sprinkler system | 10% | $249.00 |
Smart-home gear counts too—Google Nest Protect smoke and CO alarms, Nest cameras, and water-leak sensors are exactly the kind of protective devices that earn these credits. Tell your insurer what you have installed; many discounts are not applied automatically.
Way 4: Stay Claims-Free for Bigger Savings
Insurers love customers who never file claims. Most offer a claims-free discount after 3–5 years without a claim—USAA, for example, cuts up to 15% for 5+ clean years, worth $373.50 on the baseline.
The practical takeaway: do not file small claims. Paying a $900 repair out of pocket instead of filing can protect a discount worth far more over the following years.
Way 5: Shop Around Every 1 to 3 Years
Loyalty feels virtuous, but insurers routinely raise renewal premiums while offering their best prices to new customers. Consumer Reports recommends shopping around roughly every three years—and many shoppers save hundreds a year by switching.
Make it automatic: set a Google Alert for “[your state] homeowners insurance rate filing” so you hear about increases before your renewal arrives, instead of after.
Way 6: Improve Your Credit Score
In most states, insurers use credit-based insurance scores to set prices—and the impact is enormous. Quadrant Data (via Motley Fool) found that moving from poor to average credit can cut premiums by up to 59%.
If your credit is weak, this is the highest-leverage move on the list. And if you are shopping now, compare insurers: some weigh credit far less heavily than others.
Way 7: Claim State-Specific Mitigation Credits
Some states fund programs that directly cut premiums for hardening your home:
- Florida wind mitigation: the My Safe Florida Home program reports average savings of over $900 per year, and a state study found 20–30% off the total premium with comprehensive wind protection. Inspections cost $75–150, and credits last 5 years.
- California wildfire: an IBHS Wildfire Prepared Home designation qualifies for premium discounts with participating insurers.
- Firewise communities: about 5% off in fire-prone areas, per Consumer Reports.
Ask your agent which mitigation credits exist in your state—these are the discounts most homeowners never hear about.
How much can you save with cheap homeowners insurance?
Add the tactics up, and the math gets exciting—but remember that discounts multiply, they do not add. Take 25% off for bundling and 25% off for a higher deductible on the $2,490 baseline:
$2,490 × 0.75 × 0.75 = $1,400.62 per year
That is $1,089.38 in annual savings—not the $1,245 you would get by adding the percentages. (Assumes the $2,490 NerdWallet baseline: $400,000 dwelling coverage, $1,000 deductible; real insurer stacking rules vary.)
Want to see your own number? Run your details through a home insurance calculator and test each scenario—deductible up, discounts on—before you call an agent.
What is the cheapest homeowners insurance company?
There is no single answer—the cheapest insurer varies by state, home, and personal profile. Get at least three quotes with identical coverage amounts and deductibles, then compare.
How much does bundling home and auto insurance save?
Typically 10–25%, and up to 40% off premiums, according to NerdWallet. At 25%, that is about $622 per year on the $2,490 national baseline.
Do smoke detectors lower home insurance?
Yes—about 6% on average ($149.40 on the baseline). Monitored burglar alarms earn around 8% and sprinkler systems about 10%.
Is it worth raising my deductible to $1,000?
For most people, yes: up to 25% in premium savings, per the Insurance Information Institute. Only do it if you keep the full $1,000 in emergency savings.
What discounts do first-time homebuyers get?
New-home discounts and new-customer or welcome discounts are common. Always ask the agent for the complete discount list—many are never offered unless you ask.
Can I get cheap homeowners insurance with bad credit?
It is harder but possible. Improving from poor to average credit can cut premiums by up to 59% (Quadrant Data), and some insurers weigh credit less heavily—so shop around.
Final Thoughts
Cheap homeowners insurance comes from stacking smart moves: bundle your policies, raise your deductible to what you can afford, install safety devices, stay claims-free, and shop every few years. Any two or three of these tactics can take hundreds off your annual premium—start with the one that fits your situation today.
Disclaimer: Discount percentages and dollar figures in this article are industry averages for education and budgeting only—not quotes. Actual savings vary by insurer, state, home, and personal profile. Confirm your price with a licensed insurance agent.