The Homeowners Insurance Discounts That Save You the Most, Ranked

Updated Nov. 30, 2021
Jack Caporal
By: Jack Caporal

Our Research Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.
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Homeowners insurance is among the most important financial products you can get -- and one that has plenty of discounts available.

The Ascent, a Motley Fool service, compiled data on a dozen homeowners insurance discounts to rank which provide the most savings.

We found that bundling home insurance with auto insurance provides the largest discount on home insurance, with an average savings of $377 dollars.

Roof upgrades, installing sprinklers, having a fire alarm, and having a burglar alarm also offer significant savings.

Keep reading for a full breakdown of the home insurance discounts that save you the most.

Key findings

  • The national average homeowners insurance premium is $1,725.
  • Nebraska has the highest average homeowners insurance premium at $4,043. Hawaii has the lowest at $392.
  • Bundling home and auto insurance provides the largest homeowners insurance discount and results in an average savings of $377.
  • Roof upgrades, sprinklers, a fire alarm, and a burglar alarm each provide savings of over 10% off the national average.
  • Some of the largest homeowners insurance discounts can be found in Oklahoma, Alabama, Kansas, and Mississippi, but those states have among the highest homeowners insurance premiums, as well.

Largest homeowners insurance discounts: bundling policies, roof upgrades, sprinklers, fire alarms, burglar alarms

Bundling home and auto insurance, upgrading to an impact-resistant roof, adding fire sprinklers, installing a fire alarm, and owning a burglar alarm offer the largest homeowners insurance discounts.

Bundling auto and homeowners insurance alone saves an average of $377 on homeowners insurance.

Upgrading your roof, while expensive, provides an average annual discount of $305 -- well worth the cost, especially if your home is in an area that experiences extreme weather.

Having fire sprinklers in your home reduces annual homeowners insurance premiums by $216, while a fire alarm provides an average discount of $200.

A burglar alarm provides an average discount of $185 in addition to peace of mind that comes with home security.

Considering that the national average annual homeowners insurance premium is $1,725, these discounts alone provide significant savings.

Homeowners insurance discount National average annual discount
Multi-policy auto bundle $377
Roof upgrade $305
Sprinklers $216
Fire alarm $200
Burglar alarm $185
Data source: Quadrant Information Services.

Homeowners insurance discounts ranked

Here’s a full list of average annual home insurance discounts available to consumers:

Bar graph of homeowners insurance discounts, with multi-policy auto bundle saving the most at $377.
Homeowners insurance discount National average annual  discount
Multi-policy auto bundle $377
Roof upgrade $305
Sprinklers $216
Fire alarm $200
Burglar alarm $185
Advance purchase $170
Full payment $168
Electrical upgrade $159
Heating upgrade $149
Plumbing upgrade $148
Electronic funds transfer $148
Smoke alarm $147
Fire extinguisher $143
Data source: Quadrant Information Services.

Homeowners in Oklahoma, Alabama, Kansas, and Mississippi receive the largest discounts

Homeowners insurance premiums vary by state. The largest discounts can be found in Oklahoma, Alabama, Kansas, and Mississippi.

Those states also have some of the highest average homeowners insurance rates.

Top five most expensive states for homeowners insurance

State Average annual homeowners insurance rate
Nebraska $4,043
Oklahoma $3,883
Mississippi $3,045
Kansas $3,012
Arkansas $2,983
Data source: Quadrant Information Services.

Average homeowners insurance rate by state

Choropleth map showing the average annual homeowners insurance rate and potential maximum discount by state.
State Average annual homeowners insurance rate Total average maximum discount*
Alabama $2,364 $4,220
Alaska $1,241 $1,847
Arizona $1,644 $2,483
Arkansas $2,983 $4,013
California $1,252 $1,600
Colorado $2,179 $2,889
Connecticut $1,287 $2,000
Delaware $826 $1,262
District of Columbia $989 $1,426
Florida $1,958 $2,554
Georgia $1,732 $2,766
Hawaii $392 $869
Idaho $1,056 $1,558
Illinois $1,869 $2,787
Indiana $1,837 $2,211
Iowa $1,713 $2,652
Kansas $3,012 $4,647
Kentucky $2,269 $3,667
Louisiana $2,643 $3,399
Maine $955 $1,783
Maryland $1,411 $1,759
Massachusetts $1,379 $1,961
Michigan $1,452 $2,139
Minnesota $1,636 $2,905
Mississippi $3,045 $4,251
Missouri $2,542 $3,786
Montana $2,547 $2,834
Nebraska $4,043 $4,752
Nevada $934 $1,447
New Hampshire $884 $1,503
New Jersey $822 $1,476
New Mexico $1,402 $2,077
New York $1,013 $1,590
North Carolina $1,640 $2,424
North Dakota $1,719 $2,029
Ohio $1,429 $2,086
Oklahoma $3,883 $4,814
Oregon $814 $1,300
Pennsylvania $1,047 $1,546
Rhode Island $1,214 $1,815
South Carolina $1,766 $2,718
South Dakota $2,403 $3,028
Tennessee $2,194 $3,424
Texas $2,646 $3,605
Utah $817 $1,263
Vermont $857 $1,321
Virgina $1,209 $1,992
Washington $1,009 $1,428
West Virginia $1,339 $2,077
Wisconsin $993 $1,425
Wyoming $1,314 $2,185
Data source: Quadrant Information Services. *Note: Total maximum discount is the sum of the average discounts for the 12 discounts highlighted in the previous section.

States that offer the largest homeowners insurance discounts, ranked

Here are the top five states that offer the largest homeowners insurance discounts broken down by specific discounts.

Burglar alarm discount

Adding security features like a burglar alarm can lead homeowners insurance lenders to offer significant discounts, often large enough to recoup the cost of installing a new home security system after a couple of years.

State Burglar alarm annual discount
Alabama $401
Oklahoma $400
Kansas $339
Louisiana $290
Mississippi $269
Data source: Quadrant Information Services.

Fire alarm discount

Fire alarms are considered by homeowners insurance lenders to be a home safety feature and can lead to savings on your policy.

State Fire alarm annual discount
Alabama $422
Oklahoma $413
Kansas $351
Mississippi $327
Louisiana $297
Data source: Quadrant Information Services.

Smoke alarm discount

Smoke alarms are another home safety feature that can score you a discount on your homeowners insurance.

State Smoke alarm annual discount
Kansas $279
Oklahoma $277
Alabama $246
Mississippi $242
Nebraska $231
Data source: Quadrant Information Services.

Fire extinguisher discount

Another home safety feature, having a fire extinguisher in your home can net you a discount.

State Fire extinguisher annual discount
Oklahoma $264
Kansas $263
Alabama $236
Mississippi $236
Nebraska $224
Data source: Quadrant Information Services.

Sprinkler discount

Homeowners insurance providers can offer significant savings for having sprinklers installed.

State Sprinklers annual discount
Alabama $464
Oklahoma $416
Louisiana $346
Mississippi $338
Florida $328
Data source: Quadrant Information Services.

Electrical upgrade discount

Upgrading electrical wiring can prevent fires, which homeowners insurance providers see as something worth offering a discount for.

State Electrical upgrade annual discount
Missouri $402
Minnesota $384
Kansas $305
Oklahoma $265
Alabama $245
Data source: Quadrant Information Services.

Heating upgrade discount

Similarly, upgrading your heating system can reduce the risk of fire, so homeowners insurance providers are willing to offer a discount if you make the investment.

State Heating upgrade annual discount
Kansas $288
Oklahoma $266
Alabama $240
Mississippi $240
Nebraska $226
Data source: Quadrant Information Services.

Plumbing upgrade discount

Overhauling your plumbing can make flooding in your home less likely, which homeowners insurance providers see discount worthy.

State Plumbing upgrade annual discount
Kansas $278
Oklahoma $270
Alabama $242
Mississippi $237
Nebraska $229
Data source: Quadrant Information Services.

Roof upgrade discount

Upgrading your roof so it can cope with extreme weather can net you a big homeowners insurance discount in some states.

State Roof upgrade annual discount
Nebraska $1,221
South Dakota $691
Kansas $671
Montana $663
Arkansas $628
Data source: Quadrant Information Services.

Full payment discount

Making your homeowners insurance payment in full instead of in discounts can result in a discount from some providers.

State Full payment annual discount
Kansas $317
Oklahoma $305
Nebraska $272
Arkansas $264
Alabama $263
Data source: Quadrant Information Services.

Electronic funds transfer discount

Paying for your homeowners insurance via an electronic funds transfer can also result in a discount.

State Electronic fund transfer annual discount
North Carolina $298
Kansas $284
Oklahoma $241
Mississippi $235
Nebraska $234
Data source: Quadrant Information Services.

Advance purchase discount

If you lock in a homeowners insurance policy in advance of when you need it activated, most lenders will provide a discount.

State Advance purchase annual discount
Oklahoma $345
Arkansas $290
Alabama $276
Mississippi $274
Kansas $262
Data source: Quadrant Information Services.

Multi-policy auto insurance bundle discount

Bundling your homeowners and auto insurance is attractive to many providers and will net you serious savings.

State Multi-policy auto insurance bundle annual discount
Oklahoma $871
Nebraska $813
Mississippi $757
Arkansas $718
Kansas $675
Data source: Quadrant Information Services.

How to save money on homeowners insurance by accruing discounts

Some homeowners insurance discounts are fairly easy to obtain if your provider offers them, like setting up electronic payments online or purchasing a fire extinguisher for your home.

Others are more expensive and time-consuming, like installing a new roof or overhauling your plumbing or electrical wiring.

Even if obtaining some discounts sounds daunting, remember that they’re usually a win-win proposition.

Preventing a home fire, flood from bad plumbing, or serious roof damage is worth the money and time. Those improvements can make your home more valuable and give you peace of mind. And over time the discount on your homeowners insurance can offset the cost of the improvement.

Homeowners insurance discounts can vary by provider, so don’t forget to shop around to save.

Sources

The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.