Being more proactive when shopping for quotes, bundling policies, and increasing deductibles are some of the tactics savvy Americans are using to combat today's rising insurance premiums. Some consumers are even committing to lifestyle changes to beat these soaring costs.
It's time you implement these tactics, too, considering most sectors are seeing significant price hikes, from health to car and home insurance premium costs.
A 2025 report from the Consumer Federation of America, for instance, found that homeowners' insurance premiums surged in 95% of ZIP codes in the U.S., from 2021 to 2024. The average increase was 24%, but consumers in one-third of ZIP codes saw a rise of over 30%.
By emulating financially savvy consumers, you're more likely to snag a lower insurance rate or have more affordable premiums while staying adequately insured.
Are Insurance Premiums What You Pay?Â
Yes. The term "insurance premiums" refers to the money you pay to your insurance company in exchange for keeping your policy active. Whether it's a homeowner's, healthcare, or car insurance premium, this payment covers the base cost for your coverage.
You must, for instance, pay your healthcare premiums even if you don't always use medical services. You need to do the same for your homeowners' policy, even if your house hasn't suffered damage from covered perils like fire or lightning.
Likewise, you must pay your car insurance premium as long as you drive your vehicle. You must do this whether or not you get involved in an incident, usually every month.
What Is the Average Premium per Policy?Â
Average insurance premiums vary widely based on factors like the specific type of insurance and the policyholder's location and personal risk factors. Data from Empower.com gives us a look into the average monthly insurance premiums for several coverage types in 2025:
- $1,506 a month for private health insurance for a couple with two children between 0 and 14 years old
- $271 a month for homeowners' insurance
- $150 for a dental insurance family plan
- About $46.50 a month for pet insurance ($60 for dogs, $32 for cats)
There's also a significant gap in the average auto insurance premiums consumers pay depending on the state they live in. Maryland appears to have the highest costs, while Vermont has the lowest.
Data from Experian shows full coverage costs as high as $352 a month ($4,224 a year) in Maryland, whereas in Vermont, it's as low as $108 per month ($1,299 a year). Nationwide, the average cost is $191 a month ($2,297 a year).
What Are Savvy Americans Doing About Today's Rising Insurance Premiums?Â
Rising premiums are forcing some Americans to forego insurance or drop some coverage, leaving them vulnerable to emergencies that could lead to financial ruin. Don't let this happen to you and your family; instead, consider implementing these financially savvy tactics.
Being More Proactive When Shopping Around and Comparing QuotesÂ
Shopping around and comparing insurance quotes from at least three to five highly recommended insurance companies is one of the best ways to save money, whether you're looking for a lower car insurance rate, a more affordable homeowners' policy, or a healthcare plan.
As the Insurance Information Institute (III) points out, the rates of similar policies can vary by hundreds of dollars. By spending some time on the internet, you could find the coverage you need for less than what you would have otherwise spent without shopping and comparing.
The internet has made it simpler to shop around and compare, too, thanks to platforms like InsuranceHub, giving you quick access to free insurance quotes from top carriers. Discover how they can help by having a look at their website to learn more about InsuranceHub.
Bundling PoliciesÂ
Another way savvy Americans are combating rising insurance premiums is by purchasing multiple policies from a single carrier to unlock bundling discounts, also called "multi-policy discounts." Insurers typically offer these money-saving programs to boost sales and customer loyalty while also reducing admin costs.
If you need homeowner's, auto, and life insurance, there's a high chance you can save a pretty penny by purchasing all three from the same provider.
Increasing DeductiblesÂ
Raise your insurance deductible, and your monthly or annual premiums will go down, as you're transferring more financial risk to yourself if you need to file a claim. Since your insurer will be "on the hook" for less money when you make a claim, they'll reduce your monthly or yearly premiums.
Making Lifestyle ChangesÂ
Not only can making positive lifestyle changes help you deal with rising insurance premiums, but it can also benefit your health and overall quality of life. Quitting smoking and transitioning from heavy drinking to moderate or occasional drinking, for instance, improves your risk profile.
The lower risk you pose to insurers, the more likely they are to give you better rates.
Frequently Asked Questions
What Factors Affect Insurance Premiums?Â
Factors that affect insurance premiums vary, but they all boil down to risk profiles. With car insurance, for instance, age is a primary determining factor. Younger and senior drivers often pay more than the typical adult.
As for health insurance, costs typically increase with age. Modifiable lifestyle factors, however, also play a role, including tobacco and alcohol use.
With homeowners' insurance, location is a big determinant, influencing the likelihood of future claims, such as damage due to covered perils like fire, lightning, windstorm, and hail. Age is another factor; "younger" homes are less likely to sustain damage soon, so they tend to cost less to insure.
Does Increasing Deductibles Benefit Every Policyowner?Â
No. Increasing deductibles isn't for everyone, as not everyone has the financial means to pay a significant amount toward deductibles if the time comes they need to file a claim.
However, this tactic could work well for you if you have a solid emergency fund (e.g., at least three months' worth of essential living expenses) and you only file insurance claims on rare occasions. It's a method worth implementing if your goal is to save money on insurance in the long term.
Get Adequate Yet Affordable InsuranceÂ
From being more proactive in shopping for quotes to bundling policies and raising deductibles, these are all tactics savvy Americans use to combat rising insurance premiums. Do the same, and you're more likely to secure affordable policies that provide adequate coverage.
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This article was prepared by an independent contributor and helps us continue to deliver quality news and information.
