Frustrated by higher insurance rates? You're not alone, as drivers and homeowners are once again paying more for insurance compared to the same time last year.
Homeowner Jim Hilbert said he can’t quite figure out why his home insurance premium went up double digits for the second year in a row.
"My rate last year went up about 25% on the homeowners, and then this year another 25%," Hilbert said. "About 53% I figured."
RELATED STORY | Doctors warn patients are delaying care over costs — even with insurance
He told us his income hasn't kept up with rising costs.
"(It is) taking a bigger percent of my income. My raise didn't go up that much," Hilbert said.
Watch a frustrated homeowner discuss coping with rising insurance rates:
In December 2025, household and renters’ insurance was up 8.2% compared to the previous year, while car insurance increased 2.8%, according to the latest government figures.
With help from Realtor.com senior economist Joel Berner and NerdWallet insurance expert Kaz Weida, we rounded up nine ways to save on insurance costs:
1. Reduce coverage on older vehicles
There are some cases where you may not need to pay for comprehensive coverage, like if you have an extra vehicle or an older vehicle you wouldn’t replace after a wreck.
RELATED STORY | The hidden risk in your insurance policy: Why state minimums may not save you
"If it were to get totaled, you might not be in a position where it makes sense to repair it," Weida said.
2. Consider usage-based or pay-per-mile insurance
This option works well for people who don't drive frequently.
3. Look into safe-driving discounts
"Where your driving is being monitored to see how safe you are, and then that might be reflected in your rate," Weida said.
4. Search for home policy discounts as well
Whether you’re staying with your current provider or making a switch, ask about discounts.
"There are discounts for all kinds of things, ranging from being in a STEM field to not smoking in your home," Berner said.
5. Ask for higher deductibles
This is a riskier way to lower monthly costs. Raise the amount you pay after a claim from $500, for example, to $1,000 on your car, or from $2,500 to $5,000 on your house.
"When you do file a claim, you'll have to pay more out of pocket, but your monthly premium will be a little bit lower since the insurance company isn’t covering as much," Berner said.
He only suggests this strategy if you know you could cover the cost of major damage.
6. Shop around for quotes
Don't settle for your current rate without comparing options from multiple insurers.
RELATED STORY | Extreme weather is driving up homeowners' insurance across the US
Popular sites for comparing rates include The Zebra, Insurify and NerdWallet.
7. Bundle policies
Combining home and auto insurance with the same company often results in discounts.
8. Talk to an agent about your insurance needs
An agent can help identify coverage you may not need or discounts you're missing.
9. Improve your credit score
A higher score indicates lower risk to insurers.
"That might take some time and some persistence, but you should see a little bit of difference in your rate," Weida said.
Hilbert said he asked his insurer to help, but didn't get far. Now, he's ready to switch if he finds cheaper coverage.
"Sometimes you can tweak it, but I am like I got to shop it," Hilbert said.
You too may be able to craft a lower rate with these strategies, so you don’t waste your money.
___________________________
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
________________________________
"Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
Follow John:
- Facebook: John Matarese Money
- Instagram: @johnmataresemoney
- X/Twitter: @JohnMatarese
For more consumer news and money saving advice, go to www.dontwasteyourmoney.com
