If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.
Increase your home insurance deductible
Most people don't like the idea of a higher home insurance deductible, but this is one of the easiest ways to lower your home insurance rate. Yes, you'll pay more out of pocket if you file a claim, but the lower payments may save you a lot in the long run.
Homeowners insurance protects your home — likely your most valuable asset — in case of damage from natural disasters and other events, such as theft or vandalism. In some situations, your homeowners insurance can drop you by canceling or nonrenewing your policy, leaving you without this important financial protection.
The 80% rule means that an insurer will only fully cover the cost of damage to a house if the owner has purchased insurance coverage equal to at least 80% of the house's total replacement value.
Climate change, inflation and industry woes have caused premiums to soar nationwide. Homeowners insurance rates rose dramatically between 2023 and 2024, according to a Bankrate analysis of rate data from Quadrant Information Services.
Oklahoma, Kansas, Nebraska, Florida, and Colorado are the most expensive states for homeowners insurance. Oklahoma has the highest average cost of homeowners insurance in the U.S. at $5,858 per year.
But just like myths in other industries -- be it health, fitness or credit scores -- it's just not true. Here's the myth: You can negotiate with your insurance company to get a lower rate.
In California's personal injury cases, the concept of 50/50 liability applies when both parties are equally responsible for an accident or incident. This shared responsibility is also referred to as equal fault or shared fault, and it falls under the broader category of comparative fault.
How much is homeowners insurance on a $500,000 house? A $500,000 home costs an average of $2,891 per year to insure. State Farm has the cheapest rates for $500,000 homes, at around $1,976 per year.
One big way to find out if you're being overcharged for your insurance is to look at what your policy covers. Your home insurance coverage will vary based on your location. But, if you have coverage for everything imaginable and there is a very low risk of it happening, this can drive your costs up.
Avoid any admissions of fault or liability when talking to your adjuster. Such statements can be used to shift blame, potentially decreasing the amount you might be compensated. Instead, focus on describing the damage and the events as they happened, without inserting personal opinions about who might be at fault.
Increase your deductible: Increasing the amount of your homeowners insurance deductible can help you lower your rate overall. Just know that if you make a claim, you'll be responsible for more out-of-pocket.
USAA and Auto-Owners are the cheapest home insurance companies on average, according to Bankrate's research.
We're one of the top 15 homeowners insurance carriers in the nation with an A+ rating from A.M. Best for all Progressive personal lines companies.
Homes in high-risk areas typically have higher premiums. Insurance companies assess the risk associated with your area by looking at the likelihood of severe weather, such as floods, wildfires, and hurricanes, local crime rates and your home's proximity to a fire station.
Car accidents and traffic violations are common explanations for an insurance rate increase, but other reasons why your car insurance rate can go up include changing your address, adding a new vehicle or driver, increases to claims in your ZIP code, and increases to car repair/replacement cost.
While State Farm does not have accident forgiveness, the company does offer other benefits to motorists. A State Farm car insurance review in 2024 drew attention to the company's: Competitive rates. Rideshare insurance options.
The 10% Rule Defined
The 10% rule is based on the premise that you should consider dropping your collision and comprehensive automobile insurance coverage when the cost of such coverage meets or exceeds 10% of the book value of the car.
There is no hard rule that dictates how often you can shop for and change your home insurance policy, but it's a good idea to start doing it once a year. This will help ensure that you pay the best price possible.
Homeowners insurance companies look at claims you previously have filed. If you had multiple losses, you'd likely pay a higher rate as you're more likely to file or incur another claim. Your homeowners insurance cost can also depend on the homeowners insurance coverages and homeowners insurance deductibles you select.
Although you can't negotiate your car insurance rate, you're not contractually obligated to stay with your insurance company. If you find a cheaper rate elsewhere, you can switch insurance providers. Depending on when you cancel and the fine print of your car insurance policy, you could incur fees.