If you’ve recently peeked at your home insurance bill and done a double-take, you’re not alone. Across the country, premiums are climbing faster than ever. According to industry reports, rates rose by an average of 13% in 2024 — and in some states, they’ve jumped more than 20%! For many homeowners, the cost of protecting their biggest investment is starting to feel like a second mortgage.
What’s fueling these rising costs? A combination of factors: ongoing inflation driving up building material prices, a surge in severe weather events, and insurers pulling back on coverage in high-risk regions. In places like Florida, it’s not unusual to see homeowners shelling out $4,000 or more a year just for insurance. It’s enough to make anyone sweat — but don’t worry, there are ways to stay covered without draining your wallet.
At our agency, we keep a close eye on these shifts and help our customers navigate the market with confidence. Here are four practical, money-saving strategies you can put into action for 2025:
1. Bundle and Save — It’s a Classic for a Reason
One of the easiest ways to trim your premiums is to bundle your policies. If your home and auto insurance are with different providers, now’s the time to check what bundling them could save you. Some insurers offer discounts that could shave hundreds (or even more than $1,000!) off your annual costs.
For instance:
- Liberty Mutual suggests you could save up to $950.
- State Farm reports bundling discounts of up to $1,273.
- Progressive says their new customers save over 20% on average.
It’s worth a phone call to your provider — and if they can’t compete, we can help you shop around.
2. Ask About Hidden Discounts — Don’t Be Shy!
Insurance companies don’t always advertise their discounts upfront. But there’s often money on the table if you just ask! Some common discounts include:
- New roof credits
- Security system discounts
- Loyalty perks for long-term customers
- Military or retiree discounts
- Discounts for paying your premium in full
- Claim-free bonuses
- Discounts for “green” home upgrades
You might also score savings by belonging to professional organizations or alumni associations. And simple additions like a monitored security system or upgraded smoke detectors could get you an additional break on your premium.
3. Raise Your Deductible (Carefully!)
If you’re financially prepared, increasing your deductible can bring down your annual premium significantly. The Insurance Information Institute reports that raising your deductible from $500 to $1,000 could reduce your premium by up to 25%.
That said, don’t raise your deductible beyond what you could comfortably pay out of pocket in an emergency. If you bump it up to $2,500, you might save around $500 annually, but make sure you’ve got that money set aside.
Let’s say Sarah, a homeowner in Georgia, was paying $2,000 a year for her homeowners insurance with a $500 deductible. After speaking with her agent, she decided to increase her deductible to $1,000. The result? Her annual premium dropped by 20%, saving her $400 each year.
Feeling confident, Sarah considered raising her deductible to $2,500, which would’ve cut her premium by another $500 annually. But after reviewing her emergency savings, she realized that while $1,000 was easy for her to cover in a pinch, $2,500 would’ve been a financial stretch if disaster struck.
In the end, Sarah stuck with the $1,000 deductible—striking a smart balance between saving money on premiums and having peace of mind that she could cover her share of unexpected repairs without stress.
4. Keep Your Credit in Shape — It Matters More Than You Think
Did you know your credit score could influence your insurance premium? Insurers often use credit-based scoring to gauge risk. The higher your score, the lower your rates tend to be.
Work on improving your score by:
- Paying bills on time
- Keeping your credit utilization low
- Reviewing your credit report regularly for errors
- Avoiding rapid-fire applications for new credit lines
Apps like Quicken Simplifi can help track your spending, while services like myFICO and LifeLock keep an eye on your credit health and identity protection.
When Mark, a small business owner in St. Charles, noticed his commercial insurance premiums creeping higher year after year, he decided to meet with his agent at Alexander Agency to see what could be done. After reviewing his policies, his agent pointed out a surprising factor: his personal and business credit scores were playing a role in his rates.
At the time, Mark’s credit score had dipped due to a few late payments and high credit card utilization while expanding his business. His agent explained that many insurers use credit-based insurance scoring as part of their risk assessment, and even a modest improvement in his credit could lead to real savings.
Mark got to work — setting up automatic bill payments, paying down high balances, and reviewing his credit report for errors. He also started using Quicken Simplifi to stay on top of his spending and signed up for alerts through LifeLock to monitor his credit and protect against identity theft.
Within six months, Mark’s credit score improved by nearly 50 points. At renewal time, his agent re-ran quotes with his updated credit score and secured him a policy that saved him nearly $800 a year.
The takeaway? Sometimes, the best way to lower your insurance premium isn’t just adjusting coverage — it’s improving your financial habits behind the scenes.
The Bottom Line: Stay Proactive, Stay Protected
We always recommend shopping around and comparing quotes — even if you’ve been loyal to one company for years. Rates vary widely, and a little homework could pay off big time.
Tired of watching your insurance premiums climb year after year? You’re not alone — but you do have options. At Alexander Agency of St. Charles, we don’t just sell policies — we help you make smart, money-saving moves that protect your home, your family, and your wallet. From bundling and discounts to deductible adjustments and credit insights, we help you take control of your insurance costs without sacrificing coverage.
Don’t settle for overpriced, one-size-fits-all insurance. Call the Alexander Agency of St. Charles today — let us help you keep your roof tight, your budget light, and your peace of mind intact.